Price or Terms, or ?

When you are submitting an offer in Real Estate, the conventional adage says that you can negotiate for either price or terms, and this largely holds true when you consider what sellers want, which is of course the best combination of the highest price possible at the best possible terms.

Taken to an extreme, if you are a seller considering two offers side by side, and one is an all-cash buyer who is willing to close quickly with little to no conditions, chances are you’d be willing forego a few dollars on the selling price in return for the assurance of a shorter timeframe with fewer moving parts for things that could go wrong with the sale.

Then again, if the competing buyer is willing to pay you substantially more money for the same property in return for allowing a longer timeframe with more conditions, you probably want to drill into the terms of those conditions before turning your back on what is arguably more of a sure thing. 

There are a myriad of incentives that buyers might offer a Seller to consider their offer over a cleaner competing deal, which can range from non-refundable deposits (which may be limited by law to actual damages suffered if the home is being purchased as a primary residence), to free leaseback of the property for a set period after closing, to waiving the appraisal contingency and providing proof of financial capacity to make up the difference if the property comes up short. 

First impressions count as well, with a well-written contract and an acknowledged up-front awareness of any existing or potential property issues, along with a demonstrated level of experience and qualifications for handling any challenges posed by the property, can also favorably differentiate one buyer over the rest. 

But beyond the standard terms most think of when preparing their offer is to possess a sensitivity to the specific needs or preferences of the seller, which in some cases may run deeper than a cursory look would reveal. These can include cases of financial duress that might be alleviated in the short run by structuring in some sort of temporary payment assistance until closing.  Or where they might benefit from a tax advantage by offering a longer transaction to help ensure they qualify for an applicable statutory timeline.

And while anti-discrimination and fair housing laws must of course be adhered to, the personalities and reputations of different agents and prospective buyers vying for a property sometimes precede them and may be factored in by the seller or their agent based on first- or second-hand knowledge of the buyer’s history beyond the immediate context of the transaction in such a way that influences their decision.

The final selection may come down to a few narrow nuances, so it generally pays to start with careful research and preparation, followed by a positive connection and proactive communication to help ensure your offer shines above the rest, without giving away more than you need to prevail.