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Saturday, April 24, 2010

“Under Contract” - Real Estate's "Maybe!"

Here is a real (estate) news headline -  
Many Real Estate Deals Never Close!  
I have been told that the percentage of real estate "deals" that never close is around 35% but I don't put a lot of faith in the numbers.  Rex Stout once said "There are two kinds of statistics: the kind you look up and the kind you make up”

Besides, if you are a seller and your first buyer walks away then your percentage of deals that did not close is 100%! 

My point is..."Under contract" can be misleading. It really should say "if all goes well we will close!" 

Contracts are usually written with contingencies. Contingencies protect the buyer (and the seller as well). 

Contingencies may involve:
  • loan approval (appraisal coming in at acceptable price for lender)
  • satisfactory inspection report. 
  • a short sale it may be contingent on the lender accepting the offer,
  • the buyer to fly down and physically walk through the property (people buy on the Internet sight unseen initially).
In the world of real estate transactions most properties do close successfully - once the contingencies are cleared!  As a seller (or buyer) your real estate agent will help you get to the closing table - through all the contingencies!

In Brevard County, Florida, call me if you are considering buying or selling a house or condo!  Call me at 321-693-3850 or email me.

Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge Florida serving Viera, Suntree and Rockledge Florida communities for the past six years!

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