Real Estate Questions

I received two very good questions yesterday so I thought I'd answer them here.

Q- If the buyer puts an offer in on a home in as is condition, then after the inspection he decides to cancel the sale can he?

A- In California, there are contingencies built into the contract that are not removed until the buyer and seller remove them. In most cases when a home is sold in "as is" condition this means the seller is not willing to do any repairs to the home. So, after the buyer performs a home inspection and realizes the repairs are just too costly he can cancel the sale with no monetary repercussions as long as the inspection contingency has not been removed or modified. Normally the inspection contingency lasts for 17 days or until the buyer has performed all necessary inspections and the contingency is removed in writing. Often a listing agent and seller will stipulate the buyer is to perform all due diligence and remove these contingencies earlier, usually 10 days. At that time a contingency removal form will be presented to the buyer. Once he signs the form that contingency no longer exists. If the cancellation happens after contingencies are removed the buyers deposit is in jeopardy.

Q-If I want to cancel my listing what should I do? Cancelling a listing can be tricky depending on why you want to cancel. If you plan on refinancing your home, this won't be able to happen while the home is listed. Real Estate agents know this and usually have no problem cancelling this listing. If you plan on taking it off the market, the same will hold true and normally the listing will be put on hold rather than cancelled. The problem arises when you decide to cancel your listing to list with another agent. When this situation arises, you should first think about why you want to cancel. Is it because the other agent has told you everything you as a seller want to hear."Yes, I can sell your home and we can get top dollar." Find out what this new agent is going to do to get your home sold that your current agent isn't doing. In California, the main reason sellers aren't selling is the listing price is too high. "Sorry, but it's True" So if you plan on listing you home for the same price with the new agent you're still very unlikely to sell.

Always put your cancellation in writing. Submit this to your agent and they will furnish you with a cancellation form. There are several items that can be checked on this form so read it carefully before you sign. If the agent isn't cooperative you may contact their broker.

I hope these questions and answers help you but if not you always have the opportunity to contact me directly from my website.