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I’m building a spec house (my second). It’s just framed now, and I received an offer today, for a reasonable price. The only drawback is the way the offer is structured. The buyer wants to close after completion, with a clause that allows them out of the contract at final inspection. It seems to make more sense to me to close in 30 days and put the money in escrow, with me taking an amount equal to the current value (land + improvements to date), and releasing the balance in construction draws as the house is completed. Any one else dealt with this scenario? My realtor tells me this is typical, but also that it leads to lots of lawsuits. All advice appreciated
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I'm building a spec house (my second). It's just framed now, and I received an offer today, for a reasonable price. The only drawback is the way the offer is structured. The buyer wants to close after completion, with a clause that allows them out of the contract at final inspection. It seems to make more sense to me to close in 30 days and put the money in escrow, with me taking an amount equal to the current value (land + improvements to date), and releasing the balance in construction draws as the house is completed. Any one else dealt with this scenario? My realtor tells me this is typical, but also that it leads to lots of lawsuits. All advice appreciated