Wednesday, April 14, 2010

Chapter 8-You Have Received Offers-Now What?

Q: I’m a home seller and we finally received a purchase offer for our property. What should I be looking for in a purchase contract before I accept an offer and take my home off the market until escrow closes?

A: If there is financing involved, I recommend that the buyer deliver an acceptable loan pre-approval letter to the seller at the time the offer is presented or within seven days of acceptance.

Make sure you have the right to cancel the sale and contract without liability in the event the buyer fails to qualify for the loan within a reasonable period of time- usually two or three weeks from acceptance.

Be cautious about offers that are contingent upon the sale and/or close of escrow of another property. If the buyer’s property is already in escrow, demand to receive a copy of the purchase contract and escrow information prior to accepting their offer.
If the sale is not “seasoned” with contingencies satisfied, you are assuming a high risk position.

Even more risky are offers contingent upon your buyer finding a buyer for their property. You have no control or access to critical information for the sale of this property.

There are key contract clauses that can be incorporated into your contract to give you more control and the ability to cut loose your buyer if they can’t sell their home in a reasonable period of time.

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