A good lesson for new agents who too often believe that they can solve everyone's problems.
However, if they are not your clients with written representation agreements, the only way to avoid risk is to stay out of it.
After all, they didn't want your help.
This post needs to be read.
I hate it when a former client gets into trouble.
It`s never easy to get involved when something happens to them which is out of your control.
Five months ago we were working with a buyer who decided to purchase a FSBO. They believed "They were getting a better deal" by cutting out the Realtors.
Famous last words to any Realtor who`s heard that before!
In fact when they originally told me of their plan, and why they were placing $7500 in escrow with the Sellers Title company I begged them to reconsider.
They explained the Seller doesn`t want any Realtors involved and it`s best to listen to what the Seller wants,rather than listen to the Realtor who represented them! Nice,huh?
We closed the file,wished them the best and moved on.
Apparently, the home never appraised for the purchase price, after several attempts of going back and forth with the Seller to no avail the Buyer wanted out of the contract!
No such luck!
The seller and the attorney holding the escrow were adamant about keeping the $7500. They explained to the buyer "The Loan Commitment" expired and they have to "Buy The Home" regardless of appraisal issues.
Unable to secure a loan the buyer is in a huge bind!
It`s not our policy to get involved in a transaction which doesn`t concern us!
I`ve found during the course of a few years it tends to lead to much more trouble then its worth.
Helping someone retrieve their escrow deposit especially when they made the decision to go against our recommendation is a sure fire headache,one I like to avoid!
I decided to have the buyer send us a copy of the executed contract!
I was aghast at what I read!
The Seller`s really took "Full Advantage" of the buyer by adding an addendum which states" If property located at --------------------------- doesn`t close by Dec. 31st,2008, than buyer forfeit's all rights to the escrow deposit to seller"..
It doesn`t mention appraisal issues or loan commitments.The buyer signed away their deposit money and will have to seek in our opinion legal counsel if they wish to go further.
They buyer explained they wanted the house so badly they didn`t realize the consequences.which is exactly why Mr. FSBo didn`t want any Realtors involved! They Knew!
The moral of this story is quite simple" When dealing with a FSBO it`s always best to hire a Realtor to handle the negotiations with a FSBO.
Entertaining a FSBO~s demands can really cost you! In this case it may wind up costing this person $7500!
visit us @ www.browardbesthomes.com
_______________________________________________________________________________________________________
Want to learn more about Loudoun County, VA? Join Loudoun County, VA on Facebook!
Lenn - This is when the buyer is buying with their eyes instead of with their brain. Let this be a lesson to all buyers, who think FSBO's are a great deal.
Lenn- I probably referred to this instance before, but it's worth repeating. I had clients who waited for our Buyer Agency Agreement to expire. Then they purchased direct from a seller, who must have assured them he could offer a better deal, with no agents involved. They overpaid by about $200,000.
How many times have we all seen this. Very much worth of a reblog, Lenn. Merry Christmas.
Sometimes buyers get just what they deserve. And this buyer probably got just that.
Lenn- Just stopping by this Christmas eve to wish you a very merry Christmas.
It is too bad they have to learn the hard way. Buyers think all we want is the commission and really don't add to the experience. Sorry to hear of the problem they had.
Wow... pretty crazy. You would think buyers would learn... Merry Christmas Lenn !
Lenn.... ouch, what an ugly ending. Gee, hence why it's good to have a true professional on both sides of the transaction. In any case, Happy Holidays...
OMG! That's unbelievable. I don't know how those sellers can live with themselves! But I hope the buyers don't ever make that mistake again. It's too bad we don't see blogs like this by the buyers themselves.
Lenn, That is an interesting post. I would have never thought of it that way. Thanks again...
We hate when this happens to good people. But if buyers could just stop and think about it for a minute if it was that easy then everyone would be purchasin and selling without Realtors.
Lenn, Scott and I wish you and your loved ones a wonderful holiday season with all of the joy and love that it brings.
Ouch that hurts. Buyers should at least have a lawyer on their side to review the contract if they think they don't need an agent.