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Copyright � 2004-2008 Max Exchange. All rights reserved.
Revised: May 20, 2008 .

Negotiating Sale

You've found it - your dream house! You want to buy it. Now what? You make an offer by submitting a signed real estate purchase agreement with the type of financing you desire.

This is it. This will be the last sales contract if the seller accepts it. Once you and the seller sign the papers, you are agreeing to the contract conditions. Before you sign, read it carefully and make sure you understand it in every detail. Ask Questions. Verbal agreements must be written into the contract.

Your local Real Estate offices will prepare a purchase contract according to your instructions and will take the offer to the listing Realtor. In some cases, the seller will accept it as written, or make a "counter offer: " on unacceptable aspects, or reject it. The selling Realtor will then bring back the offer to purchase to the homebuyer, who can accept, counter the counter offer or reject it. The offer to purchase becomes a contract when all parties have initialed every counter, signed the offer and received notice.

When you sign the offer to purchase you will have to submit a deposit to show that you are earnest about your desire to buy- appropriately called "earnest money"


Purchase agreements differ depending on the circumstances, but there are several provisions you may want to include.

I. Deposit. The amount of "earnest money" should be clearly stated, plus the amount of down payment you will be paying at closing and your avenues of financing. A common purchase deposit is 1-3% of the purchase price, deposited in a non interest bearing trust account and returned to you if the sale is not completed through no fault of your own, or at closing. 2. Financing Contingency. Specify the total loan amount, type of loan and the exact terms

3. Negotiate the closing date and possession of the house. Normally occupancy is at closing but this can be negotiated.

4. Inspections. If you feel the property may have structural or other defects, you may have inspections done. You will have to pay for these inspections, but the peace of mind or detection of a problem may well be worth the cost of inspections. Inspections can be ordered for all major systems and the structure.

5. Personal Property. Any items that are not permanent fixtures and are to remain in the house- washers, dryers, or refrigerators, etc. must be specified in writing. Misunderstandings based on verbal agreements can delay closing as well as cause friction between purchaser and seller.

6. Pre-closing Walk-Through. You and the Realtor should conduct a "pre-closing walk-through inspection" which you will make prior to the closing.


After you have signed contracts, your realtor should stay with you every step of the way and follow through with any details involved in processing your sale or purchase. He/she should:

  • Assure that earnest money is deposited in accordance with the terms of your contract
  • Oversee the lender to be sure the funds are available as soon as possible. Loan approval takes from 4-8 weeks.
  • Coordinate all necessary pre-closing inspections.
  • Remind you about required homeowners insurance policy
  • Coordinate with the closing attorney for closing fees, lender instructions and title search.
  • Oversee the closing-buyer, seller, lender and Realtors involved in the transaction

The house keys are passed. You are now the proud owner! Congratulations!







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Revised: May 20, 2008 .

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