Why Sales Price Isn’t Everything

 

I wanted to talk about Why Sales Price Isn’t Everything.

If you’re looking to sell your house, you’re going to want to watch this video.

I’m Jana Sherwood with Team Sherwood and Windermere Real Estate.

And I wanted to go over a couple of terms that we negotiate for on behalf of our sellers.

First, I do wanna give a quick example to illustrate what I mean when I say price isn’t everything.

So for example, let’s say there’s 2 houses in the same neighborhood, maybe the same floor plan from the same builder.

House A sells for $400, 000, House B sells for $410,000.

You would think House B is the clear winner.

But sometimes there’s stuff behind the scenes that you don’t see.    

For example, maybe seller B paid $10,000 worth of the buyer’s closing cost.

Maybe even seller B had to perform $5,000 worth of repairs to the home, because the buyer negotiated that into the deal.

It’s just stuff that you don’t see in the sales price.

Sales price is not everything.

Now, onto a couple of the terms that we negotiate for our sellers.

Low appraisals are happening right now.

The market is increasing so rapidly that they’re just coming in low.

What we like to negotiate in the beginning is for the buyers to add in a Low Appraisal Addendum.

Now, what the Addendum says is, Should our appraisal come in low, we’re willing to put an X amount of dollars above the appraised value.

So that gives the sellers a little more certainty, a little more cushion as far as the appraisal goes.

If a low appraisal does come in, there are some other things that you can do above and beyond the low appraisal addendum, but it’s a lot of information and that it’s a different story for different time.

But another term that’s really important is the Inspection.

Boilerplate language of the contract says you get 10 days to perform an inspection and ask for any repairs that you would like to from the seller.

Now, that timeframe can be reduced, sometimes drastically or buyers have been waiving their inspection as well.

This is just the term that we look for on behalf of our sellers.

So, we’ll get waived inspections from buyers, we’ll get pass/fail inspections, or the buyers agree that they’ll ask for any repairs or credit towards repairs.

Again, it’s just an extra cushion and peace of mind for the seller that it’s a serious buyer and they’re not going to get haggled down, and that it’s going be as smooth of a transaction as it can be.

That’s it, I just want to go over a couple of important points.

We work really hard on behalf of our clients.

If you have questions, we would love to help out.

We hope you have a great day.