Advice for Sellers reduction of termination risk

Sellers should look for the highest offerA formal bid from the home buyer to the home seller to purchase a home…. that has a high probability of closingThe process of completing a financial transaction. For mortgage loans, the process of signing mortgage documents, disbursing funds, and, if applicable, transferring ownership of the property. In some jurisdictions, closing is referred to as “escrow,” a process by which a buyer and seller deliver legal documents to a third party who completes the transaction in accordance with their instructions. See…. Not only the one with the highest offer price. Some buyers are submitting disingenuous offers to lock in a house. To then decide later if they want it. For a small fee, the option periodAn option period is a specified time frame in a real estate contract which allows a buyer to terminate the contract for any reason. It creates the right to terminate within the specified number of days for a specified price. Usually the first 5-10 days of the contract. During the option period, a buyer inspects the home for material defects. … gives buyers the right to back out of the deal. Sometimes with hidden agendas, a high price is offered. The agent and buyer hoping the appraisalA professional analysis used to estimate the value of the property. This includes examples of sales of similar properties…. and negotiation for repairs can be bring the price down.

When a home is in contract sellers negotiating power goes down and buyers goes up. My advice to sellers is always the same. Look at the contract as a handshake and a framework for a transactionApplies to any business dealing. In real estate, it is an instance of exchanging ownership of a property. …. Don’t believe because you have a contract the buyer will perform. All outs in a contract favor the buyer. If the deal does not close, it’s likely the seller will release the earnest money to the buyer. To reduce the risk of a failed transaction, communication is the key to a win win outcome.

To understand a sellers risk, there should be a friendly dialog with the buyer agentRefers to the agent and broker solely representing the buyer of the property. The buyer agent, the cooperating broker, the other broker, the buyer broker, are terms used interchangeably. In most context, it is real estate professional receiving a commission for representing the best interest of the buyer. … and lenderThe lender providing funds for a mortgage. Lenders also manage the credit and financial information review, the property and the loan application process through closing….. Questioned about the buyers level of interestThe cost you pay to borrow money. It is the payment you make to a lender for the money it has loaned to you. Interest is usually expressed as a percentage of the amount borrowed…. to hear they have strong intentions. Second, we ask the lenderThe lender providing funds for a mortgage. Lenders also manage the credit and financial information review, the property and the loan application process through closing…. how they approved the buyer. Only considered are offers with a conditional approval letter or proof of funds.

We want to understand the buyers living situation. To be sure they do not have a hidden contingencyA condition that must be met before a contract is legally binding. For example, home purchasers often include a home inspection contingency; the sales contract is not binding unless and until the purchaser has the home inspected….. All parties of the buyer should have seen the property. The lender should verify all income, assets, funds, and expenses by reviewing documentation. Questioning is smart due diligence and amounts to looking the other party in the eye. We want to hear them affirm the buyers credibility and stake their reputations on it.

In real estate, follow the doctrine of Ronald Reagan who said “trust but verify”. It’s impossible to remove all risk of a failed real estate transaction. Satisfactory risk and high sincerity is the best offense to a winning transaction. Then, keep communication flowing so funding and closing activities stay on track.