I'm quite sure I'm not the only one who has recently encountered such cases as this, so I'm writing today to see what kind of feedback I get from others out there in the market.
In my county, in this market, REO's are what sells. You deal with them in 90% of your transactions and showings. There is such a flood of them, and they are dropping in price daily.
So it is to be expected that eventually, you will write an offer with a buyer and it will be accepted by the bank, and YAY! you have a pending transaction.
The days will go on and on. Then, through no fault of yours OR theirs, the listing agent is making a call to you with those horrible words - "We're not going to be able to close on time."
WHY!?!?!?!?! Not only are you frustrated, but so is the other agent. Sometimes the bank accepts an unrealistic closing date in an offer. Sometimes the paperwork doesn't get signed. Sometimes there is no good explanation, and you're stuck telling your buyer exactly that.
What happens next? Your buyer gets MAD. Rightfully so, too! I mean, you're mad, the listing agent is probably mad, and you both don't have to scramble to make sure you have somewhere for yourself and your family to stay, somewhere for your stuff, and possibly extra financial costs associated with this disorganized mess.
Your buyer comes back to you, well educated from when you went through the contracts in detail, and says "Can't I charge THEM a per diem????"
Valid question. I mean, it wasn't in the paperwork that the sellers would pay the buyers.... but should it be?
As I write more contracts on more bank properties and I see this happen more and more often, I begin to think that perhaps as the buyer's agent, we should be writing in our OWN per diem clause.
What does the bank lose by not closing on time? Potentially they may have to pay a couple more bucks for electric service, or a little more for real estate taxes for a couple extra days. However the buyer could have to pay another months worth of rent, or live in a hotel for a week. The expenses add up like crazy.
So has any buyer's reps done anything like this? Have you thought about it? What do you think the response from the banks would be?