Lee Ginsburg

One Buyer’s Loss is another Buyer’s Second Chance
May 6, 2009 ·  

30% of Real Estate Deals Don’t Go Thru. Maybe it is more, maybe it is less, but that is a pretty good estimate. So what does that mean to buyers and their agents? It means the property you lost out to in multiple offers or just because someone was faster than you does not mean it is gone forever.

 We all know that a ratified offer on a short sale means nothing until the lien holders agree. Many REO’s and individual sales are falling through today. Many buyers, especially first time buyers get concerned when a property falls out of contract. They think there is something majorly wrong with the property. Properties fall out for various reasons today, some for financing issues, property condition issues and just plain “Cold Feet”. One property that fell out and I was able to get into contract for my client was across the street from a school. An elderly couple’s offer was originally accepted on it and upon more thought and said at their age they preferred not to be across from the school and cancelled the contract. For my clients being across the street from a school was a benefit. So you never know. Keeping in touch with the listing agent is not enough. It is important to watch the MLS I have found busy listing agents change the status in the MLS and do not call the previously interested agents. I made an offer on an REO. It fell out; I contacted the agent immediately and requested she submit my original offer. She said she had no record of my previous offer and please resubmit. It leads to wonder if my original offer was ever submitted. That is another subject.

In the past, after the two week contingency period is over we would consider it a solid deal. Not in today’s market. Banks are forever requesting more information, buyers continuously get nervous, lose their job or have an accident. One quick story: Two days before closing, loan docs signed and ready to fund the buyer gets a DUI, loses his license and cannot purchase the home because it was too far from his job. I felt like an ambulance chaser but my client jumped at the opportunity to purchase the property he thought was gone. Originally they were upset they lost this home and couldn’t get it out of their mind. They compared everything we looked at to that. When I called them with the news they were thrilled and couldn’t write the check fast enough. Inspections went smoothly also. I was a hero.

What to do as a listing agent to prevent deals falling out? Keep a record of every agent or buyer that makes contact with you concerning the property and contact them immediately after a deal falls through (maybe even when you get that feeling). When accepting an offer request to see proof of the down payment, question the lender how thorough they were in qualifying the buyer, question the agent as to how serious, motivated and experienced their client is. Have they made other offers? Are they homeowners? How long were they looking for? A listing agent can do and must do the above when they have multiple offers. Price is important but should not be the deciding factor. If you have no other offers ask some questions and keep your fingers crossed.

fingers-crossed

www.leesellsmore.com

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Filed Under Important Thoughts, Real Estate for Buyers and Sellers

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Comments

6 Responses to “One Buyer’s Loss is another Buyer’s Second Chance”

  1. Shokoofeh Nowbakht on May 7th, 2009 12:07 am

    Lee, this is very encouraging to me because I have 2 back up offers out there. You are absolutely right about checking with the agents on the status of the property. I will pay more attention to pending properties, as well. Like you

  2. Shokoofeh Nowbakht on May 7th, 2009 12:08 am

    Like you said, transaction might not complete and someone else may get a chance.

  3. Larry Franzella on May 7th, 2009 8:50 am

    A clear case of why you need to be represented by a good agent who know the market and follows up.

    Larry

  4. Brian Boisson on May 7th, 2009 9:04 am

    Those are wonderful suggestions Lee!

    I especially like the list of questions you have to ask the buyers agent about the offer and the clients motivation.

    Also, the fact to keep an eye on the listing, and stay close to it for your interested customers.

    Thanks,

    Brian

  5. Karin Cunningham on May 7th, 2009 9:34 am

    This really is happening a lot I noticed. It happened to me last month where I had a buyer move from back up position to first. I may pass this along to some of my new buyers who are getting beat up in multi offer situations.

  6. Adam Chinn on May 12th, 2009 7:47 pm

    Lee, Great job. I always inform my clients of a back up offer possibility. Just because a contact has been ratified it doesn’t mean that it will close for sure. Things do happen and hopefully you can be in the position to get the house if the current deal falls through. Keep up the great work.

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