"Seller's Choice" - Beware, these words could mean something you didn't expect

By
Real Estate Broker with BrokerInTrust Real Estate Cal BRE #01345507

Even in this "buyers market" I received multiple offers on one of my listings last week.  As I was reviewing the purchase agreements I couldn't believe how many agents are still writing in "sellers choice" for title, escrow, home warranty company and natural zone disclosure company. 

Did you know that if you write "sellers choice" for natural zone disclosure and the other agent doesn't pick a company in the counter offer, you'll end up with a company called Seller's Choice Disclosures?  That's right, there is actually a company called Seller's Choice Disclosure.  This is great if that is who you wanted, but not soCA Residential Purchase Agreement great if you didn't.  Also, if you just write NHD in the box then escrow will pick the company.  There is no company called NHD.  NHD are just the initials for Natural Hazard Disclosure.

The same goes for escrow, title and home warranty company.  I Googled "sellers choice escrow" and came up with 65,400 results.  I didn't see any escrow companies in CA with this name, but why take a chance?  Just write what you want in the blank so there is no confusion.

And this brings me to another very important point regarding preparing a purchase agreement for a buyer.  It's important to always specify who you want for NHD, home warranty, title and escrow companies.  Many times the listing agent won't have a preference and you'll get the company that you want. 

I've learned in negotiations that you usually have to give up something to get something.  If you don't specify these items initially, then you can't even use them in your negotiations.  To me it's important to start your negotiations from a position of power and this means preparing a well thought out purchase agreement with all of the blanks filled in. 

If you are purchasing a home in Calabasas CA and you'd like your California Residential Purchase Agreement prepared and negotiated by a professional who understands the nuances of this very important contract please call Tracey Thomas at (818) 652-2937.

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Location:
California Los Angeles County Calabasas
Tags:
calabasas
calabasas ca residential purchase agreement
seller
sellers choice
buyer

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Rainer
67,568
Sandra Carlisle
Residential Sales & Property Management
First Team Estates

That's just scary.  Who wouldn't want to choose the companies involved?  It's your buyer's money.  I have a feeling that those agents will be the ones NOT AROUND in 2009. 

 

January 22, 2008 08:30 PM
Rainmaker
181,983
Irina Netchaev
Pasadena CA Real Estate
Pasadena Views Real Estate Team, Inc.
Tracey, you are soooo right!  It's amazing how many buyer's agents leave these critical fields blank.  Excellent points!!!
January 22, 2008 10:14 PM
Rainmaker
123,093
Elaine Hanson
REALTOR - Topanga, CA Real Estate Agent
Snyder Sutton Real Estate
Tracey, you've made a great point.  The California Residential Purchase Agreement is an incredibly detailed document that can really screw you up if it's not completed properly.  I try to take every class I can on how to read and interpret it.  I just had a really good one at the CAR convention given by Gov Hutchinson.  You've reminded me to pull out my notes and study again.
January 24, 2008 04:39 PM
Ambassador
1,775,758
Nestor & Katerina Gasset
Realtors, Wellington Florida Homes For Sale
International Properties and Investments LLC
Tracey- It is amazing how we do not even have many of these terms in Florida. We don't even have forms that look like that here. We are very customary here. In our county seller chooses the title company. Here title and escrow are the same company unless the broker holds the escrow. We as brokers would never hold escrow but many brokers do here. Katerina
January 25, 2008 08:09 PM
Rainer
5,802
Chuck Piro
Disclosure Source

Point well made Tracy!!  I speak to this issue in every one of my presentations.  Who is guilty of doing this?  Buyers agents!  That's who!  Yet, who benefits from, say, a NHD report?  The buyer! 

Hey everybody......Protect your clients!  Don't ever use these phrases....Seller's Choice and/or Any Reliable!! 

By the way.....Great choice of NHD company in your example, if I say so myself.

November 25, 2009 01:22 AM
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Rainmaker
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Tracey Thomas

CA Real Estate Broker
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Additional Information

 
I believe there is more to Real Estate than showing property and taking listings. I have over 25 years of marketing experience plus I'm a self proclaimed computer nerd and love Real Estate technology.

I invite you to contact me regarding the sale of your home. When called upon, I will show up, on time and prepared. You can be sure that a one hour investment talking with me will yield at least one or more priceless ideas!