Buying property is both exciting and stressful. Having a detailed purchase agreement can take a lot of the uncertainty out of the equation but negotiating that purchase agreement with the seller may not be as straightforward as you might think. Remember, the seller always wants to feel like they’re getting the most money possible for their property. This means you’ll need to negotiate with them to be successful. Here are a few proven tips from your Minnesota real estate attorney to help you negotiate an effective purchase agreement.
Do Your Due Diligence
Before you craft your initial purchase agreement and prepare for negotiations, make sure to conduct your due diligence. Research the property in detail, checking for liens, known repairs, and other similar concerns. The better you understand the property, the easier it will be to create a purchase agreement that appeals to the seller while still protecting your best interests. Much of the due diligence process can be done on your own, but it’s easier to let an experienced real estate attorney handle the research process for you.
Work With a Minnesota Real Estate Attorney
Using a standard purchase agreement that you find online may seem like a cheap option, but it can cost you in the long run. Those contracts are general contracts designed to apply to many different properties. This means they could lack terms and conditions that will protect your interests with the property you’re considering.
Instead, work with a Minnesota real estate attorney. They’ll create a purchase agreement that fits your needs and is tailored to the property you’re trying to buy.
Be Ready to Wait
Negotiating with the seller isn’t something you can do overnight. They need time to review the terms of the agreement and come up with their own counteroffer if they disagree with the terms. This can take a few days to several weeks depending on the scope of the purchase and the terms you agree to.
Do your best to be patient. Let your attorney or your real estate agent follow up with the seller and keep you updated on progress. This can signal to the seller that you’re respectful of the process and may earn you some goodwill during negotiations.
Use Concessions Strategically
It’s tempting to offer concessions quickly to close the sale, but try not to. Instead, use those concessions in a strategic way. Offer simple concessions in the initial purchase agreement and see if the seller will accept them. If not, you can then offer additional concessions that you were comfortable with from the beginning. This shows the seller that you’re open to negotiation and are serious about purchasing their property. But it also lets you hold your cards close to avoid appearing desperate.
Keep Your Emotions in Check
Negotiations can be emotional, especially if you’ve fallen in love with a property and know it’s perfect for your needs. Do what you can to appear interested, but not overly so. If the seller responds with their own terms for the sale, don’t become visually angry or flustered. Let your Minnesota real estate attorney represent you and keep your cool throughout the process. This creates an air of professionalism and can help negotiations go more smoothly.
Let a Minnesota Real Estate Attorney Help
The best way to negotiate an effective real estate purchase agreement is to have all the right tools at your disposal. By working with an experienced real estate attorney, you’ll have access to a legal professional who can advise you every step of the way and who can take the stress out of the negotiation process. If you’re ready to buy a property but want help with the purchase agreement, don’t wait. Contact Waypoint Law to schedule a free consultation.