How to Evaluate an Offer on Your Home

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For most homeowners selling their home the thought of negotiating an incoming offer is a matter of settling in on a price that both sides can agree upon.  But did you know that there is another key aspect of negotiations aside from price that could have even greater impact on the sale?  The terms of your contract hold equal weight and importance as price in the sale of your home and are critical to a successful sale.

Here are five essential things to consider when navigating through the negotiation process after an offer comes in on your home.

Preapproval 
After the housing market crashed in 2007 lenders, buyers and sellers have proceeded very cautiously. Lenders are staunchly following stringent requirements, buyers and sellers are savvier than ever before and what seemed like formalities in the process before are now becoming necessities.  Preapprovals are one of the things that did not always need to be done in advance of buyers finding a home. But as you receive your offer on your property, be sure that your buyer has a preapproval from a reputable lender.  The letter should indicate what the buyer can afford and how much the lender is willing to loan them, assuming they meet all requirements at the time of application.

Down Payment 
One of the requirements lenders have today is to have an appraisal done on the home to equate its value with the selling price.  Unless the buyer has a significant down payment available, a less than ideal appraisal can stand to affect the sale altogether, even causing the deal to break down.  Check to see how much your buyer is able to put down on the house and add up the down payment with the loan amount to see if they equal your asking price.

Existing Home 
Does the buyer have an existing home they need to sell?  This can be a problem for you as a seller if they want to include a contingency in the contract that absolves them from the commitment of buying your home if their home does not sell.  This can wreak havoc on the sale of your property, as it would require you to leave the terms of your sale up to the success of another sale.  It would be best to avoid offers that include existing home contingencies.

Closing Date 
When does the buyer want to close on the home?  If the requested closing date extends beyond 90 to 120 days then it might be time to reconsider the offer.  Lenders have timing guidelines that dictate a 45-day policy, within which buyers must apply for a loan before closing.  Anything longer than that would get in the way of the lenders’ policy leaving the seller hanging in limbo during those off weeks.  When a buyer cannot meet the contractual obligation to get a commitment within 45 days, it might be a good idea to forego the offer altogether rather than to risk the sale.

Cash Transaction

Some buyers offer cash rather than opt for financing and though it is an attractive offer at first, you need to make sure that the buyer has the cash.  Asking your Realtor to verify the availability of those funds will become a necessary additional step before you can move on in the offer.  In some cases, buyers opt for alternative financing and when the time comes to verify the funds they are unable to do so.  The risk is too great so unless you can be sure the cash is there, it is a better idea to move on to the next offer.

Navigating through offers is a tricky process – especially in today’s market. It is no longer just a matter of coming to agreement on a sale price, rather both parties must agree to all aspects of the terms.  For customized guidance on your real estate endeavors, contact us today!

10 Helpful Tips for an (Almost) Stress-Free Moving Day!

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Oh, moving day is exciting, isn’t it? And, sometimes, it’s too darned exciting! After all, you have so many things to remember…worry that the mover will show up on time…fret that things may be lost or get broken…and on and on. But, really, that day doesn’t need to be so stressful!

If you follow the tips below, you can make the day as painless and as enjoyable as possible. The key underlying each of these tips is, of course, proper planning!

Tip 1: Start early!

There are two reasons for starting early. One is psychological. When you start early, you can break the moving task down into smaller steps; that is, you can pack a little at a time. Psychologically, this gives you a great boost because you’re not overwhelming yourself by trying to do everything at once. The second reason relates to the first: packing is harder and more difficult than you think! So, by starting early, you have time to think things through and pack logically and economically!


Tip 2: Weed Out the Unused or Useless!

As I’m sure you know, you’ll be amazed at how much stuff you’ve accumulated that’s either never used or seldom used. So, why take it with you? Sort through everything and get rid of any item you haven’t used for a year or so. Donate it to a charity organization or, if appropriate, throw it into the trash or recycling. Remember, long distance movers charge by weight! So, the equation is simple: less weight = less money out of your bank account! Local movers charge by time! So, less time = less money! Plan on making a couple of passes through your belongings. If possible, take a break of a day or more between passes. That allows you to take a more objective look at everything.

Tip 3: Label Everything in Sight!

This is a real time-saver and stress-reducer. On each box, write down the contents as specifically as possible. At the same time, avoid overdoing the “Miscellaneous” label. If you end up with several boxes with that same label, you won’t have a clue as to what they contain!

Tip 4: Do One Room at a Time!

There’s always the temptation to take items from several rooms and put them in one box. This is a good way to end up with too many “miscellaneous” boxes. Instead, pack one room fully at a time and then move to the next room.

Tip 5: Consolidate!

Since it’s easy for small boxes to get lost or damaged, place smaller items in small boxes and then put those put small boxes into a bigger box.

Tip 6: Take Important Documents with You!

Never pack any personal financial information and important papers and put them on a moving truck. Identify theft is possible, but, equally important, if those documents are lost, it could take you many, many hours to replace such important items as bank statements, passports.

Tip 7: Take Your Valuables with You!

Use common sense and take jewelry, artwork, rare book collections, etc. with you. You don’t want it on a moving truck, and, to be blunt, most moving companies don’t want to ship it for obvious liability reasons. If you absolutely have to ship valuables, get expanded moving insurance through the carrier or a third party.

Tip 8: Plan for Essentials!

Keep a box separate for all the essentials you’ll need in your new home and make sure it’s loaded last onto the truck so you can get at it easily upon arrival. Depending on your needs, “essentials” could include: soap, towels, toilet paper, sheets, coffee maker, drinking cups, paper plates, eating utensils, pencils and paper, etc.

Tip 9: Inventory Everything That Goes on the Van!

List every box or item that goes on the moving van and take the list with you. Once you arrive at your new home, have a family member tick off the boxes and items as they come off the truck. This is vitally important if your belongings are transferred from the truck to storage before being delivered. If a box is missing, lost or left behind, it could be months before you realize it’s gone.

Tip 10: Save Money!

Packing boxes can be expensive. If there are items that will go into plastic storage bins and/or large trash bags (stuffed animals, towels, etc.), then buy the inexpensive bins or bags. This will also save you the time and trouble of unpacking the boxes in your new home.

If you are looking for a local mover, call us because we have recommendations!