Trying to Sell First Rental House and Buyer Ghosted

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Trying to Sell First Rental House and Buyer Ghosted

Rachel Fairweather
Member since 2019 · 10 posts · 5 votes

We are trying to sell a rental house we bought in 2019. I have a friend who is an agent, so she agreed to list for 1% as long as we handled the showings. We had a contract with a buyer that fell through after they did a further inspection and lowered their initial offer by $11.5k. After that house fell out, I had another buyer call, but I struggled to get him to provide a written offer. We did get a written offer once he hired our realtor as his buyer's agent. However, when it came to proof of funds, he provided a picture of cash. Unbeknownst to me, my realtor kept it from me that he hadn't actually put down earnest money, and he was well past the three days so we said we were canceling the contract. He responded immediately and said he would get it done last week, but of course, that never happened.

I guess I'm asking two things. The original contract was signed in early November, but the buyer didn't want to close until late December. As a concession, the buyer offered an additional $2k for the inconvenience. Of course, with no earnest money, that doesn't help me now. Is this some sort of weird scam or are there buyers out there that are doing this for kicks?

My second question is, can we legally hold our realtor or her broker liable since she kept it from us?

If you were in this situation (or have been before), what would you do?

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Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
9mo

So many red flags. Probably a noobie wholesaler. I had a feeling where this was going when you started with friend/agent for 1% if you handle the showings... there is nothing to handle, showings are done by the buyers agent! So you got what you paid for and now you are looking to hold someone liable. Has your friend sold a property before? I would not be shocked if this is number one or two.

Selling a low priced rental property is generally surprisingly hard. It's a lot less work for an agent to sell a 400k home than a sub 200k home. The probability of a sub 200k deal not making it to the closing table is high, I'd like to say somewhere around 50%. Deals fall apart at inspection is #1, or buyers get cold feet, loose their job, financing does not work out etc. 

Frankly, even normal comission on a sub 200k listing does not cover the cost of doing business. That's why wholesalers exist: they are not limited to 3% (of a small base), they can just call it 10k even on a 50k listing, which would be 20%..

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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    9mo

    Get the deposit money funded immediately. If it isn't terminated the agreement. As long as the sales agreement was drafted correctly you should be able to do so immediately if you wanted but given how close you are to a potential sale, worth trying once more to get the deposit funded and any other verification necessary that this buyer has the ability to close in a few days. 

    If no deposit is funded and the agreement is terminated, I would recommend re-listing the property with a broker who charges standard commission rates and provides full-service representation. Good agents generally do not discount their fees or structure engagements in the manner you described, because their time and resources are better allocated elsewhere. Unfortunately, what you are experiencing is the consequence of trying to save a few dollars. In actuality its costing you more than the commissions you thought you were saving.

    If you want to go after the agent answer this: What are your actual damages and how much is it going to cost you to try to collect those damages? Your entire process start to finish has been penny wise and pound foolish.

    [email protected]
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  • Janice Carter
    Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 607 votes
    9mo

    Rachel, 

    This does not appear to be a scam but I think the buyer is unable to perform or is simply not serious. The absence of verified proof of funds and the failure to timely deposit earnest money are major red flags. Some buyers engage in this behavior hoping the seller will wait, renegotiate or feel pressured by timing, especially when a delayed closing is involved.

    However, the more serious issue is representation and disclosure. If your agent/friend was aware that the earnest money had not been deposited and failed to disclose that material fact, that is a significant concern. Earnest money status directly impacts the enforceability and strength of a contract and withholding that information prevents you from making fully informed decisions as the seller. This would constitute a breach of fiduciary duty. If I were in your position, I would 1) Immediately escalate the matter to the broker, in writing and request a clear explanation as to why the agent failed to disclosure that the earnest money was not received. 2) Request documentation showing when or if earnest money was requested, received or followed up on. 3) Terminate the representation if trust has been compromised.

    Ultimately, this situation is less about buyers acting in bad faith and more about inadequate screening and weak enforcement of contract terms, compounded by an agent’s failure to fully protect your interests.

    1Reply
  • J CastroBusiness Member
    Lender · Florida · Member since 2025 · 712 posts · 254 votes
    9mo
    Quote from @Rachel Fairweather:

    We are trying to sell a rental house we bought in 2019. I have a friend who is an agent, so she agreed to list for 1% as long as we handled the showings. We had a contract with a buyer that fell through after they did a further inspection and lowered their initial offer by $11.5k. After that house fell out, I had another buyer call, but I struggled to get him to provide a written offer. We did get a written offer once he hired our realtor as his buyer's agent. However, when it came to proof of funds, he provided a picture of cash. Unbeknownst to me, my realtor kept it from me that he hadn't actually put down earnest money, and he was well past the three days so we said we were canceling the contract. He responded immediately and said he would get it done last week, but of course, that never happened.

