House buyer getting cold feet

[joesxm3]

Last Sunday at 9pm I received an offer contract with the note that the buyer would appreciate a prompt response. I accepted the offer and signed the contract 1pm monday.

The contract specifies a $10,000 deposit due on execution and inspection by 10/18 and another $10,000 on 10/20.

Today, Friday no initial deposit and the buyers realtor says his friends are telling him it is too far away.

We decided that if the buyers agent does not have the check for the first deposit by 9pm we are going to cancel and start showing again this weekend.

Seems even if he comes up with the money tonight he won't be able to schedule inspection by 10/18.

Thoughts?

 

[pb4uski]

The inspection should be done much quicker, within a week or two at the most. Since IME a buyer can find an excuse to cancel for an issue identified in the inspection, the inspection clause just puts you in limbo until the inspection is done.

Have you talked with your broker about backup offers?

 

[Stormy Kromer]

They aren't serious. The inspection back out is very much geared towards the buyer and if they find ANY thing in the write up they can back out and get their earnest money back.

Get it back on the market for a serious buyer.

This happened to me in the strong market in 2022.

 

[joesxm3]

Sorry. I got my months mixed up. I meant to say 9/18 and 9/20.

When I executed the contract, my agent switched the MLS status to "accepting backup offers". But he said most people tell him to call back if the deal falls through.

 

[folivier]

In Louisiana a law that went into effect this year gives a buyer a 10 day period to back out for any or no reason. The usual inspection period is within 10 days but this law is different. That happened to us a few months ago when selling our house. The buyer changed their mind and backed out. It worked out better for us since we had a higher offer a couple weeks later that went through.
The real problem with this law is now a buyer can put in multiple offers on hot properties and then has 10 days to view them and decide which one they want. Certainly not fair to the seller. Accepts offer, doesn't know the buyer has multiple offers on other properties. Then buyer backs out. Lost time on the market and now prospective buyers are wondering why the sale fell through.
For OP there should be a short time period where the deposit has to be received. Once that passes put it back on the market.

 

[Sunset]

If the buyer doesn't come up with the initial $10K , isn't that enough of a contract breach to put the house on the market again ?

If the buyer does deposit, then I think you have to let them do the inspection, even if you think they can't get one in time, because they might and if you accept any other offer you would be selling to 2 parties, and owe money...

 

[HarveyS]

Was the original offer signed by the buyer? IF so, since no deposit has been paid upon execution, tell them the contract is void.
If not, that's a lesson learned for the next time. As seller, you sign last. (and, time to question why your broker let you get into this position).

 

[DrRoy]

Go back on the market.

 

[FLSUnFIRE]

Until there is earnest money it's not a valid contract/breached! Every time I bought I wrote a check for the earnest money and gave it to my realtor along with my offer for immediate deposit into escrow. I would not take my property off the market without earnest money.

 

[Aerides]

Eh these things fall through all the time. I would ask your Realtor to help push the decision so you can relist asap.

 

[street]

Eh these things fall through all the time. I would ask your Realtor to help push the decision so you can relist asap.

This is great advice. Never burn a bridge.

 

[joesxm3]

The buyer says he will let his agent know this morning.

The buyer did sign first, but the expectation was that deposit would come promptly once I signed.

I will tell my agent that next time I won't sign the offer contract unless the agents have the deposit check in hand.

I guess "this morning" ends at noon . . .

 

[CardsFan]

The buyer says he will let his agent know this morning.

The buyer did sign first, but the expectation was that deposit would come promptly once I signed.

I will tell my agent that next time I won't sign the offer contract unless the agents have the deposit check in hand.

I guess "this morning" ends at noon . . .

Your agent should not have let this happen. Since there is no deposit, there is no contract. Your agent should NOT have changed the MLS status without the check in hand.

I would call your agent NOW, and get the property back on the market.

 

[tryan]

There is no contract wo earnest $$ .... do as you please. You are not held to the contract.

 

[OldShooter]

... Since IME a buyer can find an excuse to cancel for an issue identified in the inspection, the inspection clause just puts you in limbo until the inspection is done. ...

The real world is that with a signed contract, even with earnest money paid, the seller is much more obligated than the buyer. For the buyer its really an option to purchase, even with no explicit contingencies.

 

[Mark1]

Your agent should not have let this happen. Since there is no deposit, there is no contract. Your agent should NOT have changed the MLS status without the check in hand.
...

+1.
I would look for new agent as they appear to be the problem, and not the buyers.

 

[joesxm3]

The contract has been cancelled and the property is back up as available.