Tucson Homes Buying or Selling Keep it on Track
February 15, 2008
Post Tags: buying-and-selling-property , derailing-a-transaction , great-bargain , real-estate-transaction , Tucson-AZ-Real-Estate
The buying or selling of real estate, whether in Tucson or some place else is a process. A process that can sometimes get out of balance and derail the transaction. Let’s take a look at a couple of examples which will hopefully help us as buyers and sellers to keep ourselves on track.
The Buyer that loved the location and had a hard time seeing the flaws in the house.
This was almost four years ago. The land was an acreage with some beautiful views and a place where there would be a waterfall when it rained. The house on the other hand had a huge list of issues, from non-compacted soil to build code violations and lots of poor construction found everywhere. But the land, it was beautiful and the buyer couldn’t get past it.
The home inspection was ordered after the contract was submitted. The inspection came back the size of a small novel. The summary alone was over 5 pages long. Even then it took some real talking to finally get the buyer to see past the views to the real issues of a house that would be a money pit. This cost about $500 for the eyes to be opened.
The person that is getting a fantastic piece of property but looses sight of that value when negotiating the BINSR
Buyers begin a long process that changes for many along the way. What they thought they wanted when they started their search often turns to be something completely different by the time they find a house. Then the negotiation of the contract and the offering of a purchase price that if accepted is a great deal. Instant equity in the home and exactly the home they are looking for. Next the inspection period comes and there are a couple of thousand in minor repair issues that the seller is bulking at because they feel they built that into the acceptance price and the buyer looses sight of the great deal they have negotiated and wants to push for all the repairs to be made or they will walk. (BINSR = Buyers Inspection Notice Sellers Response)
This is getting caught up in the details of the moment like a poker player going all in. What needs to be done is step back from the situation and look at the purchase as a whole. If the buyer will spend a couple of thousand they will have everything fixed and have a great home. A home that is exactly what they have wanted. But the transaction can get derailed over some very minor details.
This can and does happen on both the buyer and seller side of a transaction all the time.
The seller that treats their property like a turnip
They want to ring every bloody dime out of the property they can. They aren’t going to fix anything. They want their price and won’t accept anything less. I’ve seen sellers turn down good offers because they treated the house like a turnip instead of a commodity. I’ve seen transactions where sellers accepted the offer and in the inspection period there were enough repairs, some even or warranted items that needed to be made and the seller refused and killed the deal. Then a month later (after thinking about it and no other offers have come in) and they now want to negotiate with the buyer to make the repairs and accept the conditions. But the buyers are long gone, they found another house to make their home. The seller . . .
The buyer that wants a gonga deal but doesn’t know what one looks like
I’ll start this with a story:
My daughter worked for a jewelry store in a mall. She learned a lot about gems and how to tell the quality of the gems. One day on her lunch break she was looking at jewelry in another store when she spotted a pair of diamond studs on sale for $10.00. The reason for the sale, they weren’t supposed to be real diamonds. But they were. She know what to look for and gladly paid the $10.
We have had people come to town looking for a “Great Bargain” because they wanted a fantastic deal. And in most cases we find them or create them through negotiations. Once we found a house that was just such a deal. It was $100,000 off for various reasons mostly because a buyer backed out and the builder needed it off his books before the week was out.
But the buyer wasn’t sure. They saw the comps they saw what other homes were going for, but they didn’t know what a real gonga deal looked like. They derailed a transaction before it even got going because they didn’t do their homework and know what a bargain looked like when they saw one.
Each of these types of situations described happen all to often during the home purchase or selling process. Think about these various situations and try and avoid being caught in one of them during your next real estate transaction.
