quote:

Originally posted by 911Boss:
A buddy of mine is a top notch real estate agent and I do photos for RE listings for him and a few other agents so I hear a lot of stories.

All cash and quick close, etc - Higher earnest money and unless it is something that comes up on the inspection, nope you don’t get the earnest money back.

Once you pull it off the market, you potentially lose other. Buyers. Especially this time of year. RE is quite seasonal and things are slowing down. Won’t pick back up til spring in most areas.

Yeah these asshats may have cost us a lot of money. If we don't get a good offer very quickly I would rather pay the mortgage for another year or two than sell cheap.

Ski season can be another opportunity, and the Sundance film festival. My worry is the economy crashing and taking real estate with it.

quote:

Originally posted by Fly-Sig:
It has become a thing around here, and we got bit by it this week. I'm pretty angry at our buyers who played us. Our agent tells us it is an increasing complaint from realtors in the last month.

You need to tell your realtor that they need to eat any money you lose out of their commission. You pay them to watch out for things like this and they failed to do their job.

I just took a hit myself. There are/were a few less than ideal circumstances; around day-9 the 6th buyer to actually come see the house makes a offer; Full asking price minus $16k in seller concessions plus the relatively new W&D plus an information only home inspection, with option to back-out. I know carpet is shot and was prepared to give back 10... Again, there are other factors and they are a strong buyer so I agree to take the offer

Home inspector is straight out of school, spends 2.5 hours going over every inch, to include a few details that honestly rubbed me the wrong way... Comes back with a 40 page report and only a few things on this 18 year old home.

The other agent then comes back and requires another addendum stipulating what is about $700 in repairs ($500 to have the HVAC "Serviced", because the home inspector said while the unit worked, it showed signs of not being serviced (Whatever the hell that means). Plus some real BS like an outside railing was loose and get this; the garage door sensors are 8" off the deck, vs 6"

Anyway, I did it, what's another 700, I'm already getting my ass handed to me... I'm just kind of insulted that the buyers agent would go back on their offer to stick me for what is nearly a fraction of a percent of the homes value after I gave them 16k. (Some people just have no honor)

In Massachusetts, typically the offer comes with $1000 deposit. That's usually refunded if they back out, even if it's their own fault. Just not worth the fight. But then they have a certain time to have an inspection, and sign the Purchase and Sale. The P&S would have a much larger deposit (outlined in the offer) and would basically be non-refundable except for usual contingencies like mortgage commitment or sale of buyer's home (if that was in the offer).

quote:

Originally posted by PASig:

quote:

Originally posted by Fly-Sig:

This game of coming back for a price reduction is a new tactic the realtors are just starting to see.

I hope realtors blacklist buyers who do this.

Their realtor may be in on it for all you know

What would a realtor have to gain from this? Believe me, if a realtor has a cash buyer, they just want a smooth transaction. Those games wouldn't do anything for the realtor. First they'd be getting a lower commission, second they get a bad reputation. Even if it's not their fault at all. My wife has had crappy buyers she worked with. When they pull crap like that she wishes they never signed up with her. Totally not worth it.

quote:

Originally posted by mcrimm:
We had a buyer submit a full price offer when we listed our home “For Sale by Owner.” A realtor brought them and wanted 3%. We agreed but he wanted a 6 month listing agreement. We said no and offered a “Name Only” listing.

The realtor said “No Way”. After that the buyer suddenly walked. It was a scam to get a listing agreement and the buyer was probably fictional. It’s not only buyers who are less than honorable. Asshole.

This on has me confused. If they had a buyer, you were paying the buyer's agent fee, what were they trying to list? Your house would be under agreement so there is nothing to list, no?

quote:

Originally posted by frayedends:

quote:

Originally posted by mcrimm:
We had a buyer submit a full price offer when we listed our home “For Sale by Owner.” A realtor brought them and wanted 3%. We agreed but he wanted a 6 month listing agreement. We said no and offered a “Name Only” listing.

The realtor said “No Way”. After that the buyer suddenly walked. It was a scam to get a listing agreement and the buyer was probably fictional. It’s not only buyers who are less than honorable. Asshole.

This on has me confused. If they had a buyer, you were paying the buyer's agent fee, what were they trying to list? Your house would be under agreement so there is nothing to list, no?

This potentially sounds like someone trying to set up a 'Real Estate Wholesaling Agreement'. Not only may there not have been an actual buyer, the 'realtor' may not have even been a licensed Real Estate Agent! It's the latest thing...

