Protection Against Flaky Buyers

[Anonymous]

This has all been very helpful and informative. Thank you! To answer the inspection question, we've both been told by the buyers agents directly after inspection, that there wasn't anything we hadn't already disclosed, and received copies of the reports after they backed out. The most negative types of commentary was that our boiler was dusty, and maybe a fault of the state of our basement. (It's a 1900 house) We learned to clean it before the next inspection, and that if someone were to add an addition (we know both parties wanted to) that they would need to add an additional electric box. Which seems crazy to have commented on in the first place. The place despite being old, was completely gut renovated to the studs, and is up to code, with the paperwork to prove it.

Overall you've made me feel like it is the suspected mix of the wrong agent for the job, and waiting out flakes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We haven't reached the part where they sign the contract. Our agent has them being issued the contract, and doing the inspection simultaneously in the effort to speed the process forward. Basically our timelines have been, Accept offer, issue contract, get them in to do inspection, inspection report comes back fine, wait, wait, wait...oh yeah, no, never mind we aren't buying the house after all.

This is not a good idea. The only reason to allow this is if you are selling as is and want to give them buyers a chance to evaluate the house. And even then, it is iffy. I am honestly floored that your agent is along home inspections without a signed contract.

Home inspections are often done before an offer is even submitted, particularly in competitive when a buyer doesn't want to lessen the chance of getting the property not having a home inspection contingency. This is exactly what the seller should be doing. Get a home inspection before the contract,mother there is no home inspection contingency and the chances of the buyer backing out are quite a bit less. There could still be appraisal and financing contingencies, but these are less often the reason to void the contract

OP. even if you are an atheist, say a prayer to St Joseph to get you through this. He is the patron saint of housing and sometimes that helps

[Anonymous]

Anonymous wrote:

Anonymous wrote:Are you sure the inspection reports are coming back fine? They may be uncovering something, and the buyers' agents know that if they tell you, you'll have to disclose.

I backed out of an offer a few years ago because the inspection just uncovered so, so many issues. I had thought the price was already on the high side, and then when the inspection showed so much potentially expensive stuff, I didn't think I had the money and energy to deal with it.

In order to void a contract, the notice must include the home inspection report. OP should have received the report and known any issues

No b/c let don't have a signed contract so no need to send contingency.

We have walked after inspection b/c we get a closer look and realize things like a '4th' bedroom in listing isn't legal b/c the basement window is too small. Is there something in your listing potentially misrepresented or a busy road nearby that they will notice noise during longer inspection window?

But fundamentally market is telling you that you priced too high.

[Anonymous]

Anonymous wrote:This has all been very helpful and informative. Thank you! To answer the inspection question, we've both been told by the buyers agents directly after inspection, that there wasn't anything we hadn't already disclosed, and received copies of the reports after they backed out. The most negative types of commentary was that our boiler was dusty, and maybe a fault of the state of our basement. (It's a 1900 house) We learned to clean it before the next inspection, and that if someone were to add an addition (we know both parties wanted to) that they would need to add an additional electric box. Which seems crazy to have commented on in the first place. The place despite being old, was completely gut renovated to the studs, and is up to code, with the paperwork to prove it.

Overall you've made me feel like it is the suspected mix of the wrong agent for the job, and waiting out flakes.

Ah, it's clearly price then. And after they make initial offer they read up on century old homes (even renovated ones) can be problematic. Often times buys buy a classic farmhouse and hope to maintain it but end up tearing down b/c fundamental problems too great.

[Anonymous]

Buyers fuck around and make offers on a whim then back out for whatever capricious reason they want. Buyers seem to be particularly despicable this year.

[Anonymous]

Anonymous wrote:Buyers fuck around and make offers on a whim then back out for whatever capricious reason they want. Buyers seem to be particularly despicable this year.

Please, sellers all price their home 'lake wobegone' above average and take any counter as a personal insult. So many lies in listings; square feet including below grade area, illegal bedrooms, unpermitted renovations. All the foolish buyers bought when they were giving loans for a pulse; now you have discriminating who try to not overspend even in the midst of high prices.

[Anonymous]

Having just been through a home inspection on a house in pretty good (relative) condition, I will offer the perspective that a home inspection is a grueling, draining process even if the issues that come up are minor. It's where the buyer goes from "yay, contract, new house!" to "oh shit, I am going to be responsible for all of this stuff that may or may not break and may or may not be crazy expensive."

