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valid real estate contract must be in writing and be freely offered by
the buyer and accepted by the seller. All parties to the contract must
be legally competent to do business. Money or other valuable
consideration needs to be exchanged for title to the property.
Keep
in mind that if things go wrong, the buyer could require you to sell
your home to him/her or pay damages. Be familiar with the terms of any
contract you give to a would-be purchaser.
Consider
the contract as a whole. Is it slanted in favor of the buyer? If so,
consult an attorney about making changes. Analyze the document as a
series of paragraphs or clauses, each written to benefit one party or
the other.
Key Elements of the Contract
Price and terms
If
a low offer comes your way, remain cool until you've examined the
terms. Nothing evokes a more emotional response than a low bid. Be
realistic and objective because many properties don't bring full price.
Don't use price alone as a reason not to counter or negotiate. A first
offer may reveal what's most important - price or terms - to this
particular buyer, giving you the key to begin bargaining.
Condition of home and inspection
The
purchaser should have your home inspected for soundness of construction
and state of repair. Include all mandatory and voluntary disclosure
statements concerning the property's condition, such as known defects
in the contract.
Be
careful what you guarantee. You cannot be sure the roof won't leak, the
heating system won't go out or any other number of such assurances.
Once the property is sold, you are no longer responsible for it.
Response deadline
You'll
be asked to respond to an offer within a specified timeframe. Try to
get as long a response time as possible. Other offers may come up and
you'll want to buy time to review them and perhaps use one offer to
increase another.
Settlement date and occupancy
If
you have another home under contract, seek a settlement date that will
enable you to take your sales profits to the next closing. Be
realistic; the buyer of your home will probably need at least 30 to 50
days to arrange financing and close.
Finalizing
Everything
in the offering contract is negotiable. When everyone has agreed to the
terms, initialed the changes and signed the contracts, you've got an
agreement binding on all parties. All that remains is removing
contingency clauses, arranging financing and clearing title.
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