There's a lot to consider before you sign a real estate purchase agreement. If the terms
and conditions of the deal aren't acceptable, you might want to pause and think twice, even
if the purchase price is more than satisfactory. After all, the price won’t matter if the transaction never closes.
The best offer is a “clean” offer. While many items may be “negotiable”, there are undeniably items which are customarily paid for by the Seller and those which are paid for by the Buyer. Your REALTOR® will be able to sort through those details with you to help you negotiate knowledgeably.
Here are the primary negotiable items on a Residential Sales Agreement in Texas.
1. Sales Price. Whether you are the Buyer or Seller, you will want your agent to perform
a Market Analysis on the property in question to determine the fair market value.
2. Closing Date. Pay attention to this date! If you're selling your home, you'll be required
to move out completely before the property changes hands. You'll want to make sure the closing date doesn't fall before you're able to move. If you're buying a home, you'll be able
to pick up the keys on the day escrow closes and the property has funded. You'll want to
make sure you don't give up your prior residence too soon. Don't cut the dates too close. Many sales do not close on the scheduled Closing Date. Often the closing is delayed and occasionally moved up with mutual consent.
3. Proposed Financing. The net to the Seller is greatly effected by the type of financing
the Buyer secures. VA and FHA guaranteed loans require the seller to pay additional
closing costs. Buyers should take this into consideration when preparing an offer for a
Seller who may be reviewing multiple offers. Often the sales price should be adjusted to compensate the Seller for the additional closing costs, especially if the home is very desirable.
4. Option Period. A typical contract provides an opportunity for the Buyer to perform any inspections or investigations they deem necessary to feel comfortable purchasing the property. From the Buyer's perspective, the more time that's allowed for these inspections, the better. Sellers, on the other hand, usually want the inspections to be completed and signed off as soon as possible.
5. Repairs. The fact that the Buyer orders one of more inspections of the home for informational purposes doesn't obligate the Seller to make repairs or modifications as a
result of those inspections. In practice, however, inspection reports often are used to negotiate repairs of major problems or safety issues that have been noted.
6. Survey and Title Commitment. Not only is it important to note who is paying for
these items, but each document provides the Buyer with a period of time to review them
and determine whether or not the terms are satisfactory. Whether you are buying or selling, these documents and dates must to be thoroughly examined by you and or your REALTOR®. 7. Home Warranty. A "home warranty" is a sort of limited insurance policy covering the basic major systems and appliances in the home. It may seem like a gift for the Buyers,
but it's equally important for the Sellers and the real estate Broker representing the Sellers. Be aware that these service plans do not cover everything that may go wrong with the home.
8.Special Provisions. Here is where contract negotiations can get really messy. A clean offer will have no special provisions noted. Buyers and Sellers should take special caution when reviewing this portion of an offer with their REALTOR®. Take the time to determine what the impact of each special provision will be before proceeding. |
