Offer Recommendations

We recommend that you make a Counteroffer for every offer that you get that does not meet your terms. Do not be insulted, you never know! This is also an excellent guide for you to better understand the terms of the contract. We know this is not fun, but it is important. Please read.

At the bottom of the offer email, you have 3 buttons to choose from. Just click the button for the next steps. If you choose not to follow this process and communicate directly with the agent, be sure DUFFY is copied on all communications, and know that we may not be able to get you out of something you agreed to. Agents may be very pushy and aggressive, and they do NOT care about your interests. You are fully represented by DUFFY Realty, and we HIGHLY encourage you to follow the simple process we have built. Options:

• Accept
• Counter
• Decline

Recommendations by Section. 

Section 1-A: Property Identification – Is the address correct?

Section 1-B: Legal Description – Legal descriptions are generated from the tax record of your property. If the legal description is not present, please look at your security or warranty deed that you received when you purchased the property or go to www.gsccca.org to fill in the legal description. If the Deed Book and Page are filled in then all is good!

Section 2: Purchase Price – Figure out what percentage of your asking price has been offered to you. Most offers start at 98-100% of the list price if the property has been on the market less than 30 days.  Most offers end at 98-100% unless you have been on the market 30+ days. If you receive multiple offers, we have a process to gather offers!

Remember to keep at least $1,500.00 back to negotiate repairs in the due diligence phase based on the condition of your home.

Section 3: Closing Costs – We recommend that you grant the closing costs if the buyer is requesting them.  Raise your counteroffer purchase price to accommodate them.  In many cases, if you don’t pay the closing costs, they can’t buy. However, if by adding the closing costs to the price, you are going over your asking price, that is dangerous as well because the house needs to appraise. So, take this case by case. Closing costs typically run between 3 to 3.5% of the loan amount. Most closing costs are the Buyer’s responsibility, and you are only responsible for the amount that the Buyer asks you to contribute in this section.

Closing Costs DO NOT include compensation for DUFFY or the Buyer’s Agent.

Section 4: Closing and Possession – Is this date OK? Once negotiated, this date cannot be changed without the agreement of you and the Buyer.

If you currently live in your home, we recommend two days after closing at

6 P.M. If you do not ask for possession time after closing and the Buyer does not close, unfortunately, all of your belongings will already be on a moving truck. You can alter this time to accommodate your situation. Schedule your movers for one or two days after closing (if the Buyer allows you to retain possession after closing). If you need more time, you can negotiate a Temporary Occupancy. The buyer may expect you to pay rent if this exceeds 3-5 days.  If you need movers or any other vendor, go to the Seller Dashboard for DUFFY’s List of vendors.

Section 5: Closing Law Firm – If there is not a closing law firm in place, add Mozley, Finlayson, and Loggins 678-222-2170 so there will not be a delay in getting the title work completed for closing.

Section 6: Holder of Earnest Money – This should be the Buyer’s Agent’s broker (also called the Selling Broker) or the Closing Attorney. DUFFY Realty does not hold earnest money. This is determined by the buyer.

Section 7: Earnest Money – We recommend 1 % of the sales price. Earnest money is used to cover any expenses that you may incur while your property is off the market, should the Buyer default on the contract. The two most common expenses are your mortgage payment and utility bills.

****Important to Know: It is rare for the seller to retain the earnest money. For this to happen, the buyer must default on the terms of the agreement. In the event of a dispute between the parties, the Holder of the earnest money will have the authority to decide its distribution.

Section 8: Inspection and Due Diligence Period – We recommend 3-7 days. This is the time from the Binding Agreement Date that the Buyer has to complete all of their due diligence – including financing and inspections (unless there is a financial exhibit attached that states its own time period). They have the right inside the contract to submit an amendment requesting repairs based upon their inspection findings during this period. If, for any reason, the Buyer chooses to terminate the contract in this time period (for any reason), they are free to do so with a full refund of earnest money.  So, keep showing your home and we can accept a backup contract in case these Buyers opt out from buying your home.

Section 9: Lead-Based Paint – IF your home was built prior to 1978, We must have a Lead-Based Paint Exhibit attached. The fine for not initialing and signing this exhibit is $66,000.00 fined by the EPA. This is the ONLY exception to the exhibits you must sign.

Section 11: Time Limit of Offer  – This is the time stated that the Buyer wants your response. If you are countering, be sure to fill in this section on the counteroffer form and allow them no more than 24 hours to respond.

Page 9 of 10 (There could be an additional page for more special stipulations.)

Special Stipulations – You don’t have to agree to any special stipulations. If you don’t agree, reference it on the counteroffer form.

• Home Warranty  – This is a fairly usual request – many Buyers ask for this, and the average price of the home warranty that they ask for is $500.00. If a dollar limit is not already included in the stipulation, please be sure to add one in your counter.

• Termite Bonds – If you do not have a termite bond but have been asked for one in a stipulation, termite companies require treatment (sometimes costing upwards of $2,500.00) to get a re-treatment OR a repair bond. Make sure that you understand this when negotiating your contract. A lot of companies are no longer offering repair bonds, so please double-check with the company you choose. If you are in need of a termite company, just let us know or visit http://www.duffyrealtyofatlanta.com/vendors.

