Let Go of a Few Contingencies — With Care
Want to give your counteroffer an even bigger boost? Reduce the number of contingencies you’re asking for. It’s your way of saying, “Hey, look, I have fewer ways to back out,” which gives the seller more reassurance that the deal will close. But be selective: Some contingencies are too important to give up. A home-inspection contingency — the right to have a home inspection and request repairs — gives you an out if you spot major problems with the home (and protects you from buying a total money pit). You might waive a termite inspection if you’re in a state where the risk is lower. But ultimately, waiving contingencies depends on your market, your loan program requirements, your risk tolerance, and the circumstances of the house in question. And if you waive contingencies and then you find a problem, the seller isn’t responsible for fixing it.- Pick up the Cost of the Home Warranty Yourself A home warranty is sometimes offered by a seller. A home warranty covers the repair of larger home appliances, such as the air conditioner or hot water heater, if they malfunction within a certain time period – usually a year – after purchasing the home. According to Angie’s List, a home warranty can cost $300 to $600, which is minimal in comparison to the cost of repairing one of these larger appliances. If waiving the home warranty seems to make negotiations easier, offer to pay for it yourself so that the seller does not have to cover the cost. You should know, however, that regardless of who purchases the warranty, you will be responsible for paying the service fee, usually between $50 and $100, if something needs to be repaired while under warranty. To clarify, a home warranty is different and separate from homeowners insurance. Homeowners insurance covers your home’s structure and possessions in case of a fire, storm, flood, or other accident; and it is required if you take out a mortgage to buy your home. This insurance usually costs between $300 to $1,000 per year, which is a small price to pay for peace of mind.
- Let go of the Concessions When buying a home, home buyers must pay many additional fees, such as closing costs for taxes, lender’s fees, and title company fees. Though these fees can vary depending on the home’s location, you can expect to pay between 3% and 4% of the home’s sales price, and the seller pays an additional 1% to 3%. Our site has a closing cost calculator that you can use to estimate what you can expect to pay in closing costs. Upon your initial offer, the buyer has the opportunity to ask for concessions from the seller. This can include a cash settlement to help cover some of your share of the closing costs. While this can be a good option, it may be less feasible if you’re going up against multiple offers. Concessions will ultimately lower the amount of money the seller makes in the deal, so you may receive a counteroffer that removes the concessions. It may be wise to let go of the concessions because this puts cash back in the seller’s pocket and can also improve your bid.
2 beds, 2 full baths
Home size: 800
Added: 01/09/20, Last Updated: 01/09/2020
Property Type: Townhouse for Sale
MLS Number: VAAX242444
Subdivision: Jefferson Homes
Properties in 22314 $590,000 to $690,000
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