After the inspection, we took a good 24 hours to evaluate and re-evaluate our budget and think about whether our emergency fund was enough and also, whether we really wanted that house or if we'd gotten butterflies at first that then faded.

[Anonymous]

Anonymous wrote:

Anonymous wrote:1. Your agent should be getting real offers - this is their job

2. You should be very careful about contingencies and their length of time to be satisfied. Few contingencies, and short durations - for instance 5 days is the max I would give on a home inspection

3. Get a big EMD - once the contingencies are relieved - you keep it. We have done this before. Cold feet or flaky are not contingencies.

No if a buyer defaults on a contract after all contingencies, the seller does not "keep" the deposit. The buyer must sign a release giving the money to the seller. If the buyer does not sign the release a court determines what happens to the deposit. The larger the earnest money deposit, the more likely a buyer will not release the funds and the more likely the court will not award tge full amount to the seller. The seller is still under contract to that buyer and cannot sell to another party until the first contract is released

Actually once contingencies are gone, the contract is ratified and you are headed for closing. If the buyer wants out - they are the one that needs a release and that release should not include releasing the EMD. We were in this exact situation - all contingencies released. Buyer wrote us a letter saying that they reconsidered and wanted out. We kept $35K in EMD to release them.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:1. Your agent should be getting real offers - this is their job

2. You should be very careful about contingencies and their length of time to be satisfied. Few contingencies, and short durations - for instance 5 days is the max I would give on a home inspection

3. Get a big EMD - once the contingencies are relieved - you keep it. We have done this before. Cold feet or flaky are not contingencies.

No if a buyer defaults on a contract after all contingencies, the seller does not "keep" the deposit. The buyer must sign a release giving the money to the seller. If the buyer does not sign the release a court determines what happens to the deposit. The larger the earnest money deposit, the more likely a buyer will not release the funds and the more likely the court will not award tge full amount to the seller. The seller is still under contract to that buyer and cannot sell to another party until the first contract is released

Actually once contingencies are gone, the contract is ratified and you are headed for closing. If the buyer wants out - they are the one that needs a release and that release should not include releasing the EMD. We were in this exact situation - all contingencies released. Buyer wrote us a letter saying that they reconsidered and wanted out. We kept $35K in EMD to release them.

Nice! They got what they deserved

[Anonymous]

Anonymous wrote:We haven't reached the part where they sign the contract. Our agent has them being issued the contract, and doing the inspection simultaneously in the effort to speed the process forward. Basically our timelines have been, Accept offer, issue contract, get them in to do inspection, inspection report comes back fine, wait, wait, wait...oh yeah, no, never mind we aren't buying the house after all.

Agent X here. Hopefully I'm logged in. I have been on this board for years but I decided to register so you realize you're getting advice from an agent.

There is so so so much wrong with what you are saying here OP. In no case at all should you be allowing verbal offers and letting people into your house to do an inspection without them actually being under contract.

Second - YOU DO NOT WANT THE INSPECTION REPORT!!! Sorry, but your agent is an effing moron. You absolutely do not want this report because now anything in it you have to turn around and disclose to the next party. Who is your agent? Where is your house? I'm outraged for you. You need way better advice than what you are getting.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We haven't reached the part where they sign the contract. Our agent has them being issued the contract, and doing the inspection simultaneously in the effort to speed the process forward. Basically our timelines have been, Accept offer, issue contract, get them in to do inspection, inspection report comes back fine, wait, wait, wait...oh yeah, no, never mind we aren't buying the house after all.

Agent X here. Hopefully I'm logged in. I have been on this board for years but I decided to register so you realize you're getting advice from an agent.

There is so so so much wrong with what you are saying here OP. In no case at all should you be allowing verbal offers and letting people into your house to do an inspection without them actually being under contract.

Second - YOU DO NOT WANT THE INSPECTION REPORT!!! Sorry, but your agent is an effing moron. You absolutely do not want this report because now anything in it you have to turn around and disclose to the next party. Who is your agent? Where is your house? I'm outraged for you. You need way better advice than what you are getting.

If the buyer fails to provide a copy of the report to the seller by the inspection deadline, they waive the right to demand any fixes or money. The inspection contingency is waived.

