Buyers backed out of deal

Buyers backed out of deal

South Jersey · Member since 2016 · 78 posts · 35 votes
So we just recently put our flip up for sale.. within 18 hours, we received a full price offer with them asking to immediately take the House off the market. Obviously our realtor said we’re going to wait until all the showings are through and wait until we sign contracts. Well after a few days we decided to accept their offer, sign contracts and take it off the market. Everything was going great. 2 weeks went by and the home inspector came. Of course, they find things.... it’s their job. They’re going to knit pick! The “buyers” put on their repair list to upgrade heater (which has been working great and was serviced), install sliding basement windows (which is an upgrade and we told them no because that could get pricey), our kitchen shelves in (we didn’t get to that just yet), put screens in windows (I was getting some broken screens re screened and didn’t put them in bc of the weather), etc. Well anyway.. we said we would repair about 85% of their repair list. Well they came back today and said they wanted to see all the permits because they were concerned about the “quality of the work.” I sent the permits over to my realtor and my realtor sent them over..... next thing you know my realtor calls me up saying the “buyers” are backing out of the deal because their concern of the quality of the work and the lack of permits! It’s funny because our construction company is very well known around the area (the buyers were from out of town) and have complete multiple prestigious builds, remodels, additions, etc. Oh well! Can’t dwell on it, but thought I would share! I’m thinking it’s a cop out from first time home buyers thinking they’re going to get Taj Mahal in a little town!
2Reply
54 views

Most Popular Reply

Investor · Springfield, MO · Member since 2012 · 320 posts · 115 votes
8y

 Read your first sentence. They know what they’re doing. They asked you to take it off the market because they want to negotiate a better deal with you in negotiating on the inspection and then asking for the permits.  They hold off the market, then wittle your price down. Don’t take your property off the market until closing. 

See this reply in the discussion

18 Replies

Jump to latestLatest
  • Investor · Springfield, MO · Member since 2012 · 320 posts · 115 votes
    8y

     Read your first sentence. They know what they’re doing. They asked you to take it off the market because they want to negotiate a better deal with you in negotiating on the inspection and then asking for the permits.  They hold off the market, then wittle your price down. Don’t take your property off the market until closing. 

  • Flipper · Tampa, FL · Member since 2017 · 9 posts · 3 votes
    8y

    I understand you want to get the return on your property as soon as possible. But with how the market is right now you as the seller have the ability to be nit picky about your buyer. You gotta remember you have be part of a deal that also works for you.

  • South Jersey · Member since 2016 · 78 posts · 35 votes
    8y
    It’s not technically off the market.. the sign is still up in the yard but we had to take it off online because we are under contract. I agree with you! My realtor said last night that he’s trying to save the deal. Now they’re telling me they want plumbing and electrical permits. I told my realtor that I’ll send them copies (which I think it totally crap), but if they pull anymore nonsense.. the deal is off! I know that we shouldn’t be playing into their hand because ultimately we get the final say... but the only thing that’s keeping me to want to save the deal is that we already have another property lined up, but can’t get that until we get the money from this flip.
  • Blue Springs, MO · Member since 2017 · 24 posts · 16 votes
    8y

    They think they have the upper hand  in this dealing, here is how I deal with this.  Tell them wow, we sure didn't realize there were so many problems and issues with our house and we just wouldn't feel right selling something in such bad shape and by using one of the most respected builders in your area you thought for sure the workmanship would be top notch.  You think maybe it would be best if you just return their earnest deposit and pull if off the market until all these things can be fixed.  However, if all these issues do get fixed you will have to considerably raise the price when you do put it back on the market because of all the extra costs involved.    I bet they can't get to closing fast enough and if not, they weren't your buyer anyway.  

  • South Jersey · Member since 2016 · 78 posts · 35 votes
    8y

    I basically just told my realtor that we’re gonna start giving them a taste of their own medicine. We’ve cooperated with them, told them we would Do all the repairs by licensed professionals.. like they requested. We’re giving them all the permits. Do they want the house or not.. plain and simple? If they want to use all this other nonsense as an excuse... fine! We will put it back on the market!

    Still waiting for their response!!

  • Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    8y

    How did it go

  • South Jersey · Member since 2016 · 78 posts · 35 votes
    8y

    @Account Closed with all the things they were complaining about and not giving us any time to make any of the repairs.. we knew they wanted to get out of the deal. They got out.. we put it back on the market, found new buyers and ended up settling last week! 

