The exciting moment when an offer to purchase your home comes in can also feel a
little overwhelming. One common first impulse is to ask "How much are they
offering?" While price is an important factor, it's also important to sit back
and look at the big picture when negotiating a sale. Consider the following:
Buyer's Financial Situation
Is the buyer qualified?
What is the buyer's annual income and employment
How much down payment and closing-cost cash is available and what
is its source?
What type of financial debt is there? Car loans? Credit
Are the loan type and interest rate
specifications realistic for current economic conditions?
Is the length of
time requested to obtain a loan realistic? Forty-five days is often considered a
typical time frame. It allows enough time to process papers, but also allows you
to put the home back on the market promptly if things fall through.
How much does the buyer want you to
contribute toward closing costs?
What will your net proceeds be? Add up any
points, taxes or fix-up expenses requested and deduct them from the contract
price to determine if your final profit is what you need to make your move.
Does the buyer's proposed settlement date
give you enough time to select your next home and obtain financing?
can't move to your next home promptly at settlement, can you rent back from the
buyer to stay in your home a while longer?
Must the buyer sell a home before buying
yours? You may not have the time to wait while they sell.
What add-ons does
the buyer want? Curtains, lawn equipment, swing sets? All of this can affect
your final net proceeds, or be used as bargaining chips, or both.
We're here to help. We've been through the contract negotiation process
countless times. We can help you cut to the chase and come up with a mutually
For more tips visit our seller section on www.cbbaker.com .Â You can also search your competition. Happy Selling!