Protection Against Flaky Buyers
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Anonymous
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We have been on the market with a nice SFH since August in a hot area. We never expected to still be on the market at this point. During the past 4 months, we've had tons of people through, and accepted 3 of 4 offers that were put forward. 2 of the 3 backed out, without cause about 1-2 weeks in to the process. Both parties completed inspections that came up clean. Both parties had the money to put down 80% cash. We told our agent we wanted to pull off the market for the winter (and unspoken, run out the rest of our contract with him) and come back on in the spring. Sunday night was our drop dead date. So now, we are off the MLS sites, but still willing to hear offers from the last 6 interested parties. We accepted an offer, lower then we would have liked, and lower then the previous 2 accepted offers, yesterday. What are the odds of these people backing out too? Is this uncommon? I never expected such a run around to get to closing.
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Anonymous
| How much were their EMDs? I think you need to be asking for at least a 15k EMD. I don't think it's uncommon for a buyer to back out, but surely it can't happen to you 3x on one house sale! |
Anonymous
| I don't understand what your previous offers walked on? It doesn't sound like your agent is doing a good job removing your contingencies. Have they all walked on the same things? Once your contract is ratified with no contingencies it's hard to walk but it's not clear from your post why an offer hasn't been ratified? Have these just been verbal offers? |
Anonymous
| 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. |
Anonymous
| We've received written offers, with financials backing them. Is this still considered a verbal offer? |
Anonymous
If t he buyers had contingencies, they can back out of the contract if those contingencies are not met and the earnest money is not at rusk. The deposit is at risk only if the buyer defaults. OP. buyers have been more than flakey this year. I am an agent and have never seen behavior like this year. I use to joke that a contract is a suggestion to buyers, now I am taking it seriously. |
Anonymous
A contract is ratified when all parties agree to the terms not when any contingencies are removed. Most contracts have a contingency. The easiest one to walk on is the home inspection. Even if there is nothing wrong the buyer can void the contract. This sounds like what happened to OP. |
Anonymous
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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. |
Anonymous
If everything is in writing, including al, contingencies, it is a written offer. Verbal offers cannot be enforced |
Anonymous
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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. |
Anonymous
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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. |
Anonymous
In order to void a contract, the notice must include the home inspection report. OP should have received the report and known any issues |
Anonymous
| This happened to us a few years ago. But two buyers had signed their contracts -- we kept the earnest money (out of state, much less expensive than around here and EMDs were very low in that market). Our 3rd contract stuck and we were so relieved when they closed. I hope this next one is the final one for you! |
Anonymous
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. |
Anonymous
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 |