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    Originally posted by @Casey Mericle:

     Read your first sentence. They know what they’re doing. They asked you to take it off the market because they want to negotiate a better deal with you in negotiating on the inspection and then asking for the permits.  They hold off the market, then wittle your price down. Don’t take your property off the market until closing. 

    thats not realistic.. unless you have a field in your MLS that says bumpable and the buyer agree's to the bump contingency..

  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    8y

    In Las Vegas and in MN that property woulda been active but contingent. I've bought many houses that were contingent. I just have my agent call the selling agent and ask how the sales going and if they think they'll close "on time" (expected close is usually listed in the MLS). Ps. Would they like a backup offer from a guy who's going to close if he gets his offer accepted.

    In this case buyer woulda have put in a a written addendum saying we want this fixed or the deals off. Selling agent would call us, we’d say yes. And they’d tell previous buyers to get lost. I would never respond to buyers requests for repairs that aren’t on an official addendum that says do this or the deals off. 

    Glad you got it sold in the long run, but in this market you shouldn’t have had to jump through so many hoops. 

  • South Jersey · Member since 2016 · 78 posts · 35 votes
    8y

    @Bill B. That’s the thing.. we did sign an addendum saying we would make the repairs

  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    8y

    @Dawn Curry

    I wasn’t saying you did anything wrong. 

    I was saying...

    1) others should have seen it on MLS at contingent but not pending and felt free to make offers.

    2) your realtor should have been open to accepting those offers if current buyer was being a PITA.

    3) in this hot market you shouldn’t have had to jump through so many hoops. You bent over backwards for thee people and they still weren’t happy. I’m just glad it worked out in the end for you even if it took an extra month or two. 

  • South Jersey · Member since 2016 · 78 posts · 35 votes
    8y

    @Bill B. It was after attorney review. And yea I know.. I was just letting you know the craziness to them haha!! It just aggravated me because they didn’t give us any time to do anything before they started attacking our work! But it was worth the wait.. the new buyers are in love with the house and they were so excited to move in.

  • Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    8y

    @Dawn Curry Sorry to hear that, it sucks! 😞

    For our flips, we always change the water heater (we do higher end flips).

    Also, we do a final PUNCH LIST, which essentially is a home inspection from our side to ensure that everything minute detail is included for touch up and/or fixing. 

    In any case, I'm certain you'll get a new offer (maybe even higher) and sell this thing pretty soon. 

    Hope this helps a little. Goodluck on the sale. Thanks! - Ola

  • South Jersey · Member since 2016 · 78 posts · 35 votes
    8y

    @Ola Dantis yea we did change the water heater but we hadn’t closed the permit for it yet. Therefore we didn’t have it in our hands at the time of their request. I told them that and they were very inpatient - getting the township inspector and getting the official permit doesn’t happen overnight!

  • Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    8y

    @Dawn Curry Oh got ya. 

    Yes, the inspectors do take their time :)

  • Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes
    8y
    Originally posted by @Casey Mericle:

     Read your first sentence. They know what they’re doing. They asked you to take it off the market because they want to negotiate a better deal with you in negotiating on the inspection and then asking for the permits.  They hold off the market, then wittle your price down. Don’t take your property off the market until closing. 

     Yep! Exact same thing happened to me recently. Unscrupulous "investors". Never again. I ended up selling my house to the next buyer.

  • Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes
    8y
    Originally posted by @Bill B.:

    @Dawn Curry

    I wasn’t saying you did anything wrong. 

    I was saying...

    1) others should have seen it on MLS at contingent but not pending and felt free to make offers.

    2) your realtor should have been open to accepting those offers if current buyer was being a PITA.

    3) in this hot market you shouldn’t have had to jump through so many hoops. You bent over backwards for thee people and they still weren’t happy. I’m just glad it worked out in the end for you even if it took an extra month or two. 

     The thing is, the earnest money is nearly useless. The buyers have so many outs, it means nothing. I had a lender for the buyer from out of state recently claim that the money they were going to use for DP was gifted/unseasoned funds. The buyer is a deca millionaire, he has other money, it was a lie the lender, realtor, escrow and buyer (all of whom are from the same country originally) told to help get their buyer out of the deal after he tied my house up for TWO weeks. When he couldn't make it down to look at the house in person within the inspection period, he backed out using this as an excuse. A complaint against the lender and realtor will be filed soon....

  • South Jersey · Member since 2016 · 78 posts · 35 votes
    8y

    @Jack B. I was thinking the same thing... earnest money means nothing! I don’t think I’ve heard of one situation where the sellers got the earnest money when the deal fell thru. I would love to hear of a situation(s) when this actually happened!

Join the conversationCreate a free account to reply, vote on answers and follow this thread.