We have never lost a home buyers deposit. Never, ever. That is because we explain to our home buyers how the EMD, earnest money deposit, works. Real Estate is all about time frames. Not the “last minute changes to”, but the “pre contractually agreed” time frames.
There is no guessing in real estate. A Buyer has a certain amount of days to do “such and such”. If the home buyer needs more time they can ask the seller. Ask in writing and the seller can respond, in writing. No verbal is recognized by either party or shouldn’t be. You don’t have to respond with hostility or offensively.
You can just say so there aren’t any misunderstandings. I appreciate what you are willing to do for us, we definitely want this to be documented so the future generations can learn from your kind actions. 🙂 – something like that.
That presentation makes the record and causes a certain degree of calmness within each party.
I’m sure you have heard the old saying, “When it rains, it pours”. That is nowhere any truer than in real estate. With escrows that cancel daily all across the United States, we thought we would share some of the local reasons why buyers cancel escrow.
Recently we had a Valencia CA home buyer cancel because she discovered her X husband was dating the neighbor. My Valencia CA buyer has a restraining order against her X which states she is not to be within 500′ of him. Living next door would violate that restraining order. So hence verification that our “door knocking” ritual is critical to the home buying process. You should have seen the look on his face when he opened the door – priceless!
Another homebuyer had an event outside of their control. This cancellation came after what had been revealed first by the home inspector and secondly our push to have the seller fill out some omitted items contained on their disclosures.
Without the estimated ‘timeframe’ of the home inspector, I would not have had the proper timeframes to reference with the home seller through their agent. After I did my investigations, I figured out we would ask for a modification to the disclosures the home seller had completed.
Whether they “purposely” omitted the information, or simply forgot, still remains a mystery. However, I find out that most of the time it’s an error of omission due to not remembering. With all that goes on with most lives, we have a lot to remember, as did this home seller.
After being confronted, the seller was apologetic and “in their version” came directly to Jesus without passing go.
Another document that we push for, now a buyer expense, is a CLUE report. C.L.U.E. Comprehensive Loss Underwriting Exchange is something that used to be a seller requirement. Simply, the buyer’s insurance agent can pull the data simple and for free.
That was the “proof” we needed to see why the mold was within the walls behind the kitchen sink and why the home inspector’s moisture sensing tool lit up like a Christmas tree.
The seller did not want to fix the issue, stating they already had. The timeframe of the plumbing company coming out to remediate the “not repaired” leak and the mold abatement was not conducive to the home buyer waiting.
The buyer wall well within their right to cancel and to move along to another Valencia CA home, which they did. As you can see, it’s not all the falt of the home seller, when Valencia CA homes fall out of escrow. Sometimes a third party, hired to do a job, is to blame. And this “blame” sometimes comes years later as an accidental discovery.