Home Sellers » Tips For You

Your Net Proceeds - How much money do you get?

You are selling a house and the best thing happened -- an offer comes in. You have your choices: accept it exactly as it is, refuse it (with this market?) or make a counteroffer to the buyers with the changes you want. What you should consider in evaluating a purchase offer: you should estimate the amount of cash you'll walk away with when the transaction is complete. For example, when you're presented with two offers at the same time, you may discover you're better off accepting the one with the lower sale price if the other asks you to pay points to the buyer's lending institution.

Once you have a specific proposal before you, calculating net proceeds becomes really simple. From the proposed purchase price you can subtract the following costs:

  • payoff amount on present mortgage (if any)
  • other liens -- equity loan, judgments (also, if present)
  • real estate agent's commissions (necessary evil)
  • excise tax -- any other tax then property tax
  • unpaid property taxes and water and other utility bills
  • if required by the contract: cost of survey, termite inspection, buyer's closing costs, repairs, etc.
  • if you have a tenant(s) that renting part or whole your property space, rent should be pro-rated on closing. That means, you will receive the part of the month before the closing and buyer - part until the end of the month.

Your present mortgage lender may maintain an escrow account into which you deposit money to be used for property tax bills and homeowner's insurance. In that case, you will receive a refund of money left in that account, which will add to your proceeds.

Showing Process

There are a certain rules applied to showing your property to potential buyers. It is tremendously helping in selling and marketing process of your property. I appreciate your help following these instructions.

FOR EVERY DAY:

Keep music playing throughout the house. Soft rock, popular or light jazz are all appropriate. Leave certain lights or lamps on to illuminate dark hallways and corners.

When an agent calls to show your home, ask their name and the estimated time they will be showing. Ask them to please call you if they are running late or, later, if they become unable to show your property.

BEFORE ALL SHOWINGS:

  • Open all curtains and blinds, unless otherwise advised.
  • Turn on ALL lights and lamps.
  • Close garage doors.
  • Make sure all toilet lids are down.

Please allow potential buyers privacy as they view your home. It is best to leave, work in the yard, or take a nice long walk. Also, for safety reasons, do NOT let anyone in without their agent.

AFTER SHOWINGS:

Call me with the name, company, and phone numbers of the showing agent so I can follow up and give you feedback. Agents that show should be leaving their business cards. Please keep them for me.

Counteroffers and Negotiations

When you receive a purchase offer from a potential buyer, remember that unless you accept it exactly as it stands, unconditionally, the buyer is free to walk away. Any change you make in a counteroffer puts you at risk of losing that chance to sell.

Who pays for what items is often determined by local custom. You can, however, negotiate with the buyer any agreement you want about who pays for the following costs:

  • termite inspection
  • property survey
  • buyer's closing costs or lender costs
  • repairs required by the lender
  • home protection policy

You may feel some of these costs are none of your business, but many buyers - particularly first-timer buyers - are short of cash. Helping them may be the best way to get your home sold.

Selling Your Current Home in Order to Buy Your Next Home

There are two main points to consider when it's time to move up (or down) to your next home and you have a home to sell which are:

What if you find the perfect home before you've listed or sold your current home?

This scenario usually results in you, as the buyer, having to go in to a purchase and sale as a "contingent" buyer. Contingent meaning that there's the condition that in order to buy the home, you must sell your current home. This of course isn't as desirable of an offer as someone who doesn't have this contingency condition and you easily could not get this home.

How can you compete? There are alternatives to having to be a contingent buyer by applying for a bridge loan or re-finance and you can find more info on that on the Buyer's Page. If those are also not good alternatives for you, that is possible to resolve too. There's nothing wrong with being a contingent buyer as long as your current home is competitively priced, staged and easy to show!

What if you sell your current home before you find your next home?

Very often this situation seems like a trouble. Where will you move to and live until you find your dream home?

The best way to approach this is to look at what you own now and what you're looking for. If the property you are seeking is very unique then it makes sense to find it first, and then list your home. However, if your home has original and unusual features and might take a while to sell, then list it first and then go looking at other homes. Either way Stan "The Man" will make sure your needs and requirements are met!

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