I have some wonderful first time homebuyers who made a full price offer on a short sale back in January.  Their offer put a halt to the foreclosure sale, which was just a week or two away at that time. We began the waiting process as I educated them to the hard facts about short sales.  The offer was finally accepted in April, in time for them to qualify for the tax credit.  Then we found out that the seller was demanding certain things of the third party creditor and the deal was in danger of self-destructing.  Uh oh.

First time homebuyersNext we learned that the buyer's financial situation had changed from the time they were pre-approved in January to the acceptance of their offer.  They needed seller paid closing costs of $5000 so we amended the purchase contract to add $5000 to the purchase price, and request $5000 seller concession for closing costs.  It took THREE WEEKS for the seller to agree to sign the addendum so it could be submitted to the third party creditor for approval..

The home is tenant occupied.  The deadline for closing is May 21.  Among other things, the seller demanded the tenants stay in the home through May so he could collect a full month's rent.  Hmmm.  After the nightmare of trying to get him to sign the addendum, the listing agent and I knew we had to walk on egg shells or we ran the risk of the seller torpedoing the deal altogether. 

In an effort to protect the interests of my clients, among other things I asked for the damage deposit to be credited to the buyers at closing, and they would refund to the tenants if the home was left in good order.  Oh my gosh, he went ballistic, and said that there wasn't much of a damage deposit and he had to use it to pay taxes on the house.  Yowzer

I requested proof of 30 days WRITTEN notice to the tenants, which I did receive.  Then I forwarded a nice email to the listing agent with a Delayed Possession agreement for his seller to sign.  Just normal things that the seller of a tenant occupied home agrees to in order to give the buyers some level of protection.  That pleasant and professional email of mine was met with such an irrational, out of control response that I actually had to laugh at it!  Here it is:

Attn : Janna Rankin Scharf,
Keller Williams
 
From : xxxx xxxxxx Owner/Seller of this property
 
Hello Janna,
 
I cannot help but reply to your yesterday's email sent to xxx xxxx.
 
Your statement about your buyers "going the extra mile" to be considerate to me..... makes me gag.
 
Frankly, I think I am the one doing the extra distance so that these people can realize a screaming deal.... even letting them add $5K to the price at such a late date.
 
The  late possession document you drafted for my signature is insulting to say the least.... I will in no way sign anything even similar to that.
 
If your buyers are not happy with taking somewhat of a chance on getting this deal, they can back out at any time as far as I am concerned.
I certainly am the losing party on this deal so don't even suggest that I take responsibility for any additional costs whatsoever to close this deal.
They can have the property "AS IS" and take possession on June 1st.... or not at all.
 
Frankly, it would be in my interest if your people just backed out and let me keep the property.... although I intend to pursue the current agreement at this time.... if they reneged....ok with me.
 
Regards,
xxxx xxxxxx
Current Owner

Did you catch the part where he said it would be in his interest if my people backed out and let him keep the property?  As if my people were the ones NOT letting him keep his property!  His property would have been sold on the courthouse steps back in January had my people not come to his aid with an acceptable short sale offer that forestalled his foreclosure.  Which has allowed him to collect another 5 months rent from his tenants while not making his mortgage payments!  And they have agreed to delay possession for 11 days after closing with no compensation.  Yet, he has somehow twisted his anger at the world and directed it at my clients, who have done nothing but bend over backwards to appease him.

You may wonder why we are tolerating this behavior and moving foreword.  The reason is that it is the perfect home at a great price for my buyers, who lost out on several homes in multiple offer situations.  It was very competitive in our market for good starter homes for seekers of the first time homebuyer tax credit.  They and I agree that getting this particular house at this price is worth the hassle.

I can't help but wonder if others are seeing misdirected hostility like this now that short sales are becoming more common.  I hope it's not a trend that we will see rise along with the numbers of short sales in the coming months....   

Janna SignJanna Rankin Scharf  provides a superior level of real estate services to home buyers and sellers in Coeur d'Alene and Kootenai County, Idaho. Visit Janna.ServingNorthIdaho.com to search for homes in the Coeur d'Alene MLS for anywhere in spectacular North Idaho.

