| The good news for sellers is that most home buyers | | | | A "weasel clause" is simply a name used by some |
| don't know the following tricks. Even if they did, many | | | | investors for a contingency in the offer that lets the |
| would hesitate to use them. Some of them are unfair, | | | | buyer weasel his way out. This might be as simple as |
| but some are just good tough negotiating tactics - I'll let | | | | a line stating, "This offer is subject to approval by |
| you decide which are which. In any case, these are | | | | buyers wife within three days." Then the buyer has |
| "tricks" and techniques that you need to be aware of if | | | | three days to change his mind, simply by parading his |
| you are selling your house or other property. | | | | wife through the home and having her say no. |
| Home Buyer Scare Tactics | | | | In reality, there will always be contingencies that let a |
| Scare tactics are sometimes used to get you to drop | | | | buyer back out of a deal. For example, since most |
| the price on a home. A buyer who has some | | | | banks won't actually approve a loan until there is a |
| knowledge in the building trades can be especially | | | | specific offer, buyers need a financing contingency for |
| good at this. He looks up at the floor joists when in the | | | | safety. It might say, "This offer subject to buyer |
| basement, for example, and frowns. Maybe he even | | | | obtaining a mortgage loan at 8% interest or better |
| measures the distance between them and shakes his | | | | within ten days." Since buyers aren't experts on |
| head. If you ask what's wrong, he casually mentions | | | | houses, they also will commonly have an inspection |
| something like, "Well, the standards have changed, and | | | | contingency, and they can back out if the inspection |
| these are spaced according to the old standards, but | | | | shows anything they don't like. |
| they might be okay." | | | | There will be justifiable reasons for a home buyer to |
| He might also find the one rotten piece of wood and | | | | get out of the deal then, and clauses in the contract |
| poke a pen into it to make it crumble. "It probably isn't | | | | that provide for that. But these are also used in tricky |
| carpenter ants," he announces, leaving you wondering | | | | ways, so what should you watch for? Start by saying |
| just what it is, and whether it is serious. The whole | | | | no to any log deadlines. If an offer comes in and the |
| point is to make you think you better get rid of this | | | | buyer requests 30 days for getting inspections done |
| house before it falls down. Get ready for a low offer, | | | | (10 is more common), he is probably not concerned |
| or get a second opinion. | | | | about the inspection. More likely, he doesn't know how |
| Low Offers | | | | he will get the money he needs, and he is trying to buy |
| The low offer itself is often nothing more than a | | | | time. |
| technique to get you to drop the price. The buyer | | | | Also, sometimes these contingencies are nothing more |
| doesn't have any real hope that you will accept his | | | | than a pretext for new negotiations. For example, a |
| offer of $230,000 on your $270,000 home. The point is | | | | man sees that the windows all have peeling paint, and |
| simply that when he later offers $250,000, it doesn't | | | | make the offer anyhow. Then, when the inspection |
| look so bad to you. You might accept this new offer, | | | | comes in ten days later, and mentions the peeling paint |
| even if previously the lowest you would go was | | | | and other minor problems, he asks for a reduction in |
| $258,000. The buyer has altered your expectations. | | | | the price. You have now invested perhaps two weeks |
| That may just be good negotiating, but there is another | | | | into this buyer, and he can walk away thanks to the |
| way this has been done. A different buyer makes that | | | | inspection clause (he gets the right to "approve" of the |
| really low offer first. Now the idea that the property is | | | | results or not). |
| worth less than you thought is more credible in your | | | | Do you lower the price? That's up to you. But if you |
| mind. When a second buyer comes along and offers | | | | want to avoid this situation, clearly state every problem |
| that $249,000, you are convinced that you were | | | | a home has in a disclosure document that the buyer |
| aiming too high, and so you accept. What you may | | | | sees and signs before he makes the offer. Whether |
| never learn is that the two were working together. | | | | this buyer's tactic is good negotiating or an unfair trick, |
| Weasel Clauses | | | | you just want to avoid it. |