We had a crazy experience this week. Our agent represented lovely buyers who fell in love with a brand new constructed house. They did inspections and they sent a request for repairs. They got an amazing loan and even a rate reduction all the way at the end of the transaction. Loan docs were supposed to arrive today and the deal was supposed to fund on Monday and close on Tuesday. They got some personal catastrophic news from a family member right before close that shifted their family dynamics and it no longer makes sense for them to close on this purchase. Had the sale closed before the news, they would have owned the house. Since it hasn’t closed, it makes more sense for them to lose their deposit of 108,000 than to continue to buy the house. They already ordered custom furniture for all the spaces. They put so much effort into all the planning. But something changed and they’re shifting gears and canceling the purchase.
So far in 15 years of doing real estate, I’ve never seen anyone lose their security deposit. I’ve never yet seen a deal cancel after all contingencies are removed. This is a first and it’s a mind shift when something that really never happens actually does.
There is so little for sale right now!!!!!!!!!!! I feel like the limited supply is partly reinforcing and continuing the limited supply. There’s high demand because interest rates are low and people still working from home want to move to a bigger space with room for everyone to work at home comfortably and also to go outdoors without a mask. Because there’s high demand and limited supply, it’s extremely hard to buy a place right now – competitive buyers are offering over asking, all cash, and limited contingencies for move-in ready spaces that have attractive features. Because it’s so hard to buy, sellers are afraid to put their old house up for sale and risk getting stuck selling and not buying.
The safest way to do it is to find a property to buy and then put the old house up for sale. But for people who need to sell first before they close on a purchase, it’s tricky to get an accepted offer on a purchase contingent on a sale. It may take offering more money for the purchase and pricing the sale low to attract multiple offers and drive the price high. In a short time frame. Tricky but absolutely doable.
We love brainstorming, strategizing, and shepherding people through seemingly complicated situations successfully. We’re selling multiple houses now that were on the market before and didn’t sell because of complicating factors. We’re representing people who are buying and selling at the same time. We love thinking, figuring it out, and ultimately getting people where they want to go. We love the happy people at the end.
Everyone – seller, seller’s agent, buyer’s agent, lender – was disappointed that the buyers had to cancel their purchase literally at the finish line. I couldn’t be more proud of our agent who worked so hard and yet was so genuinely generous and selfless about it. Even in private conversation between us when the client was off the phone, he truly just feels for the client and he sincerely only wants what’s best for them. It’s always all about the client for us. I love that.
We love what we do and it’s an honor to serve the people we represent. For us, the work and serving our clients is our happily ever after.
Wishing all an awesome weekend!
Xoxoxo,
Sheri
