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NY Seller Mistakes: Know Them so You Don't Make Them (Part II)

Posted by Melvin Monachan | Dec 05, 2019 | 0 Comments

In the last blog, buyer mistakes are identified and briefly discussed. Here, mistakes made by New York real estate sellers are laid out. It is always important to be aware of these types of mistakes so that you – hopefully – don't make them on your own. But that's also why having an experienced, resourceful New York real estate attorney guide you through the process is beneficial: your rights and your interests are upheld and protected.

Seller Mistake No. 1: Failure to Minimize Price Reductions

The buyer wants the best price available, and so, if he or she is smart, they'll negotiate. They will attempt to reduce the price as far as they can. A seller, on the other hand, may want to sell, and sell fast. Even if the latter is the case, you can still avoid a price reduction. Strength and commitment to your selling price are key. But you can also make sure you have key points to back you up with your price so you don't let them want to sell blind you.

Seller Mistake No. 2: Failure to Identify & Address Loopholes

Laws are known for their loopholes, and that's no different in real estate law. Loopholes abound, and if you cannot recognize them or are not aware of them, someone may take advantage of the loophole without you knowing. A competent and experienced real estate lawyer will make sure you do not fall victim to a loophole – because if you fall into one, it can be costly financially and professionally.

Seller Mistake No. 3: Failure to Understand the Costs Associated with a Residential or Commercial Closing

You have property you will sell – whether its residential or commercial – and you have a sale price. You think that the sale price is what you will get in the end. But it isn't. First, the potential buyer will try to negotiate that price. Second, there are costs that will eat into your profits. And you need to know these as they can become a tool you use in the negotiation process. Costs include things like but not limited to the following:

  • repairs to the property
  • closing costs
  • concessions to the purchaser.

Seller Mistake No. 4: Failure to Consider All Offers & Not Just the Highest Bid

You want what you can get for the property, and so that alone influences a seller's proclivity to consider only the highest offer. There may, however, be contingencies on that offer that may not work in your favor, like an inspection or financing contingency. Contingencies can affect or create any of but not limited to the following:

  • (un)certainty of the sale
  • complexity of the sale
  • closing date.

As the seller, you need to review all the offers. One offer may be lower, but the potential buyer may be flexible and willing to pay for things, like repairs. That must factor in the overall value of the sale.

Seller Mistake No. 5: Failure to Retain the Right Help to Sell the Property

Are you planning to sell the property yourself, through an agency, or via an attorney? It all makes a difference. Real estate agents are familiar with the market. Real estate lawyers are familiar with the law. Both cost money, which is a factor to consider. But doing it on your own can lead to mistakes that lead to financial woes. Do your due diligence. Find the right person to represent you and your property. Doing so can be the difference between headaches and happiness.

About the Author

Melvin Monachan

Melvin Monachan is the founder of The Law Office of Melvin Monachan, PLLC, a full service, real estate law firm representing individuals, investors and corporate entities in all aspects of real estate law. On the transactional side, Melvin represents purchasers and...

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