When you receive an offer for purchase you have two responses.
- Is accepting the offer in its entirety making absolutely no changes.
- Make a counter offer. You can negotiate any part of the contract you feel is unacceptable.
Not all offers are create equally. You might be presented with two offers offering the same price, but one might be contingent on financing and one is cash, or both are contingent on financing and one is putting a much larger amount towards earnest money deposit and down payment on the mortgage. Some offer might have the seller paying all closing costs or offering a long inspection period. It’s a Realtors job to guide sellers through each offer explaining in detail all aspects of the offer.
When making a counteroffer there are many ways to try and appease the buyer’s needs. Some buyers are short of cash so paying some of their fees/ costs can greatly improve the chances they accept your counteroffer. Price is not always the first choice, but once price has been determined you can still negotiate many costs like:
- Title insurance
- Buyers & sellers closing costs
- Home warranty
- Florida documentary taxes for buyers and sellers
- Repairs required by buyers lender, most of times this is a FHA or VA loan
- Points from the buyers lender
Seller’s Net Proceeds
Calculating your net proceeds is simply math. Take the final sales price then subtract all of your expenses. The majority of these expenses are:
- Florida documentary taxes: to calculate take the sales price, divided by 100, times .7%
- Loan(s) payoff(s)
- Realtors commission
- Title company closing costs
- Unpaid taxes or HOA dues
- Any requirements enforceable by the sales contract like: repairs, title insurance