Now that you have prepared and marketed your home you should
have a few things in line before you receive your first offer. Make sure that the price for your house is realistic
and fair. Research and have an available
list of comparable houses in the area that shows the address, size, age,
condition, and sale price for each. This
will give you a general idea of the market value, or buyer’s fair price, for
your house. In a buyer’s market, the
fair market value has little to do with the property’s assessed value since the
buyer has more control over the negotiation of the sale.
Negotiation,
or communicating back and forth to come to a mutual agreement, does not have a
set strategy or method. There are a
couple things to consider before negotiating a real estate contract in a
buyer’s market that can help prevent common issues from arising. First, clear up any title or loan issues that
can delay the closing of your house.
Second, consider any common costs that a buyer would ask to be included
in the sales agreement: property
inspections, allowance or credit for repairs, extra items included with the
property, and closing costs.
Prior to
negotiating with a potential buyer, have your property inspected and make
whatever repairs you are able to. This
can be used as a concrete list for the buyer showing all of the improvements
made, and can lower any allowance cost that might be requested. Then, make a list of any appliances or extras
that you are planning on or willing to include with the house, especially if
there are warranties on the included items.
This can be a major selling point that attracts the buyer to your
home. Finally, think about pricing your
home with a cushion for closing costs.
These costs usually add up to one to two percent of the sales price, and
in a buyer’s market, the seller paying closing costs is usually part of the
final negotiation.
So, what
should a seller look for in a potential buyer?
One major thing to look for is a buyer with a preapproval letter from a
lender. This shows the buyer is serious
and prevents any financial issues that could prevent closing. You can also ask for an earnest money
deposit, which can be any percentage of the asking price that also filters out
the serious buyers from the rest.
The paperwork
is the final, but least fun part of selling your home. Paying a small fee to have a real estate
attorney or professional guide you through and handle the paperwork is
definitely worth the money. With all of
your prior preparation and research, the attorney or professional should be
able to ensure that there’s nothing missed, and that you have a smooth and
profitable closing on the sale of your house.