Keys to Successful Negotiations

Very few offers are accepted as written. Purchase contracts usually need to be negotiated and diplomacy is essential in order to keep things moving in a forward direction.

While the bottom line (price minus seller expenses) always seems the most important element; the remaining ingredients in the contract need a thorough examination also.

• Is the buyer pre-approved with a local lender?
• What personal property is included in the contract?
• When is closing date and how soon must is possession?
• Are inspections included and what will they include?
• What are the terms of financing as presented and will they impact the net proceeds?
• What earnest monies are being given, who holds them and what happens to them in case of a dispute?
• How are the taxes to be prorated?
• What additional contingencies need to be met?
• What areas are important and non-negotiable to the buyer?
• Will you have to make any repairs?

These are standard questions and probably only a few that need to be addressed and put in writing.

Every transaction is different and every transaction comes with its own set of questions and concerns that need to be carefully considered, negotiated and reduced to writing. Give and take is necessary … compromise is essential.

With Results MLS you will have a broker to assist you, advise you, help you negotiate your contract and counter offers…at no additional fee.

Questions to Ask Potential Buyers

Ask questions about what they’re looking for and what type of homes they’ve seen.

• Are you planning on buying within the next month or two?
• Have you applied for a mortgage?

If they have not applied for a mortgage suggest a mortgage broker or explain that they will need a mortgage commitment if they find a house they like and want to move fast.

Frequent Questions You Can Expect From Potential Buyers

How long has the house been on the market?
The assumption behind this question is that the longer the house has been on the market, the more ready you will be to deal on the price. Answer truthfully and, if you are in a hurry, indicate that you would settle quickly and would be amenable to offers that accommodate the timeframe.

How did you arrive at your price?
Simply say you’ve priced according to the comparable sales in your neighborhood and offer to show those to the buyer.

Why are you selling?
This is an attempt to get at how motivated you are to sell your home. The more motivated you appear to be, the more the buyer thinks you will take a lower price. If you are very motivated to sell quickly, indicate that you would be very interested in reasonable offers, which accommodate your timeframe.

Will you take less?
A very blunt question, which deserves a blunt answer. Respond that you have priced the home according to comparable properties in the area, and that you will consider reasonable offers made in writing by qualified purchasers.

Homes Need to be Checked Thoroughly

Look at the landscaping for mature, low maintenance perennials, a deck or landing, privacy fences or hedges, sound walkways. These are costly items that cannot realize full value in a house price. The same applies to attached garages.

Look for a seller who is a serious do-it-yourselfer. How? Check out the tools inventory in the basement workshop, tool shed, or garage. Look for a router, a quality electric drill, perhaps a radial saw. Look for small tools as well, such as chisels, screwdrivers, handsaws, a mitre box, wood clamps

Most used houses get a coat of paint before they go on the market. If it’s a professional job, that’s a point for you. Look for roller marks, sags, and skips on the walls. Look for paint runs around trim. If you don’t see them, you’re in luck.

Open and close windows and doors. Make sure doors, including cupboard doors, don’t swing on their own. This can mean the foundation has shifted unevenly or the walls are askew. Make sure the doors and windows don’t stick; sticking could mean swelling from excess moisture and that, in turn, could mean wood rot in the frames and jambs.

When you’re really interested in a place, do a title search with a view to learning its history. Has it traded hands every time the real estate market escalates, i.e., been treated as a speculative investment, or is it a one-owner. The latter is preferable.

The Title Policy
Most Purchase and sale contract states that you agree to provide the Buyer with a title policy to insure the good condition of the title. We can will provide you with information on local title companies and their prices. Once you have decided on a title company, you can order the title policy. The title company will then provide you with a commitment to insure based on the condition of the title. You should have an attorney review the Title Policy if there are any problems that arise regarding the condition of title.

Home Inspection
The buyer of your home will probably want to hire a property inspector to inspect the condition of your home. The contract will state how long the Buyer has to complete the inspection and inform you of any unsatisfactory conditions. Allow about 2 hours for the inspection. There are usually some items that come up during the inspection that the Buyer will request you take care of prior to closing. Each Buyer is different. Some are picky and some are not. You will have to come to an agreement with the Buyer to keep the contract in force. Once you have agreed, you can breathe a sigh of relief. The inspection is usually the highest hurdle.

