Have a plan
for reviewing purchase offers so you don’t let the best slip through your
fingers.
Selling your
home will go a lot smoother if you think of it as a business transaction and
don't let emotions get in the way.
You’ve
worked hard to get your home ready for sale and to price it properly. With any
luck, offers will come quickly. You’ll need to review each carefully to
determine its strengths and drawbacks and pick one to accept. Here’s a plan for
evaluating offers.
1. Understand the process
All offers
are negotiable, as your agent will tell you. When you receive an offer, you can
accept it, reject it, or respond by asking that terms be modified, which is
called making a counteroffer.
2. Set
baselines
Decide in
advance what terms are most important to you. For instance, if price is most
important, you may need to be flexible on your closing date. Or if you want
certainty that the transaction won’t fall apart because the buyer can’t get a
mortgage, require a prequalified or cash buyer.
3. Create an
offer review process
If you think
your home will receive multiple offers, work with your agent to establish a
time frame during which buyers must submit offers. That gives your agent time
to market your home to as many potential buyers as possible, and you time to
review all the offers you receive.
4. Don’t
take offers personally
Selling your
home can be emotional. But it’s simply a business transaction, and you should
treat it that way. If your agent tells you a buyer complained that your kitchen
is horribly outdated, justifying a lowball offer, don’t be offended. Consider
it a sign the buyer is interested and understand that those comments are a
negotiating tactic. Negotiate in kind.
5. Review
every term
Carefully
evaluate all the terms of each offer. Price is important, but so are other
terms. Is the buyer asking for property or fixtures—such as appliances,
furniture, or window treatments—to be included in the sale that you plan to
take with you?
Is the
amount of earnest money the buyer proposes to deposit toward the downpayment
sufficient? The lower the earnest money, the less painful it will be for the
buyer to forfeit those funds by walking away from the purchase if problems
arise.
Have the
buyers attached a prequalification or pre-approval letter, which means they’ve
already been approved for financing? Or does the offer include a 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 uncertainty?
Is the buyer
asking you to make concessions, like covering some closing costs? Are you
willing, and can you afford to do that? Does the buyer’s proposed closing date
mesh with your timeline?
With each
factor, ask yourself: Is this a deal breaker, or can I compromise to achieve my
ultimate goal of closing the sale?
6. Be
creative
If you’ve
received an unacceptable offer through your agent, ask questions to determine
what’s most important to the buyer and see if you can meet that need. You may
learn the buyer has to move quickly. That may allow you to stand firm on price
but offer to close quickly. The key to successfully negotiating the sale is to
remain flexible.
For More Information About How Terry Naber With RE/AX Properties, Inc. Can Help You Sell Your Home For Top Market Value Go to www.TerrySellsColoradoSprings.com
Give Terry a Call at: 719-590-4796 and Have Her Evaluate Your Home's Value
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