a ) Improve marketability . In addition to the good effects that, cleaning, “staging” and cosmetic improvements might have, Sellers can eliminate Buyer’s objections and improve the marketability of their Property by satisfying the potential Buyer that there are no hidden defects in the condition of the Property before negotiating a contract. Through a pre-marketing inspection and making appropriate repairs and disclosure, Sellers can demonstrate that they either properly corrected all or most defects or that they have disclosed the issues and accounted appropriately for the decision to not correct defects by meaningful adjustment of the purchase price, depending upon market conditions. For Sellers who firmly intend to make no repairs and sell the Property in its “current condition” as provided in the contract form, those potential Buyers who would be dissatisfied with getting a better price and making repairs themselves after Closing can be eliminated early by providing them with this information, rather than finding out after they go under contract and inspect the Property. b) You will inevitably find out what defects exist in your property. We think knowing earlier is best for Sellers. Most Sellers are not aware of the hidden defects that might have developed in their property, particularly in the foundation, basement, attic, roof, drainage or mechanical systems. Almost all Buyers have extensive home inspections conducted that discover these defects and then Buyers may request significant repairs in order to agree to complete the purchase. Once this occurs, many Buyers demand excessive repairs or create unrealistic expectations about how repairs are conducted and by whom, leading to greater expense and delay, as well as frustration. Sometimes the repairs needed, even if the Seller will make them, discourage a Buyer from completing the purchase. By getting most defects discovered and repairs done in advance, Sellers can substantially avoid these issues. Although the Buyer will still have an inspection and some additional defects are usually discovered by a different inspector, they are usually minor and take little time or expense to correct. c) It is easier to determine how much time you will need to Close. The 45 days needed for Closing only works when there will be no significant issues or extensive repairs required from Seller after the Buyer’s typical 21-day Due Diligence Period. Only 8 days has been anticipated for that process after Buyer’s Due Diligence in our timeline. The discovery by Buyers of the need for lengthy or extensive repairs by Sellers can lead to delays in Closing when not adequately anticipated at the time of making the contract. This can lead to the need for an agreed delay in Closing or a possible breach of contract by Seller. If extensive repairs are anticipated, but not performed in pre-marketing, then additional time should be added to the timeline provided. Usually, the additional cost of a pre-marketing inspection is offset by the lack of increased Seller mortgage interest accruing during a longer contract to close time. There is also significant value in avoiding the issues discussed above. d) You are likely to already be doing some work to stage and prepare your house for the market. We recommend the advantages of cleaning, de-cluttering and staging to prepare your house for sale. Sometimes this involves significant work, depending on your routine upkeep. Particularly in a “Buyer’s Market”, why not do all that might be necessary to correct significant defects while this is occurring, rather than doing it twice? 3. Better Sellers price their Property in accordance with current market conditions and can demonstrate their price will appraise. Although extreme “Seller’s Market” conditions motivate aggressive pricing, in most other markets, realistic pricing and your agent’s ability to demonstrate appropriate comparable sales that will ultimately determine the appraised value will be much more important, both to support your expectation of a significant Due Diligence Fee and to improve the reliability of the contract closing. Because the Due Diligence Fee is "non- refundable" except in the event Seller breaches the contract of sale, Buyers will be reluctant to
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