Home Selling in 95008>Question Details

Ladydiver, Home Seller in 95008

Buyers getting cold feet?

Asked by Ladydiver, 95008 Sun Jan 9, 2011

Hello,

I have my house FSBO on CL and a couple came by several times to look at it last week. On Friday afternoon I received an email from their realtor that they want to make an offer and she would send it to me electronically that PM or early Sat AM. Saturday, I receive an email stating "I am not sure if we will get the offer ready today but no later than monday. Sorry, I need to gather and confirm buyer financials prior to submission."



Is this just stalling because buyers are getting cold feet or does she just want to present a tight offer?



Opinions and thoughts appreciated

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28
BEST ANSWER
My thoughts are that you are dealing with a Realtor and you are selling a home by owner. The buyers may not be qualified or they are in need to provide more information to their lender in order to get qualified. You should still consider your home on the market and even hold an open house so that the Realtor realizes that you intend to sell the house whether it is to their client or to someone else. The offer may come on Monday and it may never come at all so protect your position as a seller and do not end up bidding against yourself just to keep this "buyer". Good Luck to you.

Matt Puzz
Licensed Loan Originator
Amerifirst Financial, Inc.
602-410-9333
apply online: http://www.mattpuzz.com
Web Reference: http://www.mattpuzz.com
1 vote Thank Flag Link Sun Jan 9, 2011
I recommend that you do not accept ANY offers from Buyers that do not attach a preapproval letter from a lender. NOT pre-qualified, rather pre-approved .. there is a difference. With any offers, you should also receive a copy of the buyers deposit check which should be about 3% of the purchase price. There are a myriad of details you should be watching out for throughout your transaction(s) in the sale of your home. Are you aware of the laundry list of disclosures that Sellers are required to provide buyers per California Law ? I anticipate, in the near future, you may be asking many questions on here, and possibly receiving some wrong answers. It is unfortunate you have decided to sell FSBO without the protection of having your own agent. Do you not see the value in paying an agent to represent your seller interests ?
2 votes Thank Flag Link Sun Jan 9, 2011
Ladydiver - I don't think the agent is stalling.
I think she is doing what she should do ( or should have done already ) which is...........make sure these buyers are qualified, and have all their paperwork in order.

Hang in there - what other option do you have?
If you get another offer today - great - if not - Monday is tomorrow, and you will soon see if these buyers are ready to perform.

if, by chance, they get "cold feet', better now than later! You will soon find out.

Good luck, and please let usknow how it turns out.
This is a nerve wracking time....I hope all goes smoothly for you!

Best regards,
Debbie Rose
Prudential NJ Properties
1 vote Thank Flag Link Sun Jan 9, 2011
You would rather have the buyers get all the paperwork and qualifications in place before getting an offer. You don't want an offer without having the buyers talk to a lender and get pre-qualified. Not having the buyers be pre-qualified makes the process longer and if the buyers cannot afford to buy your house than it is a waste of everyone's time.

Good luck!
1 vote Thank Flag Link Sun Jan 9, 2011
It sounds to me like the cart is before the horse, I personally get my buyer clients pre qualified prior ot going out to view properties, so as not to waste everyone's time.
1 vote Thank Flag Link Sun Jan 9, 2011
She wants to present a tight offer and you should be glad that she wants the offer to be tight. She actually should check on the buyer's financials before submitting any offer. You don't want to get into contract with a buyer who will not qualify to buy your house.
0 votes Thank Flag Link Fri Nov 28, 2014
..because then you will be stuck in contract with that UNqualified buyer and miss your chance with future QUALIFIED buyers.
Flag Fri Nov 28, 2014
Ladydiver

Any update as to where things stand with the sale of your home.

The market is doing terrific and one is seeing excellent offers.

Hope things worked out for you.

Regard
Perry

http://www.ruthandperry.com
408-656-5343

Certified HAFA Specialist and
top Producer
0 votes Thank Flag Link Sun Apr 10, 2011
Only the Realtor knows for sure!

In the interim, keep marketing the property for sale.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Tue Feb 15, 2011
Rebekah - if you scroll down a bit and read - you will see that ladydiver already told us the offer came in.......it was very low with only 2% down.....and she rejected it.
0 votes Thank Flag Link Tue Feb 15, 2011
Ladydiver,

I dive, too. Have you done Monterey?
I've not. I am too spoiled and prefer warm weather and clear waters.

