Latest / Connor with Honor: AI, Real Estate and Real Life / Valencia home buyer cancelled and the home bom'd thoughts on this process for Santa Clarita home sellers

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Valencia home buyer cancelled and the home bom'd thoughts on this process for Santa Clarita home sellers · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Is a back on market property.
• 0:02
  SPEAKER_00: What does that actually mean?
• 0:03
  SPEAKER_00: What you can do is you'll see sometimes online and when my shows I do daily updates each day, one for each of the Santa Clarita Valley cities, and on Sunday I have the total recap in there, and I have Acton and Aqua Dulce in that particular update.
• 0:17
  SPEAKER_00: But in any one of these cities, on most days, you're going to see at least one or two back on market properties, and those average out to about 20 to 30 percent of the listings actually actually that are listed for sale go into escrow and come back onto the market as a bomb or back on market property.
• 0:36
  SPEAKER_00: Well, we have to ask ourselves why would that be?
• 0:39
  SPEAKER_00: And there are many reasons, one of which could be the buyer lost their ability to finance and went out there maybe and bought something and credit, and now their FICO scores dropped to such a low point that they're unable to be approved or continue to be approved as they once were for that loan.
• 0:55
  SPEAKER_00: So that happens.
• 0:56
  SPEAKER_00: Buyer fault, it goes out there.
• 0:58
  SPEAKER_00: Sometimes horrible things happen, death, divorce, disease, things like that actually create issues.
• 1:04
  SPEAKER_00: So a buyer can't continue and perform.
• 1:06
  SPEAKER_00: And maybe it's on the seller's side as well.
• 1:09
  SPEAKER_00: There could be some massive hardship that's undertaken that they actually need to cancel listing, and with buyer's approval, they're able to do that.
• 1:18
  SPEAKER_00: Now, let's look into some other reasons why.
• 1:21
  SPEAKER_00: You need to back up and out what happened in the very beginning if your property goes back on the market.
• 1:28
  SPEAKER_00: And this is a conversation I would have with my agent if I was on the buying side, not using myself in the transaction.
• 1:35
  SPEAKER_00: How did you vet that offer that came in from the buyer for my house?
• 1:40
  SPEAKER_00: I know you told me, Mr.
• 1:41
  SPEAKER_00: and Mrs.
• 1:42
  SPEAKER_00: Agent, it was fantastic.
• 1:44
  SPEAKER_00: This is going to be great.
• 1:45
  SPEAKER_00: I know the agent, we go to all these networking meetings, all that's great.
• 1:49
  SPEAKER_00: But how does that help me now that my property came back on the market?
• 1:53
  SPEAKER_00: What exactly did you do at the beginning to make sure this buyer was going to go through?
• 1:58
  SPEAKER_00: And this is going to include things that are put in a counteroffer responding back to the offer that was received by the buyer's agent.
• 2:08
  SPEAKER_00: And what I mean is they can put things in there like home sold as is, even though that's a general understanding.
• 2:16
  SPEAKER_00: Also, they can put things in there, there's not going to be any credits given for any repairs or anything else.
• 2:20
  SPEAKER_00: Now that's playing hardball at the very beginning, but at least in a market that's going to allow for that kind of hardball play, like a seller's market where we currently see our market, if you have a property that's priced right in a great area, you can play that kind of hardball.
• 2:37
  SPEAKER_00: Now, at the end of the day, the buyer can still come back and say, Well, we didn't know this was going on, has this safety and this issue that we need addressed, and we want the seller to pay for it.
• 2:49
  SPEAKER_00: And you know what?
• 2:50
  SPEAKER_00: That's great.
• 2:51
  SPEAKER_00: But that needs to be the time that they're reminded of what they agreed to in the beginning to get the property.
• 2:57
  SPEAKER_00: Anybody can ask for anything.
• 2:59
  SPEAKER_00: And then it comes back to the seller.
