Is a friend’s advice fruitful or costly to home sellers?
May 10, 2023Marketwise for the Bay Area News Group and its flagships The Mercury News and East Bay Times websites
By Pat Kapowich | Published: May 10, 2023
Question: We are co-trustees selling the Bay Area home of a deceased relative. Last fall, we hired an elder law attorney, CPA and real estate agent. We quickly emptied the property. However, the presale seller inspections proved alarming. The deferred maintenance was extensive. Repairs, termite fumigation and property enhancements such as paint, carpet, light fixtures, et cetera took months. Our seller’s agent claimed the mini makeover was critical. After one week of marketing, we received six offers. When we mentioned the results to friends at our neighborhood coffee shop, they suggested we hold a week of marketing to collect more offers. Is our friends’ strategy sound?
Answer: Your friends’ strategy, on many levels, is profoundly unsound. Full stop. In fairness, the side effect of laypeople buying and selling homes is wayward real estate advice from non-licensees. You trust your friends. Perhaps more than your seller’s agent. That’s a mistake. The seller’s agent shepherded the process from a lived-in family home through inspections, repairs, enhancements and marketing to six purchase offers. Your seller’s agent demonstrated unquestionable abilities. Co-trustees and their professionals work toward the first week of marketing a home. For home sellers, that occurs only once. The motto “new on the market,” in reality, is “once-in-a-lifetime magic in a bottle.” Don’t let your latte-sipping friends ruin it.
Residential real estate offers expire. Here are two examples of expirations clauses in real estate purchase contracts:
The California Residential Purchase Agreement (RPA-CA) from the California Association of Realtors.
• Page 9, Paragraph 31. Expiration of Offer: This offer shall be deemed revoked and the deposit, if any, shall be returned to Buyer unless the offer is Signed by the Seller and a Copy of the Signed offer is personally received by Buyer, or by _____________________ is authorized to receive it, by 5:00 PM on the third Day after this offer is signed by Buyer (or by _____________________ ____AM/____PM, on_____________________(date).
The PRDS Real Estate Purchase Contract (PRDS REPC) from the Silicon Valley Association of Realtors.
• Page 11, Paragraph 34. Offer: This is an Offer from the Buyer to purchase Property. Unless this Offer is Accepted by the Seller and a signed copy is received by Buyer (or by ________________________, who is authorized to receive it), by __________________at___________. ____a.m.____p.m., this Offer shall be deemed revoked and the deposit shall be returned.
The science of buying is studied. Marketing the home for another week would be a failed experiment. The homebuyers’ and agents’ hostile brain activity would be off the charts. Their blood pressure would spike, too. Avoid angering anxious homebuyers. Review the six offers. Ratify a home sale ASAP. These homebuyers are predisposed to buy the home. Keep it that way.
Questions? Or are you or someone you know navigating life’s transitions? Let lauded negotiator Pat Kapowich make your next move easy. Visit Kapowich’s website for free area housing data, insights and trends. Or put his artful blend of specialized credentials, decades of experience and endorsed skill set to work for you. Kapowich instills confidence when buying, selling, relocating or resizing homes. Do not just make a move — make the best move. Contact him today, Realtor Pat Kapowich, a career-long consumer-protection advocate.