Just wanted an update.
How did you do? Did the offer come? Did you get the place sold?

I always like to hear how a FSBO sees the market!

Thanks

Rebekah
RebekahOwen.com
0 votes Thank Flag Link Tue Feb 15, 2011
Hi Ladydiver

This is not uncommon even in regular transactions, where buyers back out after carrying out inspections Or back out for loan Reasons.

In your case the first red flag is the 2% down, which requires few select lenders, the second red flag was your mention of a low ball offer, you are dealing with a wheeler or dealer. The last red flag was that the Agent was preparing an offer with an Un qualified buyer. Loans are tough to get, even tougher with almost nothing down.

Hope your brokers tour went well, and you will get a viable and credible offer.

Best regards
Perry and Ruth
Coldwell Banker
408-859-4111
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Wed Feb 9, 2011
Disappointing. Only 2% down? FHA is 3.5% min. I looked it up on CL, it looks like a nice house. Good weather today, perhaps the perfect buyer will show up today.

Good Luck.
Web Reference: http://terrivellios.com
0 votes Thank Flag Link Sat Jan 15, 2011
No, it was a really lowball offer with only 2% down.
0 votes Thank Flag Link Sat Jan 15, 2011
Did you simply reject the offer because it is an FHA loan???
0 votes Thank Flag Link Fri Jan 14, 2011
I did receive the offer, but we declined it. It was an FHA loan which is one reason she needed additional documentation and it took a while. On to the next buyer!
0 votes Thank Flag Link Fri Jan 14, 2011
Monday has come and gone, did you get the offer?
Web Reference: http://terrivellios.com
0 votes Thank Flag Link Fri Jan 14, 2011
i think you should ask them if they are getting cold feet or if they want to present a tight offer...
0 votes Thank Flag Link Mon Jan 10, 2011
On the flip side of the equation, if I had a dollar for every time someone promised me an offer … you know how the rest of that line goes …

Many buyers go away, think about it for a few days and then switch directions. Without telling their agents. Happens all the time. In addition, you asked about buyer getting cold feet – it’s a condition that has significantly increased in the past six months – here is a post that may help you understand a bit more about what is going on out there right now:

Buyers Balking – Five Key Reasons, Two Significant Results
http://www.trulia.com/blog/carl_medford/2010/10/buyers_balki…

In addition, 2010 was a terrible year for the real estate industry – we had SO many issues last year that many of us are still reeling. If Realtors are uncertain, you can know with a certainty that buyers are even MORE confused right now. Here is another post that may be helpful:

2010 In Review – Top 8 Issues That Affected Bay Area Real Estate
http://www.trulia.com/blog/carl_medford/2011/01/2010_in_revi…
.
0 votes Thank Flag Link Mon Jan 10, 2011
Ladydiver - I truly want to wish you good luck with this offer - i hope it comes in as planned, and that things progress smoothly.

Make sure your attorney structures your contract so that you may continue to show the home until all the contingencies are met.

Good luck with the offer, the inspections, appraisal and mortgage commitment. As all of us here know, it's not over till it's over!

I know how stressful it must be for you.........here's wishing you a smooth trip to the closing table!

ps.... Hi...and happy New Year Grace!
0 votes Thank Flag Link Sun Jan 9, 2011
Edward,

We lowered our price by 10k, since we don't have to pay both sides of the commission. I made an HTML ad on CL with a clickable flyer and a link to a web site with additional photos and information. I tried to make my ad appeal to buyers by stating what THEY would get out of living in this home, instead of just stating factual information like sq footage. I also emailed agents who had recently sold property similar to my own and offered them a generous commision if they could contact potential buyers who had seen their recently sold property and sell them our property.

I am VERY VERY grateful for all the responses. I was so excited on Friday to hear we would be getting an offer soon, then let down to hear it wasn't happening in the time frame we were initially told. That led to some anxiety on my part because I had already envisioned myself moving! I know I can't get ahead of myself, and even if we get the offer something can still go wrong. But, after having our home on the market for 100 days with no offers, having open houses every other weekend, etc. it gets to be grueling to get the house ready for showings. I also have two little ones which only adds to amount of work involved.

Trust me, I am not considering this a done deal by any means. I have 30 brokers coming by on Tuesday for a tour.
0 votes Thank Flag Link Sun Jan 9, 2011
LadyDiver,

If you don't mind, I had a question for you. I find your experience marketing your property FSBO to be very interesting.

