There are times to stick to your guns and
there are times to make some compromises. Knowing when to do what is the
tricky part! Whether you are the buyer or the seller, the desired goal
for everyone is to make the deal come together and close.
As a seller, you have spruced up the home
applying the fine touches you have been meaning to get to for the past
few years but never got around to. You have opened your doors to a
multitude of visitors at all different hours, day after day after day,
interrupting your life and lifestyle with the constant cleaning,
straightening and necessary dinner interruptions. Finally, an offer on
the home arrives and you know, it is about time because frankly, you're
tired.
Well, the time is here! The second part
of the emotional roller coaster has now begun. The seller reviews the
offer and feels that overall, the terms are tolerable with the exception
of the price. The seller's agent calls the buyer's agent and conveys the
terms of their counteroffer. The buyer discusses the seller's counter
and determines that with a little bit less in price, the buyer would
still be willing to buy. The buyer's agent conveys the terms of this
counter with the seller's agent. The seller agrees to accept. Everyone
signs the documents and initials the changes of the final agreement.
Once the last person has signed (typically the seller), the contract
gets dated and it is this date at which time the clock begins to tick.
The buyer orders a variety of inspections
to be performed on the home and the buyer's lender orders the appraisal
which will verify that the home is priced right according to the terms
of the agreement. The inspection is performed and reveals a number of
issues, many relatively small and a few which could be considered major
or costly. During a specified allotted time, the buyer can choose to
renegotiate the terms or terminate the contract, for any reason (this is
called the option period). The buyer chooses to try to renegotiate the
contract by asking the seller to perform some repairs which were
revealed during inspections. A seller can agree to perform the changes
requested, agree to perform some of the changes requested and refuse
other requests, agree to contribute a certain dollar amount towards the
buyer's closing costs and prepaids in lieu of performing any repairs, or
the seller can choose not to perform any of the changes at all.
It is at this moment when you have to
think hard on what is truly important to you. Is your bottom line so
tight that you can afford to lose this buyer and start the whole selling
process over again? Are you willing to risk waiting for the next buyer
whose requests may not be as reasonable and/or whose financing may not
be as strong? Are you willing to pay more mortgage payments, taxes,
insurance and interest while waiting for the next buyer, especially
since you have no guarantee as to how long that next buyer may take to
find your home and make an offer? Would this money difference in repairs
or additional compromises make up for or at least even out the time and
money lost of starting over again?
These are difficult but very real
decisions you have to face. There are no guarantees on how long it will
take and how flexible the next buyer will be. Even though the terms are
not ideal, you must ask yourself if the terms are tolerable enough to
reach your ultimate goal. Only you can decide your tolerance for risk.
Consider your situation in whole before walking away so that you have no
regrets, no matter what your choice.
PLEASE NOTE: This information is not
intended to be legal advice. Your licensed real estate agent cannot give
you legal advice. If you have any questions about your legal rights or
obligations, you should consult with an attorney.
