One common first impulse is to ask "How much are they offering?" While price is important, it's also important to sit back and look at the big picture when negotiating a sale. Consider:

1. Buyer's financial situation
• Is the buyer qualified?
• What is the buyer's annual income and employment history?
• How much down payment and closing cost cash is available and what is the source?
• What type of financial debt does the buyer have? Car loans? Credit cards?
2. Financing method
• Is the loan type and interest rate realistic for current economic conditions?
• Is the length of time requested to obtain a loan realistic? 30-45 days is a typical time frame. It allows enough time to process papers, but also allows you to put the home back on the market promptly if things fall through.
3. Your costs
• How much does the buyer want you to contribute toward closing costs?
• What will your net proceeds be? Add up any points, taxes or fix-up expenses requested and deduct them from the contract price to determine if your final profit is what you need to make your move.
4. Your calendar
• Does the buyer's proposed settlement date give you enough time to select your next home and obtain financing?
• If you can't move to your next home promptly at settlement, can you rent back from the buyer?
5. Contingencies
• Must the buyer sell a home before buying yours? You may not have the time to wait while the buyer sells.
• What add-ons does the buyer want? Curtains, lawn equipment, swing sets? All of this can affect your final net proceeds, be used as bargaining chips, or both.