Carefully worded sales contract could help sellers find serious buyers
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Dear Mr. Feichthaler:
I decided to sell my home a few months ago, given the recent increase in prices. I have now had three offers that I have accepted, each of which have cancelled at the last moment to allow the buyer to receive all of their escrow deposit back. Not only do I have nothing to show for it, my property has shown pending three times and then back on sale, making it look like something is wrong with my property. What can I do to find a buyer who really wants to proceed?
--Anthony C.
Dear Anthony:
It is indisputable that we continue to be in a seller's market. Prop-erties that are listed receive offers almost immediately. Due to this surplus of demand, you can be discerning when choosing the right offer. All types of buyers have the potential to be successful buyers. From my experience, end-users looking for their retirement home and in-vestors looking for a rental property both can be great buyers. How-ever, they can also cause issues. The better offers will have a significant escrow deposit included. For any house in Cape Coral, I recommend no less than $10,000 in escrow deposit (higher for more expensive properties). Any buyer who is unwilling or unable to bring this amount tends to be more likely to not follow through.
The typical contract used in Lee County gives the buyer an inspection period, during which they can cancel for any reason. You could consider using the contract that was used a long time ago, that requires the seller to make certain repairs if needed, but doesn't allow the buyer to exit for any reason (or no reason at all). I am seeing this more frequently on higher-end properties.
You can also require a portion, or all, of the escrow deposit to become non-refundable at some point in the contract. For instance, you could say that, after 5 days, $5,000 of the deposit becomes non-refundable and payable to you as seller if the contract is cancelled. As you can imagine, many buyers will balk at this provision. However, those that are serious about buying your home may agree to it, especially with the competition seen with other buyers.
Always know that every component of a contract is negotiable. Whatever facts and circumstances a seller faces can be addressed with a carefully worded contract.
I hope your next buyer is the right one, and that the delays you have experienced will lead to a higher selling price.
Eric P. Feichthaler has lived in Cape Coral for over 35 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through the Cape Coral Caring Center, Cape Coral Museum of History, and Cape Coral Kiwanis. He has been married to his wife, Mary, for over 20 years, and they have four children together. He earned his board certification in Real Estate Law from the Florida Bar. He is AV Preeminent rated by Martindale-Hubbell for professional ethics and legal ability, and is a Supreme Court Certified Circuit Civil Mediator. He can be reached at eric@capecoralattorney .com, or 239-542-4733.
This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.