When a buyer finds out that a home is under contract, it’s a common knee-jerk reaction to ask, “How much is it under contract for?” But did you know there is certain information that Realtors are not allowed to share with those not party to the contract? One of those is the agreed upon contract price.
If we represent the buyer or seller of the property, we know how much it’s under contract for. If we don’t represent either, we honestly don’t know, and we can’t find out for you. The buyer and seller are protected during the purchase process. We even need seller permission to let other buyers know that more than one offer has been received.
Why is the contract price kept secret? If that info was revealed and the contract fell through, a future buyer could have an unfair advantage when making their offer. Additionally, there may be instances where other sellers and buyers try to use it to manipulate fair market prices. It’s important to keep in mind that a contract price doesn’t necessarily mean a final sale price. The home must be appraised and a home inspection completed to truly get insight into the value of the home. Only the final purchase price should be used when determining fair market value.
The contract price or rather the purchase price is not revealed until after the home has been closed on. Once that time comes, there are a number of ways to find out the purchase price, including asking a Realtor too look it up in the Multiple Listing Service or waiting until the purchase has been officially recorded at the county records office. You may also wait until the information appears on third-party sites like Zillow, but there’s no guarantee that information is correct. It’s best to go straight to a primary source.
What are some other questions a Realtor can’t answer about an offer to purchase contract?
“Did the buyers give a Due Diligence Fee?”
“How much was the buyer’s earnest money check?”
“Are the sellers providing any concessions?”
“What price did the appraiser come up with?”
“What were the results of the home inspection?”
“What are the buyer’s financing terms?”
“Who are the buyers?”
“Can I have their phone number?”
You get the idea.
Have questions about buying a home in the Wilmington area? Give us a call at (910) 202-2546!
[the_grid name=”Home Buyer Tips”]