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Old 06-18-2018, 03:42 PM
 
2,142 posts, read 1,155,536 times
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Quote:
Originally Posted by BoBromhal View Post
^some places they aren't. some places they are. .
Where are they not granted inspection time and a way out of the contract?

I'd like to know the one place that doesn't allow that.
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Old 06-18-2018, 03:44 PM
 
Location: Raleigh NC
7,781 posts, read 6,140,656 times
Reputation: 6905
I believe there are places where the Buyer has to ask for repairs, and the Seller has the option to fix.

I know there are contracts where you get 3-5 days, not 14 or more (if negotiated).
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Old 06-18-2018, 05:00 PM
 
Location: Phoenix AZ
5,920 posts, read 10,459,834 times
Reputation: 9227
Quote:
Originally Posted by aridon View Post
The buyer has plenty of outs the first 14 days or so of a standard contract. So no, they aren't obligated to buy anything until after their due diligence period and mortgage clauses are exhausted

Buyers do have multiple "outs", but submitting multiple offers without the ability to close all of those offer is a "material fact" that needs to be disclosed by the buyer's agent in my state. So the agent could get in trouble for playing games like that.
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Old 06-18-2018, 08:13 PM
 
Location: San Francisco Bay Area
4,173 posts, read 2,169,055 times
Reputation: 8115
Quote:
Originally Posted by MikeJaquish View Post
In general, an Offer is just an Offer.
It can be pulled back any time, "At least where I am."

If I have a good, reasonable, qualified buyer in the current market, who wants to offer on more than one property in hopes of getting a contract on one, I could easily agree to write multiple offers.

Sellers entertain multiple offers, press for "Highest and Best," and push for offers over list price every day. This is one way for a buyer to get in front of sellers.
What do you suggest a prospective seller do to ensure they are not on the receiving end of one of these "shotgun" approaches to purchase?

Have you (or anyone else reading this) seen anything in purchase offers in which a buyer states that this offer is the only offer outstanding?
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Old 06-18-2018, 08:55 PM
 
Location: Salem, OR
13,750 posts, read 31,594,781 times
Reputation: 12119
Quote:
Originally Posted by Zippyman View Post
Buyers do have multiple "outs", but submitting multiple offers without the ability to close all of those offer is a "material fact" that needs to be disclosed by the buyer's agent in my state. So the agent could get in trouble for playing games like that.
^^^This is true in our market. The buyer makes a representation that they can afford that property. So if they move forward on two properties with the intention of getting out on one via inspection, etc, the seller is actually entitled to their earnest money. At least here, writing multiple offers and getting stuck in two that you can't afford is NOT a contingency in the contract. That would be financial misrepresentation if caught, and the seller would be entitled to the earnest money.

It's a risk, and the buyer has to decide if they want to take it. There are other ways to make an offer more palatable to a seller, in my opinion.
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Old 06-18-2018, 09:26 PM
 
822 posts, read 277,491 times
Reputation: 2611
Does not the submission of 'earnest money' along with the contract offer entail financial risk on the part of the buyer?
When I bought and then sold my place on LI no deposit of such funds was required. So I was taken aback by the need for a check to accompany the offer, in contractual form, when I purchased in FL.
I quickly realized it's purpose.
Or is this a formality that is easily sidestepped?
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Old 06-19-2018, 06:15 AM
 
158 posts, read 40,488 times
Reputation: 523
Quote:
Originally Posted by aridon View Post
Where are they not granted inspection time and a way out of the contract?

I'd like to know the one place that doesn't allow that.
In the end, my experience as a home builder and investor has been that, no matter what the contract says, in the end, a buyer who wants to walk away, up until the moment checks are passed across the table at the closing table, is going to do so. often with little to no penalty.

I built homes in a popular vacation destination for the NYC crowd. Certain immigrant groups are famous for doing a "fake buy" of a vacation home, to impress the friends and family. They will sign a contract, and put on a big show of doing several walk-throughs with large crowds of impressed folks from home. At some point before closing they will come up with some way to walk. Might be a letter from their friend the banker, claiming that "a recent development has caused the loan pre-approval to be withdrawn" to making a huge issue of imaginary issues on a home inspection report. My agent had five of six deals from a group of these folks collapse. One was a $300k place that was days from closing. On one of the needless show tour walk-throughs, the buyer threw a fit because a bathroom fan was loud. The agent told him that it would be corrected immediately. (It just needed to be vacuumed out and have the motor lubed with a drop of oil) The buyer threw a dramatic fit about how he couldn't trust the agent or seller of such an awful place, and walked.

I have had one older family Patriarch pull this crap on me. He showed up with 20 relatives at an open house. He got me out on the back deck for a "men only" show, as he negotiated in from of several generations of his clan. He then signed a contract and spent the next two months lying and jerking me around, when it came time to actually proving that he actually had any money, ability to afford the place, or any real interest in buying the damn thing. I know nothing of the other 49 states, but this happens in PA. where single family sale contracts are about worthless, in the real world.
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Old 06-19-2018, 06:32 AM
 
Location: NC
6,081 posts, read 7,047,947 times
Reputation: 12054
I would love to see a table that compares processes in all 50 states, side by side. Including things that are mentioned above, like what constitutes a contract (an offer?), is there a free escape period (like NC due diligence period), the meaning of "time is of the essence", whether inspections are automatically covered by the contract. etc. Or are there multiple systems running in each state?
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Old 06-19-2018, 07:08 AM
 
Location: Cary, NC
31,648 posts, read 55,388,070 times
Reputation: 30194
Quote:
Originally Posted by luv4horses View Post
I would love to see a table that compares processes in all 50 states, side by side. Including things that are mentioned above, like what constitutes a contract (an offer?), is there a free escape period (like NC due diligence period), the meaning of "time is of the essence", whether inspections are automatically covered by the contract. etc. Or are there multiple systems running in each state?
My faves, totally meaningless in NC:

"Opening Escrow."
"Close of Escrow."
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Old 06-20-2018, 08:31 AM
 
3,199 posts, read 2,732,020 times
Reputation: 6509
Quote:
Originally Posted by PamelaIamela View Post
Does not the submission of 'earnest money' along with the contract offer entail financial risk on the part of the buyer?
When I bought and then sold my place on LI no deposit of such funds was required. So I was taken aback by the need for a check to accompany the offer, in contractual form, when I purchased in FL.
I quickly realized it's purpose.
Or is this a formality that is easily sidestepped?

Easily sidestepped in FL where I am. I write offers with earnest money "due within 3 days of acceptance". Simultaneous offers on multiple properties can give my buyer clients an advantage in my inventory-challenged market.
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