Step 6- Negotiate the Purchase Agreement
10 Step Guide to Selling Property
- Our team will provide you with information so that you can make an informed decision
- Present the purchase offer to you
- Complex and involves various legal issues
- We do not offer legal advice. Only attorneys can give legal advice!
- Summary of most important items
- Purchase price
- Seller closing help
- Escrow deposit
- Date of closing
- Financing
- Proof of funds
- Preapproval letter
- Loan type
- Down payment
- Inspections
- Buyer's right to ask for repairs
- Buyer's right to terminate
- Explain specific terms and conditions
- Contract states
- Property is to be sold in as-is condition per the date of contract ratification
- Personal belongings are not included in the sale
- Property to be delivered free of trash & debris and broom clean at settlement
- Seller is not obligated to change or fix anything unless negotiated in contract
- Items contract does not address
- Professional cleaning
- Steam cleaning
- Paint
- Nails in walls
- Picture hangers
- Mounted TV’s
- Fixtures that require tools to remove generally are considered included with the property
- Items of question should be addressed in the contract as inclusions or exclusions
- Inspections
- Point of inspections is to discover unknown defects in property
- Items not in proper working order
- Should not be punch list or future renegotiation of the contract
- Should not address cosmetics
- Two most common types of property inspections
- As-is inspections with buyer's right to terminate
- Inspections with buyer's right to ask seller to consider repairs upon discovery of defects
- Structural/Mechanical
- http://www.homeinspector.org/Home-Inspection-Virtual-Tour
- Mold
- https://www.epa.gov/mold
- Environmental
- Radon
- https://www.epa.gov/radon/consumers-guide-radon-reduction-how-fix-your-home
- Chimney
- Termite
- Lead Paint
- https://www.epa.gov/lead/protect-your-family-exposures-lead
- Well
- Yield
- Bacteria
- Chemical
- Lead
- Radium
- Septic
- Other
- Home sale or rental contingencies
- Any other specific terms or conditions
- Negotiation strategies and your options for responding
- Accept
- Reject
- Counter
- Structure the offer to your advantage
- Ways to increase favorable responses from buyers
- Striking a balance; motivated but not too eager
- Keeping the big picture in mind
- Communicating the potential buyer's response to you and if necessary, suggest further negotiating options
- Reach an agreement that is acceptable to you
- Sign appropriate documents to ratify the contract
Next: Step 7- Plan from Contract to Closing
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