What do you do if a seller under contract is now not motivated?

Question

I put a property under contract and assigned it to another buyer.

The seller asked for an extension due to needing to talk to an attorney regarding understanding the process of completing the estate accounting to prove that the house must be sold by him to pay the home equity loan and other debts of the estate which therefore would not require the signature of the minors in the will. It has been a month and he still doesn’t have a response from his attorney.

Should I tell the cash buyer? Should I tell the seller that if we need to extend again, then I’d need a price reduction? Should I let it go?

Lawrence Potts · Answer

Hire an attorney for them and pay for the consultation fee. Get it scheduled for them. Make it as easy as possible for the seller to get to the finish line. You can't force them to sell but you can make any inconveniences that can hold up a deal easier to deal with. It may not be a motivation issue but an inconvenience issue along with any associated pain, emotions, etc., that can detour them. The above responses are helpful as well. Hope that helps! Let us know what happens. Great job and good luck.

Lydia R. · Answer

My advice would be to get proactive. Call a probate attorney and ask these same questions. Gather information that will be beneficial to your seller. Managing a wholesale transaction is like being  the ringleader of a circus. You have to manage all the moving parts. Stay on top of the seller for updates. If they need information, get it for them. Call their attorney. Call other probate attorneys to get some general advice. Get a LONG extension on your contract to keep control of the deal, ask for more time than you think you will need because you can always close sooner. You probably pulled the trigger a little too early on finding a buyer, probate properties can take a long time. Tell your buyer what is going on (after you get your extension) and then give them the option to back out of the deal and get their EMD back. They might not want to be tied up forever waiting for this deal to close. Or they might be willing to wait. Giving them the option to get out and get their EMD shows integrity and that you are mindful of their money. It will be appreciated. Reputation is everything in this business and you can't buy a good one. You shouldnt need a price reduction. You should just wait until the probate issue is resolved to start looking for a buyer OR re-market the deal and be upfront about the pending probate issue and the time that is needed to resolve. My guess is that if there are minors in the will like you mentioned, a portion of the sales proceeds will need to be placed in a trust to be held for them until they turn 18. Just another step to be mindful of and another delay to expect.

Eliott Elias · Answer

Be transparent with the buyer, light a fire under the seller. Unfortunately this happens, and you can't force the seller to show up to closing. You can file a MOC.

What do you do if a seller under contract is now not motivated?

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