No matter how grand or modest your real estate dreams may be, you can turn to me in confidence.  Give me a call today and let me know what I can do to be of service to you!

Janna Rankin Scharf AB, GRI, CSP, CNS, CLHMS  208.651.9700

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Post is included in group: Club Chaos
Post is included in group: Keller Williams 'Rainers
Post is included in group: LATE NIGHT - EARLY MORNING AT ACTIVERAIN
Post is included in group: Short Sales and Forclosures ONLY
Post is included in group: "Whacked"!!!

9 Comments on What's with the misplaced hostility towards my buyers???

MAY
12
2010
404,985 Points 15 Featured Posts Localism Sponsor Outside Blog Hit Router Called Shot Master

Seems like everyone is angry these days. Buyers, Sellers, Banks and even agents. We are all mad but not sure who we want to be mad at. Best of luck getting that one to close. You will have earned your commission on that one.

3:19am • #1
101,309 Points 1 Featured Post Called Shot Master

All I can say about that email is Wow!!!  I'm shocked, but in this crazy business at times, I'm not surprised.  Sometimes people just don't realize that there is a proper procedure and set of paperwork that needs to be done to protect the parties involved.  We aren't just making up these documents, they exist for very valid reasons.  I just dealt with some difficult tenants on a short sale and they weren't paying rent.  They were not out when they were supposed to and treated me like I was inconveniencing them, when they hadn't paid my seller in 7 months.  Then they were so kind to leave me all of their trash they didn't want to take with them.  It took me half a day to remove all the junk they left.  But first, I had to get something in writing that they did not want anything left in the home, it was a nightware.  But luckily, it all worked out and my seller was able to move on and the buyer got a great home, in a great neighborhood, for a great price, and in the end, that's what matters.

3:53am • #2
481,009 Points 102 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

As a heavy listing broker, I've run into uncooperative sellers from time-to-time.  I do my best to rule them out up-front so I don't have to deal with all the problems as we get deeper into the transaction. 

I'd forward the email to the listing agent and let them deal with their client.

Tom

5:42am • #3
145,364 Points 2 Featured Posts Localism Sponsor

Janna, that owner is a cookoo bird! Who put him in his mess?? Obviously he doesn't take the responsibility?

7:43am • #4
535,758 Points 71 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Short sale with a rental home? Wow! I thought banks frowned on this when sellers were collecting income on the property. Thankfully we don't see too many of these in my neck of the woods.

9:38am • #5
563,876 Points 17 Featured Posts Outside Blog Called Shot Master

Janna - I am seeing more of this also, on both ends of the deal. I am thankful for some very good agents I have worked with in situations like this.

9:41am • #6
567,950 Points 26 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Thanks for all your comments.  I should add that the listing broker has been great through this, has been fighting his own battles and has even had his management involved.  I had no idea until we had waited for months for a response, and it was too late to find another house, that we were dealing with an irrational seller on the other side. 

11:34am • #7
779,318 Points 38 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

You hit this nail smack on the head...misdirected hostility!  You can feel the anger oozing from that email.  This seller is lashing out at anyone involved and unfortunately the one he is hurting most is himself.  Hang in there, a year from now it will all be a distant memory.

4:31pm • #8
MAY
17
2010
1,064,426 Points 67 Featured Posts Outside Blog Called Shot Master

Oh geeeez...."the market" has no face, no one can smack it...so guess it's your turn...ouch !

3:39am • #9


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Janna Rankin Scharf

Coeur d'Alene, ID

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Keller Williams Realty Coeur d'Alene

Address: 1450 Northwest Blvd. Ste 301, Coeur d'Alene, ID, 83814

Office Phone: (208) 667-2399

Cell Phone: (208) 651-9700

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Coeur d'Alene Idaho Real Estate Blog By Janna Rankin Scharf of Keller Williams Realty is a Great Place For Real Estate Agents and Potential Buyers and Sellers to get to know more about Coeur d'Alene Idaho as well as other parts of Kootenai County and North Idaho.
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