A Verbal Offer is Only Worth…

Has someone tried to give you a verbal offer on your home for sale? Have you as a buyer been tempted to submit a verbal offer, just to test the waters?

 

Be advised: A verbal offer is only worth the paper it’s written on.

That’s right – there’s no paper, so it’s worth nothing.

 

A verbal offer is just talk. If the seller answers, that’s just more talk. Neither buyer nor seller is legally bound to follow through with the numbers suggested.

 

It’s an especially bad idea for sellers, because their prompt verbal acceptance could cause a prospective buyer to think they offered too much, so when they get around to writing a legal offer, the price could be lower. In addition, without documentation, the seller has no idea whether the buyer has been pre-approved for a loan, has the money in the bank, or is just wishing out loud.

 

Aside from not being legally binding, a verbal offer is worthless because it contains no details. Price is only one of the factors in a true offer to purchase real estate.

 

What are some of the other details?

• Will this be cash or require a loan? If a loan, what kind of loan? And, is the buyer pre-approved?
• How much earnest money has the buyer deposited? (What’s his risk if he fails to close?)
• Is the buyer asking for seller concessions? For instance, does the buyer want the seller to pay some or all of the buyer’s closing costs?  Does he expect the seller to have new roofing installed?
• Is the buyer asking for something the seller didn’t intend to leave with the house? For instance, the washer and dryer, or perhaps the riding lawn mower.
• What dollar amount did the buyer enter for a repair allowance following the inspection?
• Has the buyer included contingencies, such as money coming in from a settlement or the closing of a home they have for sale?
• What’s the closing date?
• What’s the expiration date on the offer?

As you can tell, many of these things greatly affect the seller’s bottom line, so an offer for $X can turn out to be $X minus several thousands of dollars.

 

In many states, agents are legally required to inform their sellers of verbal offers.

That means that you as the seller must come back with your own verbal reply: “Put the complete offer in writing and I’ll consider it.” That is, unless it’s so ridiculously low that you wouldn’t waste time reading it. In that case, a simple “No” will suffice.

 

If you’re the buyer…

Making a verbal offer for a home you really want is a very poor idea. The seller might say yes, but until it’s in writing and signed by all parties, that acceptance doesn’t mean a thing. The agreement is unenforceable.

 

Someone else can come in with a written offer and the seller will be free to accept it.

 

Be smart – be safe – put your offers (and your acceptance or rejection of those offers) in writing.

Your Tamaqua home is for sale. Should you allow showings on Thanksgiving weekend?

If you’re hosting Thanksgiving Dinner this year, you may be looking forward to a house filled with guests. Perhaps they’ll only be there for one day – or perhaps they’ll stay for the long weekend.

 

What if your agent calls to arrange a showing?

 

Having to gather up your guests and leave will be an inconvenience, and the house may be a bit messy what with suitcases, extra coats, extra toiletries, etc.

 

At the same time, those buyers may only be here in Tamaqua for the long weekend. If they’re being transferred here, this may be their only window of opportunity to find a home and avoid renting when they arrive in town.

 

Instead of issuing a blanket yes or no, talk the situation over with your agent. Ask him or her to gather a little more information on any potential buyers before asking you for a holiday weekend showing.

 

The first question would be “Can they come on Monday instead?”

 

After that, find out if they’ve been pre-approved for a loan in an amount sufficient to make the purchase. You really don’t want to waste your time with people who simply think it’s fun to go looking at houses when they’re visiting their relatives. And, unfortunately, there are such people.

 

Hopefully, the buyer’s agent will have this information, so your agent won’t need to sound demanding.

 

Showing your home when you have house guests is definitely inconvenient, but do think about both sides of the question before making a decision.

 

Searching for a home in Tamaqua? Don't let a wrong perception steer you away from a home you’ll love

Sometimes Tamaqua homebuyers pass up homes that would be perfect for them because clutter or the need for a good cleaning leads them to perceive the condition as poor. Perhaps the carpet is dirty or the furniture is shabby, so they leave without taking a really good look at the house itself.   Somewhere in our subconscious, most of us look at a house that's neat, tidy, and shining clean and believe that it's been well kept. At the same time, we can see a rip in the screen on the storm door or peeling paint on a door frame and subconsciously think "I wonder what else they've let go?"   The same goes for clutter, a dirty carpet, or light fixtures full of bugs. Any of those or similar details can make a buyer think that the homeowner just doesn't take good care of things. That makes them believe that a home inspector will find hidden problems, so they pass the house by rather than pay for an inspection.   It's a shame, because they might be passing up a house that would be perfect for them. Since other buyers have done the same, the price may be reduced, so they might be missing a bargain, all for the price of a visit from a good cleaning service.   Instead of rejecting the house outright, it might be good to ask your agent to find out about the seller’s circumstances. Sometimes there’s a valid reason why the homeowner hasn’t been able to keep up.   It could be an illness that has claimed every bit of time and energy the homeowner might otherwise spend on keeping up the house.   Sometimes it’s a death or divorce that has left one partner a single parent – barely able to cope with being both Mom and Dad to a few children.   It could be a job loss that has put things like renting a carpet shampooer or buying a gallon of paint out of their reach.   The other side of that coin, for buyers, is that they can be fooled into thinking a house is structurally sound if the cleanliness and cosmetics are impressive. Again, sometimes the perception is different from the reality and underneath the new paint and carpet serious problems can be lurking.   That's why home sellers should make every effort to present their home at its very best, and buyers should invest in a home inspection, even if a home appears to be in top condition.   When you want to explore the homes for sale here in Tamaqua or want to learn your home's value in today's market, get in touch. You can reach me at 570-640-8109 or by emailing: edentroxell@yahoo.com.

Are you worried because your house sold too fast?

Sellers have been known to worry when their homes were shown multiple times in the first week, and when one or more of those showings resulted in an offer.

 

They wonder, “Did my agent recommend a low price just for a quick sale?”

 

While that was known to happen back in the days before the Internet burst on the real estate scene, it isn’t likely now.

 

In the first place, you probably looked at homes similar to yours on line and know that your price was in line. Then, your agent probably prepared a market analysis, showing you the recent sales price of homes like yours – along with the prices of your direct competition and of similar homes that are not selling.

 

Instead of worrying, you might want to congratulate yourself for choosing an agent who did a spectacular job of marketing your home.

 

He or she probably helped you prepare well, then took exceptional photos, which might have included a video tour of your home. Then, in addition to placing those photos, videos, and well-written descriptions on a company website, his or her own website, the multiple listing service, and all of the major real estate portals, your agent may have placed Facebook ads.

 

He or she may have blogged about your home and linked that blog to numerous social media sites. The neighbors may have received Just Listed cards. People on the agent’s “buyer list” were probably alerted as well.

 

After that, your agent probably responded promptly and courteously to agents calling for showing appointments.   

 

So unless you look on line and find fuzzy photos and a lame description, you can probably assume that your price was right – you just had an agent who worked hard on your behalf.

 

If you're thinking of selling ... When you're ready to list with someone who'll get your home sold as quickly as possible - and for the right price - get in touch! I'm here for you.