STOP LOOKING!! YOU'RE UNDER CONTRACT!!

We had a client yesterday who said, "It is amazing that as soon as I found the home and went under contract, the new searches stopped arriving in my In Box".

Well No, I turned the updates off so you would stop looking. You are under contract. Thank Goodness (we looked for 8 months before we finally secured one you liked!)  Joy

I have a buyer's addendum that I present with the BA agreement that says once they're under contract, we stop looking. PERIOD! 

I would think that a buyer under contract stop looking immediately and wait for the contract to close and not be bothered by the time, energy and effort regarding any form of real estate. I guess, I am mistaken. 

I've found that with all the information buyers are more dissatisfied generally.

I had a long term prospect contact me recently about a foreclosure that the bank has held on to for over a year.  He found it on the internet.  He couldn't understand why I couldn't help him buy that home.  

Then there are the foreclosure sales to investors that never get listed, he contacted me about those too.  After seeing low sales prices on the internet.  

Then there are the short sales that go contingent at a low price after zero days on market with no one being able to view or bid on the property.  He contacted me about one of those too.  

By now, he does have a more realistic picture of what is going on -- but he is also very dissatisfied with the process of buying a home and on information overload.  And I fear, he is more vulnerable to a scheme...

Low inventory just compounds the situation and frustration.  Too much information and not enough homes to sell!  LOL.

I also stop listings once under contract... a contract is serious business and should be treated as such.

Legally Binding Contract - let's talk about what that means and what happens should you breach it....we have this conversation upfront.  Just yesterday a buyers agents clients pulled out on a contract we put together last week - because he's going to be gone for 3 months. What???? Then I find out agent was writing mulitple contracts for this client with not enough funds to buy them all. Really???  It's a crazy market here and people are doing lots of wacky stuff.

I too suspend the search alerts for buyers, but only after close of sale. They continue to watch with anxiety while they perform inspections. If something turns up at that point, they want to be back on the hunt for another property. And it happens occasionally.Until appraisal time, they like to see that other homes are going pending, perhaps higher than the one they've offered on. Gives them more confidence about what the appraisal may bring. After close of escrow most are too focused on their move and let the searching go. That usually signifies peace with their decision.

CLIENT: So what other houses can we look at today?
ME: Uh....why?CLIENT: We haven't heard anything back from the other two guys yet and we only have another month before we have to move.
ME: You put in the first application yesterday and I faxed the last one two hours ago. You do realize its $60 per applicant per house right?
CLIENT: I know, but I was looking on the internet last night and found some other ones that I wanted you to look into.
ME: Why were you looking on the internet?
CLIENT: ::very confused:: Well, you never know man.
ME: How did you hear about me again?
CLIENT: Browsing websites.
ME: ....so why are we in my office exactly?
CLIENT: Cuz no one else ever answered my calls and if they did they said the house was already sold months ag--- oh. Okay....I'm picking up what you're putting down. Just give me a call as soon as you hear something.

Sometimes you just need to remind your client why they're not buying their house through Amazon.com...

Usually I find if they are still looking - they aren't entirely happy with the home they have under contract.

The Internet is there way of screaming out for help!

It used to be Open Houses.

They will usually find a way to get out of the contract (loan objections deadline?) and often go with a Realtor that will listen to them.

Not saying that is the case here but don't be so quick to jump to the answer (you like or assume is the right one) either?

Maybe time for a good old fashioned heart to heart.

 

 

Len, I have been feeling for a while that syndication is a double edged sword.  People become Real Estate Junkies with the advent of online searches.  They can't help themselves.  They find a house they like and then they keep looking at more.  I also stop them from receiving more listings from me once they are under contract but that doesn't stop them from looking at the syndication sites.  I believe the concept of "the grass is always greener" applies more than ever to real estate.  Not sure what possesses people to keep looking once they have found a home to buy but they do.  I'm not sure as you say that they understand that they have made a commitment and they think if they find something better they can have it.  More of the "I want what I want" trend of society today. 

For some buyers it like addiction that they can't go "cold turkey". Had a client who continued to look for an entire year after she bought. She just liked looking at houses. 

Many buyers become addicted to searching!

Contracts... commitments... I'm beginning to think those are old fashioned concepts that too many people don't believe in any more. Even "legally binding" doesn't mean much to some people. They just find a way out.

Yes Lenn, the free access to information has made buying and selling real estate a whole new game, and yes unless your buyer wants to buy more than one home it is time to stop shopping when the offer is accepted.

As I told one of my buyers, when you are engaged you should not go to the beach to look at other people.