Capital Region home sellers this post is for you. The Wall Street Journal just ran an article noting the unusually high number of signed real estate contracts canceled by home buyers. There are three primary exits for a home buyer once the real estate contract is signed.
- Attorney Approval: During the first 3 to 5 business days the real estate contract will allow for attorney approval. Either party may exit upon the objection of their attorney. This is often a no questions asked, no justification required ,exit.
- Inspection: Pursuant to the standard Capital Region Multiple Listing real estate contract, the buyer may cancel the contract should a licensed home inspector identify more than $1,500 in structural defects. A structural defect is not a leaky sink, it’s usually a problem with the roof or foundation that exceeds $1,500 to repair or replace.
- Mortgage Approval: More common these days, the buyer may cancel the real estate contract if they are unable to secure a mortgage at a reasonable interest rate and on reasonable terms (usually a 30 year fixed rate).
- how much the buyer is putting down,
- is the prequalified,
- what type of mortgage is the buyer getting,
- is the buyer using a local or out of town bank,
- does the buyer need to sell their home before they buy,
- is the buyer’s offer contingent upon any other events.
No one has a crystal ball, and there will always be events that we cannot control for during the contract period. However, if you take the time to properly review the home buyer’s offer and all of it’s contingencies before accepting, it will help to minimize problems down the road. Monticello stands by our sellers to make sure its a successful and simple home selling experience. You can read more about Monticello’s sophisticated techniques for selling Saratoga and Albany real estate.
