Home seller's rant.....

Longrifle

Longrifle

Old Mossy Horns
Contributor
Put my house and land on the market 1st of February, we were getting appointments every day from the get-go, showed 14 times in 10 days. Got an acceptable offer on the 10th, realtor stops showing it, 45 days til closing. A week later the buyer backs out because his situation changed. Ok, I can understand that.

Sold it again the next day, actually for a little more money. Suppose to close the 31st. Home inspection comes and goes, everything is fine with the place, no problem. Cool, Monday I start consolidating for the final move, looking a properties in the area, and start thinking about plans for another home. Went to their attorney's office and signed all the paperwork Wednesday.

Realtor called me this morning to say they backed out.....they couldn't get financing!

My question is...is this normal? WHY would you show a $100K+ piece of property to someone not knowing if they could actually buy, accept an offer accompanied by a deposit that wouldn't let you off a used car lot, and still take the property off the market? I'm just pure puzzled....
 
Last edited:
Crappie_Hunter

Crappie_Hunter

Twelve Pointer
Contributor
That's why I've required pre qualification letters with pieces of real estate I have sold. Also, many people have no clue what they qualify for or what a payment would be based on purchase price, how that fits in their monthly budget etc. Selling a home can be one of the most stressful things. I assume in both cases both buyers were within their due diligence period? My advice for you maybe to request a pre qualification letter with an offer and negotiate the due diligence period to keep things from dragging out.
 
woodmoose

woodmoose

Administrator
Staff member
Contributor
exactly,,,,,,,,,,,most people are financial idiots,,,,,and why folks get "upside down" in both houses and vehicles,,,,they don't understand finances, buying what they can AFFORD and buying it with enough down that you CAN'T be upside down,,,,,,,,,,,


good luck finding a real buyer,,,,,,,,
 
Eric Revo

Eric Revo

Old Mossy Horns
Contributor
Very sorry to hear this, it seems too common with real estate "professionals" not requiring due diligence for their buyers. In Florida we did not typically act as a buyer or seller agent so we were very thorough about getting a buyer qualified before wasting time showing them things they wanted but couldn't afford.
You can require pre-qualified buyers, that may help...or come up with a letter of intent that protects you from this last minute withdrawal without penalty(NC REALTOR may tell me I'm wrong about this, I don't know NC real estate law)
 
Longrifle

Longrifle

Old Mossy Horns
Contributor
Yep, both were within due diligence period. I'm meeting with my realtor shortly, thanks for the heads-up on the prequalification letter and negotiating the due diligence period.
 

Black Jack

Four Pointer
I finally sold my house on 2/28/17. This was after 14 months on the market and 4 back outs, for various reasons. I have bought a house, built a custom home, and now sold a home. By far the most stressful has been selling a house!
Good Luck!
 
dc bigdaddy

dc bigdaddy

Old Mossy Horns
Contributor
When I worked in Kinston, I was in the same office as the C21 crowd. The lady who held the brokerage license said that she had a mad looking at houses for 2 or 3 days. Come to find out, he had just got out of prison and his wife thought he had got a job and was working. From that point on, they required pre-qualification letters before they would show you a house.
 
Longrifle

Longrifle

Old Mossy Horns
Contributor
Well, it was explained to me that the buyer actually had a letter of prequalification from a lender who apparently just skimmed the surface until the deal was actually presented to them. Upon closer inspection of his finances they elected to forgo or require a massive down payment. I don't wanna drop the "I spent 15 years in sales" rap on ya but I never stopped showing something that somebody who was a qualified buyer wanted to see just because someone left a $500 deposit, especially on a hi-ticket item. I just wrote a back-up deal, accompanied by a deposit, which is apparently unheard of in real estate.
 
Buxndiverdux

Buxndiverdux

Old Mossy Horns
I wouldn't consider an offer and take my house off the market until I had an offer with a non refundable earnest money deposit upwards of 3 grand IN HAND.

Make it worth your while to take it off the market.
 
Mr.Gadget

Mr.Gadget

Old Mossy Horns
Buxndiverdux said:
I wouldn't consider an offer and take my house off the market until I had an offer with a non refundable earnest money deposit upwards of 3 grand IN HAND.

