Three Things a Seller Should Know Before They Get an Offer

The more knowledgeable and better prepared the seller, the easier it will be to negotiate and resolve issues when an offer is presented.  Selling a home can be stressful, especially in a declining market when home values are falling and sales are slow. Understanding the process and discussing typical scenarios with their Realtor will give sellers an advantage when they are presented with an offer. 

First, it's a good idea to determine a realistic price range based on active and sold comps and then review probable expenses and estimated net proceeds at both the upper and lower ends of the range.  

The seller usually focuses at the top of the range and should understand that it's possible that the house will sell at the lower end, and be OK with that.  (Note that comps should be reviewed at least every two weeks and the range adjusted as needed, in accordance with activity.)

Second, it will help the seller to become familiar with the contract and understand the norms for their area.  In Tallahassee, FL, for example, the buyer typically pays for the home inspection and the seller typically pays for the WDO inspection and repairs.  Most items are negotiable and the more familiar the seller is with the contract and possible terms, the better equipped they are to recognize a strong offer and get a good deal.

Third, the seller should know that there are other negotiations along the way after the contract is signed and be prepared for them as well.  Most notably, buyers may ask for repairs based on the home inspection and further negotiations may be required if the appraisal comes in lower than the purchase price.