Should a Buyer make Repairs on the Property they want to Buy Prior to Closing?

This topic  was discussed in a Quick Topic from Kate Brooke’s Legal Newsletter that is an excellent resource for the Greater Portland Metro Area. My answer is as was in the newsletter,  NEVER.

I am often asked this question by purchasers and it has nothing to do with a buyer’s level of sophistication either. I have seen it from all sides of the spectrum. Usually, it has to do with expedience.

It is easiest for me to explain why it is not a good idea by simple Risk Management which spills over not only to the Seller but to all parties including contractors and vendors.  When there is good risk management in a transaction, that lowers the risk for all parties and saves a lot of potential grief!

What would happen if there is an accident while the work is being done?  The seller’s insurance company gets a call…. Yikes, I don’t want to think about that one. Or, the buyer is suddenly unemployed and does not qualify for the loan. Now who is going to pay for the repairs?

The simple answer is  do a “Worst Case Scenario” and you will reach a good answer.

By |August 3rd, 2013|Categories: Borrowers, Buyers|Tags: , |0 Comments

Shifting from A Buyer’s Market

As the market shifts from a buyer’s market, it’s good to know how to improve your chances to have the seller accept your offer.

Once you decide on a home, don’t waste time; write an offer and submit it as soon as possible. Competing with another buyer happens more frequently than you’d expect. Multiple offers are a seller’s advantage but here are some tips to level the playing field:

  • Realistic offer – don’t give the impression you’re trying to “steal” the property. Submit comparable sales that justify your offer.
  • Pre-approval letter – this satisfies seller’s biggest concern that an unqualified buyer will unnecessarily take the home off the market and the seller will lose other opportunities.
  • More earnest money – it shows you’re serious and makes the seller feel like the contract will actually close.
  • Minimize contingencies – from a seller’s standpoint, each contingency is one more reason why the sale won’t go through. They feel the home is “off the market” and they’re in limbo.
  • Shorten inspection period – your agent can help you set a reasonable date but let the seller know you’re willing to close prior to that if possible.
  • Write a personal letter to the seller telling them why you want their home – this can be the emotional connection to the seller that makes the difference in you getting the home.

A seller wants to feel confident that the offer they accept will actually close so they can plan for their next move. Following tips like these can definitely affect negotiations and help put together an offer that is more likely to be accepted.

By |January 24th, 2013|Categories: Uncategorized|Tags: , |0 Comments
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