Real Estate Negotiations: 5 Reasons for a Preliminary Agreement When Selling Your House Fast

Time is of the essence, especially when you want to sell your house through a Sell-House-Fast company. Unfortunately, the desperation to sell the property fast can be your undoing due to transparency concerns. Some companies might not be fully transparent with the terms, leading to disputes later. In addition, the rapid sale may complicate the negotiation dynamics, leading to the deal collapsing. A preliminary agreement can help in preventing such problems. Here are the reasons for signing it.

·       Setting the Stage for Clarity and Commitment

The foremost reason for signing a sales memo like a memorandum of sale is to set a stage for clarity and commitment. This document comprehensively outlines the terms and conditions of the sale, setting a stage for clear communication. It ensures that you are on the same page as you proceed with the negotiations. You and the house-buying company demonstrate a commitment to transact by agreeing and signing it. Reading and understanding the document’s content would be best. It prevents surprises later.

·       Speeding Up Negotiations

Negotiation in selling a property is long and tedious, leading to delays. The document does so by reducing back-and-forth as it provides a clear starting point. Besides, these negotiations may need the input of legal advisors, whose involvement slows the transaction. The situation will be different with a preliminary agreement in place. This is because you will involve the legal advisors at earlier stages, ensuring that the negotiations align with the terms stipulated in the document.

·       Minimizing Legal Complications

It is common for legal complications to arise if the initial stages aren’t well-documented. Some of the complications include:

• Incomplete disclosure
• Financing issues
• Unresolved inspection issues
• Changes in ownership
• Lack of proof of agreement
• Backing out of the deal.

A preliminary agreement prevents such by acting as a reference point throughout the negotiation. It outlines the terms, buyer’s intentions, and accurate disclosures. In addition, it specifies financing terms, outlines dispute resolution, and stipulates the terms under which the deal can be terminated.

·       Due Diligence Facilitation

The buyer can only inspect the property with your approval. Signing the document will allow the buyer to inspect the property. The buyer will run a thorough research to ensure the house meets expectations. This document will aid the process by providing a framework for the inspection and appraisal. It also provides a basis for adjusting the initial terms should an issue arise during inspection and investigation.

·       Laying Foundation for a Binding Contract

The memorandum of sale isn’t a legally binding document. However, it lays the foundation for a binding contract once the buyer is satisfied with the property’s condition. The buyer will transition to tabling a comprehensive contract once they finish the inspection, which the preliminary agreement enables. This agreement makes the transition easy and fast because you would have agreed on several terms.

Selling your house through a sell-house-fast company is a good decision if you want to avoid dealing with agents. It is fast, and you get a fair price for your property. However, the challenge comes in the negotiation stage. Many times, the sale may collapse. That’s why you should use the information in this article and sign a preliminary agreement early on.