Questions that Sellers frequently ask us

Q. Why shouldn't I price my house a little high since I can always drop the price later?
A. That is a strategy that sounds good - but, in fact, is more likely to result in a lower price. Here's why: The first few weeks a house is on the market is when it will receive the most activity. If a house is overpriced, it has to compete with houses at that higher price level, which are almost certainly larger or have newer/more luxurious features. So the overpriced house is unlikely to attract an offer. Worse yet, those first weeks are when real estate agents preview the house. If it is overpriced, they may not even bother to show it to their buyers. Eventually, the seller will have to drop the price and may end up with an even lower price because buyers will wonder why the house has been on the market so long and may factor that into their offer.

Q. What is meant by the term "contingency" in a sales contract?
A. Sales contracts typically contain several "contingency" clauses, or stipulations that the sale is subject to. For example, with a mortgage contingency, if the buyer is unable to obtain financing within a specified timeframe, neither the buyer or the seller is requires to complete the purchase. Among other common provisions is the "subject to" section are termite and other inspection issues and the purchaser's need to sell a current home first.

Q. What is an escape clause?
A. An escape clause, also known as a kick-out or knockout clause, is a provision that allows the party to void the contract. For example, the seller may retain the right to look for a more favorable offer, with the original purchaser retaining the right, if challenged, either to firm up the first sales contract (such as by waiving a contingency) or to void the contract. As another example, sellers might insist on an escape clause in a contract that hinges on the buyers' selling their home.

Q. What do I need to know about lead paint?
A. Lead was used as a pigment and drying agent in alkyd oil-based paint until its use was banned in 1978. The Federal government estimates that led paint is present in 75% of all private housing built before then. A lead-based disclosure statement must be attached to all sales contracts and leases regarding residential properties built before 1978, and a lead hazard pamphlet must be distributed to all buyers and tenants.

Q. What happens if the home inspections reveal a serious problem?
A. Generally, if home inspections reveal a serious problem, the buyer who has a properly drafted contract can get out of the contract. What usually happens, however, is that the cost of remedying the problem become an issue of negation. This is where the negotiating skills of the seller's agent can be critical in resolving the issue and keeping the home sale moving.

Q. How many homes should I pan to view and how should I make the final decision?
A. Generally you should view a number of homes so you become familiar with what you can expect to get for your money. When you find a home you really like, it is a good idea to go back and look at it at a different time of day. This will give you greater insight into what it will be like in the home full time.

Q. What is radon and what is the purpose of radon testing?
A. Radon is a radioactive gas produced by the natural decay of other radioactive substances. If radon dissipates into the atmosphere, it is not likely to cause harm. However, when radon enters buildings and is trapped in high concentrations (usually in basements with inadequate ventilation), it can cause health problems. The general rule is that remediation is indicated if the radon levels measure four picocuries (pci) or more. Recent evidence suggests that radon may be the most underestimated cause of lung cancer, particularly for children, individuals who smoke, and those who spend considerable time indoors. Radon levels vary, depending on the amount of fresh air that circulates through a house, the weather conditions, and the time of year. it is relatively easy to reduce levels of radon by installing ventilation systems or exhaust fans.

Q. What is title insurance and why do I need it?
A. Title insurance helps assure that you have clear title to the home you are purchasing and provides insurance protection in the event anyone makes a claim to your property. A title search is the primary component of the "due diligence," a process that will be started by the title company you choose. The title search determines whether the seller actually owns the property and if there are any claims against it.

Q. What happens if the house does not appraise at the amount expected?
A. If the house doesn't appraise at the amount expected, other alternatives are typically found. A second appraisal may be sought, the buyer may be willing to put more money down, the seller may adjust the price or offer other concessions, or the two sides may negotiate to split the difference between them.