Dear John Letter (or in this case Dear Kristal)
Well it happened earlier this week. I received the Dear John Letter from one of my clients. We thank you for your help blah, blah, blah... but we have purchased another home. The clients decided their interests were best served by submitting the offer through the Listing Agent.
During our initial buyer consultation we discussed the various strategies we would utilize in pursuing their dreams of home-ownership. Our market has more than 50% short sale transactions; often very desirable properties in good neighborhoods but they are lengthy transactions with no guarantees promised. However I do not submit multiple short sale contracts. I discuss the steps involved so that the buyers understand the nature of short sales and my reasoning:
- What if two contracts are accepted at the same time? (Unlikely I know but anything can happen now days.)
- What about the distressed seller? Imagine his relief when he has a legitimate offer to submit to the bank. Should we burden the distressed family any further by casually canceling a contract?
Mrs. Buyer really didn't understand my concerns and wanted to submit multiple offers. I thought we had gotten over the dilemma as we continued viewing other properties. After several months (we submitted offers on REO's and were outbid several times) we finally submitted an offer on a beautiful short sale property which fit all of their needs and was well within their price range. Well on Tuesday she emailed me canceling the transaction.
But the saga continues,
Today I received a call from an extremely agitated Mrs. Buyer. You see she has just received the counter offer from the bank, from her new agent (the Listing Agent.) The bank is requesting a cash contribution. She wanted my advice concerning her responsibilities and options.
I spoke with her for a minute because we have (or at least I thought we had) built a relationship over these past few months and I would hate to see someone take advantage of them (although I never offer legal advice.) But after our conversation was over I paused to think over the situation.
Perhaps a buyer agreement is in place to protect the interests of both the client and Realtor. I thought if I did my very best for each client there would be no need to have a signed contract between us. I've learned my lesson.
Buyer agreements will now become part of my initial buyer consultation.