Sellers are picky about their buyers — as they should be. Savvy sellers evaluate potential buyers to ensure they have the funds and ability to actually purchase the property before entering into a contract.
So how picky should a buyer be about the seller? After all, most buyers fall in love with a home, not with a seller. Does the seller’s ability to perform on the contract make that much difference?
Let’s take a look at three hypothetical sellers who we’ll say are all selling similar homes, at the same price, on the same street.
Behind Door No. 1
The seller is a single person or a married couple with a mortgage lien on their house. The seller’s disclosure is completed and disclosed to the buyer. The property inspection turns up a few repair issues as to be expected.
No nasty surprises here. Just your typical sale.
Behind Door No. 2
Sellers are a married couple with a mortgage lien on the house. From appearances (and the master closet), it seems one spouse may not be living there. The seller’s disclosure is signed by only one of the owners. The title work turns up divorce papers filed a few months ago. The inspection indicates no maintenance has been done on the property for several years.
As it turns out, the soon-to-be ex-husband is living out of state with his new girlfriend. Both spouses are out for blood and would rather burn it down than see the other one benefit. He refuses to sign closing documents unless she gives in on some divorce demands. This is ugly and could drag out. Be prepared for drama and delays.
Behind Door No. 3
The seller is a single person selling her elderly mother’s home after moving her into a nursing home. This daughter has Power of Attorney for her mother and is signing documents on her behalf. No seller’s disclosure is provided. Inspections show lots of work is needed but the price is right.
Turns out the property is still deeded to both the mother and father. The father is deceased. He did not leave a will. The father had four children, two from a previous marriage. One of these grown children is now deceased and has two heirs. None of these grown kids get along. The title company or the courts will need to determine all rightful heirs to the father’s half of the property. Each of those heirs will need to sign documents for the property to be sold. This one is a mess and could take some time to close depending on how responsive and cooperative all parties want to be.
Buyer’s Choice
As a buyer, which seller would you be willing to enter into a contract with? Straightforward transactions are the easy choice. However, sometimes the potential for a difficult transaction can mean better pricing on a property.
It can be hard to know the exact circumstances surrounding the sale of a property from the get-go. Asking questions and knowing as much as possible can help you make an informed decision.
