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I'm Sorry, Your Sellers Didn't Do What?

By
Real Estate Agent with Long and Foster REALTORS (703) 470-4545 0225085927

It's crunch time.  My buyers have to be out of their rental in 60 days, no exception, and with 3 kids and 3 dogs, finding temporary quarters is not really a possibility.

They are waiting for a long overdue employment letter in order to feel comfortable getting under contract.  Meanwhile, they have looked at a number of homes, narrowed down the list to several that will work just fine for them but have one special house that meets all of their needs and is simply their dream house.  Mentally, they already see themselves living there.

The letter arrives!  Oh, happy day...now let's go take one final look at that house and then get the offer submitted.

Pull up the listing to double check the showing instructions and....uh, wait, what?  Where is the listing?  

Huh. Where is it? Not under contract.  Ah...there it is...withdrawn.

Okay, okay, we still have a shot...maybe it's just temporary while they do some work to the house or something.  No panicking yet. 

Call the agent to see what's happening.

Aaarrrghhh is the response...those sellers!  They moved out of the house a few years ago, could not sell it for what they wanted and put it on the rental market.  After the last tenants moved out, they decided it was finally time to sell, so they put it on the market.

Although the listing agent says she encouraged them repeatedly to talk to a financial person or a tax accountant and the sellers kept saying they would, turns out...they didn't. 

Now they find out if they sell, they will incur a huge capital gains tax bill - oops, should have spoken to an accountant, after all - so they are having to move back into the house.  The house they moved out of years ago because the commute was just killing them.  The house they sold all of the large scale furniture for when they moved into a much smaller rental home, where they planned to live until the bigger house sold.  

So, the sellers are crushed, as are my buyers, who really, really wanted this house.  A listing agent is out hours and hours of time spent preparing and marketing the home for sale.  

All because someone did not heed the advice of their agent.  Or because they did not listen.  Because they didn't know what they didn't know - but somehow, didn't think their agent knew, either. 

We've all probably been there...wasted a lot of time and effort on unheeded advice.

I just thank my lucky stars my buyers were not under contract with these bozos before they finally woke up to the fact they needed professional financial advice.

Sellers, when you hire a real estate agent, please listen to him or her when they give advice, for it is advice typically honed from years of experience and education. 

After all, your missteps can affect a number of people, not just you. 

Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

wow Susan any time the home has been a rental the agent should know enough to advise the seller  to talk to the CPA about the tax consequences before proceeding with the sale. Clearly a bummer for all parties involved.  Good luck on finding your buyers another perfect home.

May 02, 2016 03:59 AM
Jill Murty, Realtor - Orange County, CA
Movoto - Laguna Niguel, CA

Oh, man!  That hurts on a lot of levels and it's so frustrating!!  

Some clients are so appreciative of the time and effort that goes into providing high quality representation and some are not.  Gotta love the ones who value what we do and the advice and guidance we provide.

And the ones who don't?  Well.... 

May 02, 2016 04:11 AM
Lisa Heindel
Crescent City Living LLC - New Orleans, LA
New Orleans Real Estate Broker

People sometimes think we're passing the buck when we give advice to consult a tax/accounting professional. THIS is exactly why we do it. Good luck with your buyers - I'm sure you'll find them something spectacular. 

May 02, 2016 05:40 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Susan,

I would love to say what a surprise!  We have always counseled people to check with their financial advisors..,.We are not CPA!  

I am certain you will find them the perfect home.  A

May 02, 2016 05:58 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

You can lead a horse to water....  Oh, if I a had even one dollar for every time I advised a client to do something and they didn't.  I would have made double my income every year.

May 02, 2016 07:44 AM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Susan - It's a real waste to have experts on the payroll and not listen to them. That's a sad story - I hope your buyers find something even better soon.

May 02, 2016 09:07 AM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Susan, you tried your best to make this house a possibility for your buyers and it didn't work out because of the sellers inability to sell. Hope you'll find another suitable propert soon!

May 02, 2016 10:24 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Preparation for buying and selling real estate is so critical.  I hope you are successful in finding a suitable home for your buyers, and can close in a comfortable amount of time!

May 02, 2016 11:33 AM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

That's too bad for everyone concerned. That must be one huge tax hit for them to pull the house off the market and not bite the bullet.

May 03, 2016 05:37 AM
Robert Vegas Bob Swetz
Las Vegas, NV

Hello Susan ...

Wonderful post my friend and your post has been featured to the group:

EXPRESS WITH WORDS AT ACTIVERAIN

May 07, 2016 12:28 PM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

As always, thanks Robert Vegas Bob Swetz !!!

May 07, 2016 10:02 PM
Robert Vegas Bob Swetz
Las Vegas, NV

Your welcome and have a wonderful Mother's Day!

May 08, 2016 02:14 AM
Rebecca Gaujot, Realtor®
Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

What a shame for both buyers and seller. Knowing you Susan, you will find the buyers an even better house!

May 08, 2016 11:29 AM
Susan Haughton

Rebecca Gaujot, the Go To Realtor®   As it turns out, yes, I did!  

May 10, 2016 01:00 AM
Kathy Clulow
Uxbridge, ON
Trusted For Experience - Respected For Results

It's sad when clients don't listen but sadder still are the ones who say why did you not tell me that even though you did Susan Haughton 

May 09, 2016 06:05 AM
Yolanda Cordova-Gilbert
Richmond, TX

Susan,

 I have a buyer who has not started the loan process because his friends tell him that it takes no time what do I know I only do this for a living.

May 09, 2016 10:48 AM
Susan Haughton

Yolanda Cordova-Gilbert  Oh, yes, don't you just LOVE advice from well meaning friends. 

May 10, 2016 01:01 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Susan, this should be a conversation at the kitchen table when they originally met with these sellers.  So sorry to hear!   

May 11, 2016 10:43 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Advising our clients to seek specialized tax advise is our duty. This wouldn't have happened if that had been the case at the start.

May 15, 2016 07:23 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

The transition from getting out of a rental is one of the hardest things to do. It's not easy with or without pets and kids. With you by their side, they shall prevail and get to where they need to be. I have a feeling you won't abandon them, nor they you. 

May 15, 2016 08:18 PM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It sure is Susan Haughton. It is happening alot to people who could not sell a few years ago when prices were down. 

May 18, 2016 11:50 PM
Roy Kelley
Retired - Gaithersburg, MD

Smart home sellers will seek tax advice before listing their home for sale.

May 21, 2016 10:10 AM