Q & A: Negotiating
Click a question to jump right to the answer:
- Do I have to accept offer contingencies when selling my home?
- How is the listing price of a home decided on?
- Is there a secret to good negotiating?
- What is a contingency?
- What is the best time to sell your house?
- What is the difference between market value and appraised value?
Do I have to accept offer contingencies when selling my home?
As the seller, you do not have to accept any of the contingencies buyers ask for in their offers. But, common contingencies such as appraisal, financing and home and radon inspections are often expected by buyers and therefore you may experience difficulty selling your home without accepting these contingencies. In a highly competitive market, multiple offers from buyers on a property may allow a seller to not have to accept standard contingencies. Your Magnificent Manors Realtor® will advise you on the most advantageous negotiating strategy when you are in a multiple offer situation.
How is the listing price of a home decided on?
A new listing should be priced according to the current housing market. Your Magnificent Manors Realtor®will perform a comparative market analysis (CMA) on your home, which estimates the value of your home based on recent sales of similar homes in your area. Using the CMA and their market experience, your Magnificent Manors Realtor®provide you with pricing recommendations based upon your goals. You as our client decide on the price that is most comfortable for you. Don’t hesitate to ask how the listing price of your home is derived and for examples of the homes used as comparison in the area and the adjustments made to compensate for differences in the home’s features and upgrades.
Is there a secret to good negotiating?
One of the best assets to have during the negotiation of a home sale is your Magnificent Manors Realtor®. Always having your best interests in mind, your Magnificent Manors Realtor® will negotiate the optimal price and terms on your behalf. There are many terms in addition to price to consider during these negotiations — contingencies, the proposed closing date, seller assists, as well as the financial qualifications of the buyer, are just a few examples. Your Magnificent Manors Realtors® uses their expertise, skills and experience to negotiate the best contract for you.
What is a contingency?
A contingency is a stipulation added to a real estate contract that would make the contract void if the condition was or was not to occur. The addition of contingencies to an offer ensures that the buyer or seller is protected during the purchase process. A buyer or seller is able to add a contingency to theoffer, but it must be agreed upon by the other party. Examples of contingencies added to contracts are: financing, inspection, appraisal, the sale of the buyer’s current home or property or the seller finding home of choice.
What is the best time to sell your house?
There is not a set “best time to sell”. The market does go through points of high demand (known as a seller’s market) as well as low demand (buyer’s market) which can affect the pricing of one’s home. In addition, the spring months are often thought of as the busiest time for the real estate market. In many cases, the decision to sell your home is the result of outside factors such as a job transfer, marriage, birth of children, divorce, job change to name a few. The important events cannot be timed according to the real estate market. Your Magnificent ManorsRealtor® will work to make the time that you need or want to sell your house the optimal time.
What is the difference between market value and appraised value?
The market value of a home is the estimated price at which the home would currently sell. To obtain the market value of a home, Realtors®will perform a Comparative Market Analysis (CMA) which will estimate the value of the home based on recent sales of similar homes in the area, adjusting for the differences among the houses. The appraised value of a home is the worth a professional appraiser estimated for the home. Lenders often require an appraisal prior to closing to ensure the home’s value is not less than the loan amount.
