Chapter 05 · Offers
The power of negotiation
Every offer is written to protect the buyer, not you, and mutual acceptance is rarely a done deal. Most contract terms give the buyer options and leverage, especially contingencies, which are windows where the buyer can walk away or renegotiate. Your best strategy is to prepare thoroughly and position the listing to limit those contingencies.
Providing HOA documents, comparable sales, and a pre-inspection up front is encouraged, as long as nothing in them needs explaining.
What can be negotiated.
- Purchase price
- Repairs and improvements
- Timelines
- Seller concessions, like paying part of the buyer's closing costs
- Credits at closing for repairs or updates
- Personal property, appliances, and fixtures
- Contingencies, including inspection, financing, and appraisal
- Rent-back or early possession
Common contingencies.
- Inspection: the buyer can request repairs or walk away based on the results.
- Appraisal: the home has to appraise at or above the price for the buyer's lender.
- HOA: the buyer reviews the association's rules, fees, and any pending assessments.
- Financing: the buyer has to secure the loan, or they can exit the contract.
- Title: the property needs clear ownership and no legal issues.
Who typically pays for what?
Seller typically pays
- Escrow fee, one half (subject to the purchase and sale agreement)
- Work orders, such as termite inspection or home repairs
- Home warranty
- Real estate excise tax (see below)
- Loan costs required under FHA or VA provisions of the contract
- Agreed agent commissions
- Owner's title insurance premium
- Payoff of all loans in the seller's name, or the existing balance if the buyer assumes the loan
- Statement and reconveyance fees, recording charges, and any loan prepayment penalties
- Encumbrances against the seller, such as judgments and tax liens
- Prorated taxes through the transfer of title
- Delinquent taxes
- Unpaid homeowner's dues
- Assessments or bonds
- Notary and courier fees, if any
Buyer typically pays
- Lender's title insurance premium, if any
- Escrow fee, one half (subject to the purchase and sale agreement)
- Inspection fees
- Home warranty
- Notary and courier fees, if any
- Selling agent's commission
- Recording charges for documents in the buyer's name
- Prorated taxes from the transfer of title to the end of the tax year
- All new loan charges, except those the lender requires the seller to pay
- First-year hazard insurance premium
- Interest on the new loan from funding to 30 days before the first payment
- Document preparation, if any
What will I actually walk away with?
Excise tax is figured on a graduated rate and can include a local tax depending on where your home is. Run your numbers on my seller net sheet, which calculates excise, escrow, title, and prorations by county and closing date: netsheet.cattjohnson.info
Open the seller net sheet ↗Commissions are fully negotiable in both the listing and the purchase and sale. There are no standard commission rates; they're set by the broker.
Choosing the right agent
Selecting the right agent is a key part of a successful home sale. Not all agents, or brokerages, are created equal, and the choice you make can change your experience and your results. Take the time to look beyond the basics and consider what truly matters.
01
Research the brokerage.
The brokerage behind your agent matters as much as the agent. If a legal or ethical issue comes up, the brokerage is ultimately responsible for resolving it. Make sure the company has a strong reputation and a track record of professionalism in your market.
02
Evaluate how you found the agent.
Think about how you first learned about the agent. Just because someone pays for top placement on a website does not mean they deliver the best service. If you were referred, consider whether the referral came from a satisfied past client or simply a personal connection; well-meaning friends may not know the agent's actual business practices.
03
Review the agent's marketing.
An agent's ability to market themselves is often a reflection of how they will market your home. Look for a visible online presence, professional materials, and clear communication. If an agent has little to show publicly, it may be a red flag for how your property will be promoted.