How Your Deadlines Can Help or Hurt You When Making an Offer In The Salt Lake Market
September 17th, 2007 Categories: Buying
The buyer typically will have the contingencies of an inspection, appraisal and to finish their loan. All of these items come with deadlines that are set when the buyer makes an offer to purchase the property. It is then accepted, countered or rejected by the seller.
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It has been argued that a Buyer’s agent should seek to get the longest possible dates they can. Therefore, protecting their client; makes sense to me. For example: if the inspection deadline is for 28 days past the acceptance of the contract, then the buyer can cancel the contract on the 28th day “Just Cause”. However, a listing agent that is protecting their seller will look at that and say, “We will give you the time you need BUT we are not going to give you that much time.” Sometimes when the deadlines only favor the buyer, the seller will consider it a bad offer and may flat reject it. If another buyer were to come along and make an offer and the home was sold out from under the buyer, there was no service to the buyer.
To make a really strong offer a buyer should take the time needed to do their diligence but be aggressive and do it quickly. A seller will notice that you are serious buyer and this can help when negotiating the price. I believe that an inspection deadline should be around seven days and no more then ten. Personally, I like to do the inspection immediately. If the Buyer gets the inspection done on the property and decides that they no longer want to purchase the house; that is perfectly fine and is well within their rights to cancel the contract or make an objection, if so, let’s do it quickly and move on.
Once it is determined that the inspection is Okay, then I order the appraisal. I do not like to order the appraisal and have my buyer liable for the payment if we do not get past the inspection. The appraisal deadline should be about fourteen days, followed by the loan denial which should be about twenty one to twenty eight days, depending on the type of loan and the underwriting time.
Summary:
- Inspect the property
- Appraise the property
- Finish the loan (an approved buyer must have the property approved before the loan can be completed)
- Close
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[...] It shows how serious you are and shows you have some money. This along with good deadlines can help you get a better price as a buyer. The reality is, if you are putting down 3% or more in a total down payment, than there really is no reason, for you not to put a large EM. [...]