This message has been edited. Last edited by: nhracecraft,

quote:

Originally posted by nhracecraft:

quote:

Originally posted by frayedends:

quote:

Originally posted by mcrimm:
We had a buyer submit a full price offer when we listed our home “For Sale by Owner.” A realtor brought them and wanted 3%. We agreed but he wanted a 6 month listing agreement. We said no and offered a “Name Only” listing.

The realtor said “No Way”. After that the buyer suddenly walked. It was a scam to get a listing agreement and the buyer was probably fictional. It’s not only buyers who are less than honorable. Asshole.

This on has me confused. If they had a buyer, you were paying the buyer's agent fee, what were they trying to list? Your house would be under agreement so there is nothing to list, no?

This potentially sounds like someone trying to set up a 'Real Estate Wholesaling Agreement'. Not only may there not have been an actual buyer, the 'realtor' may not have even been a licensed Real Estate Agent! It's the latest thing...

I guess this is just something I don’t understand. Maybe it’s just different in Massachusetts. If the agent had submitted an offer with the 3% commission noted and the seller accepted it, what listing contract do they want?

^^^I guess one would need to read what was actually written in the offer...

What is Real Estate Wholesaling

Wholesale Real Estate Contract: A Guide For Beginners

quote:

Originally posted by frayedends:

I guess this is just something I don’t understand. Maybe it’s just different in Massachusetts. If the agent had submitted an offer with the 3% commission noted and the seller accepted it, what listing contract do they want?

As I read it, mcrimm was doing a for sale by owner, so there was no listing agent. The "buyer" probably was a shill for the agent who was trying to get mcrimm to sign a 6% listing contract. Then the "buyer" would disappear and mcrimm would be stuck with that agent.

quote:

Originally posted by Speedbird:
I'm just kind of insulted that the buyers agent would go back on their offer to stick me for what is nearly a fraction of a percent of the homes value after I gave them 16k. (Some people just have no honor)

Lots of people have no honor!

quote:

Originally posted by Broadside:

You need to tell your realtor that they need to eat any money you lose out of their commission. You pay them to watch out for things like this and they failed to do their job.

Brokers can't anticipate the stupid actions that a buyer might take. And it's likely this sort of thing is referenced in the listing agreement. I'm pretty certain that it would be a waste of time to ask an agent to absorb this type of loss.

Expanding Fly-sig's comments, a seller can add language to the standard contract. It might be helpful to explain to the buyer's agent that the reason for the language is that on a prior contract, the potential buyer demanded a last minute concession on the contract. The 'non standard' language is to ensure this is a serious buyer.

quote:

Originally posted by SR:

quote:

Originally posted by Broadside:

You need to tell your realtor that they need to eat any money you lose out of their commission. You pay them to watch out for things like this and they failed to do their job.

Brokers can't anticipate the stupid actions that a buyer might take. And it's likely this sort of thing is referenced in the listing agreement. I'm pretty certain that it would be a waste of time to ask an agent to absorb this type of loss.

Expanding Fly-sig's comments, a seller can add language to the standard contract. It might be helpful to explain to the buyer's agent that the reason for the language is that on a prior contract, the potential buyer demanded a last minute concession on the contract. The 'non standard' language is to ensure this is a serious buyer.

Our next contract is going to have a hard cash deposit up front, a short timeline, and a big non-refundable deposit between end of due diligence and closing. Either the buyer wants the house or not. We know there is nothing significant wrong with the house, but if there is something minor legitimately needing attention we would address it.

The standard form here says the buyer has full sole discretion on whether they reject the home based on the due diligence. To me, that means anything bad that is found becomes fair game to either ask for $ or end the deal. What it does not mean to me is the buyer is free to demand price concessions not related to any defects found, nor does it mean they are free to just change their mind about wanting the house.

I do want to sell this house and move on, but I'm not going to play the fool to someone else's greedy game.

It is worse in the UK though. Apparently the buyer can back out at any time without penalty, and they are seeing buyers at closing demand a lower price or they will walk. I would help expedite their departure from the building if they did that to me!

quote:

Originally posted by Fly-Sig:

quote:

Originally posted by frayedends:
I guess this is just something I don’t understand. Maybe it’s just different in Massachusetts. If the agent had submitted an offer with the 3% commission noted and the seller accepted it, what listing contract do they want?

As I read it, mcrimm was doing a for sale by owner, so there was no listing agent. The "buyer" probably was a shill for the agent who was trying to get mcrimm to sign a 6% listing contract. Then the "buyer" would disappear and mcrimm would be stuck with that agent.

Actually you read it wrong, so you might want to read it again...

quote:

Originally posted by mcrimm:
We had a buyer submit a full price offer when we listed our home “For Sale by Owner.” A realtor brought them and wanted 3%. We agreed but he wanted a 6 month listing agreement. We said no and offered a “Name Only” listing.