Negotiating Real Estate Questions and Answers

This series of questions and answers will hopefully give you information to aid when negotiating a either with a homeowner or for foreclosed or bank owned home in Las Vegas. This may answer some of your questions about the process of buying a foreclosed or bank owned homes in Las Vegas.

One of the services that Michael Ray offers is daily detailed listings of Las Vegas homes. Just email your custom search requestor call (702) 501-1508. Since many home buyers today begin their Las Vegas home seach online, you will find detailed listings of the current Las Vegas real estate market on this site.

Question: Is a low offer the way to start negotiating a home purchase in a buyer's market?

Answer: One of the first steps to start is to know the Las Vegas real estate market for that type of home and in that area of Las Vegas. Sit down with your Las Vegas real estate agent and go over what you are looking for in a home and do the homework on the location you are interested in. Sometimes a particular school can make the homes in one area of Las Vegas more valuable than homes a few blocks away.

Perhaps you have seen a Las Vegas foreclosure home offered at $100,000 less than what it had sold for two years ago. While you might hope the bank is hungry enough that they would take an offer of half the current asking price, don't count on it. You will be wasting your time with such an offer. Worse yet, the home buyer who put in a more realistic purchase offer will get the home you wanted.

Your real estate agent can help you find out what comparable houses in that area of the Las Vegas real estate market have recently sold for. Of course it is only natural to try to get an offer accepted at the lowest amount possible. Your Las Vegas real estate agent can guide you to putting in a realistic offer that would be close enough to bring a response of a counter offer rather than a flat rejection.

Question: What is a good way to find the value of Las Vegas real estate?

Answer:Your real estate agent can get research comps or comparative Las Vegas real estate sales that are based on homes recently sold that are similar to the home you are considering making an offer to purchase. While this is an informal market value, this research analysis of the comparative Las Vegas market will get you in the ballpark of the home's value.

An appraisal is more indepth and is done by a certified appraiser giving his opinion of the worth of a home at the time. Mortgage lenders require an appraisal as part of the loan process. The appraisal fee can be from around $200 and up and who pays for the appraisal can be part of your purchase offer.

Question: What are some common contingencies that could be put in an offer?

Answer: Two of the most common contingencies are a financing contingency, such as the offer depending on the buyer being able to obtain a mortgage loan at at particular percentage rate, and an inspection contingency, which the offer depends if the buyers still wish to proceed after completion of a professional inspection.

Other contingencies such as who pays for the appraisal, inspections, home warranties, if the buyers current home sells or if the seller agrees to pay for certain repairs are also possible and can be made part of the offer. Usually the buyer will be paying his closing costs of recording fees, escrow costs, one year premium of hazard insurance prepaid, property tax and title nsurance. In a buyers market, you can ask that the seller pay closing costs.

Remember that if a buyer puts too many contingencies in an offer it may be rejected. On the plus side, you may get a counter offer that is without all the contingencies you asked for. It is part of the negotiation process. It is important to understand that you will most likely not get everything you ask for. Not happy with the counter offer you got? Then send back a counter with the contingencies most important to you.

An offer is given with a certain amount of money down, usually called earnest money. A purchase agreement offer is a contract and if the buyer backs out for a reason not allowed in the contract, then the buyer risks losing the earnest money. Your offer should have all the sellers responibilies laid out and made binding, such as the seller keeping the property in its current condition until closing, making the agreed repairs and paying all taxes until closing to name a few of the possibilities.

Question: Can we renegotiate after the Home Inspection?

Answer: If something was plainly apparent when you first walked the home then don't ask for price reduction based on what was there from the beginning, say old carpeting for example. But if the home inspection revealed an issue that was unexpected, then yes you could negotiate a reduction in the sale price or a credit towards closing cost.

Can we make a clause for a short acceptance period?

Answer: Some offers have an acceptance period of only 24 hours to a few days after which the offer becomes null and void.

Feel free to ask us any questions and get the answers you need. Michael Ray is an experienced Las Vegas Real Estate Agent you can call today at (702) 501-1508.

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