In any real estate transaction, both the buyers and sellers perform their duties well: buyer asking and seller trying to push back. The negotiation typically goes by the sellers demanding the highest possible price, while the buyer emphasizing on availing the best deal. The negotiation is best solved by coming to terms on a win-win situation. So there are some important considerations to be taken into account before finalizing a deal. Let’s examine the important things in property prices both the parties need to know before closing a real estate transaction in Destin Florida.
Obviously being the simplest and most important one, both the parties try to get the best deal for themselves. The point to understand is the property price has different meanings for both. The seller wants the maximum price while the buyer wants the least—usually the negotiation ends up somewhere in the middle.
Buyers avoid overpaying as it could seriously affect their chances of getting a nice value from resale of the property in future. While the sellers wish to stay as close to their financial plan as possible.
2. Closing Costs
Buyer has to bear the prepaid closing costs associated with the property—money that the lender holds in escrow, for items such as insurance, taxes, etc. The buyer may sometimes ask the seller to pay a flat amount for the closing costs, or a defined percentage as a contribution for the lender.
3. Closing Date
Sellers can decide and inform the buyer when they need their capital out of the home. The closing dates largely affect the monthly cash flow of the buyer once they have acquired the home. For instance, if a buyer closes the deal, they can skip the next month’s mortgage payment. This can happen if they want to close at the beginning of the month so they decided to skip the next month.
4. Financing Contingencies
A financing contingency allows the buyer enough time to apply for and acquire a loan to purchase the property. This is a very important protection tool for buyer who can back out of the agreement in case he is unable to secure the loan from a bank or any hard money lender. The contingency decides the number of days within which the buyer has to obtain the loan. Till the arrival of the date, the buyer can dissolve the contract or request for an extension (however, the extension must be mutually agreed with the seller in written).