Could you negotiate your price and qualify the buyer if needed? In the offer phase, you may have to make a counteroffer to the buyer. This is where negotiation skills are essential. You can use several techniques to read Chapter 11, especially if you counter to the buyer. 2. The Appraisal Phase. Once you have negotiated your price, an appraisal must be ordered. The buyer's lender will order the appraisal once the contract is executed. Once it is ordered, the appraisal can take 15 to 20 days before you will know the property's value. The appraiser is the one person who controls the whole process. If the appraisal comes in lower than your asking price, there are three options: 1. You can lower your price. 2. The buyer can pay the difference between what you want and the appraisal. 3. You can cancel the escrow. Please stay in touch with the lender. Even though the lender represents the buyer, I want to ensure the lender keeps you informed. 3. The Escrow Phase. The Escrow Phase is very important because you need to hire a title/escrow that will be 100% neutral. This means the escrow cannot favor one side over the other. Per the Real Estate Settlement Procedure Act of 1974 (RESPA), the buyer selects the title company, not the seller. If a seller directly or indirectly tells the buyer to use a particular title company, then the seller will be liable to the buyer for three times all costs for the title expense (RESPA SECTION 9). 4. The Home Inspection Phase. The Home Inspection Phase, sometimes known as the "Deal Killer" is a critical phase. I highly recommend that you get your inspection before marketing your home. There are no
81
Powered by FlippingBook