When a buyer cancels on home the day after writing an offer this is always very disappointing for a seller. There are many reasons this can happen. Sometimes buyers are afraid they acted too quickly. Or they feel they settled for something they weren’t really all that happy with as they were tired of looking.
Sometimes its because the buyer’s agent didn’t share the information readily available. On my probate and trust listings, I always have pest and roof reports available and the disclosures and reports are attached to the listing. The buyer can then review the information while in the honeymoon phase, not 17 days later and then they ask for the moon and the stars.
A seller can require buyers to submit offer before seeing a listing. At first, there can be Realtor pushback. Also, we received many buyer’s agent’s phone calls asking if we could please get them in because their buyer really needed to see it. Other agents saying well, good luck, you will never sell it this way. Of course, we would not disregard our seller’s instructions. After about 10 days, we started getting offers. We have received many offers to date.
This property is a tenant-occupied home. They have been there for more than 10 years. The seller did not want his tenants unnecessarily bothered by people looking who really had no intention of buying. We set up an appointment for the agents and buyers to come and view the property during a 30-minute appointment. It is a two-bedroom, one bath, with inside laundry. Most Realtors were pretty understanding, however; one agent complained about the condition of the property. I’m not sure what he expected for $200,000 in a decent neighborhood.
Do experienced Realtors write incomplete offers? That is a great question. The Real Estate purchase agreement, RPA in California is a detailed contract. There are classes at the real estate board and workbook for dummies type books on it. It takes a desire to learn what each sentence and paragraph means. It is an important document as Realtors we do three things:
- List real estate
- Sell property
- Realtors use Listing Agreements and Purchase Agreements
- Realtors can do property management; however, many brokerages do not allow Realtors to do Property Management without adequate training.
- Tenant disputes are one of the most significant issues with DRE, the Department of Real Estate.
- Incomplete offers are more common than you might think.
Our team takes a large number of listings each year. the offers arrive without dates, without the agency confirmation filled out, appropriate boxes are not checked or the incorrect boxes are checked. Newer agents who write lots of offers sometimes have more experience writing offers. An agent who has 10 years on the job but only writes 10 offers a year, may not have as much experience as an agent with 5 years of experience who writes 40 offers per year. Do experienced Realtors write incomplete offers? Yes.
There are always second chances to sell a property, but one question a seller asked yesterday was interesting. He asked, can a counter offer on a Sacramento home come back to life? Last week, we received an offer on his Sacramento listing in Midtown. The offer needed a counter offer as there were some things that needed to be much improved. The good faith deposit, for instance, it was very low. I had not seen such a low offer of a deposit amount in many years. We write offers with three percent down as that is the liquidated damages amount. A generous good faith deposit tells the seller a buyer is serious.
Christmas-time is a perfect example of how a buyer can miss the train in Sacramento real estate. The buyer’s agent was trying to write an offer while juggling a bunch of small children, picking up family members at the airport and unwrapping presents on Christmas Day. We agents work all the time, but sometimes, maybe we should not. Or maybe we should hand the buyers over to an agent who has time.
This particular agent was in such a rush, she did not stop to consider that she could miss the train in Sacramento real estate. When she called, I let her know we had sent a counter offer to other buyers. Also explained I fully expected that buyer to accept the counter offer. It was mostly clarifications and we had already agreed upon the terms. However, if she sent a better offer, the seller is always free to pull back the counter offer.