As a REALTOR, I focus on helping my Buyer clients purchase a home. From writing contract terms that will satisfy the Seller and compete against others in the current market, the hardest part of finding the perfect home is getting your offer accepted by the Seller!
Sometimes I show clients a few homes and they find just the right one right away. And sometimes I spend 6 months showing them 50 or more homes before they finally find just the right one. Each client is different!!
When they finally find the right one and finally get an offer accepted, the focus becomes following the contract deadlines and doing what it takes to get them to purchase their home.
The most roller-coaster ride part of the process is getting the home inspection done (besides the loan process, but that's not in my hands). You never know what is uncovered and what will show up in the inspection. But, once the repairs are negotiated, and the Buyer is satisfied with the property and negotiations, things smooth out considerably and you move forward in the home buying process.
I truly focus on how to keep my clients on track and how to get them closed and into their new home! I've never experienced a transaction like one that had recently. A buyer had a property inspection, was okay with what was negotiated with the Seller. The Buyer picked his own inspector and coordinated the entire thing himself. This was a cash sale and it got delayed due to extensive liens against the property when it was purchased in a foreclosure.
It was a beautiful home, exactly what the Buyer wanted and needed. It matched all of his criteria and he was excited to purchase the home.
As the sale went from a quick 10 day close to a 30 day close the Buyer started getting cold feet about day 20. The Buyer started to panic and decided that they didn't want to go forward to purchase the home. However, we were still in contract, and they had signed the extension, which had 10 days left.
The Buyer made up his mind to cancel, but didn't sign the cancellation. Meanwhile, 7 days before closing, we were given the all clear from the title company to close. They had received all the lein demands and were ready to clear the title at closing. The Buyer was informed that the sale has progress farther and that they were cleared to close.
Waiting, waiting, waiting, the Buyer didn't respond all weekend and told the title company on day 5 before closing that he was canceling, but yet, still didn't sign the cancellation document. Everything was at a standstill, the Seller was informed and the other side was not happy.
The Buyer didn't listen to me or my Broker. We told him that our best advise is to purchase the home and if he doesn't like it, sell it in 6 months for a small profit. It would be better to do that than to loose the good faith deposit. We also told him to contact a real estate attorney because even though the Buyer thought it was fair to split the deposit money 50/50, the Seller did not agree (we heard that verbally from the listing agent). We told the Buyer what would happen and that he would loose his deposit money if he canceled and didn't purchase.
Finally 3 days before closing was due to occur, he signed the cancellation. The Buyer didn't have any grounds for canceling and the Seller said they would keep the deposit money. The Buyer didn't like that at all (even though I warned him that's what would happen). The Seller said that the Buyer could still purchase, and really wanted the Buyer to purchase the home.
The COE date came and no response from the Buyer. At this point, there is nothing I can or could do. The Buyer choose their own path and had to deal with the consequences of it. Strangely, the Buyer called about 5:15pm, after the title company was closed and said that they changed his mind and wants to purchase the home.
Wow! What a roller-coaster this has been!! I contact the listing agent, they are leery of the Buyer, but they contact the Seller. We were able to negotiate an extension and the Buyer had to pay an additional $2,000 for the delay.
The Buyer finally fulfilled his obligations and purchased the home on time, per the extension. What a strange transaction it had been!
I've never focused on how to get out of a contract for my clients. I've always focused on what to do and how to stay in contract. Of course, I've had the occasional back-out before the contingency removal is due up, so that I understand. But, trying to get out of a ratified contract, with no grounds for canceling was a new experience for me! Each Buyer is different and unique! I certainly learned a lot from this transaction!! I learned that the control of the Buyer & Contract goes out of my hands once the Buyer decided to go against their word and cancel. The Buyer has no rights when canceling (I knew that, but never experienced it before in all of my 13 years of Real Estate). As scary as it was, giving them advice to contact a real estate attorney is what was necessary. While he said he was going to contact one, I have no idea if it ever happened.
I hope and pray that I don't have another client that makes such a radical decision while under contract ever again in my life! It was such a roller-coaster ride for 14 days (we got a 4 day extension). I've never experienced anything like this and I really don't want to again! Hearing the word attorney, is a bit scary, but knowing that it was not my fault was beneficial. Changing your mind while under contract, does create a lot of problems, not only for the Buyer but also for the Seller and the real estate agents who trusted you to purchase the home that you agreed to purchase.
Lessons learned for sure!! I'm always learning and growing as I go through my Real Estate career!! This sale certainly taught me something I've never focused on before - what happens when you truly want to cancel but have no rights to do so. Something I never truly focused on because most of my clients want to buy the house. Thankful for learning something new and thankful that he went ahead and purchased the home!! Real Estate can be a roller-coaster ride for sure!!
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