A purchase offer should state the offer amount, their mortgage amount, contingencies, closing and occupancy dates. You can accept or negotiate for different terms which is where an agent's expertise is beneficial.
• Consider all offers
• Cooperate with service providers
• Remove contingencies
• Clear title & escrow
In real estate, negotiation happens through counteroffers. After a buyer submits an offer, you can accept, decline, or, as should happen in most cases, respond with your counteroffer. The best way to make sure you get what you need is to know what you need first. List out your must-haves, nice-to-haves, and not-that-important-to-haves. This will make it easier to know when to stand firm and when to compromise. Beyond that, be willing to make concessions on points that aren’t as important to you. The goal is to meet a buyer in the middle so both of you walk away happy.
Your eyes will probably fixate on the dollar amount being offered first. This is typically the number that both buyers and sellers are most concerned with. However, it’s not necessarily the most important. As a seller, the most important number is your net gain from the deal. Whether it’s through closing costs, taxes or any other expense, a buyer can make a more profitable offer than another buyer even if the price comes in lower. So, pay close attention to what a buyer is offering to pay for before you come to any conclusions.
There are plenty of factors to consider beyond price. If you need to move out right away or need some time to find your new home, being able to set the closing date is a big benefit. This is something you can determine through the occupancy portion of a contract. You’ll also want to pay close attention to any contingencies included. A buyer’s offer could be contingent on them selling their current home, getting financing, being able to move in within a certain amount of time and getting an inspection. There more contingencies an offer has, the less dependable it is.
Once you and the buyer have agreed upon an offer, you will both sign a legal contract called a Purchase and Sale Agreement. This outlines the specific terms, conditions, and contingencies of the home sale. In most cases, accepting an offer and signing a purchase agreement is a huge relief. It signals the end of the prepping, marketing and negotiating phases. Just as soon as all those tasks end, another list of to-dos begins.
Next, the buyer will hire an inspector to ensure that no major repairs will be needed after they buy the house. The inspector will go through every inch of the house, paying attention to the roof, basement, heating and cooling systems, structure, plumbing, and electrical. If the inspector finds any needed repairs, the buyer can negotiate for the costs of the repairs. You don't ordinarily have to accept a buyer's request to make repairs, but they can cancel the contract if you don't.
Whether you’re buying a home, refinancing your existing mortgage, or selling your home to anyone other than an all-cash buyer, a home appraisal is a key component of the transaction. Lenders want to make sure that homeowners are not over-borrowing for a property because the home serves as collateral for the mortgage. If the borrower should default on the mortgage and go into foreclosure, the lender will sell the home to recoup the money it lent.
When a buyer and seller agree on an offer, the buyer effectively has an option to purchase the property, subject to their satisfaction with various contingencies. Once the buyer removes contingencies the option turns into a binding commitment.
• Home Inspection Contingency
• Appraisal Contingency
• Finance Contingency
• Home Sale Contingency
Next, you will enter escrow. Buying or selling real estate usually involves the transfer of large sums of money. Your agent or transaction coordinator will open escrow and order a title policy for you. During this time, you and your agent will work with an escrow company to complete paperwork and ensure that all parts of the contract are complete before the transfer of funds and related documents from one party to another.
The contracts have been exchanged and the deposit has been paid, you can now agree on a completion date. On the day of completion, the vendors will have to vacate the property, so once you have this date you will be able to organize a day for you to move into the property. You will then be able to confirm the date and the details of your move with your removal company.
On the predetermined closing date, you and your buyer will sit down with your agents to sign all the paperwork and pay all your fees. You will relinquish your keys and your property title, and you will receive a check for the remaining balance after the remainder of your mortgage is paid to your bank. Congrats - you have sold your home.