Close to 50% of home buyers experience some type of buyer’s remorse after they sign a purchase agreement and because of that, many sales don’t close. I see this frequently when a buyer wins in multiple offers.
A client, living in a hotel, contacted me to find a home right away to save on hotel costs. He saw a home on the internet that looked perfect and he was prepared to buy it that day.
When we arrived at the house, I pointed out several problems with the location and condition that would make it difficult for future appreciation, should he need to sell. My client didn’t care and because there were multiple offers, he decided to offer full price, pay cash, and close in 2 weeks. I insisted on a 10-day inspection contingency, knowing he would have the opportunity to cancel should he change his mind. The seller accepted his offer, because of the quick closing, even though the other offer was higher.
Two days later the buyer wanted to cancel because he thought he paid too much with the required repairs. We cancelled the purchase agreement and looked at 5 more homes that day.
The last home we looked at was in great condition, a good location, and it was the lowest priced home. The buyer loved it and we wrote an offer. Again, we were in multiple offers and we won. We had an inspection and he decided he wanted to cancel over minor repairs items.
He emailed me a new list of homes he wanted to see and after reviewing the list, I knew none of them were a better value than the home we had under contract. It was the last day of our inspection contingency, so I scheduled the other homes immediately and we went to look.
He agreed that none of the homes we looked at were better, and he wanted to look at our subject property again. The house felt great when we walked in, but he was worried about some of the repairs he wanted to do and how it would impact future value.
I reviewed the neighboring sales with him, so he felt comfortable with the value and I recommended that we ask the seller to discount the price by $10,000 for the repairs. The seller agreed, as he didn’t want to lose the buyer, we closed, and the buyer loves his new home.
Ask the Real Estate Agent is a weekly column by Cheryl Kempenich of Coldwell Banker Burnet, who lives and offices in the Chisago Lakes Area. Submit your questions to firstname.lastname@example.org. All information is deemed reliable but not guaranteed. For legal assistance consult an attorney.