12-19-2012 09:20 PM
Hypothetical situation....Buyer and I agree to a specified closing date and we both sign the Offer to purchase. Buyer's lawyer then sends back the P&S agreement with a date 2 weeks AFTER the agreed upon closing date. I agree to the new closing date but need the buyer to increase his deposit to 5% of purchase price. Buyer refuses to these terms which leads me to worry that buyer is having cash flow issues and I might be better off seeking another buyer.
Can I simply walk away now and relist my property? The deadline for a signed P&S agreement has already passed what was specified on the Offer to purchase...
12-20-2012 06:19 AM - edited 12-20-2012 06:19 AM
There are a lot of hypotheticals at play here and really not enough information to help you make a potential decision but I will take a shot none the less. The move of dates could signal cash flow problems but it sounds like perhaps these folks are getting an FHA loan (not putting down the typical 5% deposit) and these loans can take a little longer than most and delays are very common in home buying/financing. Many people use the FHA program precisively because they don't have 5% down or are not willing to stretch their savings and safety net so far to purchase a property. This does not mean that they cannot afford the property or are in financial trouble but they could be, without knowing more I cannot really say. What bank are they using? Has anybody spoken with their loan officer?
Your willingess to part ways with them might say to me that you have a desireable property and perhpas somebody else would step up and purchase it, but your chances of getting the same price or better could be very slim. Without knowing anything about the property it is impossible for me to say with any certianty BUT many years in this business tells me a better offer is unlikely. The market slows down this time of year and buyers are scarce so you might be waiting until spring for another buyer. However if you have a 2 bedroom condo in Cambridge, relist it immediately, somebody will buy it.
If the P&S has truly passed and there were no extensions then you certainly can relist but again there is not enough information here to give real advice. What does your lawyer say? What about your agent? Do you have either of those? What does the otherside say are their reasons?
My hypothetical advice, you have somebody who wants to buy your house, it is December and demand typically dries up quickly this time of year. Find out why they are extending and try and work with them to bring about a sale. However my advice might be 180 degrees if I knew more of the specifics so the real adivice is get a agent or lawyer to help you through these decisions.