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Pay attention to the terms, not just the price

By
Real Estate Agent with Sandpoint Realty rain@lakeandhomes.com AB36782

Sometimes the terms are just as important as the sale price.

 

When buying real estate we all focus on the sales price in the purchase and sale contract. While the sales price is undeniably important, the fact is that other terms in the sales contract may be just as important.

 

 

Closing Costs

Some buyers and sellers will haggle over a few thousand dollars in the sales price without paying attention to the closing costs.  Closing costs for a buyer may range between two to five percent of the sales price. If a seller assumes some or most of the closing costs, and this can result in considerable savings the buyer. Likewise, when a contract is negotiated in the interest of the seller, the seller may save thousands of dollars at closing if the contract states that the buyer is responsible for these costs.

 

The Property Inspection

Many home buyers will get a property inspection to determine if there are hidden issues with the property structure, foundation, roof, air quality. Some inspections reveal that a home is in fairly good condition, but others may reveal that a property needs thousands or even tens of thousands of dollars worth of repairs. The buyer may back out of a contract within a certain period of time after receiving the property inspection report  or so that the terms of the sales contract may be re-negotiated.  One of the best things that a seller can do is to get an insepction ahead of time and fix the issues.  This way there are no surprises and a home in good repair will be more attractive to a buyer.

 

The Appraised Value

In an ideal world, a home would appraise for the contracted sales price, but this is not always the case. A sales contract may be written with terms that allow for the sales price to be renegotiated after the appraised value is confirmed.   If the buyer is seeking a loan most banks will not allow the sale to go through and most buyers will not pay more than a house is worth.

Special Contingencies

Contingencies may make a particular offer a little less attractive to a seller.  For instance if a buyer has to sell a home before buying the property it could mean longer escrow periods or the sale not going through.  Always take into consideration any special contingencies in a contract.

 

Posted by

Rain Silverhawk

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Come See Listings or more about Rain Silverhawk at 

http://www.northidahosandpoint.com 

http://www.sandpointlisting.com

 

rain@lakeandhomes.com
Rain Silverhawk Realtor
Sandpoint Realty LLC
1205 Hwy 2 STE 203 B |  Sandpoint, ID. 83864
Phone (208)  610-0011  

 

Comments (5)

Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

 You are right of course...our eye goes to the financing....and not just how much but from where...and are they a reliable source for closing ?

Nov 24, 2014 06:14 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Rain... I spend so much time explaining to both my buyers and sellers why they need to look past just the price on the contract that I sometimes feel like a broken record!

Nov 24, 2014 08:11 PM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Rain. You are right of course, but the eyes always look to the dollars first. Please use a bigger font: my old eyes have difficulty with this. 

Nov 24, 2014 08:23 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Rain, Sellers do like to look at JUST the purchase price, but sometimes those terms can kill a deal. Great post!  

Nov 26, 2014 07:17 AM
Mark Don McInnes, Sandpoint-Idaho
Sandpoint Realty LLC - Sandpoint, ID
North Idaho Real Estate - 208-255.6227

Rain,  You are so right on point.  So much more to pay attention to rather than just the price.   Bringing that to the buyers or sellers attention is fun when you see the light bulb go on.  Mark

Dec 01, 2014 07:33 AM