Negotiating the Sales Contract

Preparing your home and marketing your home are only half of the complete selling process. Negotiating the sales contract (purchase agreement) every bit as important. Once you have found a buyer who is interested enough in your home to make an offer, you need to ensure that your interests are protected in the purchase agreement.

At this critical stage it is imperative that you fully understand your personal reasons and motivation for selling the home. For example, you may be more motivated to sell and willing to accept a lower price and concessions if you are moving due to a job transfer or job loss. However, if you are simply selling so that you can use your current equity as a down payment on your dream home, you may be less likely to deviate from your asking price.

When dealing with an offer from a prospective buyer, make sure that every detail is in writing. Once the offer has been submitted, you have three possible choices: 1) Accept the offer as written; 2) Reject the offer outright; 3) Propose a counteroffer. The following is a list of points to consider when reviewing an offer.

- Price
- Earnest money deposit
- Buyer financing: Do they have an approval letter from a lender? How much is their down payment? What interest rate are they seeking?
- Closing and possession dates
- Prorations for taxes/association dues/etc.
- Closing costs: Who will be paying? Are the costs split between buyer & seller?
- Home Warranty/Home Protection Plan: Who is paying for it? What company is supplying it?
- Inspections: What inspections will done and by whom?
- Fixtures/Improvements: What items are included in the sale (appliances, etc.)?
- What title company and/or attorney will handle the closing?
- What contingencies are involved? (i.e. the sale of another home, financing, etc.)

For more advice, ideas and information about the local Grand Rapids real estate market, visit http://www.grapidshomes.com/

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