Today I was supposed to close on my first listing. Some people may think I'm nuts for getting into real estate right now, but when people are jumping ship it's a good time to get on board and build market share. The seller was my client and we should have closed on two previous times. In both instances I strongly encourage the out-of-state seller to make the time to sign the papers and get them back to the attorney. But the seller wanted to reschedule. So what happened? We were supposed to close today at 1pm. I get a call at 9:30am from the buyer (I had both sides-buyer was a customer). She informs me that her husband was unexpectedly laid off from his job yesterday and they would rather breach the contract then go through with it. Her husband works for a company that provides car parts to GM. The buyer would rather lose the escrow money and pay the other costs. The seller was upset, but I had to gently remind them that I had the closing ready two previous times and I had warned that we need to get the deal done now. Have you had any closings fall through recently?
Sorry to hear the story.....and yes, I'm afraid it's one we will be hearing about more & more through the winter months. Why did the seller delay before? Hopefully they learned a lesson about acting in a timely manner. Sorry to hear about your 1st closing being delayed, however. Keep a positive attitude...the right buyer will come along!
Yes, this happens...nothing to count on until it actually closes. I had one recently fall through because the appraisal came in below the contract price---due to builders drastically reducing their inventory in a certain subdivision...the indivisual Seller basically had NO equity whatsoever. I've also heard of a job transfer while building a custom home---one couple lost $10K---but I think the relocation company actually took the hit.
Based on our contract in Maryland, the buyer might actually get the deposit back. If the contract is contingent on financing that is. The lender won't want to lend the money if the buyer has lost a job. If the buyer didn't quit, or buy a car before closing, then financing falling through is not the buyers fault. I am not a lawyer, I am just voicing a question. One of my responsibilities is fairness to my customers.
Unfortunately I feel one slipping away right now. But I'm trying to be optimistic - for myself and my buyer client.
I am afraid this is going to become more common until the economy picks up in the consumer's minds. It is really hard when it is to be your first closing, good luck with the next one!
Dave,
You did the right thing in telling your client that it really was his fault that this didn't close. I think you need to write a post about this story from beginning to end and use it in your listing presentation that being a seller and waiting is never a good thing. If you have a good offer, you take it, run with it and close as quickly as possible. (17-7)
Dave,
Never lost one in that type of situation that is why it is so important to close when scheduled had a seller recently that wanted to extend the closing date but i really discouraged it.
Dave,
Sorry to hear this story, I am sure you was looking forward to your first close. I am going to be entering the real estate profession soon. Any "dont do's" from another newcomer would be welcomed.
Best wishes and hang in there.
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