Understanding Negotiations with Buyers & the Closing

Now that you've received an offer...

Do you take it, or negotiate? Ultimately this decision is left up to you but your real estate agent will offer you advice on whether or not the offer is a fair one that you should seriously consider. Obviously if you get your asking price for a home you should take it and depending on your state there may be certain legal repercussions for NOT taking it without good reason.

Negotiating the selling price of a home can be a long and drawn out process taking weeks depending on the speed of your agent and the buyer's agent as well as your own response times and those of the potential buyer. Be prepared to throw in concessions in order to sweeten the deal if needed (like leaving that expensive wooden flooring behind or even some of your furniture if the buyer liked what they saw in your set-up). Your real estate agent should have the pulse of the seller and the selling agent to tell you if any concessions will be necessary.

After some back and forth, once you have agreed with the buyer on a price, the issue leaves your hands as the sale of the home goes into Escrow.

Escrow

Most people hear the word 'escrow' and automatically think home sales, but that isn't necessarily the case. Escrow is just a fancy term for money that needs to be held and cleared by a third party for a very large sale. Some items that sell at online auction sites, like eBay, use escrow to make sure the money has arrived from the buyer and that the seller has actually put forth what they promised. Once the two are in the hands of the escrow company, the company formally makes the swap - the goods for the money.

Since you are a home seller, you've been in escrow before and know that it is a place that generally requires lots of patience and nail-biting on both sides. As the buyer you know about having to produce a ton of paperwork (which your real estate agent should have helped you with if necessary), and as the seller you have to hope that all of your selling and negotiation efforts don't turn out to have been in vain if escrow falls through. Once again, finding the right escrow company to handle the sale of your house will fall to you or your agent. If you need a list of insurance/escrow agencies in your area, Anna can help.