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Do You Need a Buyer's Agent? Only if You Want Your Earnest Money Returned!

By
Real Estate Agent with Fonville Morisey Realty

 

Do you need a buyer's agent? Only if you want your earnest money returned!  Here's the scenario: I'm the buyer's agent brought a ready, willing, and able buyer.  Made an offer on a short sale.  The earnest money was $2000. The home needed extensive plumbing repairs.  Buyer was purchasing with eyes wide open.  We waited 4 months and still no word from the bank offering approval.  The buyer was warned ahead of time that it would be a lengthy process, however he was becoming impatient and the expiration for the $8000 tax credit was looming. 

The buyer wanted out, he called me his buyer's agent to discuss options.  No problem, we reviewed the Short Sale Addendum and it stated: "Buyer may terminate the Contract at anytime prior to Leinholder Approval by written notice to Seller, and, in such event all Earnest Money shall be returned to Buyer."Buyer's agent - earnest money-Linda Lohman

As the buyer's agent I sent a Termination of Contract to the Seller with return of Earnest of Money.  The sellers refused to return the earnest money stating their attorney reviewed the contract and the buyer breached.  I referred them to the Short Sale Addendum which was attached to the contract.  They sent the signed Termination of Contract within an hour.


This is the value of a buyer's agent knowing the real estate contract, and being a consumer advocate.

 

 

Do You Need a Buyer's Agent? Only if You Want Your Earnest Money Returned, was first published on Discover Cary-A Blog By Linda Lohman

 

 

 Copyright © By Linda Lohman, All right reserved, *Do You Need a Buyer's Agent? Only if You Want Your Earnest Money Returned!*

 

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Comments(4)

Tom Boos
Sine & Monaghan Realtors, Real Living - Grosse Pointe Farms, MI
Providing the very best of service to Sellers and

I hope lots of potential buyers read your blog.  This should convince them to always use a buyer's agent to represent them in a purchase.

Oct 16, 2009 06:40 AM
Linda Lohman
Fonville Morisey Realty - Cary, NC
Former Teacher/Broker

Thanks Tom, so many buyer's don't see the value of a buyer's agent.

Oct 16, 2009 06:46 AM
Brian Brumpton
Keller Williams Boise - Boise, ID
Boise Idaho Real Estate

Linda,

I'm sure your buyer appreciated you being on your game like that.  Silly agents, they probably just said the attorney reviewed the contract to see if they could scare you off.

Oct 16, 2009 12:02 PM
Linda Lohman
Fonville Morisey Realty - Cary, NC
Former Teacher/Broker

Brian,

That was my guess as well. When in doubt...read the CONTRACT!

Oct 16, 2009 12:08 PM