CONTRACT FREQUENTLY ASKED QUESTIONS (FAQs)
Beware of modified contracts
Consider time for loan commitment: income, assets, credit and collateral
As-Is vs. $0 Repairs Contracts
How much escrow deposit? Relative to loan amount.
If an offer is not acceptable, rather than taking no action, you should consider making a counter offer. However, once a counter offer is made, the original offer is no longer valid or enforceable unless it is re-submitted by the buyer. Therefore, in a buyer’s market, if the offer is very close to being acceptable, you should carefully consider this strategy. On the other hand, once you have decided to decline the offer as submitted and to respond with a counter offer, you should address all items and terms of the contract of concern, in additional to the purchase price.
Remember, that in some cultures, it is common for the buyer to offer substantially less than the asking price when they may have every intention of coming up if necessary. Remember, it is only human nature to try to get a better deal and it is important not to be offended at this first stage of negotiations.
Avoid immediately discounting transactions involving FHA or VA financing, or being asked to pay a buyer’s closing costs. Instead, consider each offer on an individual basis and in terms of the net figure to you. Appliances, fixtures and window coverings are usually included, but can be used as points of negotiation. Including a home warranty may clinch the deal.