Have you ever heard of someone who was selling their home, and had a nightmare experience? It’s not uncommon! In today’s post, I will share with you a little known technique that a home seller can use to help keep their buyer on track, and in line!
What Is A Notice To Perform?
When you are selling your home, it really does matter what you have on the contract you use. I recognize that it is fashionable for people these days to use simple, one or two page contracts that were downloaded from the Internet. However, have you ever considered the problem that creates for you? When something goes wrong in your contract, you need to have provisions as a home seller to exercise control over elements in the contract. This is why it is important to have some form of “Notice to Perform” clause in your contracts!
While I am not an attorney, I am a licensed real estate Broker in the State of Arizona. I invest personally in the Tucson AZ area, and I can assure you, you need a notice to perform somewhere in your contract! The phrase, a ounce of prevention is worth a pound of cure is certainly applicable here! Let me explain why!
A Notice to Perform clause simply is a clause in the contract that states that if any party to the contract fails to live up to their “end of the bargain”, then the other party has rights, and remedies to solve the problem. For example, let’s pretend you had to sell your home fast in Tucson AZ to avoid some form of foreclosure, or tax sale, or some other form of problem. Let’s say you went to an unlicensed investor that you found on a “we buy houses” sign on the side of the road, and they agreed to purchase your home for a particular price.
Now let’s fast forward to the closing date. The buyer fails to close, and is stalling. They say their “funding partner” is just “getting the money together” and it “shouldn’t be long now!” What you have written in the contract between you and the Buyer is critically important at this point! A Notice to perform clause will enable you to give official “Notice” to the Buyer, and usually has a specific amount of time to “fix” the problem.
In the Arizona State Contracts that I always use when We Buy Houses in Tucson, the standard “Cure Period” is currently 3 calendar days.
When Should Contingencies Be Removed?
There is plenty of advice online for when a BUYER should remove contingencies, but for Tucson AZ homeowners, there is very little advice to be found. As a Real Estate Broker, and Investor in Tucson, I have bought, sold, or represented the sale of well over 500 homes here in Tucson over 20 years. I’ve represented banks like OneWest, Deutchebank, Bank of America and others when they were selling their properties here in Tucson AZ. From my experience, I can give you a few pointers.
If you are trying to sell your Tucson Home fast, for a fair amount of money, then you need to keep a tight rein on the contract, and a close eye on the buyer. From my personal experience, I have seen and witnessed all sorts of quackery… beware of long escrow periods on a cash sale; beware of repeated requests for extensions; beware of non standardized contracts; and beware of many contingency requests in the offer.
If you are trying to sell your home fast, and without the use of a Realtor to defend your rights, then you need to know a few things as a basic understanding.
If you are selling your home with a commission, paying Realtors, and closing costs, etc. Then, it is understandable for you to have a long escrow period (30-45 days), a regular inspection period (10 days) and an appraisal contingency, and possibly complete repairs prior to closing. For all this hassle, you get the full market value.
If on the other hand, you are trying to sell your Tucson home fast without a Realtor, without paying a commission, without paying any closing costs… Then it is understandable that you have a shorter escrow period (under two weeks), an abbreviated inspection period (a day or two), no appraisal is required, and it is sold “As-Is, Where-Is” In other words, a fast close, with few contingencies.
Can A Buyer Pull Out Of Escrow?
Again, we have to go back to the initial quality of your contract. What does the contract say? Chances are, if you are dealing with a typical “we buy houses” type of outfit that is unlicensed, and not a professional home buyer like KarlBuysHouses then you are working with a substandard, non State approved contract.
In many cases like this, the Buyer can pull out of escrow at nearly any time, for nearly any reason. This is why it is critically important to deal with a professional home buyer. Not a “buyer
who wants a great deal” because there is a difference.
You see, in my years of real estate experience, I have come to learn that not all buyers are the same. Some say they want to buy the house, and others actually do. The proof is “in the pudding” they say. Everyone wants a great deal, but few people are actually able to act, in the way that you need them to.
For example, for someone who is trying to buy a house from you, (perhaps a renter, or a neighbor) may have the best intention to buy from you, but cannot. Some homes simply need too much work and cannot qualify for traditional financing. Thus, it takes a professional investor who you know has the cash and can close on time to complete the transaction. This is why getting testimonials from their previous customers is always a good idea!
Cash Home Buyers In Tucson
If you are in the unfortunate position of having to sell your home fast in Tucson, and you’ve been jerked around by other buyers and need to give them a notice to perform, let me say I am sorry! That’s not a fun position to be in! It isn’t good when you are trying to sell your home fast for cash in Tucson and someone messes up your plan!
If on the other hand, you’ve not yet entered into a contract, and you would like a fast, fair offer on an unwanted Tucson home, then pick up the phone and call or text me today at (520) 403-6227! I promise to give you a clear, understandable offer that you can take to your attorney for review! Trust that KarlBuysHouses is a real estate brokerage that will buy your home fast, for cash, and paying all your closing costs! Call today!