May 19 2008

Real Estate Contract Seller Mistakes Part I

Published by Carolyn Thompson at 9:02 pm under Real Estate Contracts

Top ten seller mistakes when it comes to real estate contracts:

1). They accept more than one contract and get sued for non performance. 

2). They accept an offer from home buyers who have given them a sob story to get the home seller to lower the price of the home.  They also neglect to get a real estate appraisal or check current comparables which will inform them of house price appreciation.

3). They accept an offer from home buyers that do not qualify for the loan.  They waste their time thinking that they are going to closing and have taken steps to move out, only to find out shortly before closing, at or after closing that they are NOT Closing.  If the contract is not well written, the seller may have trouble getting out of the contract.  In which case they may have trouble relisting the property in the multiple listing service (mls) and obtaining another offer.

4) Not read contract clearly and had no idea that they would get less money at closing, no money at closing or owe money at closing.

5). Sellers signed a contract that they did not have a clear understanding that they were paying for they new home buyers closing costs, home warentee, home inspection, termite, mold and radon inspection, first three months of mortgage and lawn service for the first year.

6).Sellers neglected to use the seller disclosure form.  This is form required by law for real estate in most states.  It is an opportunity for the home seller to state what they know is wrong with the property.  If the seller neglects to tell the home buyer what is wrong with the property they may be liable to make repairs after the sale.  In extreme cases they may be forced to purchase their home back and pay damages.

7).  The seller has agreed to for sale by owner finance.  The seller has the brilliant idea of selling the home and keeping the profit of the interest rate for themseles.  Not a bad idea, unless the buyer does not have a job, credit, income or assets, or has provided a significant enough deposit to file a case against the buyer.- You will start to see more of these cases, as fewer people qualify for loans.  Home sellers are taking matters into their own hands.

 8). Seller neglected to disclose that their was water damage or other hazard and the buyer wants out of the contract.

9). Seller does not have money to close and is sued for non performance.

10). Seller misrepresents facts about the real estate for sale or school district and is sued for damages.

Their are top Realtors who are available to provide expert real estate help and guide you through the process.

 It is very challenging for a real estate broker to get everything in the transaction correct, how is a home seller going to avoid mistakes with a real estate contract if they have no prior experience. 

 

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One Response to “Real Estate Contract Seller Mistakes Part I”

  1. Doug Bertramon 12 Jun 2008 at 10:35 am

    Another KEY Mistake in handling a real estate contract is not having the contract MANAGED by an independent 3rd party.

    Issues arise from mismanagement of funds (especially when the real estate contract is wrapping an underlying lien), the lapsing of taxes and insurance payments, proper reporting of IRS tax information and a whole host of other issues - ALL of which can be resolved by using a licensed long-term escrow provider.

    Doug Bertram
    Seller Finance Evangelist

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