*** IF YOU HAVE A QUESTION ABOUT THE TERMITE STIPULATION OR THE COST OF THE LETTER/BOND – CALL YOUR TERMITE COMPANY

Exhibits:

Some of the exhibits listed below may not be a part of your contract. But if any of them are,  you can change any exhibit that you don’t like, just like you have made changes to the offer by stating the change on the COUNTER OFFER  form in the text box labeled for changes to exhibit.

If you do have exhibits attached, you do not have to sign or initial any exhibits EXCEPT if there is a Lead Based Paint Exhibit, Seller’s Disclosure, or Community Association Disclosure – then it is required for you to sign and send the above forms so that it on file with your signatures.

Seller’s Disclosure:

IF you are asked for a Seller’s Disclosure but don’t have one filled out, please go to your email and check your inbox and spam for emails from Right Signature. You can also find blank copies on the 24/7 Seller Resource. If you can’t find the email, text us to resend it.

Community Association Disclosure:

IF there is a Community Association Disclosure Exhibit, make sure everything is correct  and filled in to the best of your knowledge. Call your HOA to double-check for assessments and initiation fees! Assessments and fees are very important to disclose, or you will be responsible for payment at closing! IF you are asked for a  Community Association Disclosure but don’t have one filled out, go to the 24/7 Seller Resource,  Step 9: Forms and Pamphlets You May Need.

****If you have made any changes to your disclosures at any time, it is your responsibility to confirm the correct disclosures are attached to your Purchase & Sale Agreement. It’s possible the agent had acquired an older disclosure and used it.

Dekalb County Plumbing Disclosure:  

If your home is in unincorporated Dekalb County and was built prior to 1993, we will need a Dekalb County Plumbing Disclosure form, and we will send an email to the agent reminding them to add the form to the contract.

Financing Contingency:

These are a little scary because we don’t really know the whole history of the Buyer, even if we have a pre-qualification or pre-approval letter. Buyers are given interest rates based on all the criteria of their purchase. We recommend that you do your best to align the time frame of the financing contingency to less than 14 days. If the time written on the form is already less than that, leave it as-is. Of course, you will want to consider the close date. If the closing is 14 days away,  you will want a Financial Contingency shorter than that.

FHA and VA Loan Exhibits:

If the offer is for an FHA or VA loan, please review “What You Need to Know About VA and FHA Loans. “ attached to the offer email, for important information.

IF there is an FHA or VA loan Exhibit attached, please make sure to read through it carefully. Sections to take careful consideration on the FHA Exhibit are Sections 1, 3, 13, 18, and 21 & on the VA Exhibit Sections 1, 3, 16, and 19. IF you do not agree with an item, make your change on the COUNTER OFFER form in the text box labeled for changes to Exhibits.

***FHA and VA appraisals stick with the property up to 6 months. This means if you appraise low and the deal terminates, any other FHA or VA buyer will use this same appraisal. Also, earnest money is refundable if the property does not appraise, regardless of financing timeframes.

Sale or Lease of The Buyer’s Property Contingency:

We do not recommend that you take a contingency based on the closing of the Buyer’s property.  Call if you have any questions about this.

Appraisal Exhibit or Contingency:

An appraisal contingency for a conventional loan does not allow the Buyer to walk away from your house if it does not appraise; rather, it allows them to make an offer for you to reduce the price to the appraised value. If you choose not to reduce the price the Buyer can terminate the contract. However, the lender is picky about the risk of the Buyer combined with the property value. The funny thing about appraisals is that we can have homes that don’t meet appraisal for one Buyer that will meet appraisal for the next Buyer. I would not worry about the appraisal until you get one.  Then you can decide what to do at that time. Do your best to align the time frame of an appraisal to the financial contingency period. And when speaking of appraisals, no news is good news. We may not ever hear about it if the home appraises. We recommend an appraisal contingency of 14 days or less.

***FHA and VA will not allow an appraisal timeframe; it goes all the way to the closing date.

Important Strategy to Get More for Your  Property:

• Write a letter addressed to the Buyer thanking them for the offer and justifying your price. Use any home sale that you are aware of, including For Sale By Owner. Add an upgrade list of your home to help build your case. You can make a bulleted list complete with costs.
• Give the Buyer’s agent tools to help the Buyer see exactly what your home is worth, as well as justifying your COUNTER OFFER.  This is also the place to really lay it on about your neighborhood, neighbors, shopping, schools, and why you are moving. SELL IT!

Buyer’s Agent Too Bold  For You To Handle?

If at any time the Buyer’s agent becomes harassing to you, STOP the communication with them and call our office. You DO NOT have to talk to the agent.

Doesn’t it feel great to realize how simple this process is? Aren’t you blown away by what you just learned and how easy it can be? Remember, we are just a phone call or email away if you need us.

Text us at:   678.257.1185

Email us at:  contracts@rhondaduffy.com

Call us at:    678.318.1425

Reference your 24/7 Seller Resource emailed to you at the time you listed for more detailed information.

Our business hours are Monday – Friday 9-6, Saturday 10-5 and Sunday 2-5. If your negotiations fall outside of our hours and you are in communication with the agent just let them know you need more time to review with us.