You said that you had your house listed with a real estate agent with no offers and then placed your property on CraigsList and are now potentially getting an offer.

Are you doing anything differently to market your home other than moving from a real estate agent to CraigsList?

Did you lower price? Did you make improvements to the property? Is anything else different?

What do you think is the root cause of your current success after the real estate agent was unsuccessful?

Thanks,

Edward

When It's Time To Sell Your Home, Over Paying Is Over Rated
Sell Your Home Or Investment Property-$4,995 FLAT FEE
Full Service At A Reasonable Price

Edward Sorensen
Broker/Owner
Sorensen And Associates
DRE# 01724671
http://www.SorensenAndAssociates.com
0 votes Thank Flag Link Sun Jan 9, 2011
Hello Ladydiver and thanks for your post.

I'm with Terri on this one, and believe, as she noted, that this may simply be a situation where unprepared buyers found their dream home and now they're scrambling to get all of their documents in order to determine if they can purchase the home. As the others also wisely noted, until you have a contract, you have nothing, so continue to actively promote your property on Craigslist and do what you must to find as many interested buyers as possible.

I've got my fingers crossed that you see an offer on Monday, but if not, move on. The market will be heating up soon as the weather clears and buyers get geared up to move to larger homes or better school districts. Good luck!

Sincerely,
Grace Morioka, SRES
Area Pro Realty
Tel (408) 426-1616
Listings for as little as 1.5%, Rebates to Buyers or 1.5%-2% of Sales Price
0 votes Thank Flag Link Sun Jan 9, 2011
I have been on the receiving end of the same email from agents. Usually what happens is a non committed buyer suddenly finds the house which get's them off the fence and wants to write an offer, however, they have not even talked with a lender.

Since you were once a licensed Realtor, I'm sure you know how these things go. Your house is not sold until you have a meeting of the minds, and signed by all parties. The agent wants to make sure that what the buyer puts in the contract the buyer can perform to. This not only includes the purchase price, but down payment and closing cost, contingency time frames, closing date, etc. Since many lenders do not work the weekend they may need Monday to get the verification of loan application, funds, etc.

FYI, the lending laws have changed and I would want to make sure that any loan approval is verified that the Mortgage Loan Officer lender has completed their MLO certificate and that their license will be active through the close of escrow.

I would continue to market the home and proceed only with what you have in writing. Or as the ol' saying goes, don't count your chickens until they hatch.

Best of luck to you in the sale.
Web Reference: http://terrivellios.com
0 votes Thank Flag Link Sun Jan 9, 2011
Sounds like she is making sure they are financially able to purchase before spending her time or your time on an offert that goes no where because it can't be closed. Be grateful and be patient.

It could also be stalling but what good is it to worry about that? Do you have another offer that you are considering at the same time?
0 votes Thank Flag Link Sun Jan 9, 2011
Andrea makes some good points. I wouldn't be too concerned about the Realtor needing more time -- he/she is just doing his/her job and getting the buyers pre-approved. They are also probably doing their research to determine what a fair offer would be. This is pretty minor in the grand scheme of things.

I think what you should be more concerned about is what happens after you get an offer.

Good luck!
Web Reference: http://www.sallygrenier.com
0 votes Thank Flag Link Sun Jan 9, 2011
If all the doc's are not ready yet why waste your time . If the buyer not been qualified she showed properties w/o confirming info. she would not be able to submit an offer.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Sun Jan 9, 2011
In response to Andrea, I have been a licensed realtor in the past. I have all my disclosure paperwork in order and have a real estate attorney/broker for my end of things. To answer your question as to value, I had my home on the market with a realtor for 100 days, no offers. I have had more viewings, and am the closest to getting an offer as I've ever been after posting for two weeks on CL (free).
0 votes Thank Flag Link Sun Jan 9, 2011
Ladydiver:

Sounds like the Buyer's Agent did not have his Clients complete the Pre-Approval process. Unless a Buyer is paying cash, a Pre-Approval is vitally important to making a successful offer that closes escrow. You should request that the Pre-Approval be submitted with the offer!

You can read more about this here: http://www.Steven-Anthony.com/GettingStarted

Best, Steve
0 votes Thank Flag Link Sun Jan 9, 2011
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