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Real Estate & Finance News That Affects Your Home                                                         Page  1 2 3 4

July 2009 - Page 2

NEGOTIATING 3 Basics To Conducting Effective Negotiations Keep the following important points in mind once you find an interested buyer: Rely on us to keep negotiations moving forward. Knowing what you want from the sale -- and what you are willing to give buyers -- we're in a unique position to help negotiations along. Respond quickly to a purchase offer, once you've had a chance to review it thoroughly. When buyers make an offer, they are in the mood to buy, but moods can change. You may want to accept the offer if it meets your needs or you may want to respond with a counteroffer, if you really want that sale now. Even if the original offer is a "low ball," keep the dialogue going -- after all, the initial offer demonstrates that the potential buyer likes something about your home. It's not unusual to exchange two or three counteroffers before a contract is reached. Exercise confidence and patience as the buyer weighs your counteroffers. Be forthcoming with all information requested and call attention to all the areas of agreement. Stay positive. When disagreements occur, iron out all the small negotiation areas before getting down to any real stumbling block later, when most items are agreed upon.

BUYING

How To Craft Your Purchase Offer Once you've found the home you've been looking for, it's time to sit down and write up an offer to purchase. The terms and conditions of this contract to purchase vary depending on the situation. Keep Your Focus When structuring your offer, remember: Only negotiate the facts. Identify potential problems in the contract, but don't negotiate the repairs until estimates have been made. Stick to the important issues -- avoid negotiating little details that you don't care so much about at the outset. You may have an opportunity to add them in with later counteroffers. Key Components Below are typical matters you and a seller may negotiate and agree on: The sales price. The amount of your deposit ("earnest money"). The amount of down payment and/or the amount of mortgage loan you will be applying for. The points and closing costs you and the seller will pay. The date, time and place of settlement. The date you will take possession of the home (occupancy date). What items will convey with the home such as window coverings, washer/dryer, swing set, etc. Any contingencies that must take place before settlement/closing including, but not limited to: the sale of your current home; inspections (pests, radon, mold, etc.); proof of clear title to the home; legal review of the contract by either or both buyer's and seller's lawyers; your ability to obtain a specified mortgage loan within a specified time at an agreed-upon interest rate and points (financing contingency). One of the most valuable services we offer clients is our negotiating expertise. Let us put it to work for you! Stimulus Questions? With all the recent government initiatives aimed at helping the housing market, you may be missing some important information that could help you when it comes time to buy or sell a home. Call on us for answers! We keep up with the very latest developments locally and nationally, and we would be happy to discuss how they may benefit you and your goals. As always, there's no obligation to you if you call.                                                                                                                                                                                                                                                            Page  1 2 3 4