In 1785 Robert Burns wrote “The best laid plans of mice and men often go awry”.
After completing hundreds of deals in 4 States over 20 years, I have seen many unexpected problems. Learning to anticipate and avoid these pitfalls is one of the most valuable benefits I add to each transaction. For your interest and amusement, I will describe some of the scenarios, I remember.
The seller decided he can’t sell due to an unforeseen tax liability. He owned a business 20 years ago with a debt to the government, and if he closes, the government will take it all. He refuses to go to closing. Deal Canceled.
The buyer just found out days before the closing that they will have to pay $4,000 to exit their rental lease. They also heard a rumor that the association fees will increase next year on the condo they are under contract to buy. Deal Canceled.
The seller decided that he wants to close but only under the condition that he gets the proceeds in green cash bills. This way he can hide the income from the government and avoid losing his low income benefits check. The closing attorneys won’t cooperate. Deal Canceled.
The seller accepts a contract which gives the buyer time to get the money by selling his current home. The buyer prices his home too high and never gets the money. Deal Canceled.
The seller accepts a contract which allows the buyer a lengthy inspection period. During the inspection period, the buyer shops other homes and finds one he likes better. Buyer uses the inspection results as a scapegoat to jump to a better deal. Deal Cancelled
The buyer thought that she had 2 years of employment history but was off by a few months. The bank won’t loan without a 2 year employment history. The buyer asks the seller to wait a couple extra months. Deal Canceled
The buyer’s inspection report finds evidence of termite activity but no live termites. Seller says he had it treated a few years ago and insists there are no live termites. The buyers bank requires tenting or they will not loan the money. Tenting costs $5000. Seller refuses to provide tenting. (banks will rarely loan on a home if termite activity is found, unless there is some guarantee of NO live termites by a licensed pest professional.) Deal Canceled.
The seller can not vacate in time and arranges a 3 day closing extension with the buyer during the final walkthrough. This extension was not authorized by the title company and resulted in the closing being delayed for a much longer time than expected. Buyer backs out. Deal Canceled
More scenarios coming soon, as I think of them, or as they happen..
-Daniel E Novak.
FUNNY VERSION
In my eventful career spanning over two decades and across four states, I’ve encountered some truly bizarre situations that make for great cocktail party stories and comic relief. Brace yourselves for these tales of real estate woe:
Picture this: The seller suddenly remembers an ancient tax debt from a business venture twenty years ago. He panics and decides it’s better to keep everything and evade the government’s clutches. No closing for you, my friend!
Next up, we have a buyer who, just days before the grand finale, discovers they need to fork over a hefty $4,000 to escape their rental lease. On top of that, they catch wind of an impending condo association fee hike. Panic ensues, and poof! The deal magically disappears.
Then there’s the seller who has a rather unique condition for closing the deal. They demand that every cent be paid in crisp, green cash. Why, you ask? So they can stash it away and maintain their low-income benefits. Alas, the legal eagles refuse to dance to their tune. No cash, no deal!
Ah, the buyer who thought they were a master juggler, securing a contract that gives them time to sell their current home. But alas, their pricing ambitions shoot for the moon, and the funds never come. Dreams shattered, and deal abandoned.
Speaking of abandoned dreams, let’s not forget the buyer who cunningly uses the inspection period to secretly scout for better options. They stumble upon a hidden gem and conveniently blame the inspection results as their escape route. Hasta la vista, original deal!
But wait, there’s more! Our next contestant is a buyer who miscalculates their employment history by a few months, rendering any hopes of securing a loan dashed. Desperate pleas for a few extra months fall on deaf ears. Deal: canceled!
Oh, the horrors of termites! A diligent buyer’s inspection uncovers past termite activity, but no live critters in sight. The seller insists it was taken care of years ago, but the buyer’s bank demands fumigation or they’ll run for the hills. Sadly, the seller refuses to foot the extermination bill. Deal’s off, folks!
Now, let’s talk about time management skills (or lack thereof). Imagine a seller who can’t vacate their property on time. So, they casually decide to extend the closing by a mere three days during the final walkthrough. Little did they know, the title company hadn’t given the green light to this impromptu extension, causing a domino effect of delays. And with that, dear buyer, say goodbye to the deal!
These stories are just a taste of the wild and wacky world I’ve encountered. Keep your eyes peeled for more fantastical tales of real estate mayhem. Stay tuned!
Prime Time Real Estate Inc. 