05/28/2021
SOME THOUGHTS IN OUR UNBALANCED MARKET, for would-be buyers and sellers:
1) *EVERYONE*: real estate transactions remain inherently full of potential legal peril, perhaps even more so in a market like this. Make sure you understand all the parts of the listing and/or purchase agreement you are signing, and all addenda. Your real estate professional will answer questions and discuss, and will direct you to an ATTORNEY for certain questions. These points are not small fishes. Big fishes.
2) BUYERS: yes, things stink for buyers. Your RE pro should use every tool to give you an edge, and should be up on the latest wrinkles, like whether or not to write escalation clauses, etc. But in short, it *can* be to your advantage to make sure that your broker/agent (depending on state) is not only able to churn out an offer quickly, but to write one that is "clean" - as in, deadlines make sense, terms other than the price are easy for the seller AND listing broker/agent, they've consulted to make sure that if you will waive appraisal or pay more if the home under-appraises, you really understand, and put forward the right language to say what you mean, all boilerplate boxes are checked (no "housekeeping" counter-offers needed, etc.), and anything else that may give your offer an edge in a pool of a dozen. Again, having *really* taken the time to read the draft of your offer contract pays off here as well, to make sure you ask all questions that may come up (there are no stupid question) - this could help catch any small points that may have accidentally been overlooked, etc. Also, be confident with your comfort level. You do not want to get into a deal, pay for inspection and appraisal, and find yourself backing out because actually, you don't have the stomach for a slightly larger repair or some other thing you might reasonably expect to encounter. If you get yourself under contract, you want your own headspace to be as solid as possible on getting you to the end. Also, sellers may be less likely than in other markets to agree to disburse your earnest money back to you if they were to feel you "got cold feet", keeping the house off the market when perhaps it could have sold to a different buyer.
3) SELLERS: Yes, the market is technically in your favor. But, this doesn't mean that buyers aren't getting cold feet after rushing in in desperation, it doesn't mean that you are absolved of any responsibility to disclose - or perhaps even address - adverse material facts you know about your house, and it doesn't mean that you would never be at risk of getting sued by an unhappy buyer, after a closing, whether or not you are culpable. That is: the best practice and ultimate goal in a real estate transaction IS STILL to strive for the satisfaction and hopefully happiness of both parties. Let's be clear, you can be a cynic and not care at all about anything other than your bottom line, and think that a win-win attitude is very PollyAnna and not very business-minded. I say that a real cynic will see the protective aspect of a win-win transaction experience, in a super litigious world. Another thought: if your broker/agent is suggesting you make certain improvements or repairs before listing, despite the hot market, they're not just being frivolous. Even if addressing your roof issues, for instance, won't net you significantly more money, it may well mean that you don't have to discount the house in the context of its comparable listings or sell it more slowly, OR expect a buyer to walk out on a deal or demand a discount upon discovering that actually, it's time for a new roof. Whatever the recommendations, let them talk you through your questions, and don't be afraid to ask. If it still seems wasteful or like a frivolous, unnecessary suggestion, you should still be in a position to interview more listing brokers for other angles. But otherwise, you should hopefully get some clarity on how your Realtor is thinking about setting your house up for not only a quick and profitable sale, but also for an easier, painless transaction that will limit your headaches while trying to move on, the potential for more negotiations under contract, and your potential exposure after closing (again, a lawyer will talk best about that - but it's just common sense that knowing that you have been ethical, above board and transparent, and that you have the receipts, equals greater peace of mind).
