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How much DD do you think would be required to convince a seller to take a house of the market for 6 weeks?
Potential buyers are VERY interested, but are overseas and can't see the house for 6 weeks. They are willing to risk some money and go under contract.
List is about $200,000 - DOM 5 months plus an expired listing last year.
It's a possible multiple offer situation. If it is the strongest offer other than DD, how much do your think would be required to turn down other offers to accept such a long DD? Or, as an agent, would you always encourage your client to accept a lesser offer with a shorter DD?
Due diligence will include all investigation.
Appraisal
Survey
Insurability
Home Inspections, radon, termite, any indicated engineer or trades inspections
Final Negotiations of any desired repairs.
HOA docs and status
So DD Period will run past the 6 week period, unless the buyers waive being present for those proceedings.
I would say somewhere between $100--$400 would be common for that price point.
If your buyer wants to knock it out of the park, I would think something like $750 should do it handily.
Really? We are seeing much shorter DD period - like 3 weeks. This would probably need more anyway because it's rural and needs all sorts of inspections. I thought it would take much more.
Six weeks? I don't think any responsible agent would encourage their seller to take that kind of deal, especially if there was a chance of multiple offers looming. Generally, for sellers, the shorter the due diligence, the better. Why six weeks? Any inspections that would need to be done can be done within 14-21 days. Just because they are out of town doesn't mean that inspections can't be carried out.
The seller's agent's responsibility is to represent the seller's best interests. A six week due diligence would not be in the seller's best interest. However, if it's the only offer to come along, then I would expect a seller's agent to make sure that a clause was included that allowed the sellers to continue showing the house and take back-up offers -- just in case.
No matter how much "extra" was offered -- if the buyer drops out during due diligence, then the seller is left with nothing. Given two similar offers that only differed by DD and a few hundred dollars, the six-week due diligence would be an inferior choice.
Six weeks? I don't think any responsible agent would encourage their seller to take that kind of deal, especially if there was a chance of multiple offers looming. Generally, for sellers, the shorter the due diligence, the better. Why six weeks? Any inspections that would need to be done can be done within 14-21 days. Just because they are out of town doesn't mean that inspections can't be carried out.
The seller's agent's responsibility is to represent the seller's best interests. A six week due diligence would not be in the seller's best interest. However, if it's the only offer to come along, then I would expect a seller's agent to make sure that a clause was included that allowed the sellers to continue showing the house and take back-up offers -- just in case.
No matter how much "extra" was offered -- if the buyer drops out during due diligence, then the seller is left with nothing. Given two similar offers that only differed by DD and a few hundred dollars, the six-week due diligence would be an inferior choice.
Ah, but it is a North Carolina situation, where 4 weeks DD is quite common, and the DD Fee is generally non-refundable to the buyer.
So, a higher fee goes straight to the sellers' pocket and lets the seller know that the buyer is willing to put skin in the game.
And no added clause is necessary to continue to show and take Backups.
The wrinkle I see is a buyer who hasn't visited the property. I would infer greater risk of termination just for that.
Really? We are seeing much shorter DD period - like 3 weeks. This would probably need more anyway because it's rural and needs all sorts of inspections. I thought it would take much more.
Keep the opinions coming:-)
Well, I am only guessing... And, of course it is a negotiation. Possible multiple offers may limit your options.
3 weeks DD is tight here, with appraisers and good inspectors having busy schedules.
I'm next door - in Durham. I've had a few agents act like 4 weeks was waaay too long. For this property, because it is rural - it would be a minimum, I think. We would need all kind of inspections. Maybe and extra two weeks is not too far off.
Thanks for the input. I've just got to figure out the best compromise and attractive proposal - and hope for a little bit of luck:-)
I'm next door - in Durham. I've had a few agents act like 4 weeks was waaay too long. For this property, because it is rural - it would be a minimum, I think. We would need all kind of inspections. Maybe and extra two weeks is not too far off.
Thanks for the input. I've just got to figure out the best compromise and attractive proposal - and hope for a little bit of luck:-)
Durham and Wake County agent seem to have their own little idiosyncrasies...
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