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Decoding the selling process

Decoding the selling process Decoding The Selling Process

Once your home is ready for market, it is time to launch! Through private showings, broker tours, open houses, tailored social media and print collateral, the Coleman Group will work with you to maximize your market reach and number of offers received. While one of the most important elements of any offer is the purchase price, there are also a number of additional factors that can affect the ultimate value of an offer to you, as the seller. To help you decode the selling process and evaluate the quality of an offer beyond purchase price, we’ve compiled the below list of key value driving features and what you need to know about them.

Closing Date
The strength of the closing date is determined by you, the seller. So, the closer the offer closing date is to your desired closing date, the stronger the offer!

Purchase and Sale Date
This is the day that purchase and sale is signed by both, the buyers and sellers. With this contract, a significant downpayment (usually 5-10% of purchase price, but sometime more) is made by the buyers. It establishes the parties’ intention to move forward with the purchase and sale of the home. The closer the Purchase and Sale is to the date of the offer, the stronger the offer, but generally speaking it should be no more than 10 days after the offer is accepted.

Downpayment
This is the amount of money that the buyer is planning to put down with the purchase of your home. Depending on the type of loan the buyer is applying for this can be anywhere from 5% up and sometimes even 0% for example in the case of a VA loan. The higher the down payment the more likely the buyer is to meet bank qualifications and receive their mortgage, and the more likely the buyer is to receive their mortgage, the stronger the offer.

Contingencies
There are many different contingencies that a buyer can include in an offer, and it is important that a seller understand the implications of all of them before accepting an offer. Below are some common contingencies you may come across in an offer.

Home Inspections – Requiring a home inspection is a very common contingency, and is one that can be used to re-negotiate the terms (i.e. usually purchase price) of an offer. In general, a home inspection is a visual inspection and report by a licensed home inspector on certain systems and components of a home that are readily accessible and observable. If a home inspection is listed as a contingency it should be done as soon as possible and no more than 7 days of an accepted offer, this way any issues that may be found by the inspector can be negotiated and agreed upon by both parties by the date of the purchase and sale. This rule of thumb also applies to Pest and Radon inspections (see below).
Pest Inspections – Though not as common as a home inspection, pest inspections are often requested by buyers. These inspections are usually centered around determining the presence of wood destroying insects, such as termites, though rodent and other pest activity may also be noted.

Radon Tests – Radon is a naturally occurring element that emits particles when it decays that have been linked to cancer. Radon can be found in any home, old or new, and the level of radon found at any given time can fluctuate up or down. The government sets an action limit on concentrations of radon over 4pCil/Liter, which requires the installation of a radon mitigation system. Different mitigation systems carry different costs which can be easily found online, but they tend to be a less expensive line item compared to others.

Mortgage Contingencies – A mortgage contingency protects a buyer and a buyer’s deposit in the case that they cannot, despite their best efforts, obtain a mortgage. Though the purchase and sale implies the intent to move forward on the deal, it is still important that the mortgage application and commitment letters dates be tight to the purchase and sale, as it is imperative that the seller know as soon as possible whether or not their home needs to go back on the market should the buyer not be able to obtain financing. Ideally, the buyer’s mortgage application should be made the day after the purchase and sale is signed, and the commitment due within 3 to 4 weeks of that date.

While these are some of the most common contingencies a seller is likely to encounter, other contingencies may come up in the offer process. As a seller, it is important that you have an agent that you trust with whom to weigh these issues!

For a guide and visual representation of the selling process after the acceptance of an offer click here

For a complementary property valuation or to schedule an interview, get in touch with us here!

Gloria circle
Gloria Coleman

Gloria is a Sales Associate with the Coleman Group.