Let’s see… sales up 5% over last June. Median average sale price up 3%. Sellers getting a very high 96% of their original asking price. And the amount of available supply continues to 
shrink. What’s not to like?!
‘Nuff said! If you’d like to see how you might take advantage of this “Seller’s market” shoot me an email or give me a call. And please keep in mind…
“I work harder to make good things happen!” -Bob
Truth is… Nobody likes negotiating inspection issues— not the seller, not the buyer, not the Realtors. Nobody. Make no mistake about that.
Sellers feel like they’ve already negotiated the deal, “and that’s that.” (And generally speaking, sellers think most buyers are way too picky, as in “If they wanted a new house then they should’ve bought one!”) On the other hand, many buyers feel that items uncovered during the inspection process should be corrected. And since the average inspection report cites 40-50 issues, buyers generally feel like they’re doing the seller a favor by only asking for 2 or 3 or 10 things to be repaired. And the two Realtors are caught in a no man’s land and just want it all to be over.
Indiana law and the standard purchase agreement forms are about as clear as mud on this topic. There simply is no right or wrong answer when it comes to inspection issues. Because of this some sellers try to avoid “going there” altogether. So, they advertise their property for sale “as is”… take it or leave it, warts and all. This sometimes causes would be buyers to steer clear, as they interpret the “as is” advertisement to imply that there are serious structural or mechanical problems with the property. (While that is sometimes the case, it is not always.) And even when advertised “as is”, buyers are still afforded the opportunity to have the property inspected. Sellers will say that buyers may do so but regardless of the findings, they will not make any repairs. And once again, that is true more often than not, but not always.
So, a seller has to decide whether they will lose a potential buyer (or buyers) because they have it advertised as is versus the amount of money they might possibly save because the buyer will shy away from asking for repairs to be made.
Now, if you’d like a better answer than that— call me and I’ll help you find your way down this path! Keep in mind…
“I work harder to make good things happen!” -Bob
Heck, everyone knows the answer to that question. Sellers say buyers do, and buyers say the seller should. Hmmm so how’s that work out in the real world?
For starters, sellers almost always pay the realtor’s commission and their own attorney’s fee. Plus, they often times pay for the owner’s title insurance, certain real estate taxes and any unpaid HOA dues. And they some times pay for all or part of the buyer’s closing costs.
Buyer’s settlement charges often run $4000 or more. They can include loan fees, title company charges, surveys, the first year’s home owners insurance premium, funds to set up the initial escrow account for taxes and insurance, and a few other items. Make no doubt about it… these are the buyer’s responsibility (unless it was negotiated in the Purchase Agreement for the seller to pay a specified amount towards the buyer’s closing costs).
Sometimes the buyer has limited funds and the only way they can make the deal work is if the seller does pay the buyer’s closing costs. So, if the seller has some leeway in his price he may agree to pay the buyer’s closing costs. In such cases, it’s likely the seller will want his full asking price, or awfully close to it. After all, if the asking price is $100,000 and the buyer’s closing costs are $4000, then the seller is really only getting $96000 if the deal calls for a 100k price and 4k in closing cost credit.
Need help figuring out how best to structure a deal so it’s a WIN-WIN? Easy… call me! Keep in mind…
“I work harder to make good things happen!” -Bob
