In these big bidding wars, you know what nobody talks and what ultimately happens? The buyer asks for something; they try to re-trade and renegotiate and find something wrong to milk a little bit more money back out of you. It's called a bait and switch.
So, how do you avoid that as a seller?
Here in California, the California residential purchase agreement says it in black and white, a home is being sold in as is condition. Now, of course, the buyer has their investigation period, and they can look for anything that's wrong with the property. They can ask and have a request for repair and the seller has the right to say, no.
Let me tell you, before we even get to that point, whenever you have a bidding war situation, people get caught up in the hype. If you don't have a pre-sale inspection report to give these buyers, when they're stepping up and offering you over the list price, you're leaving yourself open for the chance of a buyer trying to find something wrong with the property under the hood and renegotiate the deal.
Here's a tip on how you can avoid that happening.
Even if you're selling a home in as-is condition, it doesn't matter. They always come back for more, but if you give them this information upfront, they're less likely to do it. You get a pre-sale inspection, you pay usually around, depending on how big your house is, anywhere from $500 to $900 to have somebody come in and do a full thorough inspection. They go under the hood and test everything in the house.
You need to have a pre-sale inspection report, find out what's going on because even if there is something going on, it doesn't matter. That doesn't mean you have to fix it. You should just disclose it, be transparent, and upfront. So, when you get, let's just say five offers on your property and you're about to give everybody a counteroffer, you can say “By the way, here's this inspection report. Here's what we know about the property. Here's a termite inspection report. Here's a sewer inspection report.”
This way the buyer can take the time to review the reports and then they can ask themselves, “Do I want to step up in price now that I know all this information about the property? Or do I want to just stay where I'm at and know that I'm buying the house with this knowledge?”
If you do this pre-sale inspection report, you're less likely to get that bait and switch situation because then you can just tell the buyer. “Aha, contrary, you knew about this when you offered me that price and the house is being sold as is.”
If you have any questions or concerns, let’s talk
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