Nowadays, buyers are having a tougher time closing their Real Estate Deals. This is due to the buyer not being able to sell their existing home for what they exected or reasons like the lender re-appraising the property they bought lower than what they paid, resulting in a lower mortgage being approved. Either way, the deal cannot close without further negotiations. Here are some things to keep in mind if you are a buyer or seller trying to maintain a deal:
Keep The Deal Alive Whenever Possible:
According to Mark Weisleder, partner, author, and speaker at Real Estate Lawyers.ca, keeping a deal alive, no matter what the cost, is still better than cancelling and going to court. Whenever the deal breaks down and ends up in court, the only winners are the lawyers. People do not appreciate the time, costs and stress a Real Estate lawsuit provides.
Forget About Blaming Your Real Estate Agent:
When a deal goes bad, it's easy to try and blame your Real Estate agent for your misfortune. However, it is rarely the agents fault a buyer put in an offer without any conditions during the unbelievable bidding that was witnessed a few months ago. In addition, buyers and sellers must remember that while they have to pay for their lawyers upfront in any lawsuit, an agent has virtually all their legal fees paid for, through their insurance.
Remember What To Ask For In An Extenstion:
If you are going to agree to keep a deal alive by extending it, sellers should try and ask for TWO main terms of extension. The first being an additional deposit, usually non-refundable; to be paid to the seller immediately and to be credited to the purchase price on closing. These funds can then be used by the seller to help pay for unanticipated costs that incur as a result of the extension. Secondly, a request for interest on the balance due on closing at anywhere from 3-7% should be put forward. This compensates the seller for avoiding the use of their closing balance during the extension period and helps pay the extra interest the seller may be paying on their own mortgage.
Get Lawyers Involved Early In The Process:
In order to try and reduce everyone's losses, sometimes you will have no choice but to put the house back in the market without agreeing to a mutual release. This will involve a more complicated agreement, as the parties will not want to place any conditions on the listing like the deal being subject to a release of a prior agreement. Sellers will need a lawyer to assist you both in the legal processes and someone who understands the MLS listing and selling process!
Have Questions regarding Real Estate? The Iris and Evelyn team are here to help! With their countless years of buying and selling Real Estate Properties, their experience and knowledge can help you make the right choice!
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