Step 5 - Negotiation and Contract

Being familiar with the Cedar Rapids Home market conditions and knowing your personal motivation to sell will guide you in the negotiations.

 Get a standard Cedar Rapids Real Estate purchase contract and make sure that you are completely familiar with it and how to fill it out. Review it with a real estate attorney if you are not comfortable.

 Generally, the buyer will present you with an offer for you to consider. In most states, only written contracts for the purchase of real estate are enforceable, so make sure it is in writing, not merely verbal.  In Cedar Rapids all offers should be written.

 The buyer may not have the proper forms, so always make sure to have several contracts ready to go.

 Starting negotiations face to face with the buyer with both of you staring at a blank page can be a bit awkward, but just keep your objectives in mind and forge ahead. Politely but firmly take control of the situation.

 This is where things can get a little sticky, and you will need to have done your homework. Having a contract that is not worded properly can put you into a real hornet's nest.

 Make sure to spell out every little detail in the contract. A misunderstanding (honest or otherwise), could end up costing you thousands of dollars or even tying your Cedar Rapids home up for months. 

 When you are presented with an offer from a Cedar Rapids buyer, you have three basic options:

 1) Accept the offer

 2) Reject the offer

3) Make a counter offer

  Here is some items that you should consider when structuring an offer or deciding how to respond to an offer that is presented to you.

 - PRICE

- DOWN PAYMENT

- EARNEST MONEY DEPOSIT (MINIMUM 2% OF SALES PRICE)

- IS THE BUYER PRE-APPROVED

- IS THE INTEREST RATE THEY WANT AVAILABLE

- CLOSING/POSSESSION DATES

- PRORATIONS

-LOAN DISCOUNT POINTS - WHO PAYS

- CLOSING COSTS - WHO PAYS WHAT

- APPRAISAL - WHO PAYS

-HOME PROTECTION PLAN - WHO PAYS

-INSPECTIONS - WHAT TYPE AND WHO PAYS

-ITEMS INCLUDED (WASHER/DRYER, REFRIGERATOR, ETC.)

-TITLE/ESCROW COMPANY/ATTORNEY

-CONTINGENCIES - WHAT AND HOW LONG

 Contingencies may seem like a minor issue, but they can be a major stumbling block. A contingency means that something else must happen in order for the deal to go through.

  A purchase may be contingent on the buyer getting approved for financing, selling the home that they already own, getting a favorable inspection report, or any number of other things.

 Make the contingencies as specific as possible, and spell out exactly what will happen if the contingency is or isn't met. Also try to make them self-canceling. For example: "If  the Cedar Rapids buyer does not object in writing within 14 days from acceptance of this offer, contingency shall be considered removed".

 Spending some extra time to make sure that the contract is "clean" can save you enormous headaches down the road!

 Once you have a contract mutually agreed upon and signed by all parties, take it with the buyers earnest deposit to an escrow company or real estate attorney. 

More to come about Cedar Rapids Real Estate