When you are preparing to put your home on the market you should understand the overall Housing Market in your area. In doing this up front you can determine if an offer you are receiving is within the norm of your market. Have a Market Analysis done on your home by a local real estate broker to determine an overall value. This is not a huge expense either, maybe $150.00 – $300.00 depending upon your relationship with the realtor they may even give it to you if you list the home with them.
When you are looking over any offer made on your home there are many things to consider. Do yourself a favor and figure out what will be paid off with the sale, all fee’s in selling your home including attorney and realtor costs. Take that figure and subtract and subtract it from the offer you have and this will tell you what your net profit is. If that amount is not enough, move on and turn the offer down. You have to be comfortable with the final result. You will need to pocket enough for a down-payment on your next home and 20% is market norm.
Make sure you have a competent realtor or real estate attorney working for you. They should catch any out of the ordinary demands made through the offer. Many times the offer is contingent on the buyer selling their home. In this instance it would be a good idea for you to see what they are selling. If you are not comfortable with their chances of selling their home, walk from the offer. Make sure that any offer you are receiving is from someone that has a Pre–Approval Letter from their bank or lender. This will show that the offer is being made by a legitimate buyer.
Go through the offer with a fine toothed comb and make sure you are comfortable with everything they are demanding. People are funny and they will ask for things that they know they should not be entitled to unless you tell them no. Don’t give away the lawn mower, washing machine unless you are comfortable with doing so. Even things like carpet, paint, structural concerns are negotiable unless determined required by the buyers lenders to be complete before lender approval will be issued. Remember it is an offer to purchase not a HUD–1A or settlement statement. You determine along with your realtor/attorney what is feasible to include.
Low ball offers are often made to try to get the buyer to think that they are asking too much for their home. Stick to what you have determined to be your bottom dollar and add 5% – 10% to that to keep it comfortable. Earnest money is another factor in determining if an offer is acceptable or not. Is the buyer willing to hand you certified funds or a personal check. Obviously the certified funds shows they have the money and are willing to part with that day to get the process moving forward.
Due your due diligence and be prepared for any and all possible situations when selling your home. Like I have mentioned throughout the article, you need to be comfortable with the situation and move on with the process to selling your home to a qualified pre-approved buyer.