When You Get an Offer

· Oral promises are not legally enforceable when it comes to the sale of real estate. Please be sure you understand and agree with everything that is in your offer.

· Your agent has a legal and ethical requirement to present all offers to you – regardless of their content. As a matter of fact, in many cases, your agent will not know the content of the offer prior to presentation.

· When an offer comes in there are two different ways it can be presented to you and you will be asked to approve either way. One is the buyer agent will accompany your listing agent and present the offer directly to you. The other is the listing agent will receive the offer from the buyer agent and will convey the offer to you. Please consult your agent for further explanation of these options.

· Price

The buyer agent will have done a comparative market analysis for the buyer. It will contain basically the same information as the CMA your listing agent did for you when you listed.

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Factors Affecting Value

▫ Property condition

▫ New home improvements

▫ Market conditions (that old supply and demand again)

▫ Buyer and seller motivation

▫ Seller concessions – are you being asked to give the buyer a

carpet allowance or are you being asked to help with closing costs?

If you are – the buyer should expect to pay a little more!

· Earnest Money

This is the upfront money the buyer will be depositing . Your agent can give you guidelines for how much this should be.

· Financing Contingency

The buyer will probably need to get a mortgage. Even if they have been preapproved, the lender will still need time to have the appraisal done, order title, etc. Your agent can advise you as to whether the time the buyer is asking for is reasonable.

· Home Inspection

Almost all buyers ask for a home inspection. Inspections usually work to the benefit of both the buyer and seller. It is much better to know about a problem prior to closing and fix it rather than being sued by the buyer after the fact. If you have any concerns about whether your home would pass an inspection, talk to your agent about the possibility of having a pre-inspection done.

· Disclosures

You will be asked to supply the buyer with various disclosure forms. If your property was built prior to 1978 you will need the Federal Lead Based Pain Disclosure. Illinois state law requires that you sign a Radon Hazard disclosure in addition to the Illinois state mandated Residential Real Property Disclosure Report.

· Multiple Offers

If you find yourself in a multiple offer situation your agent will explain your options. Although multiple offers on your property generally work to your benefit, many sellers have taken chances in the attempt to get a higher price that have backfired. The handling of multiple offers will depend on the market, your particular circumstances and the buyer’s motivation, among other things.