Think you want to receive the highest price possible for your home? Think
again. The terms of your sale agreement may have an even greater impact on
your bottom line than the price itself. Here's why.
When selling your home, some items are always deducted from the sale
price. Examples would be paying off an existing mortgage, paying normal
sellers' closing costs and brokerage fee, etc.
Other items are negotiable, and may increase or reduce the "net" proceeds
you receive. For example, some buyers may agree to pay the full asking
price but require the sellers to pay their loan related closing costs.
These cost could be 2%, 4%, or even 6% of their loan amount. When deducted
from the sale proceeds, the impact can greatly reduce the amount of cash
realized from even a "full-price" sale.
Sellers, when considering an offer to the purchase, should carefully
analyze the "net" proceeds they would receive under the offer. Their
representative can help clarify the offer by pointing out terms and
conditions which may affect the bottom line.
There are times when a "low offer" can be more attractive to property
owners because it is also a "clean" offer, one with no costly special
provisions.
