Home Goes Under Contract-Dates, Deadlines, and Earnest $
Once you obtain an offer on your home, it is time to celebrate as it may take several rounds of negotiation before a final price and terms are accepted. There are two types of buyers:
- 'Take your time Buyers': These buyers typically want to submit a low-ball offer because they are not in a hurry to buy. They will do everything they can to get the best deal. If we get a low-ball offer, do not be offended. We will counter the buyer to raise their asking price. They may not be willing to accept the counter offer. If they do not accept the counter, they may start looking for another property. However, if they do not find one suitable, they may come back and offer full price.
- 'Buy ASAP Buyers': Buyers who need to buy as soon as possible typically offer the list price or close to the list price. These buyers usually come to an agreement quickly.
Dates, deadlines, and Earnest Money
The contract will include many dates and deadlines for items that must be done by a certain date. These dates include things such as when the buyer must complete their inspection and appraisal. Please be aware that a buyer can terminate their contract before their deadlines and get their earnest money back. Therefore, if a buyer terminates a contract because their loan approval did not go through and they terminate before their deadline, they can get their earnest money back. If a buyer terminates after their deadline, the seller is usually able to keep the earnest money. However, as the seller, you are locked in when you sign the contract and cannot terminate.
When a buyer goes under contract, they must put earnest money down. The amount of earnest money typically depends on the sales price. $1000 to $2000 is standard unless the home is higher priced. The earnest money is consideration for the deal and shows that the buyer is working in good faith to buy your house.