| Whether you are selling your house with an agent | | | | This is the amount of money the buyer needs to |
| or "for sale by owner" you need to be prepared | | | | come up with at closing from a source besides |
| for what to do next when you get an offer on | | | | their loan. The minimum amount needed is |
| your house. There are 7 terms to be agreed | | | | determined by the loan program the buyer will be |
| upon between you and your buyer. It's not just | | | | using. |
| about the price! | | | | Closing Costs |
| If you are are using an agent, they will guide you | | | | Decide how the closing costs will be divided. Some |
| through the process. If you're selling your house | | | | buyers will ask for closing cost assistance. In |
| FSBO (for sale by owner) and you got an offer, | | | | many parts of the country, the division of closing |
| you need to fully understand the process, | | | | costs is customary. However, this is a point that |
| especially if your buyer is working without an | | | | can be negotiated. |
| agent. You must take the lead! | | | | In my state, for example, they are usually divided |
| The first term that everyone focuses on is price. | | | | 50/50; however, a seller can offer to pay 100% |
| You can accept, reject, or make a counter offer | | | | if that would make the difference between the |
| to an offer that has been made. You should | | | | deal going through or not. Talk to your mortgage |
| always make a counter offer. It's expected. If | | | | broker about how this would work with the |
| you said "yes" right away, the buyer would feel | | | | particular loan program your buyer is using. |
| they offered you too much! | | | | Contingencies |
| Agents make offers and negotiate via faxed | | | | Contingencies let buyers cancel a contract without |
| contracts. If you are selling your own house, feel | | | | penalty. It is in your best interest for there to be |
| free to use fax or email to make counter offers. | | | | as few contingencies as possible. Some typical |
| It's always good to have a written record rather | | | | ones include loan, inspections, appraisal, and |
| than relying on memory of "who said what", | | | | contract contingent on buyers selling their own |
| anyway. | | | | home. |
| Before getting a sales contract signed, you and | | | | Other Property |
| your buyer will need to agree on the following | | | | Generally, everything attached to the house stays |
| terms: | | | | with it. If you really want to take your fridge with |
| Sales Price | | | | you, put it in the contract. |
| Remember to take into account real estate | | | | Date of Possession |
| commissions. Since you are selling "for sale by | | | | Decide on a date that you and the buyer want to |
| owner", if your buyer is working with an agent | | | | close. |
| you will need to pay their commission which will | | | | When you come to an agreement on the price |
| usually be 3%. If your buyer is not working with | | | | and all the terms, a sales contract can be signed |
| an agent, there will be NO commission to be paid! | | | | by both you and the buyer. Any required |
| Under rare circumstances, if your buyer wanted | | | | disclosures will need to be signed, too. These |
| your house bad enough, they might even pay | | | | differ by each state, but some examples are lead |
| their agent the commission. This usually only | | | | paint, notice of defect, and mold. You can get |
| happens in a "hot" market. | | | | these online, from your agent, or from your real |
| Earnest Money Deposit | | | | estate attorney. The buyer also needs to provide |
| At the sales contract signing, a buyer needs to | | | | an earnest money deposit. |
| give you an earnest money deposit, made out to | | | | When all documents have been signed and the |
| the agreed upon title company. Typically, you | | | | deposit has been presented, your house is now |
| want to collect at least 1% of the sale price. | | | | officially "under contract"! |
| Down Payment | | | | |