What Terms Your Realtor Can Negotiate for You as a Seller
Selling a home involves far more than just agreeing on a price. Once you receive an offer, your realtor becomes your lead negotiator, working to secure the most favorable terms for you. While the final price is often the most significant factor, a skilled agent can negotiate a variety of other terms that can save you money, time, and stress.
1. The Sale Price
This is the most obvious and often most critical term to negotiate. Your agent will analyze the buyer's offer in the context of your home’s value, current Houston market conditions, and the buyer’s financing. They will advise you on whether to accept the offer outright, reject it, or issue a counteroffer. A great agent will leverage their knowledge of local comps and market trends to justify your price and push back against lowball offers, aiming to get you the highest possible return.
2. Closing Costs and Concessions
Closing costs are the fees associated with the transfer of the property, and they are always negotiable. While it’s customary in Texas for the seller to pay for the title policy, buyers may also ask for a credit to cover some of their costs, such as lender fees, appraisal costs, or inspection fees. Your agent will help you evaluate these requests and determine if it's a worthwhile concession to secure a strong offer. Sometimes, offering a credit is more strategic than lowering the sale price, as it may be more valuable to the buyer without significantly impacting your net profit.
3. Repairs and Credits
The home inspection is a common point of negotiation. After the inspection, a buyer may request that you make repairs or provide a credit to cover the cost of potential issues. Your agent will help you assess the buyer's requests. They will advise you on what is reasonable to fix and what is not, or suggest offering a credit instead of doing the work yourself. This can simplify the process, especially if you have a tight timeline, and can prevent the deal from falling through over minor issues.
4. Contingencies
Contingencies are clauses that must be met for the contract to be binding. Common contingencies include:
Appraisal Contingency: Protects the buyer if the home appraises for less than the offer price.
Financing Contingency: Allows the buyer to walk away if they can't secure a loan.
Home Inspection Contingency: Gives the buyer the right to request repairs or cancel the contract based on the inspection.
Your agent can negotiate to shorten the contingency periods, reducing the amount of time you are "under contract" but not yet sold. In a competitive market, they can even negotiate to have a buyer waive certain contingencies, which makes your offer more attractive and reduces the risk of the deal falling through.
5. Closing and Possession Dates
The timing of the sale is another key term your agent can negotiate. For a seller, a faster close might be ideal if you need to move quickly, while a longer closing period might be better if you need time to find a new home. Your agent can negotiate a closing date that aligns with your personal timeline. They can also negotiate a temporary lease-back agreement, where you sell the home to the buyer but rent it from them for a specified period, allowing you to move out on your own terms.
6. Personal Property
The list of items included in the sale—such as appliances, light fixtures, or window treatments—is also a negotiable term. If a buyer wants to include an item you wish to keep, your agent will negotiate to either exclude it from the sale or to have the buyer pay an additional price for it. Conversely, if you want to leave an item behind, your agent can negotiate for the buyer to accept it as part of the deal.
Your real estate agent's negotiation skills are about more than just a number; they are about protecting your interests and ensuring a smooth and successful transaction. By understanding and negotiating these key terms, your agent can help you achieve your goals and sell your home with confidence.