6 Warning Signs of a "Difficult" Buyer

By
Real Estate Agent with RE/MAX Alliance

Lawsuits by home buyers who have “buyer’s remorse” appear to be happening more and more with the increase in sales and purchase prices in Colorado.   What may have seemed to be a dream home, may have overextended the buyer financially or the upkeep of the large home may cause some “buyer’s remorse” which can lead a buyer to file a lawsuit against the seller in order to regain some financial ability to afford what maybe the buyer really should not have purchased in the first place. There are also just some people who feel “entitled” and “wronged” no matter what happens.  Some people, and we all know a few, just like to fight and file lawsuits. 

There are a few “warning signs” from these buyers before and after the home is under contract. Although you may be innocent and correct as the seller and the agent, lawsuits can be expensive and emotionally draining so to avoid them in the first place is the best practice. Here are a few warning signs that a buyer may be a lawsuit waiting to happen: ​

 

1.   Multiple return showings.  I am not talking about returning once again after the initial showing but several times and even wanting to bring an inspector prior to even making an offer.  If the buyer returns and returns, it may be that they are unsure about the home and/or want the home but really cannot afford it.  Just because a buyer can qualify for a home does not mean they can afford the upkeep such as new furnaces, the utility bills, new roof, the insurance, the yard work, etc.  The mortgage payment is just a portion of the cost of a home.  Usually, the bigger the home, the more the upkeep and costs associated with the home.  If the buyer really cannot afford the home, they may panic when something does happen which they must repair and attempt to get the previous owner to pay for it.  

 

2.   Numerous offerings with contingencies constantly refused.  Clearly if a buyer puts many offers on a home after refusing to get rid of contingencies that the seller has refused, the buyer wants the home.  WHY do they want it?  Is it now a challenge to get the home?  Is it really a home they cannot afford but they “love” it?  Once “buyer’s remorse” sets in, especially on a home the buyer may realize will be taking up most of their money and time to upkeep and repair, they may seek something from the seller to “make up” for being too far extended financially.

 

​3.   Over-exaggerating repairs on Inspection.  Nit-picking small items can be frustrating for a seller.  “Repair the GFI on the porch.” “Touch-up the paint on the back door.”  “Replace the one cracked tile on the sidewalk.”  When the buyer, however, insists on a huge amount to replace a major item in/on the home if there is no real sound reason, this can be a warning sign. An example may be that the seller has engineer’s reports stating that the structure of a porch is in good shape and the buyer’s inspector says it “might need to be replaced in the future” but the buyer insists the entire porch needs to be replaced immediately for $30,000 based on one quote from a small company.  The buyer knows a porch of that size cannot likely be replaced before closing so they offer to “split” the cost.  Basically, the buyer just lowered the selling price (and what they buyer has to qualify for) by $15,000.  Again, this can be a warning sign that the buyer cannot really afford the property and are trying to lower their costs.  This may also lead to them making accusations of not reporting something when a large item in the home goes bad or breaks once they have closed.  Let’s face it, repurchased homes have things go wrong.  Even new homes have things go wrong!

 

4.   Wanting lots of items to be left with the home.  I just bought a new home.  Awesome because no more repairs for a while, right?  Sure, that expense may be gone but there are so many others things to consider when you buy a home.  Furniture may not fit into the new house so you need to buy new or the home may be larger so you need more.  Artwork for the walls, a fence for the yard, a lawnmower, and even different cleaning supplies for those beautiful wood floors you never had before.  When a buyer asks for numerous items to be included with the sale of a home such as a riding lawnmower, the speakers in the living room, the high-top and chairs on the back porch, and the firepit, they may be looking at this big home thinking they cannot really afford to furnish it.  It comes down to it again being the buyer not really being able to afford the extra expenses that often happen with a new home.

 

5.   Buyer not being able to qualify for the home without lots of creative work.  This does not always apply, but if a buyer of a home is not “pre-qualified” or “pre-approved” and wants to put a contingency on the sale of their home (which is not even on the market yet) as part of an offer, this may be a sign the buyer is strapping himself too thin financially.  This is often when the buyer will look for a deal with a low offer and/or wanting significant financial concessions.  It may also lead to “buyer’s remorse” and a lawsuit.

 

6.      High concessions on a prior home purchase or prior lawsuits/settlements.  It is not a bad idea to always check the history of the buyers of your home or your clients’ home.  As stated in the beginning, some people like to fight and file lawsuits, but they also may want to feel like they got a “good deal.” Additionally, the buyer really may not truly be able to afford the home and in order to not have to file bankruptcy, let the house go into disrepair, or to be able to actually go on a vacation instead of working constantly for a mortgage payment, they may file a lawsuit hoping the seller will cave and settle the matter, giving them some money to continue to afford the home for a while longer.

 

Is everyone seeing a pattern here?  It all comes down to money, as most things do. Foreclosures are again increasing in Colorado and people have been paying more for homes than the appraisal amount.  Many are considerably upside down in their homes before they even move in.   Some have gotten caught up in the bidding wars for homes and then regret their “winning” on a home that may not obtain any equity for several years, if ever again.  Prices may still be going up in Colorado, although not every area, but not at the rate they have been in in the past year or so. With mortgage rates increasing, the home values will likely slow even more, stay stagnant, or even drop in the future.  Sadly, this may lead to more “buyer’s remorse” and more lawsuits.

