Did I say check back in a week to find out what happened with
Keith and Emily? Oops. Good thing I’m not a professional blogger! So many real
estate stories to tell but so little time to write them.
So back to the story, Keith and Emily, my clients they were
all ready to settle on the sale of their home. Offer after just 2 days on
market, above list price, all was well in their world. They had a contract in
on a new home in Fairfax which was closing in a few weeks. Everything seemed to be working according to
plan. As I stated in my last post, this was when the figurative bomb was
dropped on us.
Two days before closing (Saturday!), the settlement company
called to inform us that the closing would not happen as scheduled on Monday.
Naturally, I contacted the Buyers’ agent and Lender immediately, but could not
reach them. I attempted throughout the
weekend, to no avail. Finally, late on
Sunday, the Buyers’ Agent called me to inform me that the lender was not able
to underwrite the loan due to a financial situation that should have been
resolved prior to closing. If we had known of the condition at the time of
offer, we would absolutely have passed on this offer. We were in a position of strength with
multiple offers to consider. In fact we had turned down another offer due to a
similar condition. This put my sellers between a rock and hard place because
the market was not as hot as it was when they first put the house up for sale
but they also couldn’t afford to wait to see if the Buyers’ financial situation
would work out. We decided to move forward with breach of contract and get the
house back on the market immediately.
A large part of my job is to take any market fluctuations and
other obstacles in stride. This was an
occasion to put my skills to use. The market had slowed, the house was empty
and no longer staged and we were back to a fresh relationship with any buyer
and their agent that might come along. The market slowing created the
possibility of a lower offer. The unknown of a new buyer and their relationship
created room for other obstacles and challenges. A staged home makes such a
difference when selling because it gives buyers a vision for living in the home
and gives context to any flaws and blemishes.
The sellers and I rolled up our sleeves and got the house back on the market in only four days and under
contract in under two weeks!!! We restaged the house and I re-engaged with agents
and previous potential buyers to inform them the house was back on the market.
I share with my clients, Buyers & Sellers alike, that real estate sales is
a messy process. It is important to set
that expectation so that when things go awry, in this case very awry, that they
are prepared and ready to discuss options to work it out. I help them to keep
perspective and calm throughout the process.
The new offer was a
decent one, however communication with the Buyers’ agent was difficult which
made the process longer than it needed to be. The previous offer had waived the
home inspection but this offer required one.
The inspection brought up a variety of issues that needed to be
addressed. They missed the initial
inspection deadline. Despite missing the deadline, the Buyer had other means of
backing out of the contract. I
recommended that Keith & Emily address a few of the items in the home
inspection report in order to keep the deal in place. After agreement, we moved towards
closing. As we continued towards
closing, difficult communication with the Buyers’ agent created doubt towards
meeting the closing date. Keith and
Emily were now in their new home and were really hoping for a smooth finish to
this sale.
Wouldn’t you know it, just before
the closing (AGAIN!), the Buyer decided to change lenders. This pushed the
closing date by weeks and we were left with the option of doing ANOTHER breach
of contract and relisting the home on the market or simply waiting. Listing the house again for the 3rd time
meant putting it on the market during one of the slowest times of the year for
real estate and having to disclose all of the issues found during the home
inspection. Not ideal for selling a home at a good price and in a timely
manner. I advised Keith and Emily to stick it out and wait for the financing to
come through with this Buyer. It meant
using my negotiating skills for a variety of heated and complicated phone calls
with the new lender and the Buyers’ agent. My priority was to make the process
as easy and pain free for Keith & Emily as I could so that owning two homes
would no longer be their reality.
We finally closed nearly three
weeks after the offer was extended. It was
quite a process but it allowed my relationship with Keith & Emily to
deepen, my negotiating skills to be refined and another successful sale to be
completed.
Even in these complicated and
somewhat frustrating scenarios, I love my job and am so thankful to be able to
serve my clients throughout the whole buying process.
Steve
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