Every real estate transaction boils down to three major checkpoints. Passing all three takes you from "under contract" to the closing table.
Whether you’re buying or selling, here is how to navigate each hurdle smoothly.
1. The Offer Phase: Setting the Right Terms
This is where the foundation is laid. It isn’t just about the purchase price, terms like closing dates, earnest money, and contingencies can make or break the deal before it even starts.
For Buyers: Keep your initial terms clean and realistic. While price matters, showing strong proof of funds or a solid pre approval letter gives the seller confidence that you can execute the purchase.
For Sellers: Look at the complete package, not just the highest dollar figure. A slightly lower offer with fewer risky contingencies or a pre approved buyer is often safer than a high offer backed by shaky financing.
2. The Repair Phase: Separating "Must Haves" from "Nice to Haves"
Once the home inspection report comes back, negotiations enter the trickiest stretch. Inspection reports are designed to highlight everything, which can feel overwhelming to both sides.
For Buyers: Focus strictly on structural, safety, and major system issues (like HVAC, roof, electrical, or plumbing). Avoid nitpicking minor cosmetic flaws or normal wear and tear, doing so can stall negotiations or alienate the seller.
For Sellers: Expect reasonable requests regarding health and safety. Being flexible with repair credits or addressing big ticket functional items keeps the transaction moving toward the finish line.
3. The Appraisal Phase: Crossing the Valuation Threshold
The lender hires an independent appraiser to confirm the home is worth the agreed purchase price. If the appraisal comes in at or above value, you're cleared to proceed. If it comes in low, both parties have to find a solution.
For Buyers: If an appraisal comes in low, your options are to bring cash to cover the difference, negotiate a price reduction with the seller, or meet somewhere in the middle.
For Sellers: Ensure the home is well presented for the appraiser and present a record of recent updates or comparable sales that justify the contract price. If a shortfall happens, collaborating on a reasonable compromise preserves the deal.
Brandon Stitt
The REAL ESTATE Office
Cell 865-696-2552
Office 865-483-SALE
License 384406
Top Agent - Proverbs 13:22 - Oak Ridge - Oliver Springs - Tennessee