The Appraisal
The Buyer’s lender will order an appraisal to determine the value of your home. We will call you to set up a time that the appraiser can come by. The appraiser will measure your home and take pictures of the exterior, front and back. The appraiser need to come inside to measure rooms and will look at the condition of your home. You should allow 20-30 minutes for the appraisers inspection. You should prepare your home like you would for a buyer prior to the appraisers arrival. It will take about 1-2 weeks for the appraiser to complete the appraisal. It is customary for the buyer to pay for the appraisal.

Loan Approval
The Buyer must notify you of their lenders final loan approval, in writing by the specified date in the contract. You want to be paying close attention to this.

Preparing to Move
In addition to packing and lining up movers or friends, you will need to contact the utility companies for electric, gas, telephone, cable TV and trash. You will also need to file a change of address form with the postal service.

The Final Walk-Through
A day or so prior to closing the Buyer will schedule a final walk-through of the property to make sure that everything is in working order and in the same condition as when the contract was signed.

The Closing and Timing Your Move
A day or two prior to closing, the Escrow company will call you with the amount of the check you will receive at closing, go over individual figures and request changes, if necessary. Typically at the closing are you, the closing escrow officer, the buyer and the Realtors. Be prepared for writer’s cramp. At closing, the closing agent will:

• Receive & Disburse Funds
• Prepare and Deliver Documents
• Notarize and Record Documents
• Mail Your Mortgage Payoff & Updated Address

After closing you can work out any timing or other final details with the buyer. It is customary to provide the buyer with one key at closing and leave the rest in the house. There it is!

Buyers List of Considerations

Following are a few words of wisdom from those of us who have learned from past experience:

Take a few moments to discuss what you’re looking for with your spouse or partner before you start setting up appointments to look at properties. Make a list of “must have” features together, then discuss other “would like but can live without” features. After you’ve looked at a dozen or so properties, re-evaluate your criteria. Often priorities shift with time.

Have a realistic idea of how much you can afford before you start looking (most lenders will pre-qualify you for free). Not only will this save time, but will also avoid needless disappointment on everyone’s part.

Find an agent that you like and trust and stay with that agent to find your new home. A lot can be said about being loyal. Be particular about the agent you hire, but after you find that agent, it would be very rude and uncaring to buy from another agent. That would mean all the work your agent has done for you would go unpaid. Don’t go out to look at properties without your agent. Get the contact info and ask your agent to check on the property for you. Your agent will represent you and have your best interests at heart. Always take your agent with you when you go to a builder’s models, or to view a FSBO. Your agent will be able to ask important questions on your behalf that you may not have thought about. You will get representation and you won’t pay for it as your agent will be compensated by the seller’s agent.

If you find the house you want to buy before you’ve sold your home, and the seller is reluctant to sign a contract with you with the contingency that you sell your home first, you may draw up a contract that allows the seller to continue marketing and advertising the property yet gives you the “first right of refusal” should they receive another offer. This way you will be notified immediately if the seller has another offer, giving you an opportunity to re-offer if necessary. Another option is to put a non-refundable deposit on the property. This shows the sellers that you are serious about buying their property.

If you feel the property may be overpriced, yet the seller refuses a lower offer: Make your offer contingent upon the property appraising for the selling price or higher.

Make the time frame of your offer short (24 hours or less) so the seller has less time to “shop the bid” among other interested parties, or to accept another offer. Also, don’t make the deadline time at midnight unless you usually are awake at that time!

If you don’t know much about building construction, don’t worry. Simply make your offer contingent upon the property passing a professional home inspection. This is also an excellent way to become more familiar with the upkeep needs of your future home.

Put everything in writing. Your sales contract should spell out whether the washer and dryer stay, etc.

8-Step System to Get Your Home Sold Fast and For Top Dollar

1) Know How you’re selling and keep it to yourself
The reasons behind your decision to sell affect everything from setting a price to deciding how much time and money to invest in getting your home ready for sale.

What’s more important to you: the money you walk away with, or the length of time your property is on the market?

Different goals dictate different strategies. However, don’t reveal your motivations to anyone, or they will certainly be used against you at the negotiating table. When asked, simply say that your housing needs have changed.

2) Do your homework before setting a price
Settling on an offering price shouldn’t be done lightly. Once you’ve set your price, you’ve told buyers the absolute maximum they have to pay for your home, but pricing too high is as dangerous as pricing too low.

