Last post we went over a couple other negotiating points that you have to pay some attention to when selling your house yourself. Those were the type of financing your buyer is using and the ever important earnest money. This post considers closing date, possession and concessions.
Closing date is generally up to the buyer due to their lender. When the lender is ready you can close. 30 days is a common time, sometimes 45 days for more complicated loans like VA’s or some FHA special programs.
If you’re buying a house after your sale you might want to try negotiating a 45 or 60 day contract on your property and a 30 day on your new house. That way you have some time to find a house so they both can close on the same day. More often than not your house has to close before you can close on your new house, so the existing mortgage can be paid off.
It’s always good to have a backup plan, especially in a active sellers’ market, in case you can’t find a new home in the allotted time. A backup plan as in a place to live while you look for your new home.
You also will be negotiating when the buyer is taking possession, the day of closing or sometime after. At closing means as soon as the papers are signed the buyer can move in. Which also means that you must be out.
Concessions are when the buyer asks for something. The most common concession is the seller paying the buyers closing costs or a portion thereof for him/her. Other than the title insurance and the closing fee the buyers closing costs and prepaids are origination fees, filing fees, underwriting fees, appraisal fees among others.
Prepaids are part of those closing costs. Prepaids are so much taxes and insurance put into the buyers escrow account by the bank.
The buyer may be negotiating for furniture or appliances or other personal items.
You may not have to deal with any of that if your house is in the pristine condition it should be before putting it on the market. Look for that full price, or better, offer that comes with proper preparation of the property.
Remember it’s not just about price when negotiating a contract. There are other factors that matter to you also.