Great News: We’ve Received Our First Offer!
This is the moment we’ve been waiting for, and we’re excited to review the offer with you. We’ll carefully walk through each part of the contract together, but there are a few key points that you should pay close attention to:
1. Offer Price
- What price did you have in mind for your home?
- What is the minimum amount you’d be willing to accept?
- How does this offer compare? Are you happy with the offer, or would you like to negotiate for more?
2. Closing Date
- Typical Timeline: In NYC, closings usually take 30-60 days after contract acceptance. The timeline depends on the buyer’s financial situation and whether they’re using a mortgage or paying cash.
- Buyer’s Circumstances: Some buyers may request a longer closing date due to factors like:
- Financing: Buyers using a loan might need more time for lender approval.
- Lease: If they’re renting, they may need extra time to give notice to their landlord.
- Selling Property: If they need to sell their current home first, they might request a longer time to close.
- Cash Buyers: If the buyer is paying in cash, we may be able to close faster than 30 days.
3. Earnest Money
- What amount is the buyer offering?
- Typical Earnest Money: In NYC, earnest money typically ranges from 1% – 10% of the sale price.
- Lower Earnest Money: If the earnest money is less than 5%, it might suggest the buyer is using a special loan program (e.g., VA or FHA loans) or could indicate that the buyer’s financial situation is uncertain. We generally prefer earnest money deposits of at least 5%.
4. Down Payment
- How much is the buyer putting down?
The down payment could range from 0% for buyers using programs like FHA or VA loans, to 20% or more for conventional loans. - Ideal Down Payment: While anything is possible, we typically prefer buyers with at least 10% down, and ideally 20%. The larger the down payment, the stronger the buyer’s financial position and the more likely they are to get loan approval.
5. Closing Cost Credits
- Is the buyer requesting closing cost credits?
- If so, they are asking you to pay a portion of their closing costs. For example, if they offer $500,000 but request a $10,000 closing credit, the effective offer is only $490,000.
- Take Note: This credit will reduce your net proceeds at closing, so we’ll want to factor that into your expectations for the final amount.
6. Home Warranty
- Did the buyer ask for a home warranty?
- In some cases, buyers will request a warranty to cover home systems (e.g., HVAC, plumbing) for a period after closing. This typically costs $400 – $1,000 and would come out of your net proceeds.
- Consider the Condition of Your Home: If your home is relatively new or in excellent condition, you may want to decline this request.
7. Personal Property
- Did the buyer request any of your personal property?
- Sometimes buyers will ask for things like appliances, light fixtures, furniture, or other personal items to be included in the sale.
- You’re not obligated to include these items, especially if you plan on taking them with you. It’s important to clarify exactly what’s included in the sale to avoid any misunderstandings later.
8. Contingencies
- What contingencies are in place?
- Common contingencies include mortgage approval, home inspection, or sale of the buyer’s property.
- Buyer’s Property Sale: If the buyer needs to sell their home before buying yours, it’s something we’ll need to evaluate carefully. This contingency could potentially delay the sale or complicate matters.
9. Additional Riders or Addendums
- Are there any additional riders or addendums?
- These are additional terms that may alter or clarify parts of the original contract. Make sure to carefully review any extra documentation that comes with the offer.
Reviewing the Contract
Once we’ve reviewed all of the key points above, you’ll have a decision to make:
- Accept the Offer: If everything looks good, we can proceed with the offer as it is.
- Counter the Offer: If there are terms you’d like to change, we can make a counteroffer.
- Walk Away: If the offer doesn’t meet your needs, you can decline it and we’ll keep looking for the right buyer.
Negotiation Process
- Negotiations Can Be Fast or Slow: Some deals get done quickly in just a couple of hours, while others can take a couple of weeks. It all depends on the buyer’s urgency, the buyer’s agent’s responsiveness, and other factors.
- Stay Patient: While the process may feel stressful, we’ll work with you every step of the way to make sure you’re comfortable with the outcome.
We’ll go over everything together and make sure you understand all of the terms and conditions before we move forward. Feel free to reach out with any questions or concerns, and let’s keep this process moving toward a successful closing!