7 Tips for Chehalis / Centralia Home Sellers: Tip #2

By
Real Estate Agent with Realty World Cosser & Associates, Inc. Lic. #113974

Tip #2:  What Happens During a Purchase & Sale?

 
 
Hello Again! This is Eren Millam Realtor coming to you from Extraordinary Photography Studios. Last week we discussed the importance of understanding your current market. If you missed it, you can click the link in the video at 23 seconds. This week I want to talk to you about What Happens During a Purchase and Sale after you’ve received an offer.
 
Most well priced homes sell within 95% - 97% of current asking price. An Extraordinary agent averages between 99% - 102% of asking price! But, I digress.
 
So you’ve received an offer and now you have three options. You can accept, reject, or counter. Your agent can go over the pros and cons of each offer, but it’s up to you what direction you want to go. For the purposes of this video, let’s say you received a full price offer and accepted.
 
The first period of an offer is the inspection phase. This phase is typically 10 days but can be shortened or lengthened during negotiations. A buyer will pay for a licensed home inspector to review the current state of the house and make note of any issues whether serious or not. Once completed, the buyer has an opportunity to request seller to pay for certain repairs. It is then up to you, with the guidance of your agent, to decide whether or not you will do any repairs or certain repairs. The majority of deals die in this phase for obvious reasons!
 
Once you and buyer have agreed to move forward with the purchase and sale, the next phase is the appraisal. This phase can last anywhere from a few days to 4-5 weeks depending on your area and the time of year because of the availability of appraisers. The appraisal is ordered by the buyer’s lender (and paid for by buyer) to assess the condition of the home and to make sure the agreed upon offer is in line with the market. The ideal scenario is for an appraisal to come in at-value. If it comes in over agreed price, your agent left money on the table. If the appraisal comes in lower than agreed price, you have three options. 
 
The first option is to come down to appraised value. The second is to stand firm and ask buyer to come up with the difference out of pocket. The third option is almost worthless, and that is to agree with buyer to terminate contract. I say it’s worthless because some appraisals stay with the property for up to 6 months! So even if another buyer wanted to pay full price, they’d run into the same issue with a low appraisal. Most buyers don’t have the ability to make up the difference in my experience, but every situation is unique and use your agent’s expertise and guidance to make the best informed decision.
 
After that, it’s really just a waiting game for lender and title company to draw up paperwork and review the title. Your main costs will come from any repairs that you’ve agreed to and if you have a septic, you will need to get that pumped which is around $400 - $600 in the Chehalis / Centralia area. Those are typically out of pocket expenses, and the rest such as closing, title, escrow, realtor, etc. will come out of your proceeds at closing, as well as any liens or loans currently on the property. (As an aside, a short sale is when you owe more on your house than it is currently worth. If you don’t have any money to bring to closing, the amount you owe is written off as a default. That is a subject for another time).
 
 
Alright, so we talked about the purchase and sale process. It doesn’t require a ton of work on your part, but there is a lot of waiting and some upfront costs involved. The key here is selecting a Realtor who knows and understands the forms required and how to use them to your benefit. Wouldn’t that be a great question to ask when selecting an agent to list your home? Next week we’ll discuss the importance of pricing your home to ensure you get top dollar! Thanks so much for watching, now go out and make it an Extraordinary day! 

 

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