Greg and Geri Uihlein MCNE, GRI I, GRI II and GRI III

Considering the offer

The offer you receive may or may not be a reason to celebrate. First consider the offer carefully. Your real estate agent will review the offer with you in detail. If the offer is below your asking price, carefully consider the rest of the contract, the time on market, or if you may have overpriced your home. If the offer is close to the asking price, then you likely have priced your home correctly. Once you consider the offer, you have several choices:

1. Accept the offer
2. Make a counter offer
3. Reject the offer entirely

Low Ball Offers
Not responding to a low ball offer is usually not the best decision. It is best to look at the selling of your home as a business decision rather than an emotional one. Sometimes, if handled carefully, a low ball offer can lead to the sale of your home. Making a counter offer, even if you stay close to the original list price, may still result in a sale.

What is a Sale Contingency?

A home sale contingency is common and means that a buyer needs to sell their existing home before they can complete the purchase of your home. Some buyers prefer to find a suitable new home before completing the sale of their existing property. Their financing to purchase your home is often contingent on the sale of their existing home.

Seller Concessions
Seller concessions are most often in the form of the seller picking up some of the closing costs. Some home buyers are short on the money required to purchase a home, even if they have impeccable credit and a solid employment history. Therefore, they may ask the seller to contribute a percentage or a dollar amount toward the buyer’s closing cost. Those closing costs are usually then rolled into the buyer’s loan. So, a seller should expect that the buyers pay a bit more for the home, and as a seller you should net the same amount as if you had not paid the closing costs.

What is an inspection contingency?
The buyer usually has a right to perform many different types of inspections and tests, usually at the expense of the buyer. The buyer has a certain number of days to complete the inspection and a certain number of days to either remove the contingency or request that the seller address one or more of the issues found during an inspection, depending on the terms in the sales agreement. 

Appraisal
An appraisal may be required if a home buyer is obtaining financing from a lender. The appraiser makes sure that the home’s value is at least what the buyer and the seller have agreed to. If an appraiser determines that the value of the property is lower than the agreed upon purchase amount, then several things could happen:

1.  Seller makes a concession
2. Buyer pays the difference
3. Combination of a seller concession and buyer payment to make up the difference
4. Agreement is cancelled
5. Appraisal is challenged.

Challenging an appraisal can be difficult and often the appraised value isn’t changed. Your real estate agent will walk you through each of your different options, should this occur.

Closing
Once all contingencies are met or removed and the appraisal is completed, the final step is closing! Closing may or may not be attended by sellers, depending on several different factors. However, closing is an important step and if you are buying a home shortly after your current home’s closing, you want to make sure it goes smoothly. The goal is for your property to be transferred to the buyer. This is usually completed at a title company and normally takes approximately one hour for all the documents to be signed. At closing you will fully pay off any mortgages and receive your sales proceeds. Congratulations!