Clean Offers....Not What they Used to Be...Is that a Good Thing ?

Reblogger Barbara Todaro
Services for Real Estate Pros with RE/MAX Executive Realty 104763
https://activerain.com/droplet/5jHH

It's Risky Business to waive important contingencies..... 

Original content by Sally K. & David L. Hanson 57026-90 Broker

If you have been practicing real estate for a while...likely you have seen the evolution of the Clean Offer.  In the "olden days"....which in any market anywhere pre-dates Thinventory....times vary with the market. In the olden days....a "Clean Offer"was...an offer with inspection and in clean offersoutheastern  Wisconsin, a radon test... and financing contingencies which included an appraisal. That was "clean" and "normal" ,,,,,it is what Buyers wrote...it is what Sellers accepted...it is what agents on both sides accepted as "usual and customary."

       In the interest of being competitive...less and less becomes "usual". The radon tests are sometimes one of the first things to be deleted.Buyers may choose to test for radon...but will not  ask the Sellers to have it mitigated in a muliple offer situation for fear of having their offer eliminated due to asking the Sellers to bear the cost of mitigation.

    Experienced agents know that the two largest reasons an offer can fall apart are inspections and financing.  If a house appears to be "in good shape" OR has had a pre-inspection...Buyers may forego the inspectorinspection..OR choose to use it as an "advisory" and not to either have the Buyer ask the Seller for repairs...or as a reason to cancel the sale.
   Financing....hmmm...regardless of the price range in Southeastern Wisconsin, unless the sale is investor oriented, we do not often see cash sales. Agents/Buyers don't worry about 

cash sale competition when submitting an offer.  Other "strengths" in writing can mean a larger earnest money deposit. We don't have "rules or percentages" that are usual and Earnest moneycustomary here...Buyers are free to deposit whatever number they please as a show of good faith to the Sellers. Now...what may have been a four figure deposit is becoming five figures.

   There are Buyers and Agents that look at an appraisal contingency as the "saving grace" in an offer...If the property does not appraise for the price offered...the Buyers can choose to walk away...or finance the balance of the home that was over the appraised amount....or negotiate with the Sellers...who cannot be sure that another appraiser will not give No appraisalthem the same number "different day."   If the Buyer is able to...wishes to take the risk...is going to live in the property long term...an offer can be written...NOT subject to appraisal. 

     Agents need to be aware of the "New Clean Offer" options....AND more importantly be able to explain with each "new improved" option what the realities are for the Buyers.

      Thinventory has created a NEW DAY in real estate...are you Ready ?

      This has been an informational market post brought to you by Sally K. & David L. Hanson, Broker Associates with EXP Realty, LLC bringing you the best in real estate marketing in southeastern Wisconsin. #FewerContingenciesinrealestateoffers,#NoAppraisalinRealEstate,

#Notestinginrealestate

 

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Rainmaker
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Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Thinventory has Buyers playing "fast and loose"...and just like in poker...they need to know the consequences . Thank you for the re-blog !

Jun 16, 2019 06:26 AM #1
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3,351,684
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Great, thought-provoking re-blog, Barbara.

A good buyers' agent will guide buyers through any Offer and accommodate their preferences accordingly.

Not having an appraisal is not always in the buyers' best interest and if presented well, you'll never lose a bidding war with or without an appraisal contingency!

Jun 16, 2019 02:45 PM #2
Rainmaker
3,202,452
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Barbara,  Miss you while I was on vacation.  Great reblog for sure on this subject by Sally and David!

Jun 19, 2019 06:29 AM #3
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