The Top 5 Pitfalls of Closing without Representation!
So, you're thinking about selling your mobile home park without *gasp* representation from a licensed broker! Beware of danger ahead. Here are the top 5 pitfalls you will likely face.
Don't say I didn't warn you.
1. Single buyer is the only one offering to purchase the property and dictates the terms like you have zero negotiation leverage. Pitfall: Control is in the buyer’s court as there is no competitive pressure to perform so the buyer can dictate the terms.
2. Mobile homes are personal property, not real estate. Have you checked your contract with a fine toothed comb? Pitfall: Must ensure contracts are written to the specific needs of the park, and legal fees and time can be a barrier.
3. Buyer is unknown to seller, may not be able to perform, and wastes time for both sides. In short: unqualified! Pitfall: Buyer may not be able to perform on the contract, wasting time and effort on both sides of the transaction.
4. Buyer gives seller a contract with 30 days due diligence, which could put seller in default if unmet. How organized are your files? Pitfall: Seller may not have all or know of all of the documents needed by the buyer to complete the due diligence, which may result in a contract default if the 30 day time period is not met.
5. Buyer asks for an extended due diligence period. Pitfall: Buyer ties up property for an extended period of time and either fails to perform or asks for a lower price as time closes on the due diligence period. Without non-refundable escrow deposits there is no pressure on the buyer to perform.
Remember, licensed brokers are licensed for a very good reason: for your protection! When you do a deal on your own our licensing won't work in your favor. What deal is worth that headache? If you need representation, please call us.