The home selling process comes with more than just accepting an offer. If you recently accepted an offer on your home after reviewing the “one” or the “many” that came, then you have learned that there are a lot of things to look for when reviewing offers.
Since you have accepted a purchase offer on your home, I want to share some insight of what is to come.
Here are 4 Things You now need to Prepare for.
- Due Diligence Period
If you are a First-Time Home Seller, you may not be familiar with the term Due Diligence Period. Or perhaps you are a seasoned home seller, that just needs a little reminder.
In Real Estate, Due Diligence is the period immediately after the acceptance of a Purchase and Sale contract to buy a home. This time period is very crucial in determining if the home is the right fit for the buyer. For the seller, this time period means inspections and possible further purchase negotiations.
During the Due Diligence period, home buyers will be ordering a home inspection to determine if their home investment is protected. This report is sort of a full generic “status” of the condition of the home. As a home seller, you need to prepare for the report findings.
If the report shows safety concerns, be prepared to have the buyer ask for these items to be resolved prior to closing. Usually, there are many maintenance issues that may come up; these are fully negotiable. As part of the negotiating process, the buyer may try to negotiate a lower selling price or closing concessions due to the report findings.
Due to our recent housing law changes, the Appraisal is usually ordered by the lender financing the home purchase. The Appraiser performing the inspection will provide a written report usually within a couple of days of the home visit.
The Appraisal results can unfortunately break a home sale. For example: if the home purchase price is $200,000, and the appraisal comes back at $190,000; this means the lender will only finance $190,000.
At this point, the buyer will either need to pay the difference ($10,000) at closing or will seek to negotiate the selling price to $190,000 with the seller.
As the seller, you are able to either accept the new negotiated selling price of $190,000, or you can advise the buyer that you are firm on your selling price of $200,000.
What happens next? Unfortunately, someone will need to budge. Again, if neither buyer or seller agree on a new selling price, then this is often the death of a home sale.
- Buyer’s Remorse
Buyer’s Remorse exists in everything that we buy as consumers; Real Estate is not the exception. As the home buying and selling process develops, there are many emotional moments for everyone involved.
As a home seller, you may face Buyer’s Remorse more than you realize. Say the due diligence period is over, and you receive a call from your Agent informing you that the contract is being canceled or terminated. Consequently, there are financial penalties that can be assessed to the buyer for contract default. However, there are cases where even though the buyer is loosing financially, they still decide to terminate the home purchase contract.
I hope this post shed some insight and prepared you, the Home Seller, for what is to come next after accepting a home offer on your home.
Do you have questions or comments? Please let me know!