How Not to Buy A House -- By Committee

Tni,

What a great, sad story! I am so sorry for those buyers and for you, their agent, in regard to the first house – the perfect house – that the committee prevented them from buying.

Yes – THE PREVENTION COMMITTEE. That is what I would call those who will not live in the house but whose advice must be factored into the home buying decision. The Prevention Committee will surely prevent the buyer from getting the house that they should buy. What’s worse – the Prevention Committee will congratulate themselves for a job well done!

Tni-  Thanks for the great story- Sad but true, and so frustrating when there's not much you can do with so many people giving input. You have great patience to have hung in there for two years !

Tni -  I hear you so well.. I kid you not but last year I had a client - we received a bid and then entertained the parents, 2 sets of, the uncle, the brother in law, the contractor..... and they never came  up in price.

Oh yes, I am sure we have all had the well meaning father that wants to protect his little girl from ever making a mistake, or the paranoid mother that really does not want her kids to move out of her house, so nothing is good enough.

Well deserved feature and oh so true.  The worst words possible is "I love this house but I'd like my brother father uncle grandfather who once hammered a nail to come look at it."  Stick a fork in it then, the deal is done.

Tni:  In some areas of the country, like the Cleveland market that I work in, I can understand how purchasing a home can become a "family affair."  But throw a boatload of friends and acquaintances into the mix... ouch.  That's a very quick way to turn the whole thing into a three-ring circus.

While in many areas of the country, families are so spread out that things like you describe don't happen, Cleveland is still a town where even extended families live in decent proximity (which can be good, but also not-so-good at times)... so when a buyer gets close to finding "the" house... everyone has to put in their two-cents and take a look, and give their approval.  As they say, it comes with the territory, or in this case, it comes with the market.

I've had to deal with committees on several occassions and had some luck with keeping them from killing a deal.  One client kept backing out of deals because friends would bring up issues and doubts that were false or just plan poorly informed.  When possible, I let the buyer know that opinions run a wide range and that they should focus on what feels right for them rather than their friends.

Tni-Committee's are great ways to delay decisions and strangle good ideas. Terrible for getting good real estate results.

Tni, I have not had any success with buyer with committees.  I have worked with them for years and they still can't make a decision.  It is the most frustrating thing, especially when you can see they are getting bad advice. Which often happens.

Great post, Tni! I've also had buyers pass up on a great home because of the opinions of a friend or family member. If it's going to be their home, they need to be the one making the decision. Thanks for sharing your experience!

Yikes there are way to many decision makers to have a selection. Next.

When I was new, I had one couple who had two sets of parents to please.  Apparently, the parents didn't get along because anytime they found something they liked, each set of parents would have to come in SEPERATELY and view the home.  Someone - (but mostly one parent) would KILL the deal every single time.  Meanwhile, I had had three showings for no less than seven homes.  Each deal was killed.  My broker was smart and put a stop to the nonsense - told the family in question that they got 2 showings and ALL decision makers had to be present at ALL showings.  Of course the couple never bought anything.  They disappeared when the new rules were put in place.  I've had situations where parents were helpful as well. Everything is case by case.  However, if people are arguing and talking down a property, it is very difficult to get a sale.  If it starts to become a serial property-bashing party at every showing, I set limits. If that doesn't work - I let them go. 

Tni:

It is impossible to reach agreement with the input of too many people.  The buyers should be counseled to view homes on their own without the committee.  The committee can see the house when the sale is completed but not before.  

Ouch - too many cooks spoil the pot, don't they? What a shame, they should have cleaned house before buying one.

What, if any is the liability of the Realtor if the committee breaks something? Should the present this breakage as a possibility to the seller when getting seller's permission for the committee

Tni - Your anecdotal story is valuable amunition for dealing with buyer committees.  That said, it is a buyer's right to buy by committee.  And it is your right to choose your clients.  Use your own ammuntion to turn those current buyers with committees into successful past buyer clients (and future clients, and referral sources.)

Nobody needs the cluster....it just leads to negative second guessing.  Wow, I really hate it!