It happened last night. I got that call every real estate agent dreads. "My buyer wants out."
Ugh.
It was a solid deal. There was no reason to think things would take a turn over the next few days. But then the phone calls start coming in from the buyer's agent, and you can just feel that this solid deal is melting away.
Yet until you actually hear the words, you hold out every bit of hope that the buyer will see things clearly and meet you and your sellers at the closing table. But that just wasn't the case this time.
The phone conversation with my seller reminded me of the level and number of emotions that are wrapped up in every single real estate transaction.
Hope. Anxiety. Fear. Happiness. Relief. Frustration. Gratitude. Excitement. Anticipation.
It also reminded me that one of the most important parts of our job is to support our sellers and provide assurance that everything will be O.K. when we hit a bump in the road.
It's easy to make assumptions or pass judgment, but I think it's important and necessary for us to take the time to listen to our sellers. Let them vent. Let them be angry. And then help them to let go of this one and move on.
Help them to trust that a better buyer is out there. Assure them that you will do everything you can to bring that buyer to them. And then go out and do it.
The agony of defeat. I feel it so well. But, then again, I am not the one with thousands of dollars on the line. I feel your pain however. And, you know that a better deal is coming down the road.
Peggy: One of the things I always tell my seller is that nothing is "sold" until it records. Heard of one today where the seller had gone WAY down on his price, had multiple showings because of it, got an offer that went even lower. The seller had all expectations of it closing. But the deal fell apart anyway for whatever reason. It's tough to pick yourself up from that.
I don't mind a buyer skipping town, but when they want to run off with valid earnest money on the table I think Peggy the Listing Agent is not protecting the Seller's rights. So much whining by buyers to skip AND want their earnest money back TOO!! This is why it is called a CONTRACT. Serious business this buying and selling houses but each side has to have skin in the game and TRY best as possible to make the deal work. Buyers agents and Seller agents need to communicate TIGHT all the time what is going on.
Ron -- Yeah, this is a tough one. We really think it's a case of buyer's remorse. Back to the drawing board, but I agree with you -- there's a better deal out there. Thank you for stopping by!
Hella -- It is very tough to pick yourself up, especially when all indications were that the buyer was so excited about buying this house. But all will be well. Just need to assure my sellers of that.
I have my fingers crossed right now that my buyer is not going to walk away from our deal!!!! It is hard when it happens to sellers. Supporting them when it happens is so important and helpful for their peace of mind that another buyer will come along.
Gary -- I agree wholeheartedly that without valid reasons for wanting out, the seller keeps the earnest money. Just is not okay to walk away because you have cold feet.
Terrie -- I'll keep my fingers crossed for you, too! We did have a lot of interest in the property so am hoping at least some of those buyers are still out there!
I think when the check is handed to you and you put it in the bank is the only time anything is certain. We earn our keep from contract to close not from listing to contract.
Cheryl -- So, so true. I never count on that money until the papers are signed at the closing table and the checks are disbursed!
As tough as it is to be on either side of the phone, think about what must be happening to the buyer and that buyer's agent that has to make that call. Yucky, but you are right that we get to experience a wide array of emotions in this business. It is best to be empathetic and let them vent, make sure that they do not blame you, their trusted agent, and are willing to move through and find a new buyer.
It happens quite a bit especially when working with short sales.
I never count on the commission check until I receive it in hand. I've heard of so many deals falling through at the last minute. It's such a different environment right now.
Karen -- I've been on the buyer's side one time and had to make the call. Very difficult. But the professionalism and graciousness of the seller's agent taught me a lot. It's a tough situation on both sides and regardless of the reasons for the buyer wanting to be let out of the contract.
Christianne -- Agree. I have to say I have been very lucky with the short sales I've been involved with.
Trang -- Me neither. Learned that tough lesson early on.
Peggy - we have all been through it... I would like to feel that if we were with the buyer, could perceive them, see their emotions we would have known better but not so..as we all have been on the other side - making that phone call to the other agent... As you have just written, it is important to be gracious, apologetic... for there but the grace of G-d go we...and this just happens.... Best, Gay
I always remind the sellers (and myself) there is a buyer for every property, and it's my job to find them another one.
I have been in this situation, and I realize that no transaction is over until settlement is over and the checks have been exchanged. Disappointing, but true.
Peggy
We are seeing in MA a buyers market again. The first time buyers are a bit skitish and then we have few true upgrade buyers instead seeing condo owners hold their condos and try to buy a first home at the same time this also makes for some stress on deals. Good work with your seller
It's painful just to hear about. All you can tell the seller is: 'it just wasn't meant to be', whatever the heck that's supposed to mean. Or, 'all we can do is lick our wounds and find another buyer'.
