The real estate market appears to continue to favor sellers over buyers for the foreseeable future. Among the unknowns that could affect the status quo at present is the effect that higher interest rates will have on buyer activity, coupled with the general uncertainty of the global situation.
That said, selling a house should be easy, right? Just put a sign out front and wait for the offers to come to the door. Well, yes and no.
While it’s true that a home that’s priced right will likely attract multiple offers, being blindsided by dollar signs while failing to sift through the details of each offer can leave sellers feeling remorseful or, in extreme cases , a trial to face.
Buyers today use a myriad of tactics to try to sweeten their deals and stand out from the competition. This can be both good and bad news for sellers. Offers above the asking price that include valuation variance contingencies, waiver of inspection rights, inclusion of escalation clauses and aggressive deadlines may cause acceptance of an offer rather another looks like a slam dunk.
Once under contract, the buyer has multiple opportunities to withdraw from the contract, while the seller is largely committed, so sellers are advised to take a deep breath and analyze the details of each offer before deciding which one is really the best.
For example, the way a valuation gap clause is worded can sometimes mean that the seller could be forced to sell their home for less than the contract price. Knowing the heat of the market, buyers feeling the pressure may throw out an unrealistic offer, only to then feel remorse and look for a way to renegotiate the price or walk away from the deal altogether.
Not having an inspection condition on the contract might seem like a big advantage, but what are the other ways a buyer can still perform an inspection and get out of the contract?
Just like in life, sometimes the obvious or attractive path isn’t always the best one in the long run. Seeking expert support and advice can save sellers a lot of heartache, not to mention money, in the long run.
Hayden Mellsop is a member of the Central Colorado Realtors Board of Directors.