Can a home seller change his/her mind after accepting your offer?

You've made an offer, the seller accepted it, and all of a sudden, your agent calls you to say that the seller is accepting another offer instead of yours. Can this really happen? .... Unfortunately, yes.

This is a frequent question where the answer  can fall into a gray area depending on how far along you are in the transaction. First of all, if you happen to be in this particular situation now, contact your attorney immediately. I am not an attorney, nor will I, or can I offer legal advice.

Let's say you place an offer with the seller, and after some negotiating, you come to an agreement on all terms. In order for the offer to be valid, it must be signed by both parties. A verbal contract is virtually unenforceable. (again, contact your attorney)  

In our area of Fairfield County, most offers are written on binder forms (which are not considered contracts). The sellers attorney will prepare a contract based upon the terms and conditions as set forth in the fully executed  binder agreement.

If the seller has not signed the binder, and another offer comes in, that seller can accept that offer, and not even give you the option, or the opportunity to change your already verbally accepted offer. A verbal acceptance means virtually nothing until you have an authorized agreement.

As a matter of fact, ALL offers must be presented to the seller up until the time of closing. The seller may choose not to accept another offer, depending on a variety of factors, including first and foremost, his attorney's advice which will most certainly take into account how far along course the transaction is, and what damages may be incurred if the seller chooses to take that offer.

The best thing to do is to perform as per your agreement as outlined in your agreement. Your agent will guide you to stay within the guidelines that are set forth and hopefully avert this kind of thing from happening. .... and I just happen to know a great agent! Contact me when you are ready to buy, and I will be your advocate. Here are a few testimonials.

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Common misconceptions about renegotiating after a building inspection.

When you purchase a home, your offer should be contingent upon favorable review of a building inspection that you (as the buyer) pay for. A building inspection by a qualified inspector (www.ashi.com) should be completed within 5 days of a negotiated binder agreement or as agreed by seller and buyer at the time of agreement, and made part of that agreement.

The building inspection's purpose is to find out whether the home has any major defects, or needs any major repairs that would be undiscoverable to an untrained person. A building inspection is not always cause to renegotiate the purchase price if the report is not as favorable as you would like it to be.

Normal wear and tear, improvements that are important to you but are unnecessary to another buyer, cosmetic changes that you would like to make,  and anything that is obvious to you or your Realtor when you see the home is not cause for renegotiation.

A rule of thumb- If you and/or your Realtor can notice defects at the time you view the home, you make the offer with that knowledge.

1. If the item  has to do with safety, it should be addressed.
2. If the item has to do with anything that could fall under the heading "Protect Your Investment" it should also be addressed.

Some examples of both and do's and dont's for renegotiating:

A roof that needs replacement because of age - DON'T (your Realtor should have seen this)
A roof that needs replacement because of defective shingles DO
A furnace that is older but still working DON'T
A furnace that is not working properly DO
An electrical panel that is not upgraded DON'T
Double tapped breakersor safety issues  in the electrical panel DO
Asbestos related materials present and confirmed DO
Leaking pipes DO
Hardwood floors that need refinishing DON'T

Renegotiating can mean anythng from having the seller perform the repairs prior to closing, to crediting the buyer for the repair work,  including certain items with the sale that were not included previously, or any combination of the above.

With me as your Realtor, I will always point out defects in the home when we first view it- it is senseless and a waste of your money and time for me NOT to tell you the bad along with the good. I am not a building inspector, but I can say this- I have attended every building inspection for every home that I've sold, (and that number is in the hundreds)  and learning about what to look for becomes much easier with repetition. You can benefit from that knowledge. When its' time for your inspection, make sure you attend, stick to your inspector like glue , and ask lots of questions. And if you forget, I will most certainly remind you!

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2011 First Quarter Real Estate Market Reports for Southwestern CT are now available!

We are pleased to present to you our quarterly all-inclusive reports for your favorite towns that we service. Market Report Statistics in Fairfield County include the following towns: Darien, Easton, Fairfield, Greenwich, Monroe, New Canaan, Newtown, Norwalk, Redding, Shelton, Stratford, Trumbull, Weston and Westport, Connecticut. New Haven County Market Report Statistics include Ansonia, Derby, Milford, Oxford and Seymour, Connecticut

Our Market Report Statistics come straight from the MLS, and we  have included  ALL of each towns active listings for this detailed report- including single families, condominiums, multi-families and apartment rentals, which are sorted by bedroom count, as well as land .This set of statistics includes average list price, average sales price and average days on market.