A few times I've had to sell the same listing 3 times because buyers didn't qualify. Best wishes...onward and upward. That's another one.
Ouch that must have hurt.
I can relate and I like the way you explain your self. I recently had a deal where it didn't matter whether they stayed or left. The property was a little under market which always works very well for me and my clients. The buyers incentive to to not lose the deal provides a great incentive to stay in the game
So sorry, Peggy! When I read the last line of your blog, i heard myself saying "& then still beat you up because it wasn't soon enough or they think you get paid too much", etc, etc. !! :)
Everything happens for a reason. Maybe by losing this buyer, another buyer will come in at a higher offer?? Sending good thoughts your way!
Peggy -- I agree with Tricia #24. When this happened to me once, the next offer was 5% higher! Think positive and great things will happen!
What a heartbreaking moment. Kudos for helping your sellers through. Hope to see a follow-up that indicates a happy ending (closed deal at higher price?)
Good Luck!
Peggy ~ Holding hands with and counseling our clients is one of the most vital parts of our job!
Peggy, we just had a short sale deal fall through that was solid and days away from approval. Buyers came in town and found another home they liked better. The left thier $500 deposit. It's very frustrating but we will sell it again...grrr...the sellers are taking it pretty well.
Sharon
sorry to hear. Maybe there is hope that they will reconsider.
I've had a buyer cancel and then come back and put a contract on one of my listings weeks later.
Hi Peggy~ We've all had it happen. It is inevitable and it is not fun at all! Thankfully it doesn't happen too often!
We have the same issues being the lender on a property. People state their hopes and dreams regarding a home and the payment. You deliver the dream and scratch your head when they walk away. There is hope, two walked back this month!
Yes, being on either end of THAT phone call is no fun! I'm surprised at how few sellers actually insist on keeping the EMD. Although I work primarily with buyers, I think they should keep the EMD to reinforce to buyers that ITS A CONTRACT and is NOT to be taken lightly!
Peggy, There is always a better buyer coming. This is a leap for a seller to grasp and embrace … we know it is true.
Peggy, I'm so sorry for both you and the sellers. We recently had the same thing happen on a listing of mine. The buyer (the wife), lost her job. They could have still qualified to buy, but since both husband and wife worked for the same company and are older in years...they felt it would be smarter to stay put. Who can blame them?? I'm happy to say we now have another offer just a few weeks later. Hope your sellers have another offer coming down the pike soon!!
When a deal melts away, I try to remember that everyone involved in the transaction is frustrated. As several people have said above, the deal is not done until the loan is funded. I hope that your 2011 is filled with successful transactions!
Peggy:
I know that feeling. But at least you had some prior warning. Your job is to sooth your seller's disappointment. I hope you receive another better offer soon.
It is difficult for all parties involved but as the agent for the Seller(s) or the Buyer(s) we need to be supportive, understanding, and focused on moving forward to market the property and find the right Buyer for the property or the right property for our Buyer(s).
As I read your post I could feel that awful feeling. And yes, it is our job to guide/lead/coax/drag our seller out of the funk and onto the next buyer.
I'm in the school of good karma where I suggest to just give the money back and get finalized with the cancellation. Nothing more fun than a deal crashing except finding out about a lis pendens half way through the next buyers deal..... joy joy
I feel your disappointment in you post. I love how you choose t turn this negative in to a positive to show your clients how great an agent you are by being there when they need you the most.:) It's a tough pill to swallow, but unfortunately deals do fall through, sometimes with out reason. Great post.
Better sooner than later. The sooner a buyer is going to get out, the less the seller is likely to have been damaged by taking the property off market.
Of course, if the buyer is simply DEFAULTING on a fully accepted contract, the seller is likely to be a bit more accepting with the receipt of the earnest money.
Cheryl, it is a tough call to receive as well as a tough call to make. Everyone working so hard to get it done and then a change and all is upset. The seller needs the assurance that it will be replaced with another contract soon. Good Luck
That's what makes this business so unique. It can be a roller coaster of emotions.
Gay -- I really do think this was a case of buyer's remorse. Thankfully, the parting of ways was peaceful and sellers are ready to find another buyer.
Robert -- I try to stay as optimistic as long as possible in cases like this when it looks like things are heading downward. But it just wasn't meant to be this time.
Norma -- Exactly. I reminded the sellers of the amount of activity we had and the number of interested buyers. We'll find "the" one.
Michele -- Something we all need to remember.
