“Not Every Real Estate Transaction is Successful”
After speaking to my client a couple of times it was obvious that the purchase of her second home she had under deposit was not going to happen. This was definitely a case of a stubborn buyer and seller and two Realtors that couldn’t bridge the gap. This one was just not meant to be:
The deal fell through over the weekend. We can't agree. All the heating and water systems need to be replaced to the tune of 9,200 and they won't budge more than 6k on the asking price and I can't justify paying a premium for a home with working systems that I have to pull out and replace before I can put furniture in it because it' basically paying for systems twice, so we are done.
Is there a way to extend the loan so that I don't have to reinvent the wheel with all the paperwork if I find another place in the next 60 days?
Let me know, thanks much.
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Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Email: joe@righttracfg.com
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Hi Joe. To lose a home for less than $18/mo on the payment is ignorance on the buyer's agent and buyers part.
Hi Joe. So for an additional $3,200 she will have a brand new heating system that is worth $9,200. Originally she was going to buy the home with a used system that could go at any time. Doesn't sound like a wise decision to me.
I'm with Conrad Allen and Gabe Sanders.....this does not sound like a wise decision.
Sometimes there is just no reasoning with buyers or sellers. One of our sellers refused an offer that was only $500 under asking. We offered to pay the difference and they refused...True Story!
Both Conrad Allen and Gabe Sanders knocked this one out of the park... too many buyers get all caught up with what is really a small amount of money over a long period of time and don't see the forest for the trees.
Good morning Joe. As they say: "you can't fix stupid"! Enjoy your day!
As the previous comments noted, Joe Petrowsky this buyer must have felt that he/she was deserving of a deal an a platter.
Good morning Joe. Well, it sounds as if both sides do not want to sit down at the closing table.
Hmm... just gave me food for thought for a post.
Good morning Joe. Sometimes transaction go awry simple because the principals can't get over themselves. My current home came to impass and I just decided enough: I want this place. I'm glad I did.
This may come to be a decision that he regrets. Thanks for sharing. Enjoy your day!
Joe, there are times negotiation is just too far apart, and there is no way to save it. Luckily, that does not happen very often!
There are many problems that can be resolved. Isn't it a shame when the problems that can't be resolved are because of people problems? That's foolish. Too bad those that can't negotiate can't sit in the penalty box and let someone else more competent take over the transaction like they do in sports.
Emotions do get caught up in the deals no matter how we may try to keep it business. I do not know the price of the home but I am suspecting the $3,200 a very small percentage. Mark
Joe,
Don't feel like the "Lone Ranger". I deal with this sort of nonsense on a routine basis. I just finished with a deal where minor electrical issues (GFI Plugs....duh?) were going to delay a closing. The owners are older folks, they were more concerned with neatening up the place than hiring an electrician to make the repairs.....it would cost money right? The issue was resolved when my buyer agreed she would take care of the repairs if the owner's left the riding lawn mower.....signed sealed and delivered. The thinking, or lack thereof with today's buyers and sellers, can boggle the mind. You can't make this stuff up!!!
Year's ago, I had two women arguing over a bedspread which matched the curtains in the master bedroom. A four-hundred thousand dollar sale was in jeopardy because neither would budge. Unannounced, I bought the "new owners" an identical bedspread and placed it on the floor of the master bedroom once the sellers vacated the premises. Everybody was happy as they thought the other had capitulated.
Many of today's buyer's consider buying an improved property like that of purchasing a new car. A new car "smells" new, looks shiny, doesn't rattle, has all the latest geegaws and requires no servicing. This same mindset carries over with the purchase of real estate, particularly in cases where the real estate is a second or vacation property. "I am in a position to acquire the "extra's" in life and by golly, this place is going to be turned over to me in "like new" condition."
As we move forward, with younger generation's now moving in position to acquire a "piece of the good life", paradigm shifts, values changes etc. have caused most of us, including realtors, to adjust our way of doing business in order to fit the ever-changing consumer.
The best method I have found to address buyers and sellers whose heads are stuck in the sand, sharing a few recent examples where customers and clients alike, have thrown common sense out the window only to subsequently look totally ignorant, when after the dust has settled, they missed out.
Your's is a typical example where this individual couldn't see the forest for the trees....
Have a great day!
I am so glad to see all of the other comments! This looks like a Buyer issue to me - and the first question that came to mind was - what does 'all the heating and water systems need to be replaced' mean? Do they not work? Are they older but functional? Are they leaking? Are you crazy?
Failed transactions are a source of great disappointments. We just have to move on.
It sounds to me like the inspection said the systems are on their last legs and the seller won't replace them. I don't know that I would go forward without a really good home warranty either.
Joe I wonder if the deal would have fallen apart if they realized that the $6,000 represented less than a cup of coffee a day at Dunkin Donuts.?
Joe,
This is the type of situation that surely can be handled. Sounds like it is time to go to plan B which may or may not include a new agent. A
Sometimes common sense just left the building Joe Petrowsky
Joe- not everything is going to work out and sometimes people can't put their emotions aside and look at the whole picture. I had a friend who almost lost the sale of their home over a $150 microwave. Fortunately, his wife stepped in with a cooler head.
A sad story Joe, I have been there. Sometimes people just can't agree.
That's too bad. She's not looking at what would happen if the systems suddenly broke down a year from now, instead of now, and she was out the entire $9200 at that time. Nor is she considering the fact she will have a brand NEW system that will last for years. Peanuts for brains.