Negotiations, Settlement and signing that Contract for a successful sale of your property.

91. Can we talk about your price?

You can be 99% sure that buyers will negotiate to bring the price down; this is why houses are sold and bought as a result of negotiations, which could take days, if you're lucky, or longer, if you meet buyers who really want your house but don't want to pay the price you're asking for.

Its curious what kind of arguments buyers will come up with to convince you to lower your price. But your backyard needs a lot of tending The kitchen tiles are not in good shape and wed have to replace them ourselves; But your house is near a cemetery (or a prison or a quarry), who'd want to buy your house?

Don't let buyers run you and your house down. If you want to unburden yourself quickly of your property because you've got an important trip scheduled or you need to make a counteroffer on another property, then by all means lower your price. However, if you're convinced that your property is worth more (based on the offers you've received so far), then be firm with your price.

Buyers will always take advantage of those situations where you show a little hesitation about the price. Tell them your price is final and that you're not prepared to negotiate.

92. It doesn't hurt to be honest.

When negotiations begin, remember that honesty is still the best policy. There is this great temptation to get greedy and you bid against your buyers. Don't. You may end up still owning your house months later because the bidders couldn't keep up with the price.

The more important consideration for you is not how much extra thousands of dollars you can get above your original price, but if you're a decent person, your no.1 concern should be who, among these buyers, will pay me for what I asked for and take good care of my house the way I did?

93. My home is your home now

Once you've found a buyer for your home and all the terms have been negotiated to both parties satisfaction, the next step is to transfer ownership of the house. Since you're on your own, you'll need to initiate the paper work yourself.

This is where the government can help you. The US Department of Housing and Urban Development has published a book entitled It is free and contains valuable guidelines on settlement matters (the booklet title may have changed, check with your city government).

From this publication, you'll be able to decide who to consult with in terms of the different steps of the closing process. You will need a lawyer (or notary), or an escrow company or your bank. Settlement procedures vary from state to state and from country to country.

94. How quickly will he settle this matter for me?

After you have chosen your settlement agent, get the name of the settlement agent of your buyer and provide this to your own agent. The way it works is the two agents will then work together to contact the banks, arrange for title searches and title insurance, draw up the sale contract and calculate any other fees that have to be paid. Settlement agents don't work with the same speed as other agents. If you feel that the process has stalled and its not your agents fault, then your buyers agent may be causing the delays. If delays become major concerns, you may want to seriously consider the next buyer on your list, but inform the first buyer that you cant afford to wait any longer.

95. This covers just about everything

When settlement details are finalized, a contract is drawn up. The contract must include the following details:

Amount/location of property

  • Timing of the sale

  • Transfer of funds

  • Items included in, and excluded from, the sale

  • Conveyance of title

  • Apportionment of fees to be paid

  • Insurance matters

And other such things that are typically part of a sale contract for private property. If there are any clauses that you don't understand, have your lawyer explain them to you. Ask questions until you're satisfied that everything is crystal clear.

96. Can we change this a little bit?

Be prepared for requests from the buyer to modify parts of the contract. Don't verbally agree to anything until your lawyer confirms that the requested changes are in order. This part of the exercise may take longer than you expected. Lawyers are shrewd creatures and will make every attempt to get the most for their clients. They're only doing their job, and they're doing what they're best at arguing and haggling.

It is up to your lawyer to defend your interests so hopefully, the lawyer you hired is as sharp and shrewd as your buyers lawyer. When contract discussions are going on, ask your lawyers opinion as to the advantages and disadvantages of agreeing or disagreeing with a particular clause. Discuss potential consequences and how changing a clause could jeopardize your rights as a seller.

And if you do agree to change a clause, ensure that all changes are put in writing either within the body of the contract or as an addendum.