Negotiate a Home Sale
Negotiating a home sale.
Write an offer.
Your real estate agent should provide a comparable market analysis (CMA) to help you determine an asking price that works with your budget and is appropriate given the property and the current market conditions. Your agnet will then write an offer at your direction. The Real Estate Purchase and Sale Agreement is a several page long form. Your real estate agent will walk you through the form, but you should take time to read it and ask for clarification if anything confuses you. Your agent will need the following information to write the offer for you:
- Your full name and contact information
- Property address
- Purchase price
- How much earnest money will you put down?
- How will you finance the home? (You will have determined this with your lender by this Tpoint.)
- Will you opt for an inspection? (Learn more about inspections here.)
- Are there any items you would like included in the sale, ie. a refrigerator? (See what is always included in a home purchase unless otherwise specified in the contract.)
- Do you need to ask the Seller to pay closing costs? (Your lender can help you determine this.)
- When would you like to close on the purchase and take possession of the property?
Negotiate and finalize offer.
The following table demonstrates the possible actions that may be taken in the negotiation process.
When you make an Offer to Purchase, your real estate agent or your lawyer will most likely add certain conditions to it, making it a conditional offer. This means that the contract will only become final when the conditions are met. The following three conditions are generally standard in an Offer to Purchase, especially for first-time buyers:
- A satisfactory home inspection report
- A property appraisal
- Lender approval of mortgage financing to finance the purchase
- Once these requirements are met, the conditions are removed and the Offer to Purchase becomes final.
Obtain a Commitment Letter from Lender.
You will need to contact your loan officer and tell them the good news, you're in contract on a property! You or your real estate agent should get the loan officer a copy of the contract with any addendums (like counter-offers). Your loan officer will use this information to write a letter on your behalf stating that the lending company will loan you the required amount. Usually the loan officer or your real estate agent will forward this letter to the Seller. It's a good idea to get a copy of this letter yourself.
This is a good time to talk with your loan officer about the closing date. Ask if he/she foresees any issues with closing on the date agreed upon in the contract. Also ask if there is any documentation that they are waiting on from you.
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