Real Estate Q - Buyer Backs Out For No Reason *UPDATE*

[Vic]

BTW, if you are FSBO-ing, you better hang out the "brokers welcome" and/or "buyers' agents welcome" sign and be prepared to give them a commission of 3% (+or-) at closing, or they ain't bringin' nobody to your house. Quite the opposite, they'll steer their buyers elsewhere.

While I have always had a love/hate relationship with realtors, I do believe that most of them out there are good people who work hard to provide a good service.

 

[Mill]

Originally posted by: JulesMaximus
Yes, it will vary by state. You generally don't have attorneys involved in real estate transactions (not for personal property anyway). Your realtor should know what the laws are in this respect though. This is pretty clear cut and not subject to legal battling in the courts. At least not in CA.

I just got off the phone with my wife and this is law in CA. 17 days, buyer can back out for ANY reason or NO reason at all. If your realtor doesn't know the laws they shouldn't be selling real estate.

Uhh... yes you "generally" do have attorneys for real estate transactions. Not sure who your wife rips off everyday, but it could be that your state is just lax about things.

 

[bernse]

Originally posted by: JulesMaximus

Well duh! I should hope that they wouldn't show a for sale by owner property. Why would they? The owner obviously has no intention of paying them any commission! That's why they're selling privately! That's the whole reasoning by For Sale By Owner. You totally eliminate the MLS, the board, the agents and the costs that go with it. YOU DO NOT NEED TO GO ON MLS TO SELL YOUR HOUSE. ALL IT IS IS ADVERTISING AND GIVING AGENTS ACCESS TO YOUR HOME.

You advertise in the paper and wherever you want. If the market is good, it'll sell. If its not good you may be advised to go with an agent and pony up the $$$. However, even in those instances since the private seller will probably be asking less than a comperably listed home with an agent, it could very easily sell faster.

Hundreds of homes sell everyday without the services of an agent or MLS. Much to their displeasure. It may make the job easier, but it is in no way necessary.

Well, you just pointed out the reason for hiring a real estate agent. If you want your house to sit on the market for months then by all means list it yourself and try to sell it yourself. I've seen these exact results in what is arguably the best real estate market ever!!!

If you want to sell it in a reasonable amount of time then consult an agent.

There is no reason to yell or be hostile. I just disagree with you.

Here endeth the lesson.

There is no lesson here. Unfortunately, you are too closely tied to the real estate board to be fair. (IE - Your spouse is an agent)

Take no offense. No harm is meant. I am not trying to yell or be hostile - just emphasize.

Let me requote-

You advertise in the paper and wherever you want. If the market is good, it'll sell. If its not good you may be advised to go with an agent and pony up the $$$. However, even in those instances since the private seller will probably be asking less than a comperably listed home with an agent, it could very easily sell faster.

When my grandparents passed on 3 years ago my folks sold their house privately. Market was so/so. Not hot, but not dead either.

Took 3-4 days. Less than 1 week for sure.

I sold my first house privately last year.

It was listed in the Friday paper. By Saturday afternoon, the deal was made.

If you want your house to sit on the market for months then by all means list it yourself and try to sell it yourself.

That is pure spin from the real estate industry to try to scare people from selling homes privately and hence out of a possible job and commission cheque. If you are priced reasonably, you'll sell. My neighbors home has been listed on the market (with a respected real estate company) for 3 months now. 3 MONTHS (not yelling, just emphasizing! ). This is in a market where most homes sell in less than 2 weeks. Why? The agent talked the owner into asking too much and is pressuring the owner in not dropping. They are trying to go try to fire their agent and find another one.

Just to give an example that being listed MLS (and paying for it!) is not a promise to move your house fast.

I think we'll just have to agree to disagree

 

[Maetryx]

As a two time buyer, I've used an agent both times. But as a seller, I'm planning on retaining a real estate attorney, and holding the papers myself. It all depends on what you want to do. I have two problems with real estate agents:

1) They don't make money until the deal closes. I don't trust them to look out for my best interest. Like hot shot real estate agents in the $10,000,000 club (or whater... sold that much property in one year). I've been told by their unhappy coworkers (NOT in the $10M club) that they do that by advising the sellers to sell at low prices so it moves faster.

2) As a former land surveyor, I've heard agent horror stories. One time a septic system was found by the surveyors to cross over onto a neighboring property. It needed to be dug up and moved. But the real estate agent said no problem, and called for a new survey, like the next day. The surveyors returned to find that the RISER PIPES were now on the correct property... but the ground was undisturbed. Obviously the real estate agent had CUT THE RISER PIPES with a hack saw and stuck them in the ground on the correct property. The tank remained in place.

Also, my last agent got into a pissing match with my banker... and so the banker told me that they would NO LONGER TAKE CALLS from my agent. I ENDED UP BEING THE MEDIATOR between my agent and the banker. So I was doing my own work anway, to some extent. Loser.

 

[Vic]

Originally posted by: Millennium
Uhh... yes you "generally" do have attorneys for real estate transactions. Not sure who your wife rips off everyday, but it could be that your state is just lax about things.

Different states, different practices, Evan.

In the east, the use of attorneys for real estate transactions is common. Out west here, it's almost unheard of (literally almost never happens). OTOH, brokers, loan officers, escrow officers, and realtors out here tend to have much stricter licensing practices and compliances to adhere to (particularly in California).

