Today’s market offers many choices that can meet one’s needs and wants. And because of that, a seller would want to advertise his or her item in many ways just to make sure that there would be a bigger selection of having potential options of buyers. In the same manner, a buyer also needs to have a wide range of options in the market that he or she thinks which can fully satisfy his or her needs and wants. Sometimes having a lot of options may sometimes cause some losses on both sides of the seller and the buyer due to some circumstances like:
Situation 1: A buyer, is going to select which seller can offer lower amount in which the buyer can surely have some extra money for him or her to buy additional items or even save the excess amount for future needs.
Situation 2: The seller is looking for a buyer who can either buy the item according to the selling price or even buy it on a higher price which will be a good thing for the seller’s side.
Situation 3: And lastly, a deal has been made between the two parties and yet either one of them will be cancelling or backing out because of some reasons that the buyer or the seller has made another deal which can meet their demands when it comes to the with the price, bargains, and etc.
And because of these, most sellers (mostly doing buying and selling) have created a written contract which can secure a deal and lessen cancellations of any transactions, and these documents is called “CONTRACT”. A contract is a legal binding or a valid agreement between two parties, Showing that there is a genuine consent of both the seller and the buyer and understands the transactions that is happening between the two of them.
Now, every industry have different contracts that were created according to their own legalities. Same with Real Estate, there are tons of documentations and agreements that is being done during the process of selling and buying a home. And one of these is what we call “Buyers Contract”.
What is a Buyers Contract?
This is a legal document that formalizes your working relationship with a particular buyer’s representative or the buyer himself or herself, detailing what services you are entitled to and what your buyer’s representative or he/she expects from you in return. Home buyers should view it as an important and helpful tool for clarifying expectations, developing mutual loyalty, and most importantly, elevating the services that both the seller and the buyer will receive.
While a Buyer’s Representation Agreement clarifies expectations. Agency relationships are based on mutual consent. While most representation agreements specify a time period, they can be terminated early in the manner that both parties have their consent. Signing this kind of agreement, may make a specific individual to expect or receive a higher level of service.
How long should a Client sign the Contract?
Regardless, if you are a FSBO or you hired a real estate agent ideally the signing of the buyers contract do happen right away. But again, due to certain factors there are times where it happens like in a span of two to three days or even a week before the signing happens. You as a seller, should consider if your BUYER hires an agent or not because sometimes it depends on how quick the buyer or the agent is working.
Are they quick enough to all the necessary documentations on their end? Is the buyer financially 100% ready to pay you? Is his or her loan have been approved? Is his or her agent have settled which company will be helping them financial?
It takes 24 hours for that buyer to have their stuff and order pre-approval takes like and hour to take in everything the most especially if they have all their documentation (income tax paper, pay stamp, bank statement) if they’re pre-approved they’re ready to go.
These are just some of the factors that a SELLER should consider, just be careful there might be a BUYERS REMORSE happening on the their end. And make sure your property is still listed until there is a written agreement that you and the buyer have signed and sealed the deal. 😆