Getting the Most Out of Your Sale

Think you want to receive the highest price possible for your home? Think again. The terms of your sales 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 include paying off an existing mortgage, paying normal seller’s closing costs and brokerage fees, etc.

Other items are open for discussion, and may increase or reduce the "net" proceeds you will 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 costs could be two percent, four percent, or even six percent [this is typically how it is written, although for the real estate business numerals and signs may be preferred. You may want to ask them]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.

When considering a purchase offer, sellers should carefully analyze the "walk away" proceeds they would receive under the offer. Their representative can help refine the offer by pointing out terms and conditions that may affect the bottom line.

Also, sometimes a "low offer" will be more attractive to property owners because it is also a "clean" offer – one with no costly special provisions.