Home Sellers Beware: The Devil's in the Details

By
Real Estate Agent with Coldwell Banker Residential Real Estate

When you receive on Offer to Purchase, it's tempting to focus solely on the price. You might be ecstatic over a full price offer, but Team Morgan, your Miami-based Coldwell Banker realtors caution that you should be aware how "contingencies" could affect the likelihood of success.                                    

Almost every offer has a mortgage contingency, stating that the buyer will secure financing at a certain rate and a certain term. Make sure these factors are realistic. A buyer seeking a 30-year loan at 4% with no points may be hedging their bets if your agent advises that these loans are typically written at 7% with 1.5 points. Unrealistic terms can allow the buyer to back out if they get cold feet or find another property they prefer.

Another sticky contingency more common these days is when a buyer states that they must sell their home before they finalize the purchase of yours. There has to be a realistic time limit, so the buyer doesn’t tie up your listing.                                                    

It’s wise to respond with a “kick-out” clause that allows you to keep your home on the market while the buyers promote theirs, offering them a 72- hour period to fulfill the contract if you should receive another offer in the interim.

These two examples are just the tip of the iceberg, so sit and discuss each line of the offer with your agent before making your decision.

Team Morgan

Coldwell Banker Residential Real Estate

“For Every Move You Make”

Whether you want to buy or sell a home in Miami, Palmetto Bay, Pinecrest, Dadeland Walk, South Miami, Coral Gables or Cutler Bay, you can depend on the Morgan team of realtors to assist you every step of the way during your real estate transaction.

 

 

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Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

Great information consumers, who often don't realize the intricacies of selling a home.

Apr 05, 2010 12:28 AM #1
Rainer
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Jennifer Arbach
EXIT Realty Front and Center - Binghamton, NY
Office Administrator

Agents in the Binghamton Area typically don't "pend" our listings until the buyer has commitment from the bank. This way the home remains on the market with no interruption in marketing the home. Of course we disclose that there is a contingent offer on the table and that it is still up for grabs. Customarily, we will include in the sales contract that inspections and financing won't take place until the contingency has been removed. Frustrating for the buyer, but hopefully gives them a sense of urgency to get their own home sold, pulling out all the stops before someone else "bumps" them out of the picture. I have never heard of the "kick-out" clause but basically the same thing once again proving how local real estate is!

Apr 05, 2010 12:31 AM #2
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