Princeton Real Estate - Two More Things For A Successful Sale

If you selling a house now, and have an interested buyer and a signed contract, it's important to know how to get to a cussessful close, since there are many steps between a signed contract and closing. This post is about why Contracts and Disclosure are so important and can make a big difference in the outcome of the sale.

What is "AS IS" ?

Many contracts have a clause that says that the property is sold "AS IS". these two words have a potential for a lot of misinterpretation that can lead to one of the parties cancelling the deal. To avoid this - you need a "tight" contract. My apologies for such an unscientific term, but it seems to best describe my point. It is EXTREMELY important for sellers and buyers to have top-notch legal representation. I often see contracts that become disputed right after they are signed. What many sellers and buyers don’t understand are the words “AS IS”. Sellers interpret them as “ I am not going to fix anything” and buyers tend to ignore these words altogether.

• Sellers need to understand what kinds of problems they WILL and  WILL NOT have to correct without jeopardizing the deal. Sellers contracts have to be as specific as possible, to avoid arguments as to what “significant problems” really means.

• The buyers have to understand that not all problems have to be addressed by the seller, and that they may not get out of the contract if this occurs. As much as we as agents can prepare and explain the contract to our clients, only lawyers can provide legal advise.

How Much to Disclose?

I am not talking about real estate agents- our conduct should be governed by applicable laws. I am talking about sellers and buyers. I can’t count the times in my experience, when trust became the issue undermining the transaction. The minute the buyers suspect that something was covered up, the trust is broken and every step from then on can become a battle. When the seller thinks that the buyer is not on the up and up – the same holds true. The issues could be small, but the result can be devastating to all parties. Our role as agents is to make our clients understand - there is rarely such a thing as “too much disclosure”. We should represent our clients’ best interest and never to participate in cover-up. Again, consult an attorney before making important decisions.

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                     If you have questions or need assistance please call Faina Sechzer directly at 609-553-4175