Hi everyone! Hope this post finds you well and I hope you’re planning on either buying or selling your home AND calling me first. It’s a huge market out there and with an interest rate hike looming, it’s likely to get bigger, faster, busier. Crazier is probably a better word.
We’ve talked about how you can’t even get the offer on the table for consideration before the home goes under contract and now homes are selling BEFORE they hit the market. Multiple offers have become the norm and it is a STRONG seller market. Home prices are rising and builders are busy again. Good to see. But there’s something new and again, we need to be careful about this.
Sellers are demanding shorter due diligence periods in a market where getting immediate inspection services…for home, septic, well, HVAC, pests, roof…is impossible. In some cases there’s a two week lead time to get someone out to inspect, and some sellers are asking for a three week due diligence period. Impossible. What this does is put undue pressure on buyers who are already incredibly busy getting loan approval and meeting all of their obligations as buyers. Ultimately, it’s not good for the seller either; they end up with days to get repairs done, rather than weeks, so the stress boomerangs right back on them.
It’s hard to get through the due diligence period, followed by an even more difficult repair negotiation. Let’s not be stupid about this. Nobody’s losing anything if the home is under contract with a financially strong buyer and the home is well maintained. Relax and give the buyers a chance to do their due diligence! Agents, remember when you agree to this short due diligence period, you could very well be asking for an extension and your buyer might have to fork over more due diligence money. The seller has a right to ask for it.