Saved by the net


By Kathy Henne

Contributing columnist

You’re ready to list your home, but are you really ready to sell? Let’s say that on the first day your home is for sale, your agent shows it to prospective buyers. They love it, and sign a purchase offer on the spot. You were asking $145,000, and they offer $138,900. Because they are relocating, they need an answer right away, by 6 pm. What do you say?

You don’t say, “We just can’t give you an answer that soon.” These buyers are motivated, pre-approved for their loan, prepared to buy your home with a written offer and earnest money deposit.

So how do you make up your mind so quickly? You must simply decide what your rock-bottom price is before your home is even shown. Be prepared to negotiate on-the-spot by first asking your agent for a net proceeds sheet based on your asking price.

The net proceeds sheet will show what expenses must be paid out of the gross sales price. These expenses include closing costs, brokerage fee, the pay off on your existing first and second mortgages, proration of taxes, transfer tax, and home warranty. The result is the “net” proceeds check that you will receive at closing.

Next, ask the agent to figure other “net” proceeds based on receiving 95% and even 90% of the asking price. This helps you determine the absolute lowest offer you can accept. Once you know that figure, you will be prepared for all possibilities.

Contact the Kathy Henne Team RE/MAX by calling 937-778-3961.

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