By Walt Harvey (R), ABR, CRS, GRI, SRES, ePRO
Everyone knows the residential real estate market is a HOT Seller’s market and multiple offers seem to be the rule. Buyer’s are at a disadvantage and need to do everything they can to strengthen their offers. Offering full price or more, submitting a pre-approval letter, increasing their earnest money deposit and shortening contingency periods are some ways to make the offer more attractive to a Seller who may be considering other offers.
From a Seller’s perspective, this is the fun part! All they have to do is simply accept or make a counter-offer to the Buyer submitting a bid with the best price and/or terms. The Seller then begins making their plans to move on. Right? Not necessarily.
The buyer has the right to inspect the property to determine its condition and this is the point where many deals turn sour. Remember the excitement the Buyer experienced when their offer was accepted? That wears off and “Buyer’s remorse” rears its head. The property inspection can give a remorseful Buyer a way to terminate the sale, even though the property condition may be satisfactory. Believe me, it happens!
Now the Seller has to start over and even if there are backup offers, there will usually be a delay and loss of momentum that can cost the Seller money.
Could this situation have been avoided? Yes! The Seller can take a proactive approach before accepting an offer by having a pre-sale home inspection. This report can then be delivered to a prospective buyer BEFORE an offer is accepted and eliminate many surprises before the excitement of bidding wears off!
What a concept! A “pre-inspected” home for the “pre-approved” Buyer. Makes sense and can actually net a Seller far more that the inspection fee.
Walt Harvey is a real estate broker with East Oahu Realty and works with his wife Arla. They specialize in residential real estate and can be reached on their website: www.coastalhawaii.com. Have a real estate question? E-mail us at walt@coastalhawaii.com.
Published in Small Business News, May 2004