[Anonymous]

AgentX wrote:There is no inspection deadline because in the OP's post, they weren't even under contract. Both buyers did not sign their respective contracts. See post here:

Anonymous wrote:We haven't reached the part where they sign the contract. Our agent has them being issued the contract, and doing the inspection simultaneously in the effort to speed the process forward. Basically our timelines have been, Accept offer, issue contract, get them in to do inspection, inspection report comes back fine, wait, wait, wait...oh yeah, no, never mind we aren't buying the house after all.

Thus, again, you do not want this inspection report! It's like some random comes into your house with no contract, does an inspection, tells you a bunch of things that are wrong, then leaves you with the list to fix or disclose. No thanks.

Who says you have to disclose everything on the first report? That's just some guy's opinion about things which could be wrong.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Are you sure the inspection reports are coming back fine? They may be uncovering something, and the buyers' agents know that if they tell you, you'll have to disclose.

I backed out of an offer a few years ago because the inspection just uncovered so, so many issues. I had thought the price was already on the high side, and then when the inspection showed so much potentially expensive stuff, I didn't think I had the money and energy to deal with it.

In order to void a contract, the notice must include the home inspection report. OP should have received the report and known any issues

No b/c let don't have a signed contract so no need to send contingency.

We have walked after inspection b/c we get a closer look and realize things like a '4th' bedroom in listing isn't legal b/c the basement window is too small. Is there something in your listing potentially misrepresented or a busy road nearby that they will notice noise during longer inspection window?

But fundamentally market is telling you that you priced too high.

Could you clarify your first sentence? After you sober up, of course.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:1. Your agent should be getting real offers - this is their job

2. You should be very careful about contingencies and their length of time to be satisfied. Few contingencies, and short durations - for instance 5 days is the max I would give on a home inspection

3. Get a big EMD - once the contingencies are relieved - you keep it. We have done this before. Cold feet or flaky are not contingencies.

No if a buyer defaults on a contract after all contingencies, the seller does not "keep" the deposit. The buyer must sign a release giving the money to the seller. If the buyer does not sign the release a court determines what happens to the deposit. The larger the earnest money deposit, the more likely a buyer will not release the funds and the more likely the court will not award tge full amount to the seller. The seller is still under contract to that buyer and cannot sell to another party until the first contract is released

Actually once contingencies are gone, the contract is ratified and you are headed for closing. If the buyer wants out - they are the one that needs a release and that release should not include releasing the EMD. We were in this exact situation - all contingencies released. Buyer wrote us a letter saying that they reconsidered and wanted out. We kept $35K in EMD to release them.

First, a contract is ratified when all parties agree to the terms of the offer, not when the contingencies are released. Second, if the buyer wants out after all contingencies are released, the buyer is in default under the contract. Third, both the buyer and the seller must be released from the contract. Fourth, the release states what happens to the earnest money deposit. Fifth, your buyers must have stated in the release that you coudl have the $35K in earnest money. Check it and see if that is correct.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We haven't reached the part where they sign the contract. Our agent has them being issued the contract, and doing the inspection simultaneously in the effort to speed the process forward. Basically our timelines have been, Accept offer, issue contract, get them in to do inspection, inspection report comes back fine, wait, wait, wait...oh yeah, no, never mind we aren't buying the house after all.

Agent X here. Hopefully I'm logged in. I have been on this board for years but I decided to register so you realize you're getting advice from an agent.

There is so so so much wrong with what you are saying here OP. In no case at all should you be allowing verbal offers and letting people into your house to do an inspection without them actually being under contract.

Second - YOU DO NOT WANT THE INSPECTION REPORT!!! Sorry, but your agent is an effing moron. You absolutely do not want this report because now anything in it you have to turn around and disclose to the next party. Who is your agent? Where is your house? I'm outraged for you. You need way better advice than what you are getting.

Another actual realtor here and just to be clear many people do home inspections before submitting a WRITTEN offer on a house. The seller is smart to allow this so that the interested buyers can determine in advance if they want to buy the house or not. The seller does not then have to wait for a five to ten day inspection period to learn if the buyer is going to proceed under the contract.

In this case, if the buyer is doing a home inspection and does not proceed with a contract, there is no reason to give the seller a copy of the home inspection report as there is no contract to void. If the buyer wants to enter into a contract with the seller, the buyer can ask for home inspection repairs as part of the contract or not. You will also recall that the seller had other offers which were voided and has see at least one home inspection report. The seller is aware of what is in that report.

I strongly suggest you calm down and discuss your ill considered advice with your broker tomorrow. You should not be giving this type of advice to any buyer or seller.