Offers vs Counter-Offers
If your home is positioned and marketed effectively, you will start to receive contractual offers to purchase your home. The seller isn’t required to respond to an offer, but all offers will have a consideration period after which the terms will expire. The seller can accept, decline or counter any offer with modifications to the price or sale conditions.
The seller can only execute one contract at a time. However, back up contracts can be accepted and still negotiated if the executed contract is abandoned.
AS IS vs Contingency Agreements
By far the most predominant offer usually comes in the form of a FARBAR AS IS contract. This type of contract has no pre-specified amounts due upon there being evidence of damage or necessary repair, like a contingency contract. The AS IS contract implies that the buyer will purchase the home in its current condition. However there is a caveat which allows the buyer a period of time to inspect the home, during which they may walk away from the contract for any reason. The buyer usually will provide an inspection contingency addendum including any repairs or monetary reparation. This addendum, like all aspects of the contract, can be negotiated.
Inspections & Appraisals
The buyer is responsible for scheduling and payment of inspecting the home and either accepting its current condition or additionally negotiating for repairs or monetary reparations to be included as an addendum to the sale. Most lenders and insurance companies will require the house conform to having no defects related to plumbing, electrical systems, HVAC and roofing (4-point inspection). The type of financing (i.e. FHA, VA, USDA, etc.) may also dictate the home conform to additional levels of criteria. The seller must disclose knowledge about the condition of the home with respect to these criteria and how it might impact the ability of the buyer to purchase the home with any of these financing options. The buyer’s lender will also order an appraisal be produced for the home and paid for by the buyer. This will require scheduling a visit to the home by the appointed lender. While the sellers and buyers and their agents are prohibited from attempting to influence the appraiser, it is a common practice for the seller’s agent to provide any previous appraisals, comps and market analysis and for the seller to leave this information in an obvious location prior to the scheduled appraisal.
Implications of Post or Pre-Occupancy
Most of the time the conclusion of the sale will result in the seller receiving the net balance of the funds of the sale and the buyer receiving the keys to the home. However, there are always circumstances that might arise which might result in either the seller remaining in the home after the sale, or the buyer moving into the home prior to the conclusion of the sale. Neither of these circumstances are preferred, and should probably be avoided at all costs. However, if a situation arises that impacts occupancy after or before the sale, a contract explicitly stating the liabilities and compensation to all parties can be drawn and negotiated.
Closing the sale
As the seller, you would get to choose the title agency that you prefer to handle all of the title and closing work. These costs are usually paid by the seller as a process of the sale. While you this is the seller’s choice, if you don’t have some personal preference in who does this work, you should rely on a representative that the selling agent has had a positive experience working along side.