Your real estate agent will be familiar with the market conditions, and knowing your personal motivation to sell, will guide you in the negotiations.
Generally, the buyer/buyer's agent will present an offer in the form of a written contract to your agent for you to consider. In most states, only written contracts for the purchase of real estate are enforceable, so you will want to get it in writting.
Your real estate agent plays a vital role at this stage in the process. He will comb the contract for every little detail. A misunderstanding (honest or otherwise), could end up costing you thousands of dollars or even tying your home up for months.
When you are presented with an offer from a buyer, you have three basic options:
Accept the offer
Make a counter offer
Here is some items that you should consider when deciding how to respond to an offer that is presented to you.
PRICE
DOWN PAYMENT
EARNEST MONEY DEPOSIT
IS THE BUYER PRE-APPROVED
IS THE INTEREST RATE THEY WANT AVAILABLE
CLOSING/POSSESSION DATES
PRORATIONS
LOAN DISCOUNT POINTS - WHO PAYS
CLOSING COSTS - WHO PAYS WHAT
APPRAISAL - WHO PAYS
HOME PROTECTION PLAN - WHO PAYS
INSPECTIONS - WHAT TYPE AND WHO PAYS
ITEMS INCLUDED (WASHER/DRYER, REFRIGERATOR, ETC.)
TITLE/ESCROW COMPANY/ATTORNEY
CONTINGENCIES - WHAT AND HOW LONG
Contingencies may seem like a minor issue, but they can be a major stumbling block. A contingency means that something else must happen in order for the deal to go through.
A purchase may be contingent on the buyer getting approved for financing, selling the home that they already own, getting a favorable inspection report, or any number of other things.
In many cases, you may make a counter offer which is then countered back with different terms. This can go on serveral times before an agreement is reached. Your agent may make suggestions as to what kind of counter would be reasonable, but It is always YOUR decision to make. You agent will present the offer you tell him to present.
Once you have a contract mutually agreed upon and signed by all parties and delivered to all parties, the contract is legally binding. |
