There’s more to an offer than the purchase price

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There’s more to an offer than the purchase price

When you’re buying or selling a home in the Joplin area, the purchase price is only one component of the offer.  There are other details that affect the buyer’s total investment and the seller’s total return.

Start with seller concessions:

  • Seller pays a set dollar amount or percentage of the total toward the buyer’s closing costs.  Depending on the loan program, this could be as much as 9% of the purchase price.  This is a considerable expense for the seller but a huge savings for the buyer.
  • Seller agrees to pay a set dollar amount for repairs found during an inspection.
  • Seller gives an allowance for new carpet, paint, etc.

Consider the closing date:

The closing date can financially affect both parties in two ways.

First consider the cost of storage and short-term housing between the sale of one home and the closing on the new home.  Next consider the expense to the seller if they’ve already moved, but are still making payments on the house they’re selling.

Think about what’s included in the sale:

Kitchen and/or laundry appliances may or may not be included per the listing.  These items can be negotiated.  If they are included the buyers save money, and it may cost the seller to replace them if not included in their next purchase.

Even though these items are not given monetary value on the purchase offer, they do have a value that should be considered when calculating the bottom line for both buyers and sellers.

Whether you’re buying or selling a home here in Joplin, be sure to look beyond the stated purchase price.

If you have any questions about the costs and how they can affect your bottom line, give me a call or send me an e-mail.  I will be happy to assist.

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