Is There A Unique Buyer Opportunity When A Transaction Falls Through?
Unique Buying Opportunity??
There are several that come to mind. I've found that, when a seller has "lost" a contract, they are far more apt to accept offers that they normally wouldn't have.
Some of the "clues" that suggest you might get that coveted good deal are:
house is vacant
no clothing in the closets
no food in the frig
Those are a few clues that the DOM doesn't always tell.
Then there is often the listing agent who, when you call to see if there are any "special circumstances" that would be needed in the contract, quickly says that the sellers have already relocated and anxious to sell.
You gotta love it. All of the above just reduced our offer by a significant amount.
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7088.
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Is There A Unique Buyer Opportunity When A Transaction Falls Through?
What does "transaction falls through" mean?
It is when a property went under contract (offer accepted by the seller) and for whatever reason, the buyer did not close. The Buyer released the contract making the property available for sale once again. Because the MLS shows the history of a property, when a property goes back on the market, many listing agents will note "transaction fell through" no fault of the property. Most of the time, it is because the buyer could not get the loan, or the property did not appraise.
The answer is, like most questions in real estate is: It Depends.
It depends on the market. It depends on the condition and location of the property. It depends on the sellers' motivation. It depends partially on why the property went back on the market. It depends on the agents representing the respective parties. The list goes on and on and on. You get the idea.
San Jose - Silicon Valley - the entire Bay Area continues to be in a sellers' market. Some areas are just hotter than others.
I recently wrote an offer on a San Jose home that came back on the market after "falling through." The buyer could not get a loan. The property appraised at more than the asking price.
We were provided a copy of the appraisal which "proved value" however my clients were the only buyers writing an offer - no competition. The seller had a contingent offer on the home the seller wants to buy. Seller is scheduled to leave on their honeymoon in a few days.
My clients wrote an offer on the San Jose home for sale. Their offer price was under asking price - certainly under the appraised value. Seller countered the offer $8,000 higher. Buyers countered back at the original asking price. Seller countered back $4,000 higher.
Knowing what we knew about the sellers situation, and the fact that there were no competing offers, it made sense to counter back at the original offer price. Was there a risk the seller would tell us to go pound sand? Yes, Absolutely. That was fully explained to my clients. They trusted me, and took the risk.
Is that what the seller said? No, as of this morning, we are in contract.
Knowledge is power. The listing agent armed me with information that if I did not have, well, let's just say, in a hot seller's market, my clients just secured a home $16,000 less than the appraised value.
Congratulations Mr. & Mrs. First Time Home-Buyers & Merry Christmas!
Kathleen Daniels, Broker-Owner of KD Realty, San Jose Short Sale Agent, Certified HAFA Specialist (CHS), Certified Distressed Property Expert (CDPE), Certified Short Sale Negotiator (CSSN), and REO Default Certified Professional (RDCPro), serving San Jose and surrounding San Jose Communities in Santa Clara County - Silicon Valley.
BRE# 01366594
San Jose Homes for Sale | San Jose Short Sale Agents
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