Every home sale is unique. A home sale involves the seller, the buyer, the agents, state and federal law, local ordinances, lending rules and the negotiated terms and conditions, etc. All of these can have a huge influence on the sale. If you have questions about the contract, please consult an experienced real estate attorney. Remember, everything is negotiable in real estate and the items below are what we see most often when buying and selling real estate in Tallahassee.
1. Closing Costs
Both the seller and the buyer can have closing costs. All closing costs can be a negotiated term or condition. The buyer’s closing costs are mostly for their home loan and due diligence. A home seller must have taken care of any liens on the property. They also usually pay the transfer fees to the municipal body and the Realtors’ commissions. A buyer’s closing costs are generally between 3%-7%. The buyer’s closing costs do not include their down payment for the loan itself. It is common for the buyers to ask the seller to cover some closing costs.
Recent near misses in Tallahassee from hurricane force winds has led insurance companies to reevaluate their risks in Florida. Insurance companies can offer discounts for new roofs if they meet certain criteria. Insurance companies sometimes will choose not to insure old roofs. If the roof is at the end of its life, be prepared to include that in the negotiated terms and conditions.
3. Personal Property
Personal property is not included in the value of the house per most lending rules. That does not mean that it should be ignored in negotiated terms and conditions . Some banks do not like to see personal property listed on the offer contract.
Repairs can certainly be a part of the negotiated terms and conditions. Some lenders and most VA loans will require certain repairs before closing. If an Appliance doesn’t work, it may be required to be repaired, replaced, or removed on some loans. Most of the time, lenders require repairs to be finished before the closing. They may also require enough time for an inspector or appraiser to verify the completion of the repair or replacement. Repairs can be due to homeowner’s insurance requirements.
5. Closing date
Sellers sometimes want a quick sale. But, sellers sometimes need time to find their next place or to find a temporary next place. You should have this conversation with your agent, if this is the case. Excellent selling agents will call and ask the listing agent why the sellers are selling. They may even ask the listing agent, besides getting a good price, what are they looking for in an offer. Excellent listing agents excel in getting the terms and conditions favorable to the seller.
6. Earnest money deposit
An Earnest Money Deposit is money that the buyer submits to the closing agent immediately after the seller accepts their offer. The amount varies A LOT across neighborhoods, price points, brokerages, and buyers. There are no requirements for the buyer to offer an earnest money deposit, also called a good faith deposit. In Tallahassee most buyers offer at least $1,500.