Confused Buyer(Seller Doesn't Want to Sell)

New Rochelle, NY · Member since 2018 · 235 posts · 151 votes

I had a property under contract and initially the sellers only wanted to give me two weeks to close but we immediately requested more time for appraisal and title search and they gave us an additional week. The earliest the lenders could schedule the appraisal was for the following week, so we fought for more time and they extended us an additional week. So I go back and request to extend closing by two additional weeks and they say no so we cancel the deal only for them to put the property back on the market and will likely still be there beyond the date I requested to have closing extended to. It seems like they don't want to sell the property. What reason would a seller have to not extend closing?

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Zack Papaleonti

Real Estate Agent · Annapolis, MD · Member since 2020 · 8 posts · 6 votes

They are absolutely doubting your ability to close at this point. With everything going on right now, sellers do not want to waste time. Inventory is way too low across the board. Maybe they need proceeds for their next purchase, maybe they have back-ups in line or received more interest while under contract, but regardless they want to get it back onto the market and try their luck with new buyer. You cannot blame a seller for this if a buyer cannot close when they said they could.

As an agent, I'd be very worried if a buyer has asked multiple times to delay settlement. You must be extremely transparent and great at communicating in these circumstances so they can remain confident this can still get to closing.

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Steve Morris
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
5y
Maybe you lowballed them and they thought they'd rather not sell at your price. Maybe you keep asking for extra time and they doubted your ability to close the deal?
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
5y
They might have bought another property and need to close on this. Plus from the seller's perspective, you've now asked to extend the closing twice which doesn't look good. They could be concerned you won't follow through.
They wanted a quick close, you asked for one more week and now want 2 additional weeks taking you to 5 weeks. It shouldn't take that long to get everything together. You should be able to get your financing and inspection done within 2 weeks and if the lawyers handling the closing know, it can be done within 3 weeks of making the offer. Your financing should have been preapproved.
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Joseph A.
OP
New Rochelle, NY · Member since 2018 · 235 posts · 151 votes
5y
Originally posted by @Theresa Harris:
They might have bought another property and need to close on this. Plus from the seller's perspective, you've now asked to extend the closing twice which doesn't look good. They could be concerned you won't follow through.
They wanted a quick close, you asked for one more week and now want 2 additional weeks taking you to 5 weeks. It shouldn't take that long to get everything together. You should be able to get your financing and inspection done within 2 weeks and if the lawyers handling the closing know, it can be done within 3 weeks of making the offer. Your financing should have been preapproved.

Well in my area it is taking that long, I got the ball rolling on everything once the offer was accepted. My lawyer was the one that informed me that they couldn't get title done in that short of a time and was the one fighting for more time and they would only give him a week at a time. I spoke with the lender and appraisal company to try and move it up earlier and three and a half weeks out was the best they could do. I was already pre approved.
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Joseph A.
OP
New Rochelle, NY · Member since 2018 · 235 posts · 151 votes
5y
Originally posted by @Steve Morris:
Maybe you lowballed them and they thought they'd rather not sell at your price. Maybe you keep asking for extra time and they doubted your ability to close the deal?

I only offered 6000 less than asking. If they didn't want to sell at my price, why even entertain the offer. I expressed to them that I will buy the property I just need time to complete the title and appraisal

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Zack Papaleonti
Real Estate Agent · Annapolis, MD · Member since 2020 · 8 posts · 6 votes
5y
They are absolutely doubting your ability to close at this point. With everything going on right now, sellers do not want to waste time. Inventory is way too low across the board. Maybe they need proceeds for their next purchase, maybe they have back-ups in line or received more interest while under contract, but regardless they want to get it back onto the market and try their luck with new buyer. You cannot blame a seller for this if a buyer cannot close when they said they could.
As an agent, I'd be very worried if a buyer has asked multiple times to delay settlement. You must be extremely transparent and great at communicating in these circumstances so they can remain confident this can still get to closing.

