When you think about selling an Orange County home is actually a pretty strange occurrence. You may of raised your family there, you built a life there, you put your blood sweat and often tears into making it yours and now we are going to put it on the Orange County real estate market for the world to see in the hopes of selling it to someone new, who will then make it their own. This leads to a lot of emotionally charged moments for many Orange County home sellers. One of my favorite parts of my job is helping my sellers navigate through the process so that they get the best outcome possible.
With that in mind here is a list of a few key things to keep in mind when negotiating the sale of your home. Obviously this list isn’t all inclusive and the reality is that it takes experience, knowledge and skill to properly negotiate every aspect of an Orange County home sale so consider this list a general guideline to help you prepare for your Orange County home selling experience , don’t worry I will be right there with you to handle the details.
ORANGE COUNTY REAL ESTATE NEGOTIATING A HOME SALE
1) Price – when I let a seller know we have an offer on their home their first question is always price., and considering Orange County real estate prices who can blame them! Price is the starting point of all negotiations so begin with a realistic image of where the market is and where you listed your home at, then look at the real estate trends at the moment, and always remember their offer price is just a starting point and you are free to negotiate from there. It is really important that sellers try to remove their emotions from the equation as much as possible, low ball offers aren’t meant to insult you personally they are just a buyer trying to get the best price possible.
2) Length of Escrow – In Orange County real estate 30 – 45 days closing times are typical, if they buyer wants longer you need to know why. Do they have another home to sell, are they waiting to hit a time mark to get their loan (such as two years at their job) are they waiting for money to come in. Whatever the reason we wan to know why before we proceed.
3) Source of Funds – this will tell us their ability to close. If a buyer offers all cash ALWAYS request proof of funds. If they are getting a loan we need to talk to their mortgage broker or lender to make sure they truly will be able to close.
4) Terms – looks for anything odd the buyer may have listed on the offer (such as wanting your couch, pre closing possession to make repairs, seller to pay all fees, seller to do all repairs etc.) typically we will want to counter all of this out of the offer so the offer itself is clean and the rest can be negotiated separately.
5) Contingencies – see if and when they are removing their contingencies. You want to make sure you have an agreeable time frame for them to complete what they need to move the escrow process along and always make them remove their contingencies.
6) Home to sell – do they have a home to sell? Is it on the market, in escrow or unlisted? If they are on the market are they willing to drop the price to get it in escrow, are they willing to take a firs right of refusal as you continue to market your home for sale? You want to know how much they are willing to do to get their current home sold and into yours while protecting yourself in case their home doesn’t sell on time.
7) Seller to pay – often for first time buyer they ask the seller to pay a percentage of their purchase related costs. When this is the case remember that payment reduces your net proceeds so you need to at least adjust their offer price for that (which is a very easy adjustment to justify).
8) Your situation – the most important thing to remember is your situation, are you selling your home and have a new home in escrow, is your time frame dictated by a job transfer or life changing event, or do you have flexibility in when you sell and move? This will effect the approach you take and what you deem important in negotiating the offer because remember just like low ball offers can shut down sellers a overly aggressive counter offer can chase away prospective buyers.
Properly dealing with an Orange County real estate home sale negotiation requires the ability to obtain a lot of information that will not be in the offer, which is what I spend a lot of time doing before presenting an offer to my sellers. For sellers the most important things to do are to try to remove your emotions from the negotiations, remember your situation, your goals and your time frame and trust my years of experience and skills as a top Orange County Real Estate agent to navigate you through the rough water of negotiations to a smooth close. As always if you have any questions please feel free to contact me, I am here to help.
949 599 6860