Make it worth your while to take it off the market.
Click to expand...

This...
or more.
If they cant give you 5k to lock it in then they dont need the house.
 
lasttombstone

lasttombstone

Kinder, Gentler LTS
Sorry you are having problems longrifle. I know how excited you were when the first offer came in. Maybe the next one will be the golden egg. Good luck.
 
nchawkeye

nchawkeye

Old Mossy Horns
The problem as I see it, there are those in real estate that don't have a lot of business sense...I am less than 2 years in real estate, sold 32 properties last year and already have 14 under contract this year, frankly this is the easiest sales job I have ever had...Most agents simply don't work, this is a hobby or part time job...Sounds like you picked the wrong agent...Some of the agents I have dealt with simply don't have a business head on them...This is also why I specialize in land as well, just as often as not, I list and I sell...Hope things get sorted out for you...Good luck...
 
TravisLH

TravisLH

Old Mossy Horns
When we were looking at houses most required a "good Faith" deposit along with the offer. Our agent said it was fairly standard.


Sent from my iPhone using Tapatalk
 

Mallard Cutter

Six Pointer
Crappie_Hunter said:
That's why I've required pre qualification letters with pieces of real estate I have sold. Also, many people have no clue what they qualify for or what a payment would be based on purchase price, how that fits in their monthly budget etc. Selling a home can be one of the most stressful things. I assume in both cases both buyers were within their due diligence period? My advice for you maybe to request a pre qualification letter with an offer and negotiate the due diligence period to keep things from dragging out.
Click to expand...

This exactly
 
Longrifle

Longrifle

Old Mossy Horns
Contributor
I've got complete trust in the realtor I'm dealing with, my family and I have used him on several sales and purchases before. They do prequalify, the problem is that he's a part of a large office and it's not always him selling/closing. I met with him this afternoon to tell him I'd expect a much larger initial investment from the buyer if they expected me to take it off the market again. Also that the due diligence period would have to negotiated to put the buyer's feet to the fire a little more.
 

rustvyper

Ten Pointer
You should be getting a direct check from both those deals. This is the due diligence check that comes directly to you from the buyer. Not the earnest money check which goes to the escrow account. If you are not getting that you need to fire your agent and get a new one. They are not following state law.
 
catfishrus

catfishrus

Twelve Pointer
longrifle said:
I've got complete trust in the realtor I'm dealing with, my family and I have used him on several sales and purchases before. They do prequalify, the problem is that he's a part of a large office and it's not always him selling/closing. I met with him this afternoon to tell him I'd expect a much larger initial investment from the buyer if they expected me to take it off the market again. Also that the due diligence period would have to negotiated to put the buyer's feet to the fire a little more.
Click to expand...

I wouldn't give them more than 2-3 weeks for due diligence and wouldn't accept a offer with less than $1000 due diligence deposit. I could care less about a earnest deposit. The due diligence deposit is yours if they back out for any reason.
 
Longrifle

Longrifle

Old Mossy Horns
Contributor
I understand the contract to say that if the buyer backs out before the due diligence period is up he's due a full refund. I had to sign for the first one to be returned.
 
Longrifle

Longrifle

Old Mossy Horns
Contributor
catfishrus said:
I wouldn't give them more than 2-3 weeks for due diligence and wouldn't accept a offer with less than $1000 due diligence deposit. I could care less about a earnest deposit. The due diligence deposit is yours if they back out for any reason.
Click to expand...

I agree, I could care less about monies credited at closing. If I take the place off the market and they back out it costs me both time and money. Those were my stipulations to the agent today.
 
Cootmeurer

Cootmeurer

Eight Pointer
There have been a lot of good points but it may not entirely be the potential buyers fault. When the economy sucks, credit tightens up and lenders get very picky. Wife and I had excellent (super excellent actually) credit, owned a home we were selling, VA qualification and had a high steady income - and the lender (BBT) provided a pre-qual letter easily - and then still dicked around for months before everything went through. Kept getting asked for more and more and more documentation by the lender.
 
