I talked to a seller the other day and we agreed upon a price that I would put under a non-exclusive option. However, I just got the comps and found out that it’s not worth enough. Am I still obligated to get into the option with her? I don’t mind giving her the dollar too much, basically I’m just curious.
Legally - No
Morally - Yes
This is my opinion. Your reputation is everything in this business! But, I would speak to her about the pricing differential first.
I’m with Keith on this one. However, all RE Agreements must be in writing and I’m sure your NEO addresses the issues of inspection, market analysis, etc. The goal here is to create a win-win solution for all parties involved. Sounds like it’s not quite a win for you. Communicate openly and honestly with your seller and take it back to the negotiating table to make it more equitable for you.
Keith’s statement about reputation is right on target. On the other hand, how many transactions will you be doing with your motivated seller? This is exactly what is meant by the statements “REMAIN UNASSOCIATED WITH THE END RESULT” and “CARING COSTS TOO MUCH” . If you and your seller are comfortable with the deal, move forward. If neither one of you are, be willing to walk and don’t become emotionally involved.
PS. Keith, Just noticed your quote. Outstanding!! Where did you serve? I just picked up a home from a seller 1,000 miles away from me that actually served with me in Central America back in the late 80’s. Ain’t the brotherhood of the military a wonderful thing?
This should be a lesson learned so you do not have to be concerned in the future and here is how it is done.
There are plenty of services out there other than MLS that will give you accurate comps on properties, plus mortgage balance due, interest rates, etc., use one of these services, this way you are prepared before you look at any property.
When you walk into a house, then you are prepared, so that when the sellers sells you on purchasing their house at your price, you will already know what that price is.
It is the difference between being a professional in this business and guessing when you get to the property.
John $Cash$ Locke
I use www.sitexdata.com there is also www.dataquick.com these are a few I am familiar with.
John $Cash$ Locke