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Buyer Beware?

Real Estate Agent with Crye-Leike, Realtors

Or is it Seller Beware of today's Buyers? 

The term in real estate before all the disclosures came about years ago was Buyer Beware.  Today I wonder if it has become more of a Seller Beware market.  Sellers have the legal obligation to disclose everything about their property for sale and when in a binding contract, it is the Seller that has to put the effort and funds in to assure their property is closed and on time.  I wonder if Buyers today after putting the minimum amount of earnest money possible down to secure the contract, are still looking for a better house and a better deal!  Many times working more than one offer at a time, accepting one while they are bargaining for another without the agent or Sellers knowledge.  I believe today listing agents show protect their Sellers by requesting a minimum of 10% earnest money.  In most cases 10% would be enough of a risk of loosing their earnest money to cause Buyers to secure one contract and follow through to closing.  I have been so frustrated just this week as a Listing agent to find one Buyer attempting this trick pulling out of a contract to find Oh, I didn't get the house so I want back in this contract.  Should you as the listing agent advise your Seller to allow them back into the contract or not?  Are there any other agents that have experienced this same situation?

Comments (5)

Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

The difficulty of having 10 percent earnest money down is if there is a problem it becomes a big law suit.

Feb 18, 2011 05:41 PM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

In CA, the law generally only allows 3% for damages anyway.

Feb 18, 2011 05:48 PM
Carla Dimond
CATARRA - Mountain View, CA
(Silicon Valley)

3% in CA is big money

Feb 18, 2011 06:52 PM
Dan Edward Phillips
Dan Edward Phillips, Humboldt and Del Norte Counties, CA - Eureka, CA
Humboldt and Del Norte Counties, CA

Good Morning Donna, in this market it is the sellers who need to be aware and have an excellent agent to work with.

Feb 18, 2011 10:39 PM
Donna Hudson
Crye-Leike, Realtors - Bellevue, TN

Yes for you California folks, I'm sure 10% is a lot of money.  However in rural Tennessee, 10% is not as much.  And our contract determines what will happen to the earnest money in the event the buyer pulls out for reasons other than inspection, appraisal or financing.  Regardless of the amount. 

Feb 19, 2011 03:58 AM