Ed -- We are seeing all sorts of interesting situations and circumstances here, too. Sure keeps our jobs interesting!
Lloyd -- Three times?!? Here's hoping we don't run into that. :)
Mary -- Yes it did. Not fun at all.
Richie -- I think this buyer walked away from an awesome house at an awesome price...
Brenda -- I have to admit my sellers were very gracious toward me and didn't blame me for the buyer's remorse. Now that the initial anger and shock has worn off, I think we're back on track and ready to get this house sold!
Tricia -- Thank you. We are hoping!
Barbara -- That's encouraging to hear!! Keeping my fingers crossed and thinking positively!
Bob -- I will work on that.
Sybil -- Sometimes I forget how much counseling we actually provide!
Sharon -- Buyers walked away from the earnest money. We were surprised but relieved!
Angelia -- You never know. I wonder, though, if my sellers would "take this buyer back." Would be an interesting thing to see!
Vickie -- You are so right! It is rare but when it happens -- ouch!
Matt -- I can only imagine the stories you have. I think there is just so much fear out there today that buyers sometimes get overwhelmed by it all.
Todd -- That's exactly what the sellers did in this case and buyer agreed! You're right -- buyers have to understand this is a contract.
Kathleen -- Thank you for your positive words and attitude!
Sonja -- Thank you, too, for your words of encouragement. I know we'll find the right buyer, too!
Sharon -- Thank you. I wish you (and everyone here!) the best, too, in 2011!
Evelyn -- You're right, and I am glad I was forewarned this deal might be coming apart. Certainly helped give me some time to prepare passing the news on to my seller.
George -- I agree. The best thing is to be there and move forward.
Pete -- Not that I've had a lot of deals fall thru, but I think this is the first time sellers asked for the EM back. And buyer agreed!
Traci -- Thank you for your kind words. You made my day.
Lenn -- Agree! We didn't miss too much time between the acceptance and release of the offer, so we are very grateful for that!
Ed -- So true. I have to believe we'll find another buyer soon!
Bob -- Sure can be a roller coaster of emotions! I would like to get off the ride for a little while, though. ;)
Peggy, sorry to hear that this has happened. Best to march forward and move on. Hope everything works out for you.
Letting go and moving on to the next one is always easier said than done, especially if there has been little activity. Emotion is such a major player in this business!
Oh yes....it ain't over till it's over. Don't count your chickens before they hatch. All those great sayings fit this story.
When all is said and done at the closing table, signed, sealed , delivered.....then you can breath a sigh of relief
Patricia/Seacoast NH & ME
Oh yes....it ain't over till it's over. Don't count your chickens before they hatch. All those great sayings fit this story.
When all is said and done at the closing table, signed, sealed , delivered.....then you can breath a sigh of relief
Patricia/Seacoast NH & ME
Beautifully put, Peggy. It can be a pretty scary scenario for sellers, and the best Realtors can help them pull through.
It's so hard to hear that, especially when you are close to closing. Ouch.
Michael -- Everything will work out -- I'm sure. :) We have a showing tomorrow!
Kevin -- We've been fortunate with this one as far as the level of activity. Hopefully more showings will be scheduled and an offer in hand soon!
Patricia -- So, so true.
Aaron -- thank you, Aaron. I was very lucky to have the supportive sellers I have.
Erica -- It is a tough situation, but thankfully we were still a ways from closing and the house hadn't been "off the market" for too long. I think we'll be okay. :)
That is a tough call to handle - been there myself. So brush off your feet and get work finding another buyer.
Bummer, that's always a tough one for sellers. But they are in good hands.
Very common in short sales for the buyer to walk away, or change their minds, usually right at the time of short sale approval. I remind my sellers, everything has to be just right. I assure them we'll find another buyer. We always do. Not fun having to put the home back on the market though. Good luck to you.
It's definitely up in the ranks with messages you prefer not to hear. Although I try to remind myself it's probably better now than at the Closing Table.
Sometimes you get those tough ones but it is business. At the end of the day I just keep a mindset that it just wasn't ment to be and the right one will come along....
Joyce -- You're right -- that's really all you can do. Fortunately, we've already had a few showings on it, so I'm keeping my fingers crossed that we'll get another AO soon!
Tammi -- Well, thank you. I'm lucky to have such understanding sellers!
Pamela -- I have seen this happen quite a bit with short sales, too.
Mike -- You are so right! And as I've mentioned, we were still 2+ months out from closing, so we were grateful he pulled out sooner rather than later.
Cory -- Exactly. Better things are ahead.
congrats on the feature! It hurts even more when its a lame excuse!