    I guess I'm asking two things. The original contract was signed in early November, but the buyer didn't want to close until late December. As a concession, the buyer offered an additional $2k for the inconvenience. Of course, with no earnest money, that doesn't help me now. Is this some sort of weird scam or are there buyers out there that are doing this for kicks?

    My second question is, can we legally hold our realtor or her broker liable since she kept it from us?

    If you were in this situation (or have been before), what would you do?

    Hey @Rachel Fairweather, welcome to BP!

    Everything you’re describing is not only frustrating, but it’s exactly why investors have processes in place to filter out unserious buyers early. None of what happened is normal, and it’s not “for kicks” — it’s usually a combination of unqualified buyers and agent oversight.

    Not necessarily a scam, but definitely a red flag buyer.

    Serious buyers:
    • Submit earnest money within 1–3 business days
    • Provide real proof of funds or a lender DU/approval
    • Don’t push closing 6+ weeks out unless there’s a specific reason
    • Don’t communicate inconsistently

    The “proof of funds = picture of cash” is something we see from buyers who don’t have bankable funds, or are hoping to stall while they figure it out.
    At minimum, he was not a qualified or ready buyer.

    Investors in your situation would normally...
    A. Cancel the contract and move on (you did the right thing)
     •     No earnest money = no seriousness.
     • No need to keep trying to revive dead deals.

    B. Consider using an investor-friendly agent
     •     Not all agents understand contracts, timelines, and how to vet buyers.
     • Even if you stay with your friend, get a second set of eyes.

    C. Relist immediately — but tighten the process
    Before accepting another offer:
     • Require earnest money within 24–48 hours
     • Require verified POF (bank statement or bank letter)
     • Make sure your agent actively manages buyer timelines and communicates with you
    • Don’t entertain “cash buyers” who refuse to show bankability

    You’re not alone — investor sellers run into this more often than you can imagine.
    The key is tightening your process so only real buyers make it through the gate.

    Best of Luck!

    JCREIG Capital Funding
    WebsiteView Page
    1Reply
  • Rachel Fairweather
    OP
    Member since 2019 · 10 posts · 5 votes
    9mo

    Thank you for everyone that replied! J Castro, I appreciate you letting me know I'm not alone. This is my first selling experience, so I knew there would be some bumps in the road. That won't happen again! 

    0Reply
  • Steve K.
    Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    9mo

    Sounds like the “buyer” may have actually been a wholesaler? Maybe not but you’re definitely being jerked around. Stuart nailed it: you get what you pay for and hiring a listing agent for 1% doesn’t do you any favors if they aren’t going to qualify buyers or handle the sale properly. Also never heard of a seller showing a property before, that is odd and probably scares some buyers away as they typically prefer to have the place to themselves with their agent there or if anything the listing will be present on higher-end properties, but the seller should not be there. I would recommend hiring a professional and getting it done professionally! 

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    9mo

    I agree with the other person who said relist with another realtor.  I would never accept an offer that didn't have a  deposit and if the offer said there would be a deposit and none was received, the offer is not complete.

    2Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    9mo

    So many red flags. Probably a noobie wholesaler. I had a feeling where this was going when you started with friend/agent for 1% if you handle the showings... there is nothing to handle, showings are done by the buyers agent! So you got what you paid for and now you are looking to hold someone liable. Has your friend sold a property before? I would not be shocked if this is number one or two.

    Selling a low priced rental property is generally surprisingly hard. It's a lot less work for an agent to sell a 400k home than a sub 200k home. The probability of a sub 200k deal not making it to the closing table is high, I'd like to say somewhere around 50%. Deals fall apart at inspection is #1, or buyers get cold feet, loose their job, financing does not work out etc. 

    Frankly, even normal comission on a sub 200k listing does not cover the cost of doing business. That's why wholesalers exist: they are not limited to 3% (of a small base), they can just call it 10k even on a 50k listing, which would be 20%..

    2Reply
  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    9mo

    I'd politely stop working with the friend/agent (like others stated), and I'd tell both of those buyers to kick rocks. So many red flags at time when you can't have any. 

    In our experience lately there's a lot of window shopping going on. We don't entertain it. 

    1Reply
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