Seller Move Out - Anything I can do to protect myself/price?

Question

I have a seller who is considering my offer on their property. It's in a very decent area and needs very little work.

A price has been negotiated as I've seen their house with them and all their contents in it. Is there anything I can write in my offer, that can protect me in some form, if they damage the house upon move out, or if I see something upon them vacating that I couldn't before?

I'm not saying they would, and they don't seem like the type, but things do happen.

How do you handle / protect yourself / your offer when  evaluating deals for offers on properties that are not vacant, but rather have sellers that will need to move out?

Bill Gulley · Answer

Yes, that is taken care of by a buyer's walk through prior to settlement.

I'd be more concerned with them thinking you're buying and moving out allowing you to take possession. You better make your offer very clear that you are wholesaling, not buying yourself unless you can buy it yourself.

If a seller relies on your performance and they do reasonable things to follow the contract and you fail,  the can seek damages for costs and expenses related to moving out, motel, eating out, down payment on another property, etc. it can mount up in Mo. ;)

Lorraine Hadden · Answer

You are purchasing the property from the seller who still resides in the property.  Assuming the purchase agreement addressed whether you get to keep the furnishing or it goes with the owner...to help alleviate your nervousness...take this final step prior to closing:

Arranged a FINAL WALK-TRHOUGH with your agent and ther seller just before they vacate/close. The goal: Ensure the property’s condition hasn’t changed since your initial or subsequent visit, that any agreed-upon repairs have been made and that the terms of your contract will be met. Depending on your contract or local customs, a walk-through may be informal or more formal. In a formal arrangement, you will actually sign a contract addendum confirming that you’ve done your walk-through and everything is as it should be.

Here’s what you need to know for your final walk-through:

• A final walk-through isn’t a home inspection. You’ve already done that by now (or should have).
• Take your contract with you. You might need to refer to it while on site. if everyone is agreeable to the idea, perform the final walk-through in the seller’s presence. 
• I usually use this checklist of things to do during the final walk-through (and I take my time), including but not limited to:

• "Check the exterior of the home, especially if there have been strong wind or rain storms since your last visit.
• Turn all light fixtures on and off.
• Make sure the seller hasn’t removed any fixtures, such as chandeliers, that he or she they agreed to leave.
• Check all major appliances.
• Turn heat and/or air conditioning on and off.
• Turn on water faucets; check for leaks under sinks.
• Test the garage door openers.
• Flush all toilets.
• Open and close all windows and doors.
• Do a visual spot-check of ceilings, walls and floors.
• Turn on the garbage disposal and exhaust fans.
• Check the status of any agreed-upon repairs.
• Check screens and storm windows. If they’ve been stored, make sure you know where they are and that they’re in good shape.
• Look in storage areas to make sure no trash or unwanted items remain. Old paint cans or hazardous materials are often left behind by the seller.
• Do a quick check of the grounds. Some sellers have dug up and taken plants (even small trees or bushes) with them."

Take at least 1/2 to an hour for one last inspection --- it is a good investment in your time.

Good luck!

Arash Zandi · Answer

Steve - I'm new to this so don't take what I say word by word.

- You have 30 days to close which gives them 30 days to move out. Is this correct?

- If it is and you're not buying with your own money - assigning to a Cash Buyer, then see if you can assign to your Cash Buyer within 7 days or less.

- But even then what if the Cash Buyer doesn't close at the end of their inspection period? I guess when selling you're house you're ought to come across problems as such.

- To protect your self you can take detailed notes on what is and isn't included and to protect the Seller you can assign as quickly as possible and mention to buyer that it would be great if he could close as fast as he could.

I hope this helps,

AZ

Steve Christensen · Answer

@Bill Gulley, Yes, I would be purchasing with private funds to purchase and close to own the property, not wholesale. Thank you for the response!

Seller Move Out - Anything I can do to protect myself/price?

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