Selling Your Home: How to spot deals that may go bad

By Michele Blandino

Selling a home is a nerve-racking process. In addition to making sure that the house is always in show-able condition, and all major and minor flaws either fixed or camouflaged; sellers, particularly those not using the services of a realtor, also need to exercise caution when considering offers to purchase their home.

Consider Making Counter Offers

Depending on the prevailing market conditions, sellers may feel pressured to accept an offer that falls significantly below their asking price simply because they fear either alienating the prospective buyer or that another offer may not be forthcoming. As a result, these homeowners unnecessarily risk losing thousands of dollars on the transaction. What the sellers usually don't realize - particularly if they have limited real estate experience - is that buyers will almost always bid low before finally agreeing to a higher price.

As a result, sellers should not be afraid to make a counter-offer to the buyer's original bid. The key to doing this is to not make the potential buyer wait for more than a day. Remember, they too are probably just as anxious to close the deal and if you take too long to respond to their offer, they may interpret this as a sign that you are not seriously considering their offer.

Review the Contract

Another important consideration is the contract. While there is a standard contract that is commonly used, it is not uncommon for prospective buyers to make revisions to the language contained within it. As a result, sellers should carefully review contracts for any changes. While some of the changes may be quite easy to spot - perhaps they are written into the contract's margins or attached as an addendum - in other cases, the changes could be more subtle, as in cases where the entire contract is reproduced to include the changes requested by the buyer. As a result, many sellers prefer to engage the services of a real estate attorney to complete the review. While in some states it is standard practice to involve an attorney in a real estate transaction, it is not required in others.

Special Considerations

If a buyer is particularly anxious to buy a home, they may ask that their purchase be contingent upon the sale of their present house. This is a situation that should be avoided at all costs. There are several reasons for this. First, making such an agreement could potentially delay the sale for months or even longer and in extreme cases, the sale may never take place. This could, in turn, have an affect on the seller's future plans.

Another common tactic is for the buyer to request that the purchase be contingent upon the successful closing of a sale that is already pending. While this is better than the scenario described above, it is only marginally so. To successfully proceed in this manner it is important that the seller verify the existence of the buyer's pending deal by requesting a copy of the contract. It is also advisable to verify that any pending home inspection issues have already been resolved.

The bottom line in any real estate transaction is to ensure that the best interests of both the buyer and the seller are protected. By following these strategies and by enlisting the services of an attorney when needed, the chances of completing a successful transaction are increased.