As soon as we receive an offer, we will let you know immediately. First, we’ll take a moment to celebrate as it means that all of our efforts are paying off. Now our goal is to do everything we can to ensure that we can keep the buyer and sell them your house. We will review the following aspects of the offer carefully:
Offer price: What price did you want for your home? What is the least amount you’d be willing to sell your home for? How does this compare?
Closing date: Typically, in Anchorage closing takes place 30-45 days after contract acceptance. Sometimes buyers will ask for a longer closing date if they are doing a special loan program, need to give their landlord longer notice if they’re renting, need to sell their house, etc. If a buyer is paying 100% cash, we can usually close faster than 30 days.
Earnest money: How much earnest money is the buyer putting down? The typical amount is 1%. If the buyer is putting down less than that amount, it could mean that the buyer is doing a special loan or that the buyer is a bit shaky financially. It is important to note that the buyer's earnest money check will be deposited and held into a special escrow account at their licensees's brokerage. These funds will be applied to the buyer's down payment upon the successful completion of the closing.
Down payment: A buyer’s down payment depends on their which mortgage loan they’ve selected. Ideally, we’d like to see the buyer is put down at least 10% unless they are doing a special loan program like a VA or FHA loan. The more they put down the greater the chance that their loan receives approval.
Closing cost credits: Does the buyer want you to pay a portion of their closing costs? If so, how much? Please note the amount they are asking for comes off your net amount. If a buyer is offering $500,000 for your home but wants a $10,000 closing cost credit that means the offer is really only a $490,000 offer.
Home Warranty: Did the buyer ask you to provide a home warranty? Depending on your home, this can cost you about $500 and is paid by you at the closing table, reducing your net proceeds.
Title Insurance: Did they buyer request homebuyer’s title insurance? If so, you will be responsible for ordering and paying for it from their preferred title company.
Bill of Sale: If you included a bill of sale as part of your sale price, did the buyer accept it? If you did not include a bill of sale, did the buyer include their own bill of sale and ask for items to remain at the property as part of the sale?Typical items included in bill of sales are home theatres, wall-mounted flat screen TVs, hot tubs, furniture, and dog kennels.
Contingencies: Any contingencies the buyer has placed on the contract such as needing to sell their own home before they can close?
After we’ve reviewed the above as well as how the offer affects your closing costs, you can decide whether you want to accept their offer, counter their offer, or walk away from their offer. If you decide to counter, realize that some negotiations move fast and others move slow. Some negotiations take as little as a couple of hours while others have taken up to two weeks. It just depends on how quickly each party makes decisions, how quickly the Realtors relay that information, and if everyone is available (in town). Ideally, we will want to walk away from this process feeling like it was a win-win for both parties.