 

[alkemyst]

Originally posted by: JulesMaximus

It is a lot of hard work. My wife works her ass off to get listings and sell homes. She has even held open house on homes she isn't listing to meet people and get more name recognition and build up the business. She has a B.S. degree in business and managed large industrial property for years before she just burned out on the hours and the work. She has been in real estate now for 3 years selling but has had her license for 14 years now.

It really doesn't matter if she gets the listing or not, it only means she has to split the commission with the listing agent. I don't care for most RE agents, they don't want to show you better values usually and they try to keep your offer up higher. Every time I want to make an offer I get talked to for 30 mins how I should go a little higher to be 'sure' they will take it. I, mean, WTF is that....like people are all banging down their door with offers and I only get one shot to make mine. I cannot get an agent in my area to show me low priced properties even though I end up finding out they had them as one of their own listings. One agent (that owns her own shop) told me it's not worth her time to sell 'hovels' but she takes the listing to hope someone else sells it.

I really find fault in the whole process since by me getting a better price, she gets less of a commission....most people are driven by money and people are killing each other everyday over $10 and $20 transactions.....doesn't make me feel like I am getting my best deal at all.

If she doesn't know something she will go out of her way to find the answer and she is always looking out for her clients.

I've purchased 2 homes and sold one and never dealt with a lawyer at any point during the process. The contracts are fairly straightforward and I'm sure they are drawn up by lawyers originally and there are things in there that she can change but at no point in any of my real estate dealings did I deal with or talk to or, more importantly, pay for legal counsel.

I think lawyers are down there with car salesmen quite frankly and there are many that are just slime.

Everyone thinks a contract looks good until there is a problem....and in most situations there are no problems. Most of the time those contracts are worded to make the agent and seller non-responsible for the common types of things that go very very wrong, and at that point it's too late.

There are good agents, but even those good ones I am willing to bet hate when their commission suffers over a good deal gotten.

 

[Murpheeee]

updated with outcome in 1st post

 

[alkemyst]

I would have kept the $1500, if they fought to buy your house sell it to them.

 

[CraigRT]

god that's lame
i'd be sew pissed

 

[Murpheeee]

Originally posted by: alkemyst
I would have kept the $1500, if they fought to buy your house sell it to them.

Well you cannot force someone to buy a house.
The best we would do would be keep a part of the deposit if we proved that we lost money as a result.
Who knows ow long that would take......meanwhile we can't sell to anyone else

 

[FoBoT]

yup , unless you are rich/have the time to spare, you can't really do anything, sorry dude

 

[maziwanka]

in the end its pretty safe - imagine for some reason you had to back out of an offer you put on a new house...

 

[RagingBITCH]

I would have called her up personally and told the b1tch to fvck off and keep her money.

 

[Vic]

Well, Murpheeee, the good news is that you still have a buyer.

 

[BruinEd03]

Originally posted by: Murpheeee
I am selling my house.

Accepted an offer on Wednesday. Both parties signed contract same day.
Went to Attorneys on Thursday morning.
Today buyer's attorney refused contract.

My realtor called buyers's relator and discovered reason was buyer's 99 year old mother (whom she lives with) talked her out of it.

Anything we can do about it?


UPDATE - 11/18/03

For anyone interested in the outcome to this fiasco.....read on.

The buyer's realtor provided me with a Release document for me to sign to release the buyer from the contract and return her $1500 deposit.

I spoke to my attorney who said that I could pursue it further, but it becomes a very messy and expensive (legal fees) litigation process, during which time I am still under contract and cannot accept any other offers on my house.

We cannot let this drag on as we have a contingent offer accepted on our new house and need to get ours sold. So as much as we would like to show this "buyer" that you cannot just walk away from a contract.....we had to let it slide. :|

You've got a good lawyer...most shady lawyers will just tell u to litigate it so they can make $$$ off of it.

-Ed

 

[alkemyst]

Originally posted by: Murpheeee

Originally posted by: alkemyst
I would have kept the $1500, if they fought to buy your house sell it to them.

Well you cannot force someone to buy a house.
The best we would do would be keep a part of the deposit if we proved that we lost money as a result.
Who knows ow long that would take......meanwhile we can't sell to anyone else

I still would have kept their money....why couldn't you sell to another party?

I would not assume they were going to push for a suit, I would have called their bluff on that one.

Either way you have a new buyer...personally I'd would have made them suffer....but then again it's argued whether or not I am clinically insane.

 

[Murpheeee]

Originally posted by: Vic
Well, Murpheeee, the good news is that you still have a buyer.

no, sorry I may have confused everyone.

We have no buyer. We have made an offer on a house we want and had it accepted, contingent to selling ours.

 

[Murpheeee]

Originally posted by: maziwanka
in the end its pretty safe - imagine for some reason you had to back out of an offer you put on a new house...

If I did that I would have assumed I would at least lose my deposit......otherwise the contract is useless

 

[Vic]

Originally posted by: Murpheeee
no, sorry I may have confused everyone.

We have no buyer. We have made an offer on a house we want and had it accepted, contingent to selling ours.

Doh!

Damnit, didn't read your full update, sorry about that...

That's just par for the course in real estate though. People are always d!cking around not realizing that time is money...
Best advice I can give is to follow your lawyer's advice. Hopefully it all works out.