Easily Replace Value Choice from the Real Estate Purchase Contract

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How to Replace Value Choice from the Real Estate Purchase Contract

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hello and welcome to commercial real estate explained where we help people make informed decisions about commercial real estate thanks for tuning in in this video we are going to talk about what is replacement value thats maybe something youve seen thrown around in packages where theyll say a building is below replacement value but what does that really mean what the broker marketing that building is trying to say is that if you were to reconstruct this building now from scratch that the value what it would cost to build new is docHubly more than they are selling it for so essentially the replacement value is what would it cost to build that exact same building and that exact same space right now as you can imagine expenses have gone up over time inflation labor materials all of that is much more expensive so even though well see a building that the per square foot price might seem ridiculous I think its interesting to keep in mind that replacement value for example in my mar

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Got questions?

Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

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How do you remove an appraisal contingency from a contract?

Since the appraisal contingency clause is standard on most purchase agreements, it must be removed in writing. Understand the risks of removing an appraisal contingency. Tell your real estate agent you want to remove the appraisal contingency. Complete the contingency removal form. Sign the form.

What is the best way to make changes to a purchase contract?

Always put a contract amendment in writing and make sure both parties sign and date it. Reference the title of the contract, if applicable; its original parties; and original signing date, so that it is clear what document you are amending. Attach the amendment to the original contract.

Can seller accept another offer after counter offer?

While laws vary by state, in general, up until that contract is signed by both partieseven after counteroffers have been sent outall new offers can be considered and accepted. Once both parties have signed it, however, the seller is pretty much locked into the deal.

Can you back out after a counter offer?

A counteroffer can be rescinded (revoked) up until the time it has been accepted. The counteroffer may be signed by the buyer but if it is not been returned to the seller as assigned, the seller can resend the counteroffer.

What happens to an original offer if a counteroffer is made?

Because a counteroffer serves as a rejection, it completely voids the original offer. Thus, the original offer can no longer be accepted.

When a seller counters the buyers original offer?

Key Takeaways. A counteroffer is the response given to an offer, meaning the original offer was rejected and replaced with another one. Counteroffers give the original offerer three options: accept it, reject it, or make another offer and continue negotiations.

What happens to an initial offer from the buyer after a seller counters?

Once the counter offer has been accepted, the buyer and seller then sign a contract. The buyer must secure financing, and the seller must complete any repairs stated in the agreement.

What happens if the buyer backs out of the contract without good reason the offer to purchase?

Backing out of an offer for a non-contingent reason means you risk losing your earnest money. Since you put that money down based on the promise that you would follow through with the contract, backing out for any reason thats not outlined in the agreement means the seller is legally permitted to keep your money.

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