Remember that the average buyer is looking at 15-20 homes at the same time as they are considering yours. This means that they have a basis of comparison, and if your home doesn’t compare favorably with the others in the price range you’ve set, you won’t be taken seriously by prospects or agents. As a result, your home will sit on the market for a long time and, knowing this, new buyers on the market will think there must be something wrong with your home.

Do your homework. Find out what homes in your own and similar neighborhoods have sold for in the past six months, and research what current homes list for. That’s certainly how perspective buyers will assess the worth of your home. Ask Results MLS to email you comps from the MLS….then discuss them together.

3) Maximize your homes sale potential
Appearance is critical, and it is foolish to ignore this when selling your home. You may not be able to change your home’s location or floor plan, but you can do a lot to improve its appearance. The look and feel of your home generates a greater emotional response then any other factor.

Clean like you’ve never cleaned before. Pick up, straighten, unclutter, scrub, scour, and dust. Fix everything, no matter how insignificant it may appear. Present your home to get a “wow” response from buyers.

4) Allow the buyers to imagine themselves living in your home
The decision to buy a home is based on emotions, not logic. Prospective buyers want to try on your home just like they would try on a new suit of clothes. If you follow them around pointing out this improvement and that, or if your decor is so different that it’s difficult for a buyer to strip it away in his or her mind, or make it difficult for them to feel comfortable enough to imagine themselves owners.

5) Know your buyer
In the negotiation process, your objective is to control the pace and set the duration. Does he or she need to move quickly? Does he or she have enough money to pay your asking price? Knowing this information gives you the upper hand in the negotiation because you know how far you can push to get what you want.

6) Make sure the contract is simple
For your part as a seller, make sure you disclose everything. Smart sellers proactively go above and beyond the laws to disclose all known defects to their buyers in writing. If the buyer knows about a problem, he can’t come back with a lawsuit later on. Make sure that all terms, costs and responsibilities are spelled out it the contract of sale, and resist the temptation to diverge from the contract. For example, if the buyer requests a move-in prior to closing, just say no. Now is not the time to take any chances of the deal falling through.

7) Don’t move out before you sell
Studies have shown that it is more difficult to sell a home that is vacant- it looks forlorn, forgotten, simply not appealing. It could even cost you thousands. If you move, you’re also telling buyers that you have a new home, and are probably not highly motivated to sell fast. This gives them an advantage at the negotiating table.

How do buyers find houses?

• Lawn sign and Directional Signs
• Open houses
• Internet Advertising (Virtual Tour)
• Multiple Listing service (Buyer Agents) The #1 way buyers find their homes

We give you all the tools and Techniques to successfully get your home sold.

The 6 Things You Should Know Before You Buy
 

Be pre-approved for a mortgage before you go looking for a home
Pre-approval by a lender is the first step you should take before you even look at houses. The lender will do a complete credit check during the pre-approval process, and put it in writing – which is as good as money in the bank! It entails a completed credit application, and specified levels when you find the home you’re looking for. Clue: Do not make any large purchases or open any new accounts in the time you are applying for pre-approval and waiting to close on your new home.

Know what monthly dollar amount you feel comfortable committing to
When you discuss mortgage pre-approval with your lender, find out what level you qualify for, but also pre-assess for yourself what monthly dollar amount you feel comfortable committing to. Your situation may give you a pre-approval amount that is higher (or lower) than the amount of money you would want to pay out each month. By working back and forth with your mortgage broker to determine what this monthly amount is, and what value of home this translates into at today’s rates, you won’t waste time looking at homes that are not in your price range.

Think about your long-term goals and expected situation to determine the type of mortgage that best suits your needs. There are a number of questions you should be asking yourself before you commit to a certain type of mortgage.
How long will I own this home? What direction are interest rates going in, and how quickly? Is my income expected to change (up or down) in the near term, impacting how much money I can afford to pay to my mortgage? The answers to these and other questions will help you to determine the most appropriate mortgage you should seek.

Make sure you understand what prepayment frequency options are available to you. More frequent payments (such as weekly or biweekly) can literally shave years of your mortgage.
Simply by structuring your payments so that they come out more frequently, you will significantly lessen the amount of interest that you will be charged over the term. For the same reasons, authorized prepayment of a certain percentage of your mortgage, or an increase in the amount you pay monthly, will have a major impact on the number of years you will have to pay. For example, a mortgage with a “15 and15” prepayment privilege gives you the right to pay a lump sum of up to 15% of your Outstanding balance. This can be rolled back once during the year (although not lower than your original obligation) if you find that your situation changes.

