Home Sales and Negotiations
Each side has a common objective
– A successful transaction!
Negotiating for Sellers
Now we are in the final lap of the home sales process. By this time in our marketing, we have captured the attention of a qualified buyer. Putting our best foot forward elevating the home in their estimation via showings and now we are in a great position to negotiate the best opportunity to achieve your goals and expectations when you decided to sell your home.
Negotiating for Buyers
After all the research and eliminating properties that are not right, you have found the home where you can picture yourself settling in. You are ready to make an offer!
What’s on the table:
- Strength of offer based on the qualifications of the buyer.
In Greenwich negotiations are not complete until contracts have been fully executed AND exchanged.
Contract Process in Most of Connecticut
In most of Connecticut a form called a BINDER is used to state the terms of an offer and is customarily accompanied by a 1% deposit which is placed into an escrow account. This form is signed by the buyer to show they are serious about making the purchase and the seller to show they are accepting the offer and waiting for contingencies, if any, to be met. This gives some solidity to the transaction as it puts a “hold” on the house until the buyer gets a chance to meet all contingencies.
Contract Process in Greenwich
In Greenwich, however, binders are not used! We verbally discuss the terms of a contract. Once accepted, an Offer to Purchase may be written to clarify all of the terms but it is not signed by either party nor is it accompanied by any funds. Rather, these written terms are:
- Sent to the Seller’s attorney to be written into a formal contract.
- Reviewed by the Sellers.
- Sent to the Buyer’s attorney.
- Reviewed and signed by the Buyers.
- Returned to the Seller’s attorney with (typically) a 10% deposit. He or she will deposit the funds into an escrow account.
- Reviewed again by the Sellers and signed.
- Fully executed contracts are returned to the Buyer’s attorney.
In a hot market, this can be unnerving because any subsequent offers coming in, presumably more favorable, can dash a buyers hopes of getting their dream home. Until that final “i” is dotted and “t” crossed and returned to their attorney, anything can and sometimes does happen.
That’s why you need an experienced negotiator, like myself, to make sure each step of the process moves along during this fluid and sometimes unnerving time toward a successful contract.
Your successful negotiation has brought you to signed and exchanged contracts. You now have all the elements working for you. Now you’re in an excellent position for the final step, transitioning.
*Note: I am not an attorney and defer to those who are far more competent and licensed to practice law.