Re-trade: Difference between revisions
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A '''Re-trade''' is the practice of renegotiating the purchase price of real property by the buyer after initially agreeing to purchase at a higher price. Typically this occurs after the buyer gets the property under contract and during the period that it is performing [[due diligence]]. The buyer may raise a due diligence issue and demand that the purchase price be lowered to the re-trade price. The seller then must either accept the lower price or re-market the property. In troubled real estate markets it is common for some buyers to initially offer a higher price than they are actually willing to pay in order to control the property and renegotiate later. Some institutional sellers are adopting the strategy of refusing to renegotiate so as not to reward the practice and to discourage re-trade buyers |
A '''Re-trade''' is the practice of renegotiating the purchase price of real property by the buyer after initially agreeing to purchase at a higher price. Typically this occurs after the buyer gets the property under contract and during the period that it is performing [[due diligence]]. The buyer may raise a due diligence issue and demand that the purchase price be lowered to the re-trade price. The seller then must either accept the lower price or re-market the property. In troubled real estate markets like that experienced in the [[Late 2000s recession]], it is common for some buyers to initially offer a higher price than they are actually willing to pay in order to control the property and renegotiate later. Some institutional sellers are adopting the strategy of refusing to renegotiate so as not to reward the practice and to discourage re-trade buyers [http://realpropertyalpha.com/2009/06/30/the-re-trade/ Real Property Alpha "The Re-Trade"]. |
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==See also== |
==See also== |
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Revision as of 16:42, 26 March 2010
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A Re-trade is the practice of renegotiating the purchase price of real property by the buyer after initially agreeing to purchase at a higher price. Typically this occurs after the buyer gets the property under contract and during the period that it is performing due diligence. The buyer may raise a due diligence issue and demand that the purchase price be lowered to the re-trade price. The seller then must either accept the lower price or re-market the property. In troubled real estate markets like that experienced in the Late 2000s recession, it is common for some buyers to initially offer a higher price than they are actually willing to pay in order to control the property and renegotiate later. Some institutional sellers are adopting the strategy of refusing to renegotiate so as not to reward the practice and to discourage re-trade buyers Real Property Alpha "The Re-Trade".
See also
References
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