selling co-op home problem/conflicts of interest

[Tom Liu]

I'm selling my personal home which is a coop. I have buyer in hand where he is rock solid financially (putting like 75% cash down with good w2 income and basically no debt). The price is on the lower end of what I wanted but I accepted because of his rock solid background. A couple of things occurred since. 1) I realized the buyer has no agent so my agent will be pocketing all the commission. The agent also is a friend my wife and myself. 2) My coop still hasn't released their financials and said it "should" be in by another week and a half. 3) By the time, the financials are in (if they are in), I will be on vacation for 2 weeks. So it can be possible that I won't have executed contract for another 3.5 weeks.

So now buyer won't sign contract until they have financials. I'm annoyed because this coop is rock solid based on previous years and one of the most reputable in the local area. My agent is advising me to stay the course and wait because if I was in his position, I would do the same and its not the buyer's fault the financials aren't out yet.

I feel conflicted and trapped. I told my agent/friend to tell him that I will wait but I will also take other calls/viewings if someone is interested and entertain offers. Is that a jerk move? I feel the need to look out for my best interests. Maybe I will get a higher offer or maybe not but I feel like I should be doing due diligence. Having said that, despite my agent being my friend, and the laws being what they are, will I even "get any calls" if he getting double commission. Hate to think that about a friend but we are talking about money. If I wanted to force the issue, I can organize an open house to see what the interest level is but I'm also not sure if that is the route we should take. Opinions, advice on the situation and life lessons in general? Been lukewarm to the whole idea of becoming a real estate agent but this situation (and a few others...) lights that fire a little...

[Morris Cohen]

I would 100% continue showing it and it’s surprisingly very common. I have even seen people accept two offers at the same time and the first one to come back with an executed contract gets the deal (which I think is a little much though). There is no guarantee this buyer will actually sign the deal, so I think it’s completely reasonable for you to keep showing it and let the buyer know it (maybe it will motivate him to sign). 

That being said, I also think it’s a little crazy that he wants to wait for the financials. 2018 financials typically come out this time of year and he should be able to get a good idea of the building’s finances based on the 2017 financials. If the building’s finances for 2018 are drastically different, then you can put a clause in the contract allowing for him to get his down payment back. If it is a drastic difference then the lender might decline to lend in the building anyway, so he won’t have an issue getting his down payment back. This makes me think that the buyer may be getting cold feet, which is even more reason why you should continue showing the apartment. 

Regarding your broker, is he part of REBNY? If so, it would be against their code of conduct and that of his company for him not to provide you with all offers that are made. He can advise you not to take an offer, but he is required to present them to you. If he doesn't he is not acting in your best interests, which is his job. I would also be a little wary of using a broker that is not willing to continue showing the apartment at this stage. Deals fall apart during due diligence all the time and continually showing the apartment is pretty common place even if it's just to accept back up offers.