Your Home Auction Has Finished ? 8 Tips To A Faster Completion

Your home auction has concluded and your buyer has made an offer for your home and has completed an 'offer to purchase' agreement. If you have not studied a real estate contract, look at one and become familiar with it. By studying a blank real estate contract it will give you some insight and will make the buyer's offer easier to understand. A bit of knowledge goes a long way and may well prevent heartbreak later. You will be able to recognize terms being used by the buyer, which may not be the norm or may be unusual in some way.

If the buyer of your home auction has added to the "special clause" box, which is located above the signature, you will want to read, digest and understand these special demands. The buyer may want you to cover some of the closing costs, which you are not normally responsible for, or the buyer may want you move out of your home by a particular date. Whatever you do check for this- you don't want to be out on the streets if your new home is not ready .Oh and don't forget to read the special clause box!!

There are some demands in the buyer's agreement that you might want to watch out for: whether or not the buyer has to sell before he can complete on the purchase of your home auction selling success; whether the buyer wants a lot of time to obtain financing to buy your home; if the earnest money is unusually small.( 'Earnest money' is the term given to the deposit which shows your buyer is in earnest, is serious, and it can be as high as 2% of the cost of your home. A normal amount is from $500-$2000.) ; if a penalty is enforced if you cannot move by the buyer's preferred date; if the buyer wants you, the seller to pay the buyer's mortgage costs. All these things could cause delays in the sale of your home and even more costs to you.

Ensure your buyer has been pre-approved or pre-qualified for a mortgage large enough to buy your home. If the buyer is making the offer prior to obtaining either one of these, do not sign the offer.

After you have looked over very carefully the buyer's offer, there are several options available to you. One is to accept the offer as is. This can be accomplished by simply signing the offer agreement making it a sales contract. Some states require you sign a separate agreement, which is called a "binder".

Another option would be to make a counter offer. Make notes on the sales agreement and cross out unacceptable conditions on the offer. You could just fill out your own sales agreement enabling you to stipulate the conditions you want in place.

The last option is to reject the offer all together.

If the offer is lower than you would have originally been prepared to accept are there any conditions which make up for this ? Think carefully about this- you may want to withdraw.

Some home auction sellers will not sign an offer agreement until they have received at least $500 earnest money, however if you have judged the buyer to be a serious buyer, you can, if you wish, do without the earnest money. The earnest money check should be made out to you, but held by a third party such as your real estate attorney or the buyer's real estate agent). This check is non-refundable should the buyer default on the contract.

Even though you have signed an offer, you can accept a backup offer. The buyer with the backup offer must know about the current pending contract on the house with the first buyer.

So after you've completed selling your home by auction follow all these steps and all should end happily! Good luck!!

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