Bay Area

[hqly2001]

I'm the seller and went under contract using standard offer form. Listing stated as-is and no AC.

After 10 days and inspection and roof reports, buyer decided that she could not get a bigger home via SS and one with AC.

She wants her deposit back because it's still within her contingency period. Inspections came back with Roof report and stated limited problems. I can fix all the items.

Unless it's an inspection issue can she change her mind because she decided that she would wait for a lower SS home or maybe she just noticed another house go on the market and want to go after that?

I've taken my home off market for 10 days now and decline other offers relying on her to close and now this mess. Can I keep the good faith deposit or she could back out anytime for any reason?

[mediaguru]

According to standard CAR contract, if it is within inspection period (ie. inspection contingency hasn't been lifted), buyer can walk and can get their deposit back for any reason.

Looks like you're going to have to price your house accordingly to be able to compete with the short sales.

[hqly2001]

I'm very frustrated. These short sales have drained my equity and now by this deal falling out, it could put me in a short sale situation. I was already willing to come out of pocket about 8k to cover commission etc. But with this delay, I might be delayed for another 1-2 months and maybe another 5k in monthly payments while waiting for another buyer. Very frustrating!

[lexa]

We're also flustrated, including with SS, but for another reason. SS are mostly scam, they have to be REO instead to make it fair. Not sure if you'd prefer REO sales or SS to affect your comps...

But such as normal free market, there should be winners and losers there otherwise, it is no free market.

As far as buyer, yes, she can get away with it now, it is all spelled in the contract you signed.

[ptiemann]

Don't worry about this buyer. Stop wasting your time, sign the cancellation notice, instruct escrow to refund her earnest money and get it listed back as 'active' no later than tomorrow.

If you could find a buyer two weeks ago, you will be able to find a similar qualified buyer or better next week. It's not like we are in November. Most people know that short sales are to be discounted. You may even get a better offer this time.

[sakidd12]

actually short sales are a scam.  the realtor can set the price at whatever they want just to attract buyers and there's nothing you can do about it.  The bank may not even approve the "teaser" price that they have set.

it's really screwing up the market right now

[Dukey]

That happened to me 12 yrs ago well after contingencies expired.  Buyer had change of heart.  Could have kept the deposit but my honest selling RE agent (rare breed for sure) advised that just give the deposit back and move on as it can get messy to keep the deposit.  Good thing as sold the house for higher price month later to my neighbor's best friend.

That said it's tough to compete against SS not to mention bringing the comp #s down...  So I think you should be cool as your ex-buyer may come back after realizing SS is not for everyone and its big IF the bank or all lien holders agree to short sale.

Good Luck

[Siccished]

Although SS's (short sales) may initially have a more attractive price, regular sales have a bigger advantage if priced right.

I'm on a short sale contract currently and the selling bank is so **bleep** strict on close date and because the seller did something to prevent the sale from moving forward i'm risking all the money i have into inspections + not to mention emotional investment.

Short sales are a PIA to deal with. A buddy of mine is hunting for regular sales and hes willing to pay over asking for one since hes been offering over asking on every property hes tried to get into for the past 8 months.

[mediaguru]

I agree with everything people are saying about short sales... unfortunately, that's what's out there right now.  I'd say 60%-70% of listings where I am are SS.

Of course, you can't price vs SS asking/list price because that asking price means nothing.  You have to go by what the properties actually sell for (and even then, people are wiling to pay more to have a regular sale instead of dealing with all of the shenanigans of a SS. But not a lot more.)

What the banks really need to do is give people the boot ASAP when they stop making mortgage payments.  Give them, say, 3-6 months and then they're evicted and the house is foreclosed and goes REO.

This would really help fix the situation quickly. But it's not happening.

[AprilMay]

---

hqly2001 wrote:

I'm the seller and went under contract using standard offer form. Listing stated as-is and no AC.

After 10 days and inspection and roof reports, buyer decided that she could not get a bigger home via SS and one with AC.

She wants her deposit back because it's still within her contingency period. Inspections came back with Roof report and stated limited problems. I can fix all the items.

Unless it's an inspection issue can she change her mind because she decided that she would wait for a lower SS home or maybe she just noticed another house go on the market and want to go after that?

I've taken my home off market for 10 days now and decline other offers relying on her to close and now this mess. Can I keep the good faith deposit or she could back out anytime for any reason?

---

Can't you just go back to the other offers and see if you can get something going with one of them? Yeah, sure, it's an inconvenience to have your prospective buyer back out, but it's not the end of the world.