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We are selling our home and are expecting to get an offer today for the first time. This will be coming from a buyer's agent (rather than the buyer directly).
Since this is an FSBO (where we are paying the buyer's agent 3% commission) are there any specific things in the offer we need to be wary of or since we have a buyer's agent will she be doing most of the leg work? (I keep reminding myself that the buyer's agent works for the buyer only and I don't want to get stuck paying for anything that I normally shouldn't be).
Also how common is it to request removing the appraisal contingency? The market in my area is very hot right now with properties coming on the market and getting sold in a couple weeks with multiple offers. I am concerned that the appraiser may not be able to keep up with the rapid uptick in the market.
NET to you..
type of financing the buyers are using? Lender letter attached, hopefully from a strong lender.
the contingency deadlines to establish if they are realistic or pushed well out.
the conveying items they have notated to make sure you agree.
I wouldn't anticipate the buyers agent assisting you with your portion of the transaction, but they might (to help their clients ultimately achieve their goal of securing your home)
I'd never advise a buyer to remove the appraisal contingency. Whether these potential buyers, or the next, of your home would do it or not is impossible to answer. They may not have the liquid funds to cover that shortage in appraisal, nor may they potentially want to overpay for a home.
When you say contingency deadlines do you mean when we will close (eg 30 days)?
settlement date
financing contingency
appraisal contingency (if the contract doesn't roll that under the financing contingency umbrella)
home inspection
HOA review (if applicable)
termite
well/septic/radon (if applicable)
You need to plan to do whatever the seller's agent would normally do: order title work, set a closing, keep track of all deadlines, prepare responses, find an attorney, understand the contract, etc.
As a buyer's agent I would advise my customer to never accept such a request. Not saying that a seller cannot request it.
Interesting because around here that's not a contingency I see very often. Real estate is local as they say.
OP, the buyer's agent does not represent your interests. So, they are not going to help you negotiate an offer advantageous to you. If you're not sure how to handle an offer, it sounds like you maybe should have hired your own agent to represent you. You could hire a real estate attorney to assist you with the contract (not sure how common that is in the Chicago area) but my experience with attorneys is that they can interpret the contract but they often don't know what's typical or why particular timeframes are considered ideal.
Also how common is it to request removing the appraisal contingency? The market in my area is very hot right now with properties coming on the market and getting sold in a couple weeks with multiple offers. I am concerned that the appraiser may not be able to keep up with the rapid uptick in the market.
.
I feel that unless you're absolutely confident of the buyer's strong desire for your property, along with their liquidity, you might be doing yourself a disservice by asking for a waiver of the appraisal clause. After all, if your buyers are financing with a mortgage, then the bank won't loan them anything above the appraisal price; so if your agreed-upon purchase price is higher than the appraisal price, your buyers will either have to come up with the difference out of their own pockets or you'll have to settle down to the appraisal price. How confident are you that your buyers could come up with that potential difference in price?
Now, if your buyers are cash buyers, then forget all that, and you can certainly make that a condition.
We are selling our home and are expecting to get an offer today for the first time. This will be coming from a buyer's agent (rather than the buyer directly).
Since this is an FSBO (where we are paying the buyer's agent 3% commission) are there any specific things in the offer we need to be wary of or since we have a buyer's agent will she be doing most of the leg work? (I keep reminding myself that the buyer's agent works for the buyer only and I don't want to get stuck paying for anything that I normally shouldn't be).
Also how common is it to request removing the appraisal contingency? The market in my area is very hot right now with properties coming on the market and getting sold in a couple weeks with multiple offers. I am concerned that the appraiser may not be able to keep up with the rapid uptick in the market.
Thanks.
By denying an appraisal contingency, you eliminate anyone who needs a mortgage to close, which tends to be the majority of buyers.
Get yourself a real estate attorney who can look out for your best interests.
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