As a seller, you are in a better bargaining position if you are not under a time constraint to complete the sale. Your position is also strengthened if you can offer favorable financing terms for the buyer such as FHA, VA, owner financing or PMM (Private Mortgage Money) or an assumable home mortgage. A home warranty, a year's prepaid property taxes or a year's prepaid homeowner fees will also enhance your marketing position. In today's marketplace, being competitive is very important since buyers have a wide selection of properties to choose from.

Other factors such as an attractive interior, exterior and curb appeal, appliances and window coverings included in the sale or an appliance allowance at closing can increase your home's appeal to prospective buyers. Home improvements such as a fresh coat of paint, new carpeting, roof replacement, and/or kitchen and bath remodeling also enhances the appeal of your home to prospective buyers.

OFFERS

As mentioned in the Buyer's Resource Center on "Negotiating the Offer", a written Offer To Purchase contract should specify the price and all of the terms and conditions of the purchase contract.

Financing Terms and Conditions

The contract specifies the purchase price, downpayment amount, financing terms and the amount of Earnest Money Deposit accompanying the offer and how is it to be distributed in the event the contract is not executed. The Earnest Money is a monetary deposit made by the buyer which accompanies the Offer to Purchase. It shows "good faith" and the buyer's intention to complete the purchase. Upon contract acceptance, this deposit becomes part of the money to close.

The contract also stipulates who will pay for the title insurance, survey, termite inspections and buyer's closing costs. Frequently, the Buyer pays for the home inspections, survey and title insurance on the mortgage note while the Seller pays for title insurance on the deed and repairs to General Warranty Items and WDO(s) as specified on the home inspector's report. The Seller is only responsible for repairs up to the Maximum Repair Limit specified in the contract.

As a Seller, if you decide to sell your property "As Is With Right to Inspect", you are offering to sell the property in its current condition with the right to inspect to determine what repairs are needed and the extend of repairs required. The prospective Buyer may then elect to accept the property in its current condition or rescend the Offer To Purchase if the estimated repairs exceeds the maximum repair limit specified in the "As Is" Contract and receive a full refund of their Escrow Deposit .

Property Description

The street address of your property, legal description, Folio Number, Tax-Id and Section/Township/Range designators which are used to uniquely identify your property.

Transferring Title

As the Seller, you will be required to provide clear title or ownership at closing usually in the form of a General Warranty Deed.

Disclosures

As the Seller, you will be required to provide the Buyer with several disclosures or addendum(s) describing any material facts which would affect the market value of the property. The most common types of disclosures are the Seller's Property Disclosure Statement, the the Homeowner's CC and R's and the Lead Based Paint and Mold Disclosure.

Time Limitations

Every contract has time stipulations such as the time period when an Offer To Purchase expires (typically one or two business days) or the time frame in which the buyer has to submit the loan application and obtain a loan commitment from a lender. The time periods for completing the inspections, requesting repairs and releasing the home inspection contingency are also specified in the contract.

The time period for closing a real estate transaction is also specified and is typically from four to six weeks which gives the buyer adequate time to obtain financing, complete the home inspections and for the lender to prepare the loan package and complete title search, survey and home appraisal and time for you to make preparations to move.

Contingencies

A list of all contingencies necessary to satisfy the terms of the contract are itemized. Two of the most common contingencies are the financing and home inspections contingencies.

Financing Contingency typically refers to the Buyer's ability to obtain a specific type of financing at a rate not to exceed a specified amount from a lending institution. This part of the contract also specifies the downpayment amount, amount financed, timeframe to submit the loan application and the financing commitment date.

Home Inspection Contingency typically specifies a satisfactory completion of a home and termite inspection conducted by a professional home inspector and may also specify General Warranty and Wood Destroying Organisms Repairs Limits. The Repair Limits specify the amount a Seller is contractually obligated to pay to remedy defects identified during the home inspections.

COUNTEROFFERS

As a seller, you may either accept the offer unconditionally, reject the offer entirely or more commonly draft a counteroffer to the original offer. Responding to an offer to purchase with a counteroffer generally stipulates a change in the original terms, purchase price or appliances/fixtures to remain with the sale of the house. Responding to an offer with a counteroffer puts you at risk of losing a chance to sell because the prospective buyer is under no contractual obligation to accept your counteroffer and the counteroffer makes the original offer void.