Traditional Home Sellers Should Not Act Like A Foreclosed Home
Traditional home sellers have some great advantages for buyers looking to purchase a home. They are real sellers who can respond and communicate in a timely fashion. Typically there is more give and take when you are dealing with a traditional seller. Foreclosed and even short sale homes typically have to be done exactly as the bank dictates. You either do it their way, or you don’t buy the home.
Recently I have come across a few agents representing traditional sellers that are treating the offers and contract terms like they are a foreclosed or short sale property.
Examples include inspection and loan contingencies short time frame. For inspections 17 days is standard, 10 days is ok, 7 is very tight if buyers work or are out of town. Loan contingencies typically are also 17 days, anything less is hard to do. I am seeing 7 day time frames for inspections and 12-15 days for loans. These listing agents are requiring the buyers to sign an amendment stating the contingencies are automatically removed on day 7 for inspections and 15 days for loans. Standard for this area, contingencies have to be removed by written documentation. (written is always best in my opinion so there is no misunderstanding)
Another example is where the listing agent requires the potential buyer to be “qualified through the agent’s preferred lender” prior to making an offer. Even if the buyer has a well known lender approval! I think the listing agent does not want to take the time to call the buyer’s lender to confirm with a conversation that the buyer is qualified.
In my opinion to treat the negotiations on your home just like the foreclosures and short sales is the wrong strategy. I can tell you from experience there are buyers who are out there who do not want to deal with buying a foreclosed home. You are alienating a whole group of buyers who would want your home, but because an agent recommends these “tightened” restrictions, and treat the negotiations like it is their way or no way, will not make an offer or will not move forward during the counter process.
In this Folsom real estate market, with so many short sales and foreclosures, if you are selling your home as a traditional seller, you should negotiate terms like a traditional seller. You will have more interested buyers.