Special offer

Sellers - Don't Spend Proceeds You Don't Have Yet

By
Real Estate Broker/Owner with House to Home, Inc. - Denver Real Estate - 720-231-6373 DRE# ER40011786

The lenders always remind Buyers not to buy items prior to closing or change their credit situation, but the same can be said for the Seller.    Our Sellers are seeing HUGE bottom lines from the equity increases over the last few years.

 

Even though a Seller knows they will see a giant wire transfer in 30 days, don't go on a spending spree and put everything on credit, thinking you will pay it off when the property closes.    Even if a transaction looks smooth, there can be last-minute snafus that can delay or eliminate a closing. 

Some items that derail a transaction - 

 

Big-ticket inspection items - roof, sewer, or a furnace that the Seller was not aware had issues.

The appraisal may come in low, and the buyer is not willing to bridge the gap.

Buyers may have items in their credit show up and lenders cannot approve the loan.

Buyer may lose their job, or get a pay cut and then don't qualify for the home.

We are seeing Buyers having "buyer's remorse", and terminating contracts.

 

Until the transaction goes to closing, all documentation is signed AND FUNDED, a Seller should not spend those proceeds!    Wait until the "fat lady sings".    When you see the wire in your bank account, then go and spend to your heart's content!   

 

Posted by

Joan Cox
Broker/Owner, REALTOR®
House to Home, Inc.

Serving the Denver Metro area including all suburbs


Helping Buyers and Sellers achieve their real estate dreams, one house at a time!

LinkedIn  |  Facebook  |  YouTube
About Me  |   My Blog
       My Website

720-231-6373  
Call or Text Me!

Email Me!

 

Comments (12)

Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Joan... excellent advice. It's the same advice agents should heed... not to spend their commission until it's actually in their bank account.

Mar 27, 2023 05:36 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Joan - so many things can happen on the road to closing.  There's no need to make it rocky (rockier) by taking an unnecessary detour.  

Mar 27, 2023 06:54 AM
Roy Kelley
Retired - Gaithersburg, MD

This is very good advice to share.

Have a great day and a productive week.

Mar 27, 2023 08:37 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Excellent advice Joan,

Its not your money until it closes and funds! Same is true for agent commissions!

Mar 27, 2023 10:37 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Joan,

This is great advice.  The other issue is that a seller loses negotiation power if they have overleveraged their position.

Mar 27, 2023 12:19 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nina Hollander, Broker I actually was thinking that when I was writing this post.   Too many have their commission spent, and the transaction does not close.

Mar 27, 2023 01:10 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Michael, boy isn't that the truth!

Mar 27, 2023 01:10 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Thanks Roy.

Mar 27, 2023 01:11 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Dorie, I was thinking of agent commissions too when I wrote this!

Mar 27, 2023 01:11 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Sheri, you have a very valid point!

Mar 27, 2023 01:11 PM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I tell every client that I have that the transaction is not over until the keys are handed over.  There are too much going on our of our control to count our chickens before they hatch. 

Mar 27, 2023 08:59 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ray, both isn't that the truth!  

Mar 28, 2023 01:56 PM