The real estate market looks to continue as one that favors sellers over buyers for the foreseeable future. Unknowns that could affect the status quo at this time include the effect higher interest rates will have on buyer activity, matched with the general uncertainty of the global situation.
That said, selling a home should be easy, right? Just put a sign out front and wait for the offers to come rolling in the door. Well, yes and no.
While it is true that a home accurately priced will likely attract multiple offers, being blinded by the dollar signs while failing to sift through the detail of each offer can leave sellers with remorse, or in extreme cases, a lawsuit to contend with.
Buyers today are using a multitude of tactics to try to sweeten their offers and make them stand out from the competition. This can be both good news and bad news for sellers. Offers in excess of asking price that include appraisal gap contingencies, waiving of rights to inspections, inclusion of escalation clauses and aggressive timelines can make accepting one offer over the other seem like a slam dunk.
Once under contract, the buyer has multiple opportunities to back out of the contract, while the seller is largely committed, so sellers are advised to take a deep breath and analyze the detail of each offer before deciding which is actually best.
For example, the way an appraisal gap clause is written can sometimes mean the seller could be forced into selling their house for less than the contracted price. Knowing the heat of the market, buyers feeling the pressure can throw out an unrealistic offer, only to later suffer remorse and look for a way to renegotiate price or back out of the deal altogether.
Not having an inspection contingency on the contract might appear to be a big advantage, but what are the other ways a buyer can still perform an inspection and get out of the contract?
Much like life, sometimes the obvious or attractive way forward is not always the best in the long run. Seeking expert assistance and opinion can save sellers a lot of heartache, not to mention money, in the long run.
Hayden Mellsop is a board member of the Realtors of Central Colorado.