Homes for Sale: My house SOLD five times before we finally got a FIRM DEAL….

“My house sold five times before we got a firm deal”.

Why did this happen and is it common to have Buyers put in offers on homes and then not firm up the deal?  It does happen and it can be very frustrating for not only the Seller but the Listing Agent as well.  Each time the Seller accepts an offer from a Buyer for their home for sale, that has conditions such as the Buyer to arrange financing, or the Buyer wants a home inspection done, or the Buyer wants to make sure they can get insurance on a home of a certain age that might have aluminum wiring there is always a chance that the Buyer will not firm up on the Agreement of Purchase and Sale.

There is also another homes for sale scenario that can happen after the Seller and Buyer have agreed to price and terms on a contract and that is the deposit from the Buyer does not materialize within the time period set in the agreement.  The Seller can decide to wait another day to see if it materializes but if the contract stipulates a specific time for the deposit to be given to the Listing Real Estate Company and they do not get the deposit the home will be put back on the market.  Why does this happen?

The home for sale Listing Agent does not have control over the Agents for the Buyers and Sellers need to be informed about nuances that can happen in this market that is a bit slower and homes that take longer to sell.  Now that there is Buyer Representation Agreements the conversation between Agents is limited but an Agent in the business knows what sales people have good reputations and those that have bad ones.  They can also get a feel for the professionalism of a Buyer’s Agents and also get a feel for the Buyer’s themselves who might come to open houses or call the Listing Agent to view the home.  The Listing Agent needs to prepare the Seller for possible problems and situations that can occur so that it is not a shock or surprise to the Sellers if it happens to them.  The Listing Agent must remain calm, stay upbeat and focused on getting the home sold with a BETTER offer and qualified Buyer.

It is very important to work with a Real Estate Agent who takes the time to explain in detail the process of buying a home to a potential buyer and not assume that the buyer has all the answers and knowledge to move forward in the process.  Many agents get a call from a person,  show them homes,  finds them one they like then do up an offer.  What did they forget to do you ask?  Here are some questions that should be asked by a Realtor to a potential buyer before scouting homes for sale.

1. Do you have full time employment and how long have you been with them?  Can you get a job reference letter because you need it to get a mortgage?
2. Do you have a down payment saved and if so where is the money and is it available now or in 6 months?
3. Do you have extra money set aside for the closing costs such as the lawyers fees, appraisal fee, home inspector cost, water test for a well and movers or is this to be taken out of your down payment money?
4. Do you have to get money from an RRSP?
5. Do you have to give notice to end a lease?
6. Do you have other debts such as support payments, car loan, student loan, line of credit or credit cards and if so what is the payment schedule like for those because that will impact on your ability to pay back a mortgage?
7. Do you have other income from support payments, disability or pension money etc.

Why would a Buyer’s Agent ask these questions BEFORE drawing up an offer on a home?  This is the professional way to do business AND the answers to these questions can save a lot of time, heart ache and frustration on the part of the Buyer, Buyer’s Agent, Sellers and Listing Agent plus not waste time for all parties.

YES it is happening more and more as Buyers try to do things to buy a home ON LINE.
YES it is happening more as  Mortgage Brokers compete for business and work part time at their jobs.
YES it is happening more because Real Estate Agents work part time too and are limited in the amount of time they have to spend with a buyer looking at homes. That is only ONE step in the process and many times if the Realtor does not follow through each step with a Buyer the deal can fall apart before it firms up.

Call The Wilding Team if you want more information about issues dealing with multiple offers, homes that don’t sell, deals falling apart OR if you just want to chat with us about selling a home for sale or buying one.  We are hear to help YOU!