Should I die on a $120 hill? Or let apathy slide?

Question

Ok- so I'm selling a little single-family rental.  Full service broker.  First time listing with an agent ever in my area.

I've been under contract since April 15th (for the 3rd time).  The closing was supposed to be May 30th.  On that day the lender e-mails my people that the buyer is qualified.  Really?  Excellent!  6-weeks have gone by. You are on top of it!

Need to extend the closing until June 2nd.  No problem - I sign the extension addendum.

Yesterday got word that the closing now needs to be the 7th.  During this entire process the buyer's agent and the lender have been completely apathetic and slow to get back to us multiple times.

To sign another extension, I am considering taking the 6 days of interest I need to pay out of the selling agent's commission.  He recommended a cruddy lender and has been horrible to work with.  I'd take it directly from the mortgage originator if I could.

Would you mess up a sale to make a point?  It's only $120 but I feel consequences are in order.  I think the buyer's agent should pay.  How say you BP?

Mike Cumbie · Answer

@Steve Vaughan,

We also can't say anything negative about our clients. I am pretty sure I have been called the "lazy agent" on more than one occasion. I had a client that didn't apply (By providing all the paperwork) for a loan until 3 days before the commitment. I was begging running around getting papers, scanning them, meeting after work, leaving messages etc. When the other agent asked "How is it going"? I had to respond as required by law. "Going good, my client is waiting on the mortgage commitment.

Sadly sometimes taking the bad guy role and getting a kick in the crotch is what we have to do for our principals. So that's why I say just give them the cost and let them work it out, because behind closed doors I might tell my client "Had you applied when you were supposed to this would never have happened, I'm not eating it" or to the mortgage guy "Hey you said you had this, it's yours to swallow" (But that of course messes up the form so it takes 3 more days.)

Good Luck!

Steve Vaughan · Answer

UPDATE:  Miraculously, I am signing today for a Monday funding.  Waiting until next Tuesday to sign is no longer on the table.

My 'training camp holdout' is over and I authorized the extension yesterday on the 1 yard line, at 4pm.

Thank you for your great advice @Mike Cumbie.  I told my agent that the first suggestion was to say I had another offer come in, then turn off my phone for 4 hrs.  Got him flopping on a floor somewhere I'm sure!

The lender e-mailed yesterday, confused about the extension delay.  What could possibly be the hold up?

I will respond on Tuesday (when this is closed and over) about what these BS delays do to all sellers.  It probably won't matter, but the costs and hassles of needless extensions needs to be addressed. The buyer's agent and lender will be informed! Thanks everybody!

Steve Vaughan · Answer

Thanks, Joel.

The lender is actually a local bank.  When I called the branch mgr I know to see if he could dig into it, I found out the loan officer just transferred to Spokane, 2.5 hrs away in the middle of our deal.  He was pretty horrified the ball was dropped with such a splash.  Will update when I hear back from the branch mgr.

I don't want his bank to be known by the realtors as the one that can't close so I gave him a courtesy call.  The realtors won't be happy when a little of their compensation is on the line.

Mike Cumbie · Answer

Just send a cryptic email

Hey guys, another offer just came in.

Thanks Anyways!

Steve

Then don't answer your phone for the next few hours.

You may not make any money but you can at least giggle to yourself every time it rings.

Of course that's what I would do myself, but not what I would recommend a client do because it can backfire and I wouldn't want to put them in that position.

You can put on the extension though that you will not sign unless someone pays the $120. It wouldn't necessarily be the selling agent, let them figure that piece out themselves. You just want to cover your end due to their slowness. In my experience though 6 days when there is a holiday around is not uncommon. If it was my area and we were just at the "Commitment" stage I would expect a couple weeks because then the lawyers get started on title (Of course it is a finger pointing mess at that point)

Hope it works out for ya Steve!

Joel Owens · Answer

I have looked at residential in ages but back then we had a clause inserted in PSA that the buyer authorized the seller /listing broker to communicate directly with the lender for updates etc.

Sounds like the buyer might be using an online lender? Something is wrong either with the lender or the borrower because it should not take that long.

Has appraisal been ordered yet? It just doesn't add up.

Steve Vaughan · Answer

Hey thanks @Mike Cumbie!

I appreciate your thoughts on this.  I'd considered just stating that somebody gonna show me the money - but my listing agent and his office has been great.  If they forked it over, my 'hill' would be meaningless.

Here's why I'm doing it.  My agent, when I brought up that I may have to make June's mortgage payment and would that mess up the payoff quote, etc simply asked 'can you get a grace period so they don't charge you a late fee?'

Grasshopper- this is costing me at least 6 days of additional mortgage interest (@$20+/day), tax prorations, less insurance will be refunded, utility cancel dates are messed up, etc.

Somebody needs to know what these aw shucks, non-chalant extensions do to us sellers.  What if I was trying to coordinate another buy and a move?  This is at least a vacant rental.

All of this could have been avoided if the buyer's agent and lender had put just a little effort into it.

Should I die on a $120 hill? Or let apathy slide?

Most Popular Reply