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Steve Morris
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
5y
Welllll, don't know about NY, but if you make a counter-offer, you've given them an opportunity not to accept and possibly get out of the deal.
People change their minds mid-stream all the time, which is why you don't want to give them an out.
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Joseph A.
OP
New Rochelle, NY · Member since 2018 · 235 posts · 151 votes
5y
@Zack Papaleonti I didn't ask for 2 weeks that is what they offered. Yes I'm sure they had a ton of offers on the table for a property that's been on the market 200 plus days......
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David Miretti
Goshen, IN · Member since 2019 · 9 posts · 3 votes
5y
I had a situation where I bought our first property that was for sale by owner. We look at the place agreed to the asking price and then a few days later the seller said his wife didn't want to sell after all. After some prayer and a few more days, God gave me the wisdom to call the seller back and ask why. He said that he thought the property would sell for about $10,000 more and that his wife didn't want to sell it at that low price that he had agreed to. We ended up agreeing to the $10,000 higher price because our Market is very hot and then after the home inspection, we were able to negotiate 9000 and some change into an escrow account that replaced the HVAC and some electrical issues. It appraised higher than we paid, plus we got some added items that should reduce our costs of ownership for awhile. Win-win. I agree that the seller in this case wanted a fast close and adding an extra 3 weeks probably made the deal much less palatable for the seller. You may be able to still salvage the deal by asking some questions and being seen as able to seal the deal. I'm pretty new at all this, but I understand that when people want a fast close that means you have to have all your ducks in a row already and in some cases it might even preclude an appraisal.
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Lynnette E.
Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
5y
They likely considered your price and also the timing to close. If the house has been on the market for a long time, they likely did not want to budge from the price, but did, just to have it sold.
I once entered into a contract to sell to a pre approved owner occupant for a house in a Trust for full price, 30 day closing on the first day it was listed. Well, 28 days later, he asked for a 15 day extension. I said ok, then he wanted another 15 day extension.
I knew I could sell that house to many different buyers at full price. They were giving back up offers, unsolicited. I wanted the house sold quickly because I did not want to do taxes for the Trust for the following year. The Trust would be closed as soon as the properties were sold and the $ distributed. I really did not want to carry it into the next year. Closing would have been before the end of the year.
When closing was to happen, again he wanted 15 more days. I said no, but the realtor said to give him one more extension because it was too late to get another buyer and close that year anyway. So, yes he messed up my plan.
So he got his extra 15 days. At closing I was given paperwork to formalize the last extension as I gave a verbal yes, but did not put it in writing because of the holidays. There also was paperwork to change his financing from owner to investment. He was a scammer investor with no money. AND the realtor gave him a hard money loan for him to close! She knew, and she knew that when I relisted it she would not be the broker the next time.
So, maybe your sellers really want to sell this year to match the numbers on their taxes. Maybe a capitol gain vs. a loss. Who knows? Or maybe they lost faith that you can close.
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Ben Zimmerman
Rental Property Investor · Raleigh, NC · Member since 2016 · 396 posts · 995 votes
5y
Originally posted by @Joseph A.:

It might take YOU that long since you needed to obtain financing. There are plenty of people who can close in under two weeks.
You signed an offer to purchase agreement and in that agreement it listed how long you would have until closing. If you know you can't hit that target then you shouldn't have agreed to it.

How long it sat on the market before you came along isn't relevant. Once you signed an offer to purchase they started looking for a new place to live, either looking for a place to rent or purchasing another home. When you delay closing multiple times you create significant doubt in their minds that you are able to actually close on this deal. They don't need to be stressing out about the sale, or where they will live in the future if you aren't able to follow through on your agreement. All the way up to until the documents are signed, they will be wondering if you can actually pull this off or if you are just wasting their time. People don't want that kind of stress in their lives.
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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
5y
@Joseph A. Well, you knew it wasn’t possible to close in that time frame, since you needed to get a loan. It’s no surprise the sellers are balking now.
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Joseph A.
OP
New Rochelle, NY · Member since 2018 · 235 posts · 151 votes
5y
@David Miretti precluding the appraisal wasn't an option it was a requirement of my hard money lender.
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Joseph A.
OP
New Rochelle, NY · Member since 2018 · 235 posts · 151 votes
5y
@Ben Zimmerman under normal circumstances my hard money lender can close in 10 days, everyone is backed up in my area. I wasn't the one asking for extra time it was the hard money lender.
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Ben Zimmerman
Rental Property Investor · Raleigh, NC · Member since 2016 · 396 posts · 995 votes
5y
Originally posted by @Joseph A.:
@Ben Zimmerman under normal circumstances my hard money lender can close in 10 days, everyone is backed up in my area. I wasn't the one asking for extra time it was the hard money lender.

Not everyone needs to get a loan, and not everyone needs an appraisal. My comment that there are still plenty of people that can close in 10 days still stands.

Further, if everyone in your area is backed up, then you should have known that closing in 10 days was never realistic to begin with.
All I'm saying is you shouldn't be overly surprised when people aren't happy and start backing out of deals when you don't come through as you promised.
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