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The Rolla Daily News - Rolla, MO
Understanding Real Estate and Our Local Market
The Real Offer and the Net at the End
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About this blog
By Audrey Elder
Audrey has been a small business owner for 17 years, and has worked as a Licensed Agent in the State of Missouri for over 8 years with a focus of helping buyers and sellers in the Eastern Jackson county area. Audrey's Real Estate distinctions ...
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Real Estate
Audrey has been a small business owner for 17 years, and has worked as a Licensed Agent in the State of Missouri for over 8 years with a focus of helping buyers and sellers in the Eastern Jackson county area. Audrey's Real Estate distinctions include: 2012 KCRAR/WCR Real Estate Future Trail Blazer, Board Member KCRAR Govt. Affairs, and Missouri Association of Realtors; State Director.
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There are some bits of information you can send in an email or even a text message.  Such as, “showing is confirmed for tomorrow 2p.m.,”  “added fliers to the flier box this morning,” or “the roses are beautiful, I took a new picture of the front yard.”



However, some information requires picking up the phone.  Sometimes it’s the kind of information you can’t wait to share, sometimes it’s a “please don’t shoot the messenger” type of news, like, “I realize you’re in a Uhaul somewhere between here and the Atlantic Ocean, but we’re not closing tomorrow.”



Today, I’m going to talk about one of the more joyful phone calls I get to make: We Have An Offer!  Now of course depending on how much that offer is, it still might not be a ridiculously happy conversation.  Understanding what the offer truly is can sometimes be key to understanding where to go next.



It’s not too often we get a full price cash offer closing in two weeks.  It’s typically much more complicated than that.  Here’s an example:



                Mr. & Mrs. Seller have their home listed for $160,000.  An offer comes in for $152,000.  But wait, that’s not exactly correct. 



“Hello Mr. Seller, we have an offer.  Your net offer amount is $148,050.”  The numbers written in “sales price” on the contract form is $152,000, why would I say the offer is $148,050?  Because essentially that is the real offer.  It is the net amount.  The buyer is asking for $3500 in closing costs and a $450 home warrantee.



At this point we create an estimate for the seller for proceeds:



Total offer amount  $152,000



  • Seller concessions $3,950


  • Mortgage Balance


  • Mortgage Interest Proration


  • Tax Proration


  • Realtor commission


  • Sellers Closing Costs


  • Title Fees




That’s it!  We have a proceeds estimate right?  Maybe.  Just to be completely prepared, there are other potential costs, inspection and/or appraisal required repairs, radon treatment, and termite treatment (has to be paid for by the seller, unless the seller is a bank and I’ll tie my tongue on that one).



Now that we have a net proceeds estimate and a potential “worst case scenario” estimate, that next step decision can be made.  Counter the offer, accept the offer, or reject the offer.  



Whichever way you decide to go you have real numbers to work with giving you a better ability to make a good, sound decision.



Audrey L. Elder



Heartland Home Team



Keller Williams

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