You’ve worked hard to get your home ready for sale and to price it properly. Your Real Estate Agent has marketed the property to the world, done some Open Houses, and let other Real Estate Brokers know about the property.
All these efforts will hopefully bring offers to your door as quickly as possible. You and your Agent will need to review each carefully to determine its strengths and drawbacks and pick one to accept.
Here are steps to consider in evaluating these offers:
1. There is a process:
You will receive offers where you are told that this is their firm offer with no negotiation. However, all offers are negotiable, as your agent will tell you. When you receive an offer, you can accept it, reject it, or send a counteroffer which is asking that terms be modified.
2. What is Important to you?:
Decide in advance what terms are most important to you. Is it the price, then you may need to be flexible on your closing date, inspections and whether it is sold through financing or cash.
3. Multiple Offers:
When receiving multiple offers, it is important to work with your agent to establish a time frame during which buyers must re-submit offers. That gives your agent time plan a review of the offers with you to see which is the best for your needs.
4. Don’t take it personally:
Selling your home can be emotional for all parties involved. But it’s simply a business transaction, and you should treat it that way. If your agent tells you a buyer stated that the bathrooms are dated or the kitchen appliances are old in order to make their low offer, don’t be offended. Consider it a sign the buyer is interested and that this is all part of the negotiating tactic. You must in turn negotiate your terms.
5. Evaluate all Terms:
It is important to carefully evaluate all the terms of each offer. Price is important, but so are all the other terms.
What are the inspection clause terms? Are they purchasing “As-Is” with right to inspect or are you required to make any repairs to the property?
Is the amount of earnest money the buyer proposes to deposit toward the down payment sufficient? The higher the escrow deposit, the more serious the buyer is in making a deal that works for both parties.
Have the buyers attached a prequalification or pre-approval letter, which means they’ve already been approved for financing? Does the offer include financing or other contingency? If so, the buyers can walk away from the deal if they can’t get a mortgage, and they’ll take their earnest money back, too. Are you comfortable with that condition of sale?
Is the buyer asking you to make concessions, like covering some closing costs, which are common in FHA Loans? Are you willing, and can you afford to do that?
Does the buyer’s proposed closing date work with your plans of moving?
With each term of the contract, you need to ask yourself: Is this a deal breaker, or can I agree to these terms in order to close on the sale of the property?
6. Be Flexible and Creative:
If you’ve received an unacceptable offer through your agent, see if you can determine what’s most important to the buyer and possibly meet their needs. The buyer may have a limited time frame and needs to move quickly. That may allow you to stand firm on your price but offer quick closing date.
The key to successfully negotiating the sale is to stay flexible!
If you would like more information on negotiating the sale of your home or any other real estate questions, please feel free to contact me.
Azure Realty Services