Real Estate Round-Up: Apply the golden rule

Remember wanting to purchase one of those odd “whatchamacallits” as seen on TV? What about a knife that cuts through anything, a machine that air fries food without fat, a toothpaste that whitens teeth in three days?

Suppose I offered to “sell” you my very special “whatchamacallit,” and all you had to do was show me how you were going to use it, where you were going to store it and what you were going to do with it once you got tired of it, before I would agree to “sell” it to you.

Assume that you really wanted the “whatchamacallit,” and the conditions to you receiving the “whatchamacallit” were reasonable. Would it be a deal? Suppose those conditions had reasonable timelines associated with them? If you really wanted it, would you agree?

People make these kinds of decisions every day. They want to drive a nice car, so they agree to make a down payment, get insurance and make monthly payments in order to drive that car. They sign up for a credit card and agree to an interest rate and monthly payments, so they can have the convenience of buying the things they want or need.

They want to get in shape, so they agree to work out every day, eat healthy food and drink lots of water. They feel better and hopefully live longer, if they do. Life is a series of activities that people choose to do or not do, to achieve an end result.

Real estate is as simple as these scenarios, right? It should be, but often it isn’t. What goes wrong? A contract is a series of conditions tied to dates, which all parties involved in the transaction agree to follow.

When all the parties sign the contract, the entire document with all incorporated addenda and counter offers, is considered executed. Neither party can unilaterally make a change to the agreement, without the other party’s consent. Unfortunately, sometimes this fact is lost on one of the parties, and that moment is when the wrangling begins.

A seller agrees to sell their home to a buyer for a price, within a certain period of

time. The buyer agrees to purchase the home for a specific price, subject to inspections, disclosures, appraisal and financing. These items are “conditions” to the purchase and have exact dates that must be met. If the buyer or seller cannot meet the date, either party can request an extension or cancel the contract. Does that make sense?

It becomes tricky at this point. Sometimes the buyer needs an extension on one of the conditions. The buyer expects the seller to work with them, because if they don’t, the seller’s only other choice is to cancel. It sounds a bit like wanting something for nothing, which is often how it feels to the seller.

There are legitimate hurdles throughout a transaction that may cause delays, but the buyer should be prepared to offer something in good faith to the seller, for the request for more time. It’s a bit like needing more time on a parking meter, the driver needs to put in another quarter to get one more hour in that space. The vehicle remains in place, and the meter gets fed. Everyone wins.

What’s the moral of the story? Purchasing a home is probably the most significant, emotional, and largest financial decision a person makes, but if they remember life’s golden rule to treat others as they would wish to be treated, it can be as simple as buying a “whatchamacallit.”

Remember when asking for a favor, expect to provide some kind of compensation for that favor.

Kim Murphy can be reached at [email protected] or (760) 415-9292 or at 130 N. Main Avenue, in Fallbrook. Her broker license is No. 01229921, and she is on the board of directors for the California Association of Realtors.