Benefit #3: Your Real Estate Agent is an Expert on the Entire Transaction
A good real estate agent will have gone through hundreds of real estate transactions and should know purchase agreement contracts and addenda inside and out. If you’d ever looked at a real estate terms dictionary you were probably overwhelmed. The purchase agreements are so wordy and lengthy that it is a daunting task to read through it. It’s even tougher to understand it.
A good real estate agent will have gone through hundreds of real estate transactions and should know purchase agreement contracts and addenda inside and out. If you’d ever looked at a real estate terms dictionary you were probably overwhelmed. The purchase agreements are so wordy and lengthy that it is a daunting task to read through it. It’s even tougher to understand it.
Misunderstanding a clause or a “subject-to” can end up costing you thousands of dollars – there goes your savings on commissions by not using an agent. Although most home buyers are not looking to pull a fast one on you this kind of things happen all the time. Seasoned real estate investors will include language in purchase agreements that protect them by decreasing their liability and your chances of collecting the earnest money should they pull out of the transaction. Investors typically will not be looking to take advantage of you, but are protecting themselves at your expense.
Here is a brief example of one of these situations in which you as a seller may miss something on the contract that a real estate agent would spot on a heart beat.
A normal transaction will have a closing date at which funds are transferred, commissions are paid, and ownership changes hand. Most contracts state that possession takes place the day of closing but may have clauses that specify and outcome should the owner of the house be unable to vacate in time. A buyer can specify on the contract that the seller will pay a per Diem of $100 per day from closing until the time he or she vacates the property and allows the buyer to move in. The buyer can further protect himself by including some verbiage stating that if he cannot close on time due to financing problems that the closing date be moved or even that the contract becomes null. As you can see this contract would be very beneficial for the buyer but very dangerous for the seller. Although this type of clause on a purchase agreement is not difficult to understand most people may miss it. A real estate agent knows what things to look for and will alert you of any situations which may be detrimental to you as a seller.
If you sell your house on your own, or if you buy your house without an agent make sure you read the entire contract. It’s long and boring (believe me) but 2 hours of torture can save you thousands of dollars.
A normal transaction will have a closing date at which funds are transferred, commissions are paid, and ownership changes hand. Most contracts state that possession takes place the day of closing but may have clauses that specify and outcome should the owner of the house be unable to vacate in time. A buyer can specify on the contract that the seller will pay a per Diem of $100 per day from closing until the time he or she vacates the property and allows the buyer to move in. The buyer can further protect himself by including some verbiage stating that if he cannot close on time due to financing problems that the closing date be moved or even that the contract becomes null. As you can see this contract would be very beneficial for the buyer but very dangerous for the seller. Although this type of clause on a purchase agreement is not difficult to understand most people may miss it. A real estate agent knows what things to look for and will alert you of any situations which may be detrimental to you as a seller.
If you sell your house on your own, or if you buy your house without an agent make sure you read the entire contract. It’s long and boring (believe me) but 2 hours of torture can save you thousands of dollars.
The Housing Ecologist
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