HOW TO SELL A HOME - continued
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The Offer - When a buyer presents you with an offer, often received from the buyer
or their lawyer directly, consult your Real Estate attorney. Sometimes, offers will contain
clauses that favor the buyer, so get legal advice while negotiating the deal.
Typically, five business days are provided for the buyer to obtain financing and complete the home inspection, followed by 2 days for the seller's attorney to approve the offer and/or make a counter offer. If the price is accepted, the deposit then goes into the lawyer's trust account.
The next big questions to ask is, "Are they pre-approved?" & "How much of the loan is the buyer trying to obtain?" Unless you are in a very active market, lenders tend to shy away from underwriting if the purchase price is higher than the closest comparable sale and the buyer has less than 10% to put down. In this case, the buyer may not be able to secure the needed financing.
Market conditions can influence how you judge an offer. Be wary of negotiating more than one offer at a time in a hot market because you can end up in a legal trouble if more than one buyer accepts a counter offer. Also be careful with offers that promise more money if the contract terms are poor.
In Real Estate, the rule of thumb is that the first offer you receive is always the best offer, even if it's received soon after you start advertising, and you should consider it carefully. Part of the selling process is negotiating. Just be sure to keep a cool and objective perspective. Make a counter offer if you feel the offer is not sufficient and have your Real Estate lawyer review all offers you receive. -
Inspection - Your prospective buyer has the right to inspect your property in all standard
real estate contracts. The inspection will include your property's roof and windows, as well as
for insect infestations. You are usually obligated to make any needed repairs to electrical &
heating systems, plumbing, appliances, septic, or the buyer may cancel the offer.
It may be a good idea to bring in a local home inspector ahead of time, if you are concerned about how well your property will do when inspected. This way, any existing problems can be addressed before prospective buyers find them. Once the buyer has received a written commitment of their mortgage approval from their bank, a home inspector will be invited to inspect on the buyer's behalf.
