Great job on reaching this stage! Let’s take a detailed look at the offer to ensure it meets your expectations. Here are the key points to focus on in the contract:
1. Offer Price:
Compare the offered price to your desired selling price. What were your expectations for the sale, and does this offer align with them? Consider the minimum amount you’re willing to accept and how this offer stacks up.
2. Closing Date:
On Long Island, closing typically occurs 30 to 60 days after contract acceptance. Buyers may request a longer closing if they need more time due to special loan programs, lease agreements, or the sale of their current home. If the buyer is paying in cash, we might close quicker than 30 days, but for mortgages, 30 to 60 days is standard.
3. Earnest Money:
Check the earnest money deposit amount. The usual range is 5% to 10% of the offer price. If the deposit is less, it might indicate the buyer is using a special loan program with a lower down payment, or it could suggest financial instability. Ideally, we want to see at least a 5% earnest money deposit.
4. Down Payment:
Review the buyer’s down payment. The down payment can vary based on their loan type, but ideally, we prefer a down payment of at least 10%, with 20% being even better. Lower down payments might be acceptable if they are using programs like VA or FHA loans.
5. Closing Cost Credits:
Determine if the buyer is asking for closing cost credits. For example, if they offer $500,000 but request a $10,000 credit, the net offer would be effectively $490,000. Consider how this affects your net proceeds.
6. Home Warranty:
Check if the buyer requests a home warranty. This can cost between $400 and $1,000, and it would be deducted from your proceeds at closing.
7. Personal Property:
Look at whether the buyer is asking for any personal property items, such as furniture or fixtures. You are not obligated to include these items if you wish to keep them.
8. Contingencies:
Note any contingencies the buyer has placed on the offer, such as the need to sell their own home before proceeding with the purchase.
9. Additional Riders or Addendums:
Review any additional riders or addendums attached to the contract to understand any special terms or conditions.
We’ll carefully review each of these points together to ensure the offer aligns with your goals and make any necessary decisions on how to proceed. Feel free to ask any questions or share any concerns as we move forward.