The next set of market statistics is on sold properties for the first quarter and is all inclusive of single families, condominiums, multi-families and rentals that are sorted by bedroom vount as well. Additional information includes how many sales, what the average list price of those sales was, the sale prce to list price ratio, and market time of the sold listings.

You will find these real estate market reports on their respective town pages on the left hand side bar. As always , we are pleased to be of service to you, and when you are ready to buy a home, or sell a home in any of the areas that we specialize in, make sure you contact us!

How does market time affect pricing on a house for sale ?

When you are looking at houses, pay attention to the market time for that particular home when you look at it. That number is pretty much hidden in plain site at the top of your MLS listing fact sheet, and it would appear as trivial as MT 156. As a buyer, you may not be aware that MT 156 means that the market time is 156 days on that listing.

Why would this matter to you, as a buyer? Two big reasons! SALES PRICE and TERMS OF SALE I am assuming that your agent would have been educating you as you are looking at homes as to what the average market time is for a property in the town(s) that you are interested in.  If the average market time in your preferred town is 75 days, well then, you may have an built-in opportunity for additional price negotiations. You may also be able to negotiate terms that are more agreeable to you.

This involves some research from your agent, like checking on the homeowners financial status, the loan status on the property, finding out the reasons for the move from the listing agent, the sellers motivation, whether or not there have been previous offers, and checking the listing history of the house.

I conduct this research and pay membership fees to various sources  to find out this information, some of which is not readily available or easily available to the public.  Obtaining  information  from the listing agent is quite helpful, and most llisting agents will tell buyer agents about the sellers motivation. Honestly, I feel that is a breach of  fiduciary responsibility that I do not cross when I represent a seller - but, when I represent a buyer I do not have a fiduciary responsibility to that seller, so my loyalties are with my client.

Knowing town statistics and market data besides having a market analysis on the home you want to buy is very important. That is why I include them for  Easton, Fairfield, Norwalk, Trumbull and Westport on a weekly basis.  I conduct market research for  other towns in my service area, I just do not publish them online. ... and truly, you shouldn't ever have to ask your Realtor for this information- if you do, it's time to change agents and get the professional advice that you deserve.

How do you figure out the best location to live in?

We've all heard the term, "location location location". Choosing your home's location is just as important as choosing the home itself. Here are four of the top  tips to help you decide on the best location.

The City, Town, or community-  Before you pick out a house,  the first thing to do is choose what cities or communities you would like to live in. There are many different factors that come into play, not only for yourself, but for resale value as well. Carefully choosing your community is the first step in "location, location, location" and can help maximize your future potential resale value.

Property Taxes always seem to be a consideration and in most cities, you'll notice that taxes are higher than in surrounding towns. The city, as a hub, usuallly provides more services than towns do, and have bigger government, and someone has to pay for it- that means the homeowners. If you like the services that a city has to offer, and the higher taxes aren't a deterrent. But remember, you will lose some of the buyer pool on resale if your taxes are considered too high.
The bonus  is that the "cost per square foot" of homes is most often lower in cities that have higher property taxes. This is something that you will need to weigh in your decision

The School System- Even if you do not have school-age children and do not intend to have children, you must pay attention to the local school system. That is because when you sell the property, many of your potential buyers will be concerned about it. have concerns of this nature. Check to see how local students score on the standardized tests and as I mentioned in a prior post, the state of Connecticut mandates that ecah of its 169 towns and cities educational system report on each individual school.. The better the school system, the better the resale. It has always been that way.  

Economic Stability and Local Government- When choosing a town or community for your home buying purchase, look to buy in a city or town  with a  stable economy. When you want to sell your home in the future,  there should be a reasonable expectation that your town will still be a desirable place to live. A good idea is to drive around that community, and see how well it is maintained. .Services provided by the local government are in important factor, too, such as community centers and libraries. You can obtain crime statistics by going to the police station and simply asking for them. The local EMS should also have their response times on record for you as well

I would be happy to answer any questions that I can about your new community, and what I don't know, I can find out readily. All my clients  have to do is ask!

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