You have staged your home, priced it perfectly and now have an offer. Congratulations! Offers, though, arrive in many different forms. Most owners have an emotional attachment to their home. While we completely understand this, it is important not to take offers personally. They are not a reflection of you or your home, they are simply a business proposition.
As we receive offers we will carefully review them, including evaluating the buyer and any contingencies they have attached to their offer and ensure that you understand the specifics. You have the option to accept, reject, or counter any offer you receive. As your realtor, we will always offer our best advise. The final choice on a course of action is always yours though. A purchase offer is not binding until both parties sign it.
Most offers will contain contingencies. Some of the most commonly seen contingencies are as follows:
- Financial – Buyer must obtain a loan for a specific percentage of the agreed upon price.
- Inspection – The house must pass a professional inspection at the request and expense of the buyer. This inspection generally includes the condition of the roof, structure, pests, and mold. The inspector will identify and report any issue that could impact the value of the property or pose issues in the future. The seller also receives a copy of the inspection report.
- Appraisal – The value for which the house is appraised for must meet or exceed the offer price.
- Sell – Sale of the buyer's current house must occur before closing.
- Closing Costs – Request for the seller to pay all or a portion of the closing costs.
Sellers are also able to add a contingency clause to the additional provisions portion of the contract. You may state that the sale of the property is contingent upon your successfully purchasing a new home by a specific date. It's important to be aware, however, that an added contingency may scare buyers away, especially if it is severe. A carefully prepared contingency, though, can bring security to an otherwise risky move.
When a contract is initiated it is signed by each party. Once so executed, it goes to a title company to open escrow. The date on which the contract is signed is the date used to begin the countdown of the option period.
As a seller, it is important to understand this option period. This is a period, usually of five to ten days, in which both the buyer and seller may cancel the contract for any reason. Though this does leave the door open for the buyer to unexpectedly cancel the contract, it provides you, the seller, the same opportunity. Even after you have signed a contract, if you decide you are not comfortable with the terms you may cancel the contract within this period.
Your Tall Country realtor will work with you through each step of the process, ensuring you fully understand every aspect of the offer and negotiating on your behalf. We understand that selling your home can be both emotional and confusing. We are here to utilize our experience to ensure you receive the best price for your home and understand and are comfortable with every action along the way.