a. OFFERS
MUST BE IN WRITING AND SIGNED BY BUYER. Always insists that offers be in
writing and signed by the buyer to show their seriousness to the seller. Don't accept if the offers are signed by their real estate broker as it doesn’t have
any value as buyers can always back out.
b. SAME OFFER AND
TERMS OF PAYMENT. Should seller
receives the same price offer and terms of payment on their property from two
different prospective buyers, accept the one who offered first provided
it comes with a payment. Should the buyer fails to
give the earnest money within an agreed time, the owner must
send an email or a written letter to the buyer and his broker, if any, that their offer is no
longer valid for failing to give the payment on the agreed date in the written offer. You
can now entertain the next offer in line.
c. SAME OFFER BUT
ONE CASH, THE OTHER THRU BANK. Should the owner receive the same price
offer but one is cash and the other is bank financing and time is of the essence, then we would advice you take
the cash first over bank financing. Although bank loan proceeds is good as cash, it will take 2 to 6 months (depending on which bank is processing the loan) before they receive proceeds of the bank loan will be received.
d. WHEN TO HOLD PROPERTY FOR
A BUYER. Do not hold the property without the 2 items below:
1) Written offer signed by both parties (buyer and seller).
2) Earnest money or
downpayment as stated in the agreement. Very important
There have
been cases when an owner stopped showing his property due to a verbal agreement
with a buyer without any earnest money nor downpayment. What
happened? The buyer wasn't able to deliver the payment as verbally agreed upon. Thus having lost opportunity costs and at the same time losing
the other prosepctive buyers who initially wants to buy it but was told the house is n longer available.
Weigh things before making a decision. Always ask yourself. What is the right thing to do and the answer will come to you. Decide wisely!
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