Can your mortgage be both portable and assumable?
A portable mortgage is one that you can carry with you when you buy your next home. This means that you will not have to go through the entire mortgage process again unless you are making a move up to a much more expensive home. An assumable mortgage is one that the buyer for your home can take over when you move. This can be a very powerful tool at the negotiating table, making it much easier and more desirable for a buyer to buy your home.

According to the National Association of REALTORS®, each year more than 40% of all homes are purchased by first-time buyers

Here are 10 tips to make your first purchase a good experience:

1. Save. You’ll need money for a down payment, closing costs, moving, and other expenses. Put off trips and luxuries until after you’re in your new home.
2. Think credit. Poor credit will make you a bigger risk in lender eyes — and more risk means higher rates and steeper monthly mortgage costs. Make a point of paying credit card bills, auto loans, rent, and other payments on time, all the time, and in full.
3. Look into the financing process as soon as possible. Get pre-approved so that you generally know how much you can borrow, what you can afford, and so owners will see you as a serious buyer.
4. Examine the different financial options which are open to you — consider FHA, VA, and state-backed loan programs which require little down and have liberal qualification standards.
5. Consider Taxes. When you buy a home, mortgage interest and property taxes are generally deductible from income taxes. This means while monthly housing costs may be larger when you own than when you rent, what you save in taxes can make up some or all of the difference. For details, speak with a tax professional.
6. Look for gifts and grants. According to NAR, 22% of all first time buyers receive gifts from relatives and friends. Some companies offer grants and other incentives to employees who are buying a first home. Community groups may also have programs and financing in place for first-time buyers.
7. Consider what location will work best for you. Look at your needs, the needs of household members, and your preferences in terms of commuting, shopping, recreation, and other factors that are important to you.
8. Know the broker’s role. Real estate brokers are at the center of most property transactions. It’s important for you to know what a broker does, who is represented, and how the brokerage system works.
9. Plan on getting a home inspection as part of any offer you make. A professional inspection can help you understand the condition of the property and the repair bills you are likely to face in the next few years. A good home inspector will also give you maintenance tips during the inspection.
10. Start now, take your time, and ask as many questions as you like. Being a first-time homebuyer is challenging, but millions of people do it each year — and you can too.

If you are trying the sale by owner route selling your home, you are missing tons of buyers!  You can still sell by owner but get the exposure of the MLS and Realtors will show your home!  

Research shows that in 2015 over 90% of home buyers searched the internet for home for sale before contacting an agent!  If your home is not on the MLS then your home won;t show on the major homes for sale websites!

Also, a lot of agents won’t show regular for sale by owner listings becuase they think they have to do double work.

Sell by owner and get your home on the MLS and reach millions of buyers!

Georgia Flat Fee MLS Susanne Flynn, founder and broker is local and not a referral service like most Flat Fee MLS listing companies advertised on Google etc.  Our service helps For Sale By Owners get the marketing exposure they need to get their homes sold!

List your property in the MLS with our Flat Fee MLS Listing Service.  With Georgia Flat Fee MLS all you pay to our company is the one-time low listing fee for the package you choose to list your home in the MLS. There are no other fees at closing from our company. ( the only other fee involved is the commission you pay a Realtor® if they bring you a buyer) This plan gives you professional help to sell your home at a deeply discounted price.

Get maximum exposure for your property by listing it on the Multiple Listing Service (MLS) through Georgia Flat Fee MLS .

It is proven that 80% of home buyers start their search on the internet even before they contact a Realtor®. When your property is listed on the MLS, all the Realtors® in the area, and home buyers worldwide, have instant access to the property information. What most people don’t know is that they can have the benefits of the MLS without paying a high commission!

As buyers discuss their needs with their Realtor®, the agent simply goes to his/her computer and searches the MLS for properties matching the buyer’s criteria. If your property is on the MLS, the agent will easily locate it if it matches the buyer’s criteria.

We have developed an easy Flat Fee MLS listing program, to assist home sellers with the most extensive home selling resources, historically available only to sellers listing at fees of 6-8%.

Your listing agreement will provide more details but this is legal and most of all beneficial to you the consumer / seller in TN!