Longrifle

Longrifle

Old Mossy Horns
Contributor
They need to hold the lender to due diligence as soon as the application is submitted. They're getting paid interest on the loan for the next 15-30 years, seems that it might solve a lot of problems if they'd be thorough the first time....
 
catfishrus

catfishrus

Twelve Pointer
longrifle said:
I agree, I could care less about monies credited at closing. If I take the place off the market and they back out it costs me both time and money. Those were my stipulations to the agent today.
Click to expand...

Exactly and that is why I want a $1000 min. Too easy for them to walk away for less. When the deal falls through it makes your property look bad(less attractive) when its put back on the active list on the MLS. You also lost your new listing status. These sales contracts are setup to protect buyers today.
 

willch

Twelve Pointer
A "pre qualification" letter isn't worth the paper it's written on honestly. Only thing it proves is that they have talked with someone at a bank. Now some lenders are a lot better at asking the right questions during the pre qual but until it goes to underwriting not much is reviewed as far as financing eligibility. Non refundable down payments are pretty uncommon but you can always ask for more due diligence if you're dealing with a "risky" buyer or lender. No way I would recommend my buyers put up a large non refundable down payment until inspections and appraisal were complete. LR sounds like you have nice property and I'm sure you'll be back under contract soon.


Sent from my iPhone using Tapatalk
 
catfishrus

catfishrus

Twelve Pointer
willch said:
A "pre qualification" letter isn't worth the paper it's written on honestly. Only thing it proves is that they have talked with someone at a bank. Now some lenders are a lot better at asking the right questions during the pre qual but until it goes to underwriting not much is reviewed as far as financing eligibility. Non refundable down payments are pretty uncommon but you can always ask for more due diligence if you're dealing with a "risky" buyer or lender. No way I would recommend my buyers put up a large non refundable down payment until inspections and appraisal were complete. LR sounds like you have nice property and I'm sure you'll be back under contract soon.


Sent from my iPhone using Tapatalk
Click to expand...

What would you suggest to your sellers?
 
jug

jug

Old Mossy Horns
Contributor
woodmoose said:
exactly,,,,,,,,,,,most people are financial idiots,,,,,and why folks get "upside down" in both houses and vehicles,,,,they don't understand finances, buying what they can AFFORD and buying it with enough down that you CAN'T be upside down,,,,,,,,,,,


good luck finding a real buyer,,,,,,,,
Click to expand...
woodmoose is right
My brothers and I had a hard time selling my dads house. The main problem was the realtor was a sorry lazy butt. Then there was the same folks trying to buy the house and they could not afford it. I learned one thing.... don't use family or friends of family to sell or buy a house.
 

Eggman

Twelve Pointer
I understand your pain. Same person can go to car lot and in 30 minutes get approved for a $75K SUV! The banking rules are crazy.
 
Last edited:
nchawkeye

nchawkeye

Old Mossy Horns
The good news is that this is the best market we have seen in over 10 years, properties are selling quickly...It sounds like you just had a bad experience with a lender...If you had 2 offers that quickly don't sweat it, take a deep breath and let things happen...

It sounded like your listing agent was also the buyers agent, after rereading I see where another agent was the buyers agent, that's on them and the lender...Also, at least your home passed the inspection, this doesn't mean the next inspector won't find anything...Some agents use the inspection to go back and renegotiate the deal...If possible get that inspection or at least have your agent let the next buyers agent know who did the initial inspection...This should at least insure that nothing else pops up...
 
aya28ga

aya28ga

Old Mossy Horns
Contributor
I feel your pain.

The only thing more stressful than selling / buying a house is building one.

At least the housing market is good; the buyer you're looking for will be along shortly........
 
Longrifle

Longrifle

Old Mossy Horns
Contributor
My agent said that he was being given a copy of the inspection so at least I can nip any potential problems this particular inspector found in the bud. But you're right, no telling what might pop up with another inspection. It's their job after all to find something.
The suckiest part of this back out is that I'd finally located another property in the area with septic, water, and power already in place and an existing 40x24 slab that would be perfect for what I was planning. We had negotiated a sale price subject to my closing and a septic inspection, and I was anticipating a closing on the 3rd of April. My offer was well above any she's had but that doesn't guarantee she'll wait on the next closing.

My Momma would say that this fell through so something better could come along. Hope you're right Momma...
 
You must log in or register to reply here.
Top