Page 34 - WCA Ketch Pen August 2020

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Selling A Horse Property Part II
By Allison Trimble
Offer
Close
back out for any reason. This is the time when a buyer will hire a home inspector to go through the home and highlight potential issues. I encourage sellers to get a pre-inspection prior to going on the market.
This period is a second level of negotiations. Based on the results of the home inspection the buyer will either 1) request no repairs and move on to closing, 2) request the following repairs or credit/price reduction as a result of the home inspector’s findings, or 3) back out of the sale.
The seller then responds by 1) refusing the request 2) accepting the request and moving on to closing, or 3) suggesting another remedy. The buyer may back out in the inspection period, but the seller may not.
Well and Septic Inspections
In Washington State the buyer is responsible for well testing. Most acreage properties will have a well, and the most common test is a bacteriological test that measures E. coli and coliform bacte-
ria in the well. It is not unusual for a rural well to test positive for either.
The cost of the test is about $22, and I always suggest that a seller test their own water prior to listing so that the results are not a surprise. Even though the presence is not uncommon, and the treatment is very simple (Google “shocking your well”), the failing results can put a wrench in
a transaction.
A septic inspection is the responsibility of the seller and runs anywhere from $150 to $300 for the inspection. This must have been completed within the past 12 months and comes back either satisfactory
or needs maintenance. The buyer will expect any maintenance needed to be repaired prior to closing. Pumping is only required if needed, and the cost varies based on the size of the tanks. The standard period for well and septic inspections is 10 days.
Last month we learned what to expect when selling an AG property from the point of deciding to sell until it goes on the mar- ket. We discussed that the length of time on the market is depen- dent on location, condition and price. If the location and condition are good, the reason a property isn’t receiving an offer is almost always because it is overpriced.
Acreage properties, and especially specialty properties, can take additional time to sell because there’s a much smaller buyer pool. They’re also harder to price because they have varying features,
and often have a combination of location and condition issues to balance against price. Farm and ranch property values are generally higher than average home prices, and as soon as the asking price is above $500,000, the time on the market tends to extend.
I tell sellers that if we aren’t under contract in 30 days in the spring, or 60 days any other time of the year, we need to consider a price reduction.
Receiving an Offer
I find that once we are in the right price range, we see an offer pretty quickly. When reading the offer, look at more than just the offering price. Take into consideration earnest money, closing date, financing, seller-paid closing costs and included items. I always require a buyer to include a pre-approval letter from their lender. Is the sale contingent on the sale of another property? Be sure of the situation of the buyer before signing or countering any offer.
Negotiations
If there are portions of the offer that are not agreeable, the listing agent will prepare a counteroffer. There can be a number of counteroffers back and forth until mutual agreement is reached.
The contract becomes pending once both buyer and seller have agreed on every point and have initialed and signed all the appro- priate places on the contract. After mutual agreement, the seller can’t back out of the contract unless the buyer doesn’t complete certain conditions of the contract on the required timeline.
Calculating Days
When counting timelines in real estate anything under five
days is business days, while everything over five days are calendar days. Business days do not include weekends or holidays, and when counting calendar days, the period cannot end on a weekend or holiday so the end of the period will be the following business day.
Inspection Period
The inspection period is typically 10 days and the cost is the buyer’s responsibility. During the inspection period, the buyer can
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August 2020