@Don Konipol
I actually laughed out loud at your comment about the seller being 'compensated' $100 when a buyer exercises their option to withdraw—it's such a painfully accurate observation. When a deal falls through, especially for reasons beyond the seller's control, it can really impact the MLS record and even stigmatize the listing. Personally, if I see a property that went back on the market after being under contract, my first assumption is, 'What did the buyer find wrong with it?' I don't immediately think it was due to a medical issue or some unexpected personal circumstance, even though I have been there; it's usually more along the lines of, 'They must've found something unsatisfactory with the property.'
In fact, I've seen this happen frequently, where properties are marketed as eligible for specific financing options, like VA loans, only for buyers to realize later that the home doesn't actually meet those requirements. Buyers might see 'VA eligible' and think it's ready for their financing, but then during inspection, they discover it needs more work than they expected. This only adds to the frustration, as it affects buyer confidence and raises doubts about the property's condition and eligibility.
I also didn’t realize that, in other countries, buyers are often required to put down a significant portion of the payment upfront before even getting under contract. That approach seems like it would reduce the chance of deals falling through, and I can understand why it would be standard practice. If everyone was following that same rule, I’d gladly do my due diligence ahead of time. In fact, I think it would be beneficial for everyone involved and could really reduce the stigma on sellers who end up with a failed transaction through no fault of their own.
But in a hot market like the one we’re in now, where homes are practically flying off the shelf, it can feel like a waste of money to do all the inspections and checks up front, especially if someone else might snap up the property before you’ve even finished your due diligence. There’s also the added pressure of not wanting to lose out on a property, which makes it harder to justify putting up serious money before going under contract.
On the other hand, if such a system were standard, it might push sellers to be more transparent from the start, so buyers know exactly what they’re walking into. I remember a presenter in a real estate class recently saying, 'Buyers are liars, and sellers are even worse,' which got a good laugh from everyone because it rings pretty true in this business. Transparency could go a long way in creating a smoother process and ensuring fewer surprises down the road.
Thanks for bringing up this perspective, Don—it's definitely made me think about how different market standards could impact the way we handle transactions here. This kind of system could really shift the dynamics and possibly make the process fairer for both buyers and sellers."