Tackling Tricky Scenarios in the Real Estate Process

To what extent are buyers and sellers obligated to move forward with a deal after an offer has been accepted? Find out that and more right here.

Things can get tricky between making an offer and closing a deal. Today I'll present some real-life scenarios that show what can happen.

Getting swept up in the frenzy of buying or selling a home is easy. After the honeymoon phase comes that awkward stage between agreeing on a deal and reaching the closing table. You might encounter many unforeseen situations during this time, but there are both buyer’s and seller’s rights designed to prevent a major decision from becoming a major regret. These protections will make sure that you don’t lose money or endure an unnecessary battle in the process.

"There are both buyer’s and seller’s rights designed to prevent a major decision from becoming a major regret."

Example No. 1: The seller says, “I accepted an offer, but now I’m wondering if I could have sold it for more. Can I keep looking for offers?”

Were you anxious to sell and worried another offer wouldn’t come rolling in? Accepting an offer doesn’t mean you can’t at least look at other offers. Once you are officially under contract, you’re obligated to sell to that buyer, barring any other contingencies. Here's the consolation prize: sellers can put a secondary buyer into a backup position so if the first contract falls through for any reason, the second buyer is automatically under contract.

Example No. 2: The seller says, “The buyer’s financing fell through before the close date. Can I walk away?”  

If your buyer’s financing falls through, or they’re unable to obtain financing by the closing date indicated in the contract, you have the right to walk away from the offer. Any change in the buyer’s financing can also provide the seller with an out of that particular contract. If the buyer needs to put down less money, they need to change their loan from a conventional loan to an FHA loan, or if any of the terms differ when the loan terms outlined in the contract and would negatively impact the seller, the seller can choose not to accept them.

Example No. 3: The buyer says, “The inspection raised some issues I wasn’t expecting, and the house appraisal doesn’t match the contract price. Can I back out of the deal?”

If the home inspection digs up some issues with the property like faulty wiring or plumbing, poor drainage, or defective heating, you may not be prepared to foot the bill as a buyer. When this is the case and the seller isn’t willing to fix those issues, you do have the option to walk away from the contract.

In addition, if the property appraises for less than what you’re offering, you have a few options. Since lenders will not lend for more than what the property appraises for, you can bring more cash to the table, you can wait for the seller to adjust the asking price, or you can rescind your offer altogether.

These are just a few examples of what can happen between making an offer and closing the deal. The majority of buyer/seller contracts end up as closed transactions with maybe a few speed bumps during the time between contract and closing. We try to make it easy as possible and help during that process.

For further information or any questions, please feel free to give me a call. I’d be happy to help.

Reflecting on the 2017 Real Estate Market

How did the 2017 real estate market do and what can you expect from our market in 2018?

Merry Christmas and happy New Year! As 2017 draws to a close, we’re looking back to see how the real estate market did this year and what to expect next year.

In our local area, the number of sales for vacant land, condos, and single-family homes increased by 17% over 2016. The average sales price is up 8%, and the total dollar amount of sales is up 26%. Inventory is down 3% compared to 2016. We simply need more properties to sell.

Despite the low inventory, pending contracts are up 18% over 2016, so this is the best market we have seen since 2005.

Looking forward to 2018, many anticipate that housing costs will go up as a result of the hurricanes in Florida and Texas and the fires in California. These natural disasters impact the whole country, and they have affected the cost of housing a little bit.

My husband is a local builder and he says that he has seen price increases from different vendors he works with in the area.

In addition, interest rates are still low right now but they may go up a little bit in the future.

Overall, the market looks good for 2018.  

I want to thank my coworkers for their work in 2017 and my friends and clients for their support. 2017 was a good year, and 2018 certainly looks promising.

"2018 looks like another good year for real estate."

If you have any questions about real estate, just give me a call or send me an email. I would be happy to help you.

Have a happy holiday season!

What’s It Like Working With Us? Our Clients Tell the Story

We want to share a few client testimonials we recorded from a viewing party of our guest feature on HGTV’s “Beachfront Bargain Hunt.”

We recently had the pleasure of working with HGTV to film an episode of “Beachfront Bargain Hunt” right here in Atlantic Beach. We had a great time filming the show, and we’d love for you to tune into episode 13 of season 15 to see us on TV.

Here are a few client testimonials from our recent viewing party of this experience:

From Bill and Fossie Latham:

“Lugean closed three properties with us in the course of about 60 days—one we bought, and two we sold. The thing I appreciated the most was, you know, whether you’re buying or selling can be a bit frustrating and emotional. I mean, there’s a lot of money involved, and Lugean, through the whole process, was very calm. She didn’t let you get too optimistic; she didn’t let you get too pessimistic. She kept everything on an even keel and things worked out wonderfully. We really appreciate what she did for us.”

From Mahilda Barbee:

“I worked with Lugean to buy my house when I was transferred here to open the state police credit union four years ago. She was so gracious to sell me a house in her neighborhood that not only did she sell me a house, but now I’m her neighbor.”

From Dale and Norma Coley:

“Lugean helped us find the absolute perfect condo in Atlantic Beach. She showed us at least 40 different condos and was very patient with us, and we ended up with the perfect condo. Lugean is the best.”

From Sharon Pietzrak:

“My husband and I met Lugean in August of 2014. She helped us buy our home, which was a foreclosure and was the first one she had done. She was just tenacious and got it done. Even after we lost it in an auction, she put in a backup bid, which we didn’t know she did, but it was a good thing because the deal fell through and she saved the day with that backup bid, and we’re so happy.”

"It was great having the support of our friends, family, and many of my clients."

To see a few clips and photos from this viewing party, watch the video above. It was great having the support of Bluewater Real Estate, our friends, family, and many of my clients.

If you have any questions or you’re thinking of buying or selling a home here in paradise, don’t hesitate to give me a call. I’d love to help you.