Has Anyone Ever Listed A House Too Low And Realized This After Signing A Contract?
Have any of you ever signed a contract on your property where your price was too low and realized it after the fact that you could have sold it for 5k,10k or even 20k more than what you thought it was worth? If so what did you do about it?
Most people will consult with a realtor before signing a contract. That realtor would make sure your home was adequately priced. If you are doing a for sale by owner, most people get an appraisal done.
I once bought a house from a bk bought it real cheap sold it like year later I talked to the buyer like 3 months later and he said he was able to refinance it and got like 8k extra then what he paid for the place go figure....
I recently listed a property and I had a contract on it in less than 1 day. It has not closed yet I have 2 back up offers now for full price. I was not focusing on this until the termitre came back and now I have to come out of pocket for $800 worth of termite spot treatments.
this was not factored into the original profit equation
Why is it that the buyer has so many ways to get out of a contract but the seller typically has no way out?
If the contract does not specify that you have to pay for the termite treatment if termites found, then you are not required to pay. If the buyer will not pay for the treatment, you have a good reason to go to backup offers.
I try to not have any open ended items in my contracts, such as a promise to treat for termites if found. That way, I know what I am getting and can back out if things get too costly.
When the market is hot, respond as slow as possible to offers just in case others come in before you have to make a decision. Just remember, people always say they would have bought after they miss a sale. When the first deal falls apart and you call the backup, many times that buyer evaporates too.
If the property is being sold as is, you should have had the termite clause removed. If the buyer is obtaining FHA, VA or conventional the buyer will have to have a clear termite. You might want to consider on your future deals having a termite inspection ahead of time.
Rehabers Beware: It turns out the $800 bill for the dry wood spot treatments is bogus. I sent a copy of the termite report to another exterminator. They read it over and even though the report notes damage,there is a yes or no box on the report that asks something to the effect "was there active termites observed" the report was checked No.
this house is 50 + years old. This damage could have occured 5 days or 5 years ago. A conventional lender only requires that there is no active wood destroying organisms in the house. (FHA rules are much stricter.)
these Termite inspectors/Pest control companies that inspect properties only make $20-$50 per inspection. They like to do these because it allows them to drum up business. read you reports over carefully before you agree to spend big $bucks$ on termite damage. I am glad I got a second opinion.
Summerj--
I did not think that the termite inspection was bogus!! Good post!!
I have found some termite companies always flunk the house for something; whether it is powder post beatles or carpenter ants.
I always inform the termite inspector, that I will be taking bids if they flunk my property.
When a termite company tries to cheat me, they are finished, forever with ever doing work for me again!
In my experience, the small independent companies are more trustworthy.