Legal Terms Vis a Vis Sellers
ARE YOU FAMILIAR WITH THE FOLLOWING TERMS?
1. Disclosed Dual Agency
2. Designated Disclosed Dual Agency
3. Lead Disclosure & Property Disclosure
4. Non Contingent Offers
5. Closing with a Lease Back
These are just a few terms that are important for Sellers in today's market. Both Sellers and Buyers need to know who does what in the transaction and who represents whom in the negotiations.
Numbers 1 & 2 above refers to the issue of "transparency". V & N Realty services many listings in the Teaneck and Englewood vicinity. Part of our responsibility to the Seller is marketing the property and actively seeking to procure the Buyer. This being the case who do we represent? The answer in the State of New Jersey is both. If we procure the Buyer for a V & N Listing, we represent both the Seller - our client with whom we have signed a listing contract as well as the customer or "Buyer". A disclosed dual agency document is signed by both the Buyer & Seller before negotiations begin with the understanding that no confidential information will be disclosed to either party. Often times if the agent brings a Buyer to his/her own listing - one of the company brokers is then designated to represent either the Buyer or the Seller.
Number 3 includes disclosing any issues of lead that the Seller may be aware of. Also, a Seller's disclosure form is often filled out at the time a listing is taken. The Seller fills it out to the best of his/her ability. When a customer makes an offer - they receive a copy of the Seller's disclosure form. It is not mandatory in the State of new Jersey for a Seller to fill out and or sign the disclosure statement.
Number 4 - A Non Contingent offer refers to offer made by a Buyer that is neither contingent on getting a mortgage nor contingent on an inspection. A Buyer may waive the general inspection but retain the right to inspect for environmental issues including proper oil tank decommissioning, radon, asbestos or mold. Usually a Buyer will not waive a termite inspection.
Number 5 - Closing with a lease back is an excellent opportunity for the Seller to remain in his/her home after closing on the property. The Seller has the use of the proceeds of the home and pays an agreed upon rent to the new Buyer/Owner. A Buyer will exercise this opportunity to close yet not move in if they wish to take advantage of a good mortgage rate which may expire.
In a changing market, pricing is not a one time issue. The Seller and Broker must stay abreast of all market conditions. This includes other new listings in a similar price range, recent transactions as well as inventory shifts. The number of showings, number of offers, number of days on the market all contribute in helping the Seller & Realtor determine whether a price change is essential. Statistics show that very often the best chance for a full price offer comes during the first 3 weeks on the market. Consider a series of timed reductions if there is little or no activity. Chasing the market is very frustrating to Sellers. It is better to stay ahead of the market. Consider the term "Dramatic" pricing which refers to pinpointing the approx market value of your home and pricing it 5% below!