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Gabe Sanders 01/15/2017 11:43 PM
Topic:
Home Selling
Tags:
real estate agent
seller
buyer
sell home
real estate broker
difficult
trouble
real estate
buyers remorse
selling buying

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
121,880
Diana White-Pettis
Exit Bennett Realty - Upper Marlboro, MD
GRI, CDPE, CNE, Upper Marlboro Homes for Sale

I certainly see a pattern here.  Great post!  I really like the idea of checking the history of the buyers of my clients’ home. That can provide some very helpful information. Thanks for sharing.

Jan 05, 2017 08:16 PM #1
Rainmaker
510,222
Mike McCann - Nebraska Farm Land Broker
Mike McCann - Broker, Farmland Broker-Auctioneer Serving Rural Nebraska - Kearney, NE
Farm Land For Sale 308-627-3700 or 800-241-3940

I have...for the most part...quit selling any homes simply because of the hassles...with buyers and everyone else saying they should do this before going under contract.  Thanks for the great blog Katie Coleman 

Love the Castle Rock area and sold a few homes there back when I was a Re/Max agent in the Springs. 

Have a great 2017!!

Jan 05, 2017 08:23 PM #2
Ambassador
3,581,549
Patricia Kennedy
Evers & Company Real Estate, Inc. - Washington, DC
For Your Home in the Capital

Katie, I think it's important for us to counsel our clients about feeling comfortable with whatever mortgage they will be getting.  Most of the cases I hear about involve agents who are very aggressive about what they advise clients to do in bidding wars.  Here they don't have time to visit a house a bunch of times before making an offer!  

Also, almost every transaction I have involves at least one, usually more that one, lawyer on one side or the other.  

Jan 05, 2017 09:03 PM #3
Ambassador
1,522,115
Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900
Get Results Team...Just Call (408) 252-8900! - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Prior lawsuits is a huge red flag-run away, run away, don't look back.

Jan 05, 2017 11:39 PM #4
Ambassador
3,581,549
Patricia Kennedy
Evers & Company Real Estate, Inc. - Washington, DC
For Your Home in the Capital

Hi, Katie!   I included this post in today's Last Week's Favorites.  Hope you enjoy the rest of your weekend!

Jan 08, 2017 10:29 AM #5
Rainmaker
1,279,377
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Thanks for the blog Katie, I have dealt with my share of difficult buyers.

Jan 08, 2017 03:11 PM #6
Ambassador
2,783,140
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Katie- these are good tips that could help agents recognize a difficult buyer. 

Jan 08, 2017 03:43 PM #7
Rainmaker
3,533,385
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Excellent points, Katie.  I think I've run into every one of these people.

Jan 08, 2017 04:27 PM #8
Rainmaker
760,076
Jan Green
HomeSmart Elite Group,Scottsdale, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Wow!  Some things I had never considered before.  A great list of reasons we need to be mindful of buyers like that.  

Jan 08, 2017 08:10 PM #9
Rainmaker
2,927,245
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Katie Coleman ,

I'm so glad I read Patricia Kennedy 's post on her favorites for the week and caught your post. Definitely see the pattern here and you make some excellent points.

Jan 09, 2017 05:00 AM #10
Rainer
168,034
Chris Lima
Atlantic Shores Realty Expertise - Port St Lucie, FL
Local or Global-Allow me to open doors for you.

This is a great post Katie, and had I not read Patricia's favorites post, I would have missed it.  Thank you both!

Jan 09, 2017 06:46 AM #11
Rainmaker
2,053,509
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello katie Coleman,  You made it in Patricia Kennedy what she leaned in the last week list.  Good blog and good job.  Lunch sometime?

Jan 09, 2017 08:42 AM #12
Rainmaker
480,191
Nick & Trudy Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtors, Philly Main Line

Part of a buyer counselling session is not only to make sure your buyer has a pre-approval and that you understand what they want, but to make sure they understand the process and what other costs there are going to be as they move through to purchase of a new home. We have often explained to potential buyers that they are better off staying where they are right now as moving up is going to seriously hamper their current lifestyle. Good post.

Jan 09, 2017 01:58 PM #13
Rainmaker
914,858
Kat Palmiotti
Grand Lux Realty, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Yes, these can be signs of future issues. We have to be able to recognize them, and council our clients accordingly!

Jan 10, 2017 04:07 AM #14
Rainmaker
572,184
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

I wish it was easier to uncover the past history of some buyers. Public record and information from other agents often doesn't reveal past problems.

Jan 10, 2017 07:19 PM #15
Ambassador
3,046,910
Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi Katie

I missed this somehow but glad I found it from Gabe Sanders reblog. There are some important red flags to watch for and be prepared to deal with here. And some important questions and counsel is important when buyers are bidding on homes that are at the top of their price range based on a preapproval... or worse when overbidding as is so often happening in our sellers' market.

Jeff

Jan 18, 2017 08:38 AM #16
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
18,605

Katie Coleman

Real Estate Broker/Attorney/Professional Mediator
Ask me a question
*
*
*
*
Spam prevention