This season we have seen an increase of back on market homes increasing due to changing buyer tactics. We will explain why this is happening, and what the Ellis Team is doing to combat these tactics. The agent you hire to represent you matters!
Buyers are desperate and are doing anything they can to score a home purchase. Buyers are frustrated because the best homes are typically in multiple offer situations and the competition is fierce. Many buyers are not here locally and are trying to purchase from afar. They do not want to keep flying here every time a home goes up for sale. By the time they get here the home is sold.
Buyers are bidding up properties and using the As-Is contract to tie up the property. This buys them time to fly here and see if they really like it. Additionally, if another home comes on the market, they also like, they can dump the current contract and offer on the new listing. Some buyers are even offering on multiple homes and using the As-Is contract to bail on all but the best deal.
Some buyers are having inspections and renegotiating the deal afterwards. The seller thought they were signing an As-Is contract and does not understand why the buyer is asking for repairs or a change in price.
Back on market Homes Increasing
Sellers thought they were in the driver’s seat and now they are being forced to sell their home several times. As-Is does not mean what the seller thought it meant. This is why we have gone back to the Standard contract which was prevalent before the banks instituted the As-Is back in the foreclosure days. The standard contract gives the right for a buyer to have an inspection. They do not automatically have the right to cancel for any reason.
If valid inspection items arise, the contract is clear about what is a covered item and what is not. The seller will automatically bring back into working condition covered items up to a specified amount. Typically, these covered items are things the buyer asks for anyway in a As-Is contract. The standard contract eliminates a lot of non-covered fluff items the buyer typically tries to renegotiate price over.
When buyer and seller enter into a Standard contract, both are pretty much agreeing this is a one and done sale unless something major comes up. The Standard contract eliminates the buyer’s ability to cancel or renegotiate the price for any reason, and it puts their escrow deposit in jeopardy should they attempt to back out. This helps stop the practice of bidding on multiple homes at once and backing out of several deals.
When buyers back out of deals, it hurts other buyers as well. That property is off the market for awhile and not available for other buyers. If a buyer is in town for one week from out of state to purchase a home, it does not do them much good if next week 6 homes that match their criteria come back on the market. The out-of-town buyer never saw those homes because they were supposed to be taken.
Pick Best Option and Commit
Imagine being asked to the prom and your date cancels last minute. Not only are you devastated, but you were also not available for other dates that would have been more than happy to go to prom with you. You lost your shot simply because your prom date found a better option. Wouldn’t you rather go with the person who really wants to be with you?
The same is true in real estate. If you are going to take your home off the market, make sure it is for someone that values and really wants your home. Remember, the agent you hire to represent you matters! Always call the Ellis Team at Keller Williams Realty 239-310-6500 or visit www.Swflhomevalues.com for a free estimate of your home’s current value.
Good luck and Happy Selling!