Skip to main content

NEGOTIATING A BETTER CONTRACT - 6 THINGS EVERY SELLER NEEDS TO KNOW, NOW

Two days ago, I wrote about the re-emergence of multiple offer transactions. In response, I heard from a number of real estate agents who confirmed that they are encountering this phenomenon. I also have heard from another of others who essentially groaned and who all collectively wished for just one stinking offer, at this point, any offer.

They are, almost certainly, still be in the majority - which lead me to states an obvious truth:
These days, it (still) is really very hard to find Buyers who are willing to submit a written purchase offer.
and perhaps a somewhat less obvious truth:
That's just half the battle.
Its just as hard (harder?) to get contracts to close. Doubt me on that one? Ask any realtor or real estate lawyer, mortgage broker or loan officer. Ask at the title companies too. They will all likely sigh heavy and confirm it. A great many contract are taken that never close. Even the contracts that can and do close have their problems. These days deals are just as likely to close late as on time.

Some times it is the Seller's fault. Other times, it is the Buyer. More often than not, there is a mortgage lender on one side of the deal or the other that is going to shoulder some of "the blame."

Closing on an offer in no sure thing. Not with any reasonable degree of certainty, anyway. Until the markets stabilize, signing a contract is best viewed as a calculated risk for the Seller... an expensive one at that.

Whatever the reason, unclosed contracts serve nobody well. No home/shelter for the Buyers. No money to the Sellers. No commissions earned for Realtors or mortgage brokers. Everyone incurs costs. Other opportunities will have been lost. The time invested in putting the deal together? all for naught.

HOWEVER, with care and caution, savvy Sellers, and the real estate agents & attorneys that represent them, can minimize those risks of delay, disappointment and dashed hopes of a closing.

I have been studying several recent instances of canceled deals trying to understand why these contracts are not closing - and what can be done to improve the odds. I have looked at both deals I have worked on personally, and had some extensive conversations to debrief colleagues and other business associates about their recent transactions.

My research points to six critical steps that every Seller can (and should) take as they market their homes and consider offers from potential Buyers.

These ideas will be described over the course of several upcoming blawg posts.
Labels:

Comments

Post a Comment

Popular posts from this blog

PLM Title Shuttered

Title insurance is a critically important part of any real estate transaction; or at least it should be. The title company guaranties the "quality" of an owners interest in the property - that there aren't any (unknown) liens or defects. No buyer that I work for will purchase a property without it. Title insurance is only as good as the insurer. We want to know that the insurance company, like the Rock of Gibraltar , will always be there. We want to sleep easy at night, knowing that the client is protected. That said, it was a bit distressing to see that PLM Title Company shut its doors, without any forewarning last week. Worse still, this morning's news is that there is a criminal investigation underway - and that we do not yet know why. Old timers like me shudder with memories of the great Intercounty Title debacle five years ago. Here's to hoping that this one is nothing like that one. Set aside the problems involved trying to make a claim against a defun
6 comments
Read more

FHA Loans and Condo Sales - Is Relief on the Way?

By all outward appearances, state government in Illinois has ground to a complete halt, with all eyes focused on the Governor's "problem" and all the related fal - der -rah. Its hardly business as usual in Springfield, but not everything has ground to a halt. Several new bills have been introduced this week. That is not to say that they will be of benefit to we the people. Nonetheless, the cogs and gears are turning, and we are hoping for the best. One such proposal comes from Rep. LaShawn Ford of Chicago's west side, who is himself a real estate broker and entrepreneur . He is the author of House Bill 155 , introduced & referred to the Rules Committee Wednesday. It seeks to address one of the most common problems I am seeing in condominium resale transactions these days; the tension between many Declarations of Condominium and FHA loan guidelines. Many Condo Declarations provide Associations with a "right of first refusal," which basically allows t
3 comments
Read more

MAYOR DALEY PROPOSES TIF FINANCING FOR SOME DISTRESSED PROPERTIES

Lets see how City Council reacts on this one, but the Mayor introduced a pretty interesting little ordinance that might be a real boon to first time area home buyers willing to buy and rehabilitate some bank-owned properties. Progress Illinois reports that the mayor's bill, introduced on March 9: "seeks to tackle the growing problem of vacant homes that are blighting neighborhoods across Chicago, and in particular in minority communities. Called the Vacant Building TIF Purchase and Rehabilitation Ordinance, the  bill  (PDF) proposes allowing residents with a household income no greater than 100 percent of the regional median income to apply for a tax increment financing (TIF) grant that would pay for up to 25 percent of the cost of purchasing and rehabilitating an empty residential property. Single-family empty homes or units in condo and cooperative buildings with four units or fewer are eligible. The empty homes must be located in a TIF district and must be in need of
Post a Comment
Read more