Everyone wants to get as much money as they can for their home. We’re all capitalists when it comes to selling what’s most likely our largest investment. Most people are inclined to take the highest sales price without giving two looks to the terms of the deal. Seasoned Realtors, such as yours truly, know the devil is in the details. Let’s take a closer look at the finer details of contracts.
It’s natural to just look at the sales price. I mean, if someone is offering that much money, i’m going to get more out of it right? Not always. There are numerous things in the contract which add up and cost money. There’s the typical seller paid expenses, such as title policy, survey, home warranty, HOA resale certificate, and maybe even seller paid closing costs of the buyer. Remember though, EVERYTHING in a contract is negotiable. They all do add up. While those may seem like insignificant things, consider this. The cost of a title policy on a $200K home is $1,429. In just about every contract, the seller will be paying this cost. A survey, if one if not currently provided by the owner, can run for $500. HOA resale certificates, if applicable, can be up to $400. Home warranties can be $400-1000 if there’s a pool involved. Everything has a cost.
A buyer who is willing to pay some of the normal seller paid items might be considered a stronger buyer. But offering to do so, they would be adding to the sellers bottom line while decreasing the chances of running an appraisal issue. This can be very common in multiple offer situations where people just throw high numbers up and hope a seller bites on the highest bid. It’s right then where you need a season Realtor (ahem, *this guy*) to help you navigate the offers and give you the pros and cons of each one. So remember, the terms can be just as important, if not more important, than the offer price.
So if you’re in the market to buy a home, Contact Me Today! I can help you get set up with mortgage and insurance people to make sure you’re able to buy a home and have the best coverage.
You can also get a copy of my Home Buyers Handbook when buying to learn about the process!