Offlinewhat is the normal inspection period/cancelation period? 14 days 21 days?
Thank you
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inspection period when assigning a contract
Posted on: Fri, 12/30/2011 - 14:48
what is the normal inspection period/cancelation period? 14 days 21 days?
Thank you
When looking at a standard purchase agreement contract the realtor has default settings for most of the information. I ask for what I think I can get such as a 45 day escrow, low good faith payment, longer periods for inspections, etc.
I would be interested if someone else has input on this. I have a property that I am scheduled to close in a couple of weeks and have investors looking at it for me to assign it to. They have a short time to inspect and decide because I am closing with or without them on the closing date. I could ask for an extension and I may or may not be granted it.
What I've learned is that everything is negotiable but within reason. My mortgage broker was surprised that I requested a specific title company on a re-fi. They are all part of my power team and learning to work together on my behalf. Sweet!
"Faith is taking the first step even when you can't see the whole staircase."
~ Martin Luther King, Jr. (1929-1968)
www.beaconinvestorsgroup.com
If you have a good relationship with your buyers, and you know the details of the houses they are looking for, and you found it, you may not need much time. But even if your buyers tell you that they are in the market to buy, they may take long than you think. They may want to see the property, get bids on any repairs and replacements, and make their final decision.
Once you have closed a couple of deals with them and you build a good working relationship, their time period will probably decrease, but in the meantime, I suggest that you try hard to get yourself 30 days to eliminate contingencies, and 60 days to close.
The sellers will probably fight you on this because they want to make the sale happen quickly. For some reason they are willing to sell at a discounted value which probably means that they may need to close quicker. It goes back to negotiations, but try and buy yourself as much time as you can.
If you get a short fuse and you don't get your investors to bite in time, you can certainly ask for an extension of your contingency period. If they don't give it to you, you can choose to terminate the contract or go forward knowing that you may loose your earnest money deposit.
Good luck.