pay a large Due Diligence Fee if they are concerned they will find significant, unacceptable defects in the Property or the Property will not appraise adequately to satisfy them or their lender. Realistic pricing and a well-documented CMA can be used to alleviate pricing concerns. 4. Better Sellers obtain a home warranty for themselves and for their Buyer. By obtaining the warranty at the time of listing, the Seller is protected under the warranty until closing for the cost of repair of covered defects. We are told that homes sell faster and at a higher price when Sellers provide a home warranty for Buyers. Additionally, Buyers are reassured about future issues with the condition of covered systems, again reducing objections. If warranties are only obtained by Sellers for Buyers because they negotiate that at the time of contract, then Sellers would potentially bear the same cost at closing without any of the benefit for themselves. 5. Better Sellers carefully consider providing a fully completed and accurate Residential Property and Owners’ Association Disclosure Statement. This form is effectively mandatory, except for exempted transactions such as land sales, new home sales or sales by fiduciaries or lending institutions. Many Sellers fully complete the form, while some are inclined to make “No Representation” for a variety of reasons, including avoiding liability for misstatements. Sellers who are not sure of the answer to any question should make “No Representation”. Your listing agent can assist you in understanding the form, but should not complete this form, as the law requires the owner to complete it. The portion of the form regarding the Owners’ Association is best completed with the assistance of the Association or its management and there may be some fee for that. The information for this form should come from the Seller (not their listing agent) and Sellers who make representations should be careful to provide complete and correct information, as the Buyer will be reassured by reliable information and because the enforceability of the contract can be affected by any material misrepresentation about such matters. 6. Better Sellers provide the means for Buyers to obtain their title insurance at a discount. By making your owner’s title insurance policy (less than 15 years old) available to your listing agent, our affiliated Market Title Company will provide an attractive “savings certificate” for Buyers that will assure them of significant savings on the title insurance they must purchase on your Property. Additionally, this will put the listing agent in the best position to disclose any special aspects of title such as easements and similar features, eliminating surprises during the Due Diligence Period. 7. Better Sellers understand the need for an adequate, but realistic Earnest Money Deposit. Once under the Due Diligence Contract, the Earnest Money Deposit is the only compensation ("liquidated damages") available to Sellers if Buyers default on their obligation to purchase. In light of this, a very large amount might be desirable, but market customs and limits on Buyer finances must be considered. Also, if a substantial Due Diligence Fee (see #8) is paid, buyers may elect to pay little or no Earnest Money Deposit. Sellers should carefully evaluate the amount of the Earnest Money Deposit and the risks they are taking when electing to do business with any Buyer in terms of the likelihood the Buyer will be able to complete the purchase and the length of time needed for Due Diligence and until the Settlement and Closing. The Due Diligence Fee should also be considered in this process. The realistic financial capacity of the Buyer, as well as the occurrence of a “Buyer's Market” or a “Seller's Market”, will also have a significant impact on the amount of Earnest Money and/or Due Diligence Fee Sellers can realistically demand or expect.
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