Chicago Real Estate Lawyers

Successful Real Estate Closing

Successfully negotiating a real estate deal can be a tricky process. There are many points you will need to remember during negotiations. Both the buyers and sellers try to negotiate good prices for themselves, and that can lead to some conflict. Buyers also have to pay closing costs for their mortgage, in the form of money kept in escrow by the mortgage lender for items like taxes and insurance. Sometimes, buyers ask sellers to make concessions on their behalf, which means the asking price is going to get raised. Sellers can negotiate the closing date for the deal, which will affect the buyer’s cash flow after home ownership is shifted to the buyer.

When buyers close a deal on a house, they are exempt from paying the mortgage for the next month. Many transactions are done with cash, which means sellers don’t tie up their property for one to three months. This becomes a necessity when there is a financial contingency in place. If a buyer is competing with cash offers, it needs to be considered whether the financial contingency may be dropped. This means the closing time line gets shortened. If the mortgage is fully approved before the offer is made, the contingency can be dropped. It would be a good idea to offer a home warranty on such a house.

This protection plan covers every part of the home’s appliance system, from air-conditioning to the heater. If a seller needs to have more time to fully move into a new home, the buyer can offer a zero-cost rent-back between one to three months to help entice the seller and seal the deal. If a part of the house needs to undergo extensive repairs, it allows for a great deal of room to negotiate for the buyer. He can ask for a power price for the house since there will be additional costs of repair and renovation before the house is fit to live in.

The seller can ask the buyer to waive the appraisal contingency if the buyer is getting a mortgage. Furniture property can be offered as part of the house. This becomes a matter of a trade-off and leads to further negotiations to leave every party satisfied. Built-in appliances are usually offered as part of the property, but the same need not apply to movable appliances. These can be additionally offered to buyers as a way to sweeten the deal. Finally, it is up to the seller and the buyer to negotiate a co-op buildings assessment of common areas which might lead to changes in the asking price for the property.