• 3:00
  SPEAKER_00: The seller can decide not to honor the buyer's request and then have the property go back on the market as for sale.
• 3:06
  SPEAKER_00: Also, something to look at is how much time was taken in this process and also what the buyer's asking for.
• 3:13
  SPEAKER_00: If your agent did a good job and they were able to put that together in that counteroffer form and have the buyers execute it, once you get to that request for repair point, then that next question is going to talk about some of why they actually didn't perform and then what you can do to maybe help.
• 3:31
  SPEAKER_00: So if they're coming and they're asking for blood money, and I hate to use the term, but I will,$1,000 to have one outlet replaced that was discovered as being faulty, replacing an outlet with an actual electrician actually coming out and replacing one outlet with all the labor and the driving, maybe$150, maybe$200 at the high end.
• 3:53
  SPEAKER_00: That's not$1,000.
• 3:54
  SPEAKER_00: So the buyer's asking for that gives an appearance that the buyers have maybe regretted their decision to buy the house at the level that they chose.
• 4:04
  SPEAKER_00: In addition to that, because they've asked for it, doesn't mean you have to give it or you have to give that amount.
• 4:10
  SPEAKER_00: Maybe you can come down and say, Well, I have an electrician or I know an electrician, I asked him the other day.
• 4:15
  SPEAKER_00: He wrote me up this invoice and he says he'll charge you a hundred bucks to come out and switch out the outlet.
• 4:20
  SPEAKER_00: You're asking for a thousand dollars.
• 4:22
  SPEAKER_00: I don't understand how that works.
• 4:24
  SPEAKER_00: And again, you go back and forth at that point with negotiation.
• 4:27
  SPEAKER_00: The one thing you don't want to do is make this an emotional issue.
• 4:31
  SPEAKER_00: You're gonna have one party that's probably going to do it.
• 4:34
  SPEAKER_00: You might even have hired an agent that uses this emotional, this emotional, these feelings and they actually get you happy or whatever it may be, you need to hire somebody that's very, very simply in your best interest without all the emotional baggage.
• 4:52
  SPEAKER_00: And if you're going down that emotional rant, they should have the strength to say, hold on just a second, let's see what we need to do to make this work out.
• 5:03
  SPEAKER_00: Because the longer you've had your property on the market, three, four weeks, and you've been in escrow, maybe that whole time, maybe you just grabbed that first offer that came in that you really liked, maybe your agent oversold it, but at the end of the day, you need to then recap and find out I've been in escrow three or four weeks, we're getting into this particular time of year, the market is changing in this particular way.
• 5:24
  SPEAKER_00: Maybe we should try to get a little closer on this agreement and see if in fact the buyers want to continue.
• 5:30
  SPEAKER_00: Having said that, there are some times when buyers use this as a way to get out of escrow.
• 5:36
  SPEAKER_00: It's really not professional, but buyers don't have to be.
• 5:39
  SPEAKER_00: It's going to be up to their agent to educate them on the proper way to exit escrow with the least liability possible because that agent is on the buyer's side.
• 5:50
  SPEAKER_00: That's where we dual agency becomes an issue.
• 5:53
  SPEAKER_00: So if you have the same agent representing you and the buyer, that's really tough to do because now the agent has to stand up to both parties, not really aligned with any one party.
• 6:04
  SPEAKER_00: And it's difficult to be in that position.
• 6:06
  SPEAKER_00: When I say this as a listing agent and a buyer's agent, it's very tough.
• 6:11
  SPEAKER_00: So it's much more comfortable for me to be on a singular side of the equation, either on the seller's side or the buyer's side, so we can fight it out in gladiator style.
• 6:22
  SPEAKER_00: I'm Connor with Honor.
• 6:23
  SPEAKER_00: I hope this helps explaining back on market properties why they fall out and some of the considerations to think about before getting too wrapped up in the process.
• 6:33
  SPEAKER_00: I'm Connor with Honor, over and out.