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Step 1
Remember that a real estate sales agreement includes both price and terms. Decide on what is important to you. Do you want a better price or better terms? Don't get hung up on price alone.
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Step 2
As buyer be sure the deposit is part of the down payment and not in addition to the down payment. The deposit should be made out to and held by a third party. Who gets the deposit if the deal goes south is a negotiable issue. A seller can come back at a buyer in addition to the deposit if the deal goes south. A deposit can be liquidated damages. A deposit of 2% of the selling price is reasonable.
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Step 3
As a buyer, have a qualifying letter for financing or pre-approved financing to edge out other buyers. As a seller beware of the buyer who wants to carry the financing.
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Step 4
As a seller, do not let the buyer move into the property before closing. Have a clause to allow continued showings until closing.
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Step 5
Be careful with contingencies. Each contingency weakens the deal. As a seller ask for concessions if there are contingencies. As a seller, link the purchase of a new house to the closing of the old house, if necessary.
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Step 6
As a seller, have an attorney check the language regarding the final walk through contingency clause. Make sure there is less of a chance that a buyer can use the walk through to exit the deal. As a buyer, a contingency based on the final walk through make offer an opportunity to back out of a deal. Check with a lawyer.
