Seller negotiations! You’ve spent time and money getting your home to look its best by staging it and even hired a landscaper to do some last minute touch ups for a luscious yard. Your realtor just listed the home, and you’ve had several showings. The big moment has come as you’ve just received a call from your broker letting you know that an offer has come to the table.
You’re excited and leery at the same time not yet knowing if it’s a legitimate offer or a low-ball offer? Are there any contingencies, concessions or do they also want all your furniture to convey? You’re asking yourself all these question within the first 5 seconds of the phone conversation with your real estate professional. The obvious first question, that we all want to know, is “what is the offer price?” Remember that a full price offer doesn’t always mean that you will net the amount you were counting on making. Take into consideration VA contribution, seller concessions, home warranty and what’s written in Additional Terms on page 7 line 305 in the Arizona Association of Realtors Contract.
It’s a good thing that you’ve got representation because some of these items can be tricky and confusing. Let’s begin to break down some of these possibilities and see if this offer makes sense or if you should reject or counter?
First we have a Closing Date on page 1 line 15-18 that reads Close of Escrow date February 18th. That leaves you with 10 days to move out assuming the seller has come in with an all Cash Offer. If this were through financing, it would be too difficult to close within a 10 day period; take into consideration, Appraisal, HOA documents, Title and Financing requirements. You were expecting to have enough time to find another property to move to, pack and have a strategic exit plan, however 10 days just doesn’t cut it. This could be a deal killer if the buyer won’t budge on the closing date and if you the seller can’t accommodate the move out in 10 days.
Now let’s look at a completely different scenario. You’ve received an offer that is being financed, and you’re reviewing page 2 line 45 which mentions the buyers want a refrigerator, washer and dryer. On page 2 line 77-79 it talks about Financing and Seller Concessions. Buyers want the Washer Dryer and Refrigerator. You’ve spent $15,000.00 on new appliances, and you made sure that your agent will not list these items on MLS. Your realtor did just that, but you got an offer at asking price with them asking for the appliances. It looks like the offer is not as good as you though being that you’re $15,000.00 lower than the asking price.
Now let’s dissect page 77-79 that talks about financing and concessions. Line 78 under concessions for a VA loan, the buyer(s) want $6,000.00 towards loan costs, pre-paids, impounds, and title/escrow closing costs. Line 79-80 show a seller is required to pay for an additional 1% lenders origination fee towards the buyer as required by the VA that is typically called “non-allowables.” The offer you received is no longer that abundant as you’re now paying up to $10,000 in seller concessions and VA “non-allowables”.
Lastly, let’s not forget about page 7 line 305 in Additional Terms and Conditions. The buyer(s) wrote, “all existing furniture including the Washer and Dryer to convey to buyer(s) at Close of Escrow”. Well, that blows this deal right out of the water and into the rejection pile unless you’re desperate and need to do a fire sale?
There are many ways that contracts are constructed and your real estate professional will make sure and represent you to the best of their ability with professionalism and above all else with fiduciary duty. Make sure and hire an agent for your protection when selling your home. You might save a few thousand by doing it yourself but end up losing thousands more by, not understanding the contract and loop holes.
Go out there and get top dollar for your home, you earned it! Thank you for visiting http://www.homescottsdaleaz.com.