Want to Sell Your House? Don’t Do This
“**Limited showing times** Tuesday and Thursday 5:30-8 PM, Sat 12-6 and Sun 11 AM-2:30 PM. Agents to verify all info. Consult listing agent about closing date. Use Seller’s Disclosure Alternatives. Subject to Seller completing a 1031 Exchange, Buyer agrees to cooperate.”
–Agent Remarks, MLS
Want to know how an experienced Buyer’s agent (OK, this one) views the above showing instructions?
Here’s what the Seller is saying, translated, followed by my comments:
Seller: **Limited showing times** Tuesday and Thursday 5:30-8 PM, Sat 12-6 and Sun 11 AM-2:30 PM.
Buyer’s agent: The house is currently rented (condition, presentation may not be so great — AND it’s hard to show). “Strike 1.”
Seller: Consult listing agent about closing date.
Buyer’s agent: If the Seller was amenable to a typical 6-10 week closing timetable, there’d be no need to “consult listing agent.” Ergo, Seller is contemplating a drawn-out or even open-ended closing period. “Strike 2.”
Seller: Use Seller’s Disclosure Alternatives.
Buyer’s Agent: Confirms that the home’s currently a rental. Owner-occupied homes complete a standard Minnesota Seller Disclosure, describing in detail the condition of the property. Investor-owned homes provide almost no information about the home, and frequently require an “As Is” Addendum. In other words: it’s up to the Buyer to determine the home’s condition — and be OK with whatever defects they find. “Strike 3.”
Seller: Subject to Seller completing a 1031 Exchange, Buyer agrees to cooperate.
Buyer’s Agent: More evidence that the home is an investment property — and that the owner wants to exchange it, tax-free, for another. The catch for Buyers: Section 1031 exchanges can take up to 180 days to complete. How many Buyers actively looking for a home in July are willing to potentially wait till 2017 — or risk having the deal fall through altogether after six months? “Strike 4.”
Bottom line?
There’s a Buyer — and a price — for every home.
However, with all these restrictions and special conditions, this one will truly have to be discounted.
