While the contracts we use are standard, and they favor the consumer... what happens when the contract is between the buyer and seller... both of whom are consumers? The truth is that in Colorado, the Contract to Buy and Sell is a standard one created by the Colorado Real Estate Commission (CREC), and it heavily favors the buyer.

If you don't know this from the start, you can understand how the buyer could miss out on easy opportunities and sellers can be taken advantage of. If everything is just straight forward and filled out generically that can be a huge win for the buyer.

There are MANY spots mistakes can be made in this process, and while I'm not going to go over all of them I'm going to point one out to show just how much of a difference one mistake can make. When we advise clients, we simply explain that any part that requires a decision to be made is a negotiation point.

Let's discuss the inspection and appraisal deadlines. You should always have an inspection done, but how soon and how long do you allow for objection & resolution to take place? If you aren't careful, you could end up not getting things cleared up with the seller before you have to spend another $400-$600 on an appraisal. Do you like the thought of spending that kind of money when you aren't sure on the condition of the home? If you're the seller maybe it's a good thing because you can wait to give them your answer on repairs until they've got more skin in the game... in which case they may accept fewer agreed to repairs.

When we represent the seller, we see this happen a lot. Often Realtors notice the mistake later on and ask us to revise the contract for the buyer. Why would we do that or suggest that to the seller? The other Realtor may threaten backing out/cancelling, but often they do so without their client knowing which isn't a great choice. Usually we request that their client is CC'd on the emails and that's the end of it. They do not want the buyer to find out the risks at hand and/or that they could have been prevented in contract negotiation.