The moment we’ve all waited for… we have received the first offer! Of course, everyone’s first look will be at the price, but remember there are many details in the contract that need attention, let’s discuss details and options.
Price | This is important. We can review a sellers net sheet with each offer so you can see exactly what each offer will net you.
Down Payment | Depends on the type of financing the buyer may be using, it could be 0-20%.
Earnest Money | Typical practice is 1% of offer price. (Ex. $200,000 offer = $2,000 Earnest Money)
Seller Concessions | This is what the buyer may be asking you, the seller, to contribute to closing costs or possibly to cover cost of repairs, replacements. This will be reflected on the seller net sheet as well.
Closing Date | Depending on the type financing the buyer is securing, closing can be anywhere from 30-45 days. If we have a cash buyer, closing can potentially be 14 days!
Home Warranty (Residential Service Contract) | Every policy is slightly different depending on which company is chosen. It usually ranges from $400-$700 for one year plan and is paid for the by the seller. Also reflected on the seller net sheet.
Personal Property | Appliances like the refrigerator, washer, dryer can be negotiable.
Contingencies | Does the buyer have a house to sell first?
Additional Addenda | These are additions to the contract that we most commonly see. Read more about them here. If any are attached the contract, we will be sure to review them with you.
Once we have reviewed the details of the contract, you will have four options:
4. Do nothing
Remember, negotiations can be quick if all parties are easy to reach, communicative and prompt with replies. Other times, it may take a bit longer relaying information between all parties. Patience and timely response is key! If we can’t come to an agreement, it’s ok, they just weren’t the right buyer. Better to know now, and move forward!
If you would like to review a contract before hand, here is our TREC Promulgated 1-4 Family Residential Contract.
To review other addenda and contract forms visit: TREC Contracts, Forms and Notices.