There are times to stick to your guns and there are times to make some compromises. Knowing when to do what is the tricky part! Whether you are the buyer or the seller, the desired goal for everyone is to make the deal come together and close.

As a buyer, you have spent countless time looking at a variety of properties and have now found the property which comes the closest to meeting your needs. You have made the effort to get pre-approved with a mortgage company so that you can be ready when the time is right. You have sat down with your agent and gone over the comparables in the area to determine if the list price is a fair one, and solidified on paper the terms you are willing to buy the property. You know that this is the property you want, and frankly, you're tired.

As a seller, you have interviewed a few agents and have chosen the one you feel you can work with in personality and who will provide you with the right marketing, time, communication and expertise. You have spruced up the home applying the fine touches you have been meaning to get to for the past few years but never got around to. You have opened your doors to a multitude of visitors at all different hours, day after day after day, interrupting your life and lifestyle with the constant cleaning, straightening and necessary dinner interruptions. Finally, an offer on the home arrives and you know, it is about time because frankly, you're tired.

Well, the time is here! The second part of the emotional roller coaster has now begun. The seller reviews the offer and feels that overall, the terms are tolerable with the exception of the price. The seller's agent calls the buyer's agent and conveys the terms of their counteroffer. The buyer discusses the seller's counter and determines that with a little bit less in price, the buyer would still be willing to buy. The buyer's agent conveys the terms of this counter with the seller's agent. The seller agrees to accept. Everyone signs the documents and initials the changes of the final agreement. Once the last person has signed (typically the seller), the contract gets dated and it is this date at which time the clock begins to tick.

The buyer orders a variety of inspections to be performed on the home and the buyer's lender orders the appraisal which will verify that the home is priced right according to the terms of the agreement. The inspection is performed and reveals a number of issues, many relatively small and a few which could be considered major or costly. During a specified allotted time, the buyer can choose to renegotiate the terms or terminate the contract, for any reason (this is called the option period). The buyer chooses to try to renegotiate the contract by asking the seller to perform some repairs which were revealed during inspections. A seller can agree to perform the changes requested, agree to perform some of the changes requested and refuse other requests, agree to contribute a certain dollar amount towards the buyer's closing costs and prepaids in lieu of performing any repairs, or the seller can choose not to perform any of the changes at all.

It is at this moment when you have to think hard on what is truly important to you. From the buyer's perspective, is the home worth losing if the seller does not agree to your terms? Are these items so major as to make you agreeable to begin the process looking for a home all over again? Is the money you have already put into this particular home with inspections, appraisal fee, time and emotion worth giving up? If you decide to start over, you don't know if you'll ever find another home which comes this close to meeting your needs for this price and in this neighborhood, and where the interest rate is going to be when you do find another home worth considering. From the seller's perspective, is your bottom line so tight that you can afford to lose this buyer and start the whole selling process over again? Are you willing to risk waiting for the next buyer whose requests may not be as reasonable and/or whose financing may not be as strong? Are you willing to pay more mortgage payments, taxes, insurance and interest while waiting for the next buyer, especially since you have no guarantee as to how long that next buyer may take to find your home and make an offer? Would this money difference in repairs or additional compromises make up for or at least even out the time and money lost of starting over again?

These are difficult but very real decisions you have to face. There are no guarantees on what you will find or how long it will take you to find it. There are no guarantees on how long it will take and how flexible the next buyer will be. Even though the terms are not ideal, you must ask yourself if the terms are tolerable enough to reach your ultimate goal. Only you can decide your tolerance for risk. Consider your situation in whole before walking away so that you have no regrets, no matter what your choice. Good luck!

PLEASE NOTE: This information is not intended to be legal advice. Your licensed real estate agent cannot give you legal advice. If you have any questions about your legal rights or obligations, you should consult with an attorney.