Deals fall through and buyers and sellers change their mind.

[Joe S.]

Deals fall through and buyers and sellers change their mind. I’ve had one particular property for sale several years ago where we met with the same buyer three different times.  Yes you heard that right the same buyers wanted to buy the same property three different times And drove close to an hour to meet us each time.. The fourth time they Contacted us we were happy to say that it was already sold. They even got so far as to sign a purchase contract once and they were going to bring the earnest money the next day. 🦗🦗🦗🦗

I’ve had buyers bail out a day before closing. I’ve had one buyer bail the day of closing. I’ve had one seller have a fuss with their spouse at the closing table and decide not to sell us the property.

Myself on a couple of occasions was not able to close. Many times it was due to title defect. One time it was because I grossly underestimated the repairs needed. I had to back out, but I allowed the seller to keep $2500 earnest money. There’s been times where I contracted with a buyer while another buyer was circling and it was a real difficult decision who to sell to. I have verbally reached some sort of agreement to sell a property before without the blessings of my wife which is my partner and she was very upset and I had to tell the buyer that it was a no go. I know there’s a lot of self-righteous people that act as if they always keep their word, but the deal is buyers don’t always keep their word and as my wife put it I don’t need to be giving her houses away. The houses that she has told me to keep has been a blessing to us and the family. There has been a couple times where I got impatient and sold a house for way lower than I should. 

I have live to regret it.

 I felt like starting a new thread whereas there have been several threads.. one particular as of late where people that do not have an real contract pretending that everybody keeps their word and that they would keep their word too. There’s a lot of gray area in real estate. If you came to my house and you said I’ll give you X amount of dollars and I said sounds good and my wife was not on board I can assure you I would probably be  contacting you to tell you it’s a no go and call me names if you want to , but I have to live with my wife and not you.

The bottom line is people change their mind with a written contract sometimes. If people change their mind with a written contract then a verbal agreement is about as good as somebody telling you they will come to your church revival.( Don’t be watching the doors for them.)

[Jon K.]

Originally posted by @Jon K.:

I have a flip set to close tomorrow and we are on our third buyer. First buyer wanted out due to home inspection issues (and other circumstances). Second buyer's financing fell through 5 days before closing. The third buyer told us just tonight they weren't signing over a $400 defect they claim we hid from them. Sale price is over $300,000. Fun times.

I'll eat humble pie on this one. Turns out the $400 defect was in fact a big deal (thousands, not $400) and we misinterpreted a few things along the way. I'll chalk this one up to a learning experience. Still a profitable flip regardless.