Tips for Sellers to Follow if the Buyer Back Out of the Deal
Feb 23, 2018 Home Trading Steps
We all invest in real estate with a view to earn some extra moolah in terms of either rent or return by selling the property. And after a lot of hardwork a seller finds a suitable buyer and an offer. At that point, both the parties signs an agreement to sell, mentioning the terms and conditions for future process to take place. Among many, one of the key clause is regarding the time period within which the transaction needs to be completed, failing to which the deal could be called off. The party responsible for calling off the deal has to incur monetary loss. If it is from the buyer’s side, then the buyer will have to lose their earnest deposit and if the seller calls off, then he or she has to pay an equal amount to that of the earnest money.
Such a situation can arise for numerous reasons and can be harassing and nasty for both the parties. A buyer could back out of the deal for various reasons such as:
If the buyer is getting a better deal somewhere else and the buyer is not bothered about losing the earnest deposit.
The bank refuses to give the loan amount to the buyer that he or she has applied for.
The buyer is not able to arrange the down payment.
There might be a financial crisis with the buyer like sudden loss of job, accident or any other.If such situations arises then what are the options left with the sellers?
Clarity and transparency: Your property might not get sold at once instance, so when your property will be back in the market, the buyers might doubt it and might think that the property of being in some king of trouble and would prefer to stay away. Hence when you relist the property again, clealy mention the reason due to which the previos deal failed. The more you are transparent, more response you are tend to get from the buyers.
Back-up plan: buyers usually do not look at one property, they always have hack-up plans. For instance, if you a buyer is not able to buy the property he or she likes the most then they go for the second best option. Hence, the sellers should also have a back-up plan. If the seller is in need of money and you are not getting the right price for your property rather the buyer is quoting a price which is not impressive then that is not a bad option to look for.
Spread the word: if the property is not getting sold, then the seller could think of lowering down the price of the property. In this way you could widen your buyer base. If you are not able to compromise in this domain then spread the word of your property selling. Spread the news among your family and friends. You never know they might be able to help you with better deal.
Such a situation can arise for numerous reasons and can be harassing and nasty for both the parties. A buyer could back out of the deal for various reasons such as:
If the buyer is getting a better deal somewhere else and the buyer is not bothered about losing the earnest deposit.
The bank refuses to give the loan amount to the buyer that he or she has applied for.
The buyer is not able to arrange the down payment.
There might be a financial crisis with the buyer like sudden loss of job, accident or any other.If such situations arises then what are the options left with the sellers?
Clarity and transparency: Your property might not get sold at once instance, so when your property will be back in the market, the buyers might doubt it and might think that the property of being in some king of trouble and would prefer to stay away. Hence when you relist the property again, clealy mention the reason due to which the previos deal failed. The more you are transparent, more response you are tend to get from the buyers.
Back-up plan: buyers usually do not look at one property, they always have hack-up plans. For instance, if you a buyer is not able to buy the property he or she likes the most then they go for the second best option. Hence, the sellers should also have a back-up plan. If the seller is in need of money and you are not getting the right price for your property rather the buyer is quoting a price which is not impressive then that is not a bad option to look for.
Spread the word: if the property is not getting sold, then the seller could think of lowering down the price of the property. In this way you could widen your buyer base. If you are not able to compromise in this domain then spread the word of your property selling. Spread the news among your family and friends. You never know they might be able to help you with better deal.
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