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Sellers Jack Up Price After Offer is Accepted
Until a contract is SIGNED it is not accepted! Be very careful when "words" or a simple "handshake" is used! It might come back to haunt you! Laura Key 310.866.8422
Some home sellers are accepting a buyer’s offer, even having a contract drawn up, only to ask for a higher price a few days later.
The move called “goalpost-shifting” is becoming more common in competitive markets with limited inventories of homes for sale, The New York Times reports. Some sellers keep the bidding on their homes going even after they’ve said they'll accept an offer from a buyer.
The New York Times describes a recent incident where a buyer offered $912,000 for a condo that was originally listed for $800,000, which had attracted more than a dozen offers. The seller accepted the buyer’s offer and a contract was written. However, a few days later the seller notified the buyer that the price had increased to $995,000. The buyer refused to increase his offer, and lost out on the unit. The seller ended up selling to another buyer who offered $1.1 million.
The practice is controversial, but The New York Times quotes brokers who note that buyers are learning a tough lesson: Until signatures are on a contract, a deal isn’t done. Also, they note the buyer is generally given the opportunity to increase their offer. However, other agents say it’s a greedy move on sellers’ part and that once sellers give their word, they should honor it.
“It’s surprising how ugly it’s getting,” says Robert Frankel, a real estate lawyer who frequently handles closings. “If you don’t hear back about a contract in two days, there are usually some shenanigans going on.”
Source: DAILY REAL ESTATE NEWS | MONDAY, JULY 22, 2013
The Real Estate World is moving and shaking, make sure you have an expert to help you during these times. Call Laura today! 310.866.8422
Top 10 Legal Mistakes Homebuyer Make
Top 10 Legal Mistakes Homebuyer Make
- Not realizing that if you don't write a strong offer to purchase, the seller may reject or not respond to your offer.
- Not realizing that if you don't write a strong offer to purchase, you may lose the property to another more highly motivated buyer.
- Not realizing that, without a confidentiality agreement, a seller need not treat your offer as confidential.
- Not understanding when a contract becomes legally binding.
- Entering into an agreemetn before checking title records, liens, and other thigns to ascertain whether the seller will be able to close escrow as scheduled.
- Not understanding the legal implications of loan and inspection contingencies, and other contractual provisions.
- Not obtaining a seller's disclosure.
- Not conducting your own inspections and investigations as the buyer.
- Not fully considering the legal, tax, credit and other ramifications of homeownership, especially co-ownership.
- Not properly handling a claim for property defects discovered after close of escrow.
Source: C.A.R. Legal Department (California Association of Realtors)
A good buyers agent will help guide you through this list and help you understand each and every one of them. Contact Laura Key for more info: 310.866.8422 or Laura.A.Key@gmail.com