The Negotiations Game
I submitted an offer to a seller and they finally gave a counter (finally meaning they are listed with home discovery and it seems very incompetent over there....they rejected an offer without even presenting it to an owner and do not get their offers until after the deadline expires etc).
In their counter they took out one of my terms...my term pretty much says if the seller backs out for any reason they are to reimburse the buyer for any costs incured including but not limited to appraisal, inspection etc.
To me this is pretty important. How can I express this in different terms or is there something in the contract already stating this? We are using the FARBAR contract.
Thank you for any and all help.
I must admit that I don't know what a FARBAR contract is, but as far as I'm concerned, the seller should be able to back out of the deal only if the buyer isn't able to get financing in time period specified in the contract. Otherwise, only the buyer should be able to pull out, in case of unacceptable inspection, lack of financing, or the ever famous "lawyer approval". Rather than trying to force this reimbursement condition back into the offer, I'd look to eliminate any clause that allows the owner to pull out for any reason other than you being unable to purchase the property.
Good luck.
Not familiar with the FL contract, but in PA the contract provides that if seller cannot convey clear title, then buyer is to be "made whole" for expenses such as the ones you mentioned. But this provision is if seller can't convey -- not where seller refuses to convey title.
You're right -- this is an important provision. Raises a red flag: is seller thinking about signing a deal and then backing out? I would ask what the objection is to this provision.
The most important thing to remember in negotiations is not to get caught up in making concessions. You always have to keep your bottom line in the picture.
If they can't work with that then it's the wrong deal for you. Now the tricky part is finding ways to keep your bottom line in the picture while still conceding points.
The easiest one example. You're buying a new car and you have a bottom line price in mind. Dealer can't or won't go down that low. Ok, what about if they throw in a free option - will that raise your bottom line enough? Or if they give you great financing (lower APR loan for example) would that make the numbers work? There are many more options here. The more knowledable you are the easier it'll be to think up of options. I guess that's why we call it "creative" investing
A real estate agent has to present ALL offers to his/her client. It's up to the client to reject an offer, not the real estate agent. I'd start raising hell if they rejected your offer outright without their client's input..