In the past 2 weeks, I wrote more than 4 offers and need to explain the New Offer to Purchase contract to my buyer and FSBO seller. The main difference compared to the old one is the new contract allows buyer to back out from the contract for no reason and the only condition is that buyer need to have a written termination agreed sent to seller within the agreed Due dilligent period and Time is Essence.
Buyer need to understand now this contract allow buyer to back out without any reason and seller may feel it is not fair cause the seller will not get as much protection as before. On the other hand, Buyer may think it is not fair if the house has problem and seller know the existing condition and not fix and not disclosure the problems and the seller can keep the due dilligent fee for the next 2-3 buyers without fixing anything.
The new Offer to Purchase contract allows both buyer and seller a way out without focusing on the individual repair items but only focus on the final term and purchase price. Because we know everything is negotiable. So, the most important thing is to help buyer and seller get the fair purchase price which meant if the buyer found out there are new information after buyer hired the inspector and there are problems need to be fixed. Then, within the due dilligent period, buyer can decide to negotiate with the seller and see if they are going to fix the problem, split the cost or buyer just simply back out and let the seller keep the due dilligent fee and move on to other property.
So, in that sense, buyer can cut the loss only lose the due dilligent fee and inspection cost without losing their earnest mone. So, buyer only take the calculated risk and if seller is motivated enough and the seller can defintely negotiate the terms and conditions that both parties agreed.
The new changes has great impact to the local buyers and sellers but I think it also make the seller aware that with the new changes, if they don't have enough knowledge like to have a realtor to help them, the seller will find it harder to secure the buyer cause the new change allow buyer to back out for no reason.
Our local housing market is defintely one of the top market in the country and so you will need to have a experienced and entrusted real estate advisor to help you plan your home buying and selling and you are welcome to call me or email me for you 2011 Real Estate needs in Triangle!
Cary-Raleigh Realty, Inc (三角房地产投资公司)
Hannah Chan ( 陈海娜)
Broker/Owner/Realtor, GRI
919-426-1854 (Cell) 919-468-1570 (Fax)
Address: 1601 Walnut Street, STE 201, Cary, NC 27511
Website: http://www.caryraleighrealty.com
Email: caryraleighrealty@yahoo.com
Blog: http://caryraleighapexmorrisvillerealestate.blogspot.com
Profie: http://www.linkedin.com/in/hannahchan/
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