David Elkes

You just received an offer on your property! Congratulations!

The offer looks good on its face. They’ve offered at or near your asking price. They’re even willing to close on your timeline.

Before you rush to accept it, you should review it for what we at McCoy Wyman would deem ‘Red Flags.’

First, some background…

“Contingencies” in contracts represent “out clauses” for buyers. Each one protects the buyer in the event of a particular “failure” giving the buyer a opportunity to void the contract and have their deposit returned. There are many types of contingencies built into the Florida Association of Realtors – Florida Bar (FAR-BAR) contracts used by nearly all real estate agents in this state. Standard contingencies include:

• financing – Buyer must obtain financing to complete the purchase. If buyer can’t get a loan within some agreed period of time (30 days, usually), the contract is voided.
• inspection – Buyer has the right to inspect the property (or have it inspected) for any issues during an agreed period of time (10 days or less, usually). If issues are found, buyer may be able to void the contract or have seller pay to correct these issues.
• title – Seller must be able to provide a marketable title to the property. If the title has any defects that can’t be corrected, the contract may be voided.
• sale of buyer’s property – Buyer must sell their existing home in order to afford the purchase. If buyer is unable to sell their home, the contract may be voided.

There are others, but these are the ones you’ll see most often.

Nearly all offers contain some combination of the above contingencies.

Cash-buyers are those who make offers without financing contingencies. That is, they offer to purchase your property without you worrying about their ability to obtain a mortgage for the purchase.

Now, the ‘Red Flags‘:

1. Too many contingencies
   If a buyer’s offer includes every standard contingency and adds even more (e.g., environmental conditions, zoning/land use, general suitability, partner approval), we’d be concerned that buyer isn’t serious and is simply attempting to “tie-up” the property to keep it away from other buyers. With so many ways to cancel, the buyer has effectively made the contract optional (for buyer, not seller). We’d recommend entertaining backup offers if you choose to accept an offer of this type.
2. Long inspection period
   As noted above, the inspection period is commonly 10 days or less. If a buyer demands a long inspection period, it may indicate that buyer will attempt to resell your property while it’s under contract. Many real estate investors “wholesale” properties to other investors using this method. If buyer is unable to sell to another investor during the long inspection period, the buyer will void the deal using the inspection contingency, but your property has been “pending” or “off market” for the duration of the inspection period.
3. Assignability
   Having an assignable contract isn’t necessarily a bad thing, but it does require more disscussion during negotiations. Some investors use assignability to “wholesale” properties to other investors. They, for a fee, simply assign their rights under the contract to another investor. By itself, this doesn’t cause any problems for sellers. However, when coupled with a longer than average inspection period, you can expect that a buyer, if unable to find another investor willing to accept an assignment, will void the contract.
4. Very low earnest money deposit
   If a buyer submits an offer with a very small deposit, it may be indication of low cash on hand, or of low committment to the transaction. The smaller the earnest money deposit, the less risk buyer takes by entering into the contract. If buyer defaults, seller keeps the deposit, but if the deposit is small, buyer hasn’t risked much, while seller has lost days on the market.

An all-cash offer from McCoy Wyman comes with no financing contingency and a shorter than average inspection period. If you’re interested in selling your property, please visit our Sell Your Home page, or give us a call at 813-489-9600.

Congratulations! You’ve decided to sell your house. You have a small budget for minor repairs, but what should you do with your funds to get the most bang for your buck?

There are a handful of repairs you should consider to maximize the value that you receive when you sell.

1. Replace the roof
   If you have a leaky roof, no amount of ceiling paint will hide it, especially here in Florida with our volume of rain. While a $10,000 roof repair isn’t inexpensive, a homebuyer willing to purchase your house with a leaky roof will, generally, double discount the cost of repairing that roof. If you have a $150,000 house, but need a $10,000 roof repair, a buyer isn’t likely to offer over $130,000. Spending $10,000 here can effectively make you $20,000.
    
2. Repaint the interior
   Nothing freshens up the inside of a house like new paint. For a few hundred dollars and a DIY weekend (or two), you can assure your potential buyers that painting isn’t on their post-move-in to-do list. Choose neutral colors (light tans or light grays) for the walls. Select bright white for ceilings and trim. Consider removing “popcorn” ceiling textures if you have them; most buyers these days are turned off by the dated “popcorn” look.
    
3. Repair damage flooring
   Stained or marred flooring can ruin the otherwise great impression your house makes to potential buyers. Professionally cleaning carpets, tile (and grout), and vinyl flooring may remove stains very inexpensively. However, replace worn and torn carpeting; cracked and chipped tile floors; or damaged vinyl. Most flooring retailers (including the big box home stores) offer reasonably priced products and installation services.
    
4. Restore plumbing operations
   A running toilet or dripping faucet can quickly diminish a potential buyer’s interest, as they worry what other plumbing issues exist in your house. A toilet repair kit, ($10 – $15) which includes a replacement fill valve and new flapper, will take less than an hour to install and will keep the toilet quiet during every showing. Dripping faucets will take a bit more effort to correct, but can be as simple as tightening a loose handle or replacing a worn O-ring. For the non-DIYer, a call to your favorite plumber can get these repairs handled quickly.
    
5. Resolve hinge issues
   Squeaky entry doors and sagging cabinetry doors make a house appear (and sound) unmaintained. Use spray lubricant on entry (and room) door hinges (protect walls and trim with a rag) to eliminate most squeaks. Tighten the screws on sagging bathroom vanity and kitchen cabinet door hinges to straighten and align door pairs. Use spray lubricant here, too, if the cabinet doors creak.

These fixes can make big differences in both the amount of time your house is on the market and the final sales price you receive.

Alternatively, you could call us at McCoy Wyman. We buy homes As-Is (without you having to perform ANY repairs), without using a realtor (saving you 5%-7% in commissions), and can close in as little as 15 days (instead of 60-90 days for a traditional buyer). McCoy Wyman can help keep your repair funds, commission dollars, and two or three mortgage payments in your pocket. Call us today at 813-489-9600, for an As-Is, commission-free, fast-closing offer on your house within 48 hours.