Have you seen the remark, “Back on market, no fault of property”?
Well then……..whose fault was it?
Somebody allowed the buyers and sellers to believe they had a deal. Rarely is it intentional – and almost always it’s due to a condition that could have been remedied in advance, if both agents were on their game.
When a buyer does want to cancel, it is their agent’s duty to craft a real whopper of an excuse so there is no conflict in getting the deposit back. As a result, the real reason for cancelling is rarely known.
The most common excuses:
- Buyer didn’t qualify.
- Some other babbling, semi-conscious drivel.
There is no excuse for getting offers accepted with buyers who don’t qualify. The frenzy is over, so there is no reason to rush an offer before the lender has taken a full application and has had it underwritten.
I’m even reluctant to believe that the buyer got laid off – come on, they had no idea that their job was in peril? It’s hard to believe any employee would be out shopping for homes if they thought there was any unrest at work.
But it is a great excuse for cancelling – how can the sellers blame you?
If the excuse given is just a smoke screen to ensure the deposit is returned, then what was the real reason? Could there be a solution to the real reason?
Two places where agents screw up:
- Don’t verify the prequal (for buyers who really cancel for that reason).
- They don’t try to save the deal.
Upon being notified of an impending cancellation, listing agents rush to their computer and quickly mark the listing BOM (back-on-market). Many will add ‘no fault of the property’ (which is really code for ‘flaky buyers’, ‘stupid buyer’s agent’, or both), and the listing agent goes back to their prayer vigil.
If the listing agent took the best of many offers received during the first week, then you can’t blame them for being confident that other buyers might still be interested. But if they’ve been struggling for weeks or months to find a buyer, the writing is on the wall – the price isn’t working.
Price can fix anything. Either agent can take the initiative too.
It happened to me yesterday. My buyers and I went the conventional route, and conducted the home inspection after our offer was accepted (which included a seller’s counter-offer insisting upon a 7-day inspection period). We scrambled to complete the inspection promptly, but it revealed enough problems that my buyers said ‘forget it, let’s cancel’.
But because I had also gotten repair quotes on items we thought could be an issue, I was at least able to put a price on it. I urged my buyers to consider buying the property, if the price was right.
They said they would buy it, if I could get the seller to knock off $20,000.
We had made our offer the first day the house was on the market, and according the the listing agent, there were multiple offers. The $20,000 reduction seemed like a tall order, but anything is possible!
I went to work on crafting a powerful and compelling case on why the sellers should do it (without including any repair quotes or complaints because those just start a fight over what is worthy).
I included a concession (a must) that if agreed, we would release all contingencies the same day, and that we would close in two weeks.
The sellers agreed to the $20,000 reduction.
For those who wonder why you should have me assist you with your real estate needs – this is it. In every sale, there are opportunities where agents can make or break a deal. I know they are coming – I’m looking for them – and I find ways to save deals and create a win-win for all.
Isn’t that what you want?
Get Good Help!