In Arizona negotiations can be wildly different than other states or other industries. While all negotiations are unique, here are a few pointers to keep in mind.
- On average, home owners do not accept offers more than 3% below the current list price. This is because the Seller is paying an additional 7% in selling fees on top of the deal that is agreed upon.
- All negotiations need to be put in writing in order to be valid
- Negotiations should not go more than 4 rounds. That’s one original offer and 3 counter offers. After that point, the Seller will start getting annoyed and become less willing to sell the home.
- Negotiations need to be quick. The longer negotiations drag out, the more likely someone else will step in with a stronger offer
- Once the home is under contract, there are no additional opportunities to renegotiate the price unless the home does not appraise.
Got Questions? Just Ask!
Once you get a home under contract, you’ll do your inspections and decide what repairs to ask for, if any need to be made.
Some buyers think this is a time to “renegotiate the price”. This is wrong and its written into the contract that only “repairs” can be requested. In some instances Sellers offer a closing cost credit in lieu of doing the repairs, often this is the preferred route to go.
When you are choosing what repairs to ask for, keep in mind there are only 3 steps in this process:
- Buyer asks for the Seller to make repairs
- Seller responds and agrees to fix: all, none or some of the items
- Buyer can “accept” the Seller’s response or “cancel” the contract… that’s it, nothing else!
Be careful when you are asking for repairs and focus on asking for the big ticket items that are a safety hazard or a deal breaker for you. Home buyers that ask for countless repairs are perceived as being excessively difficult and ungrateful. As a result Sellers will often refuse to do any repairs to make a point. Then the buyer loses out.
Final thought, when you’re asking for repairs, put yourself in the Seller’s shoes. Would you find your list of repairs reasonable?
Happy Home Hunting from the Team!