Column - June 2019
The Basic Process of Negotiating a Real Estate Contract
Finally, a buyer loves your home and makes an offer to buy it. This offer begins the contract process! Normally, negotiating an offer is relatively painless, but, as purchasing or selling a home revolves around the largest investment of most people’s lives, it can also be difficult. Lean on your strongest ally – your Realtor!
Here is usually how it works in Texas:
The buyer makes an offer using a promulgated contract form. On this form, they set an offer price and include conditions of purchase. Conditions, or terms, can include: closing date, option period, earnest money deposits, survey costs, home improvements, closing cost assistance, and finance method, among others.
As a seller, you have three options when you receive the contract form: Accept it, Reject it, or Counter-Offer. If you choose to Counter, the ‘negotiation dance’ begins. This can include several rounds of counter offers, each with deadlines for responding and meeting various conditions set forth by either party. This continues until an agreement is reached or the negotiations collapse.
Here is how to be successful during contract negotiations:
*Ask Questions! Even promulgated forms can often be complicated and contain many addenda for the various parts of the contract; such as Third Party Financing, Non-Realty Items, and Property Owner’s Association. Your Realtor will clarify these forms for you.
*Respond Quickly to Offers! When an offer is made, buyers are ready to buy. If you want to sell, don’t wait to respond! Things can happen, moods change, and buyers get remorse.
*Stay calm, be patient, and don’t be afraid to meet halfway! There is less stress when all parties remain civil and agreeable. Split the difference over small expenses – and never lose track of what your ultimate goal is: Selling your home and moving on to the next phase of your life!
Call me today to help you make your real estate dreams come true!