Negotiating The Deal

When a home is purchased or sold, the negotiation process is usually one of the most challenging parts of the transaction. In order for the purchaser and seller to come to an agreement, they must agree on a purchase price and conditions.

What Happens During Negotiations

When an individual is interested in purchasing a home, they make an offer on the home or condominium. The seller can either accept, reject or make a counter offer. A seller who wants to sell his or her home may list their home for a fixed price. The purchaser interested in the home can either agree to the price or make a counter offer.

The parties also have to come to an agreement about conditions on which the transaction hinges. Conditions are terms which are agreed upon by the seller and buyer and which must be fulfilled by the parties to finalize the sale. One important condition that is present in the agreement is the financing condition. This is a condition that gives purchasers a fixed time period to confirm that they have been approved for a mortgage.

If the parties cannot come to an agreement, the negotiation process may continue for a while with offers and counter-offers until the parties either agree or the negotiations fail.

Should I Accept Or Reject The Offer?

In the end, whether you accept or reject the offer depends on your priorities. You know your finances and need to determine how much you are willing to spend or accept for the home. It's important to ask yourself some important questions about the offer, such as:

  • What is the price range at which I am willing to sell or buy?
  • What conditions must be present in the agreement to protect me?
  • What are the comparable home prices in the area?

At the same time, if you really want to close the deal on a home, you have to be careful when negotiating. Balancing competing interests, yours and the buyer's or seller's, is a very delicate process. It is important to understand where you can compromise with the other side. At the same time, be aware what the deal-breakers are. If you are uneasy about conducting negotiations on your own, we can refer you to a Realtor.

Have Questions About The Negotiation Process? Call Us For A Free Consultation

Pat Filice is the principal lawyer at Ancaster, Ontario firm Filice Law. He can answer your questions about your real estate transaction. Call him today at 905-581-2266 or email him.