I had a new client come to me. She was frustrated in her Novi real estate search. She had been with another agent and felt she had been shafted. I think she was somewhat right.
Many times short sales fall apart because the buyer doesn't have the patience to wait for the banks decision. So some buyers agents try to tie the buyer into the deal. They don't want to take the buyer back out unless they really have to. The agent doesn't want to start over.
So what do they do? They don't protect the buyer from unneccessary expenses. They tie the buyer to the deal by having them do the home inspection and the appraisal before the bank agrees to the short sale. What happens is the seller agrees and signs the purchase agreement. Then the buyer usually has about 10 days to get the home inspected and 5 days to start the mortgage.
So the Novi home buyer has to shell out at least $300 for the home inspection and over $350 for an appraisal. Money that the home buyer won't get back is the bank doesn't agree to the short sale. And the banks don't agree to short sale quite a bit. At least 40% of the short sales never go thruough.
So the buyer will be possibly throwing over $600. That's what happened to my new client. THAT DOESN'T HAVE TO HAPPEN!!!! It can be averted by simply putting a clause into the purchase agreement.
Here is the clause " The home inspection time period and the mortgage time period start upon written notification of acceptance of purchase agreement & terms by the third party lender." It's that simple to start the inspection and appraisal after the bank agrees to the short sale.
So don't let your agent tie you into the contractif you are buying Novi real estate. Make them put a clause into the purchase agreement to protect you and your money. There is no reason to lose $600 or more because of laziness.
Now this is just my opinion of why some agents don't use the clause.
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