Seller FAQ
Most commonly asked questions
Q. Why shouldn't I price my house a little high, since I can always drop the price later?
A. That's a strategy that sounds good - but, in fact, is more likely to result in a slower sale and not necessarily a higher price. Here's why. The first few weeks a house is on the market is when it will have the most activity. If a house is overpriced, buyers may not be too quick to make an offer. Educated buyers are very aware of the market and will "wait you out" in the hopes of a more realistic price point. Eventually, you may have to drop the price - and could end up with an even lower price because buyers will wonder why the house has been on the market so long and then factor that into their offer.
Q. What is meant by the term "contingency" in a sales contract?
A. Sales contracts typically contain several "contingency" clauses, or stipulations that the sale is subject to. For example, with a mortgage contingency, if the buyer is unable to obtain financing within the specified timeframe, neither the buyer nor the seller is required to complete the purchase. Among other common provisions in the "subject to" section are attorney review, home inspections and the purchaser's need to sell a current home first.
Q. What is an escape clause?
A. An escape clause, also known as a kickout or clause, is a provision that allows the party to void the contract. For example, the seller may retain the right to look for a more favorable offer, with the original purchaser retaining the right, if challenged, either to firm up the first sales contract (such as by waiving a contingency) or to void the contract.
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