So, you are selling your home and curious about how you and your realtor should negotiate the terms to benefit you? In this blog, I will share five essential terms you should negotiate and why.
For those who don’t know me, my name is Desiree Renshaw, and I am a lover of problem-solving, negotiating, and relationships; and a top-producing realtor in Spokane, WA. So stick around for my final point and learn what I believe to be a seller’s best friend.
Earnest Money. In Spokane, the typical EM deposit is about 1% of the purchase price, but in the past two years, because the market has been so competitive, it has been more common to see 2% or higher. If the seller only has the option of retaining the EM in the event of a default, this number should be as substantial as possible. This is because it gives the seller more security that a buyer will not default. Simply more reason for a buyer to follow through and close. Buyers change their minds, and if the Em deposit is low, they can change their minds at closing without losing much.
Closing date and possibly a rent back. Work through a calendar with your realtor to discuss an ideal closing date and possible offer scenarios/timelines that impact your plans? For example, do you need additional time after closing to get moved out and everything cleaned or possibly to find a home to buy or rent.
Appraisal Gap. What market are you in? Are you afraid an appraisal will come in low on your home? Do you know how that will work if that happens? Did the Buyer include a low appraisal addendum to cover the appraisal gap? Can you ask for this? Talk to your realtor about the appraisal and the process if the appraisal comes in low.
Seller's Right to Perform
Seller’s Right to Perform. I discussed this topic in depth in my previous video; if you haven’t watched that, I recommend taking a peak. So if your Buyer included a financing addendum, look and see if they checked the automatic waiver or sellers right to perform. In addition to understanding which of these the Buyer selected, you also need to check the associated dates. Whichever option was selected, does the timeline happen after closing? How is that helpful?! It isn’t, so make sure you send a reasonable counteroffer with a reasonable timeline.
Home inspection timeline and additional inspection timelines. This can be negotiated. It doesn’t mean a buyer and their inspector can accommodate but shortening the inspection timeline is a great way to get through one hurdle of a buyer holding up your home if they change their mind. And remember, there are two timelines: the initial inspection, typically ten days, and a timeline for additional inspections, which are set at five days. Chat with your realtor about what those days look like on a calendar. You might be shocked at how long this can actually take.
Alright. Now that you are more educated on terms, you can negotiate to benefit you as the seller.
Do you have any questions or comments for me? If you are interested in learning more about Real Estate or Spokane, check out some of my other videos.
If your life needs some Real Estate advice, I would love to help. You can find my contact information below or always reach out through desireerenshaw.com.