Thursday, 9 February 2017

Now is the time to discuss time in real estate

Irrevocable deadlines and timetables for conditions are very important in the negotiating process

It is never good strategy to miss a defined time or to simple be late

By Mark Schadenberg
Time is of the essence.
Time is money.
Time keeps on moving along.
Time is running out.
Now is the time.
Do not leave anything to the last minute.
Time for a change.
Time is extremely important and that’s why I watch my watch.
Time is very important in real estate terms. I’m a believer in the fact that Realtors are often more conscientious of the importance of time in contract writing than the clients are. If a client is not specifically in tune with the timing of an offer, especially a conditional offer, than sometimes that could also be the fault of the Realtor for not describing in concrete (bricks and mortar) terms about how important the clock is in real estate.

Alan Parsons Project

If you sign and offer as a buyer with an irrevocable time of 10 p.m. today that is significant as the seller has that specific calculated block of time to consider your proposal. I always explain to my clients that the buyers offer indicates they want to purchase under those defined terms, while a seller’s sign back (if there is one), indicate they are willing to sell their home to you under their terms.
Don’t let an irrevocable time expire.
Don’t make the irrevocable time too long either because in this vibrant market one or two more offers may arrive in the mean time. Sellers will often contemplate that they can wait. For example, if a seller has a showing scheduled for 8 p.m. why would they consider the already-signed offer if more time can still elapse before the irrevocable time arrives.


If you’re a buyer and an offer is signed back to you which seems reasonable in its countered changes, it becomes almost too attractive not to accept in our current active market because if you decide to makes changes and extend the irrevocable time more offers could appear from other showings.
Conditions in an offer will state – the way I present them anyway – the buyer has until 10 p.m on a certain day to satisfy their conditions on (perhaps) financing, and a formal inspection by a third-party inspector. Time is of the essence for the buyer to satisfy these conditions – before they expire as the seller is not required to grant an extension.  
One national publication designed for our niche market is called Real Estate Magazine or REM. It’s not even a magazine, but rather a tabloid newspaper format.
Mark Weisleder is an extremely good resource for Realtors in Ontario as a spokesperson and expert about law in real estate. The well-respected Toronto lawyer, who has appeared on TV shows dozens of times and is a published author on the topic, concentrates his practice on home transactions, and in the February edition of REM (See link below) he wrote about time by presenting two recent stories or if you prefer for legal sake: two cases. In both scenarios, time was a factor as a buyer requested an extension on a condition in one tale and a buyer failed to submit their deposit on time in another real-life happening.


After the offer is firm and binding, time is still important as the lawyer must search title and the buyer must prepare their finances so when they arrive at the lawyer’s office they have all the closing costs prepared and properly calculated, including land transfer tax. Many deals are delayed at closing time as money transfer or mortgage commitment letters are delayed for some reason.
IT’S IN THE MAIL
Here’s another interesting time scenario. If someone has a closing date on a house on February 25
th, why would an insurance company (for example) send important timely documents to the owner’s next address on February 5th. Congratulations to the future owner for their efforts in change-of-address cards and submitting their new location of residence to their family, friends and business suppliers, but early arrival of correspondence is an unnecessary inconvenience to the seller, the seller’s sales rep, and the buyer’s sales rep as mail must be tossed into a box and transported through some means to the buyer. In the meantime, the buyer is waiting for paperwork to sign and it’s been delivered a vast distance away to their new community. I write about this as it occurred to me again this week on a transaction.
I’ve spent enough time talking about time, so until the next time . . . 


LINKS:


Mark Schadenberg, Sales Representative
Senior Real Estate Specialist (SRES designation)

Royal LePage Triland Realty

Independently Owned & Operated, Brokerage

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