Rosh Hashanah Wishes 🍎🍯- Real Estate Blog

I’m super excited that our listing at 538 S Plymouth is in escrow! The buyer who is buying the house was smart to write, soon after the property was listed, with an initial offer over the asking price. The house went live on the MLS on August 25.  2 days after the listing went live, an agent submitted a low offer on behalf of a client who absolutely loved the house but wanted to negotiate the price.  The agent asked that we call him and let him know as soon as another offer came in (that strategy never works.) The agent kept calling daily “to check in” and he showed up to every single open house to assess activity.  Not too long after we received that low offer, the buyer’s offer came in over the asking price and the seller accepted. And then an even higher offer came in.  And then a third offer for over the asking price.  Once the house was in escrow for some time, the buyer who wrote the first (low) offer a full week before any other offer came in, switched agents and THEN she wrote the highest offer of all contingency free, all cash, and with a huge earnest money deposit.  But it was too late because the buyer in escrow removed all contingencies.  It’s interesting that the buyer who lost wrote an offer a full week before any other offer came in.  She knew the house was good and she was right because it sold over asking with 3 backups.  But she lost because she cared more (at that time) to negotiate than to buy the house. 

 

This past week we closed 2 deals for sellers who concurrently bought and sold a house.  It’s interesting that 529 Kilkea was first on the market (with another agent) in August 2020; it didn’t sell and now this week the sellers sold Kilkea and bought another house.  The moving truck came and moved their stuff out of their house that sold and into their new house that closed on the very same day! The second house that sold off-market is a seller we first met in February 2020.  Next week we’re closing a third deal where the seller also has the same plan to move out of their old house and into their new purchase on the very same day with concurrent closings on both.  We haven’t done a concurrent close in years, since before Covid.  In this market, many people are doing concurrent closes successfully.  2 of these sellers first found a house they wanted to buy which made it worthwhile to sell their old house and move into the new one.  The third found a buyer to buy their house, and then they found a house to buy at the same time.  It’s a lot of logistics but in this market, it absolutely works!

 

One of the hardest parts about a real estate deal is that the ONLY remedy for a frustrated buyer or seller in a deal is cancellation. We recently represented a buyer in a sale that was supervised by the probate court.  The MLS listing mentioned nothing about it being a probate sale.  We wrote a standard offer and there was no mention of probate in any counteroffer.  The seller’s representative took a frustratingly long time to respond to our buyer’s initial offer..but the buyer wanted to move forward anyway once we had acceptance.  The disclosures came late and it was frustrating to wait…but the buyer wanted to move forward with the purchase anyway. The buyer sent a reasonable request for repairs and the response was zero.  The property appraised for slightly below the purchase price so the buyer asked the seller to compensate, and the seller said no.  And then, the day before our buyer was scheduled to sign loan docs with a mobile notary while away on a business trip, escrow sent out an email saying that there would be a 15 day delay in closing to meet the seller’s requirement to give notice to all potential claimants in their probate case, and that was the first mention of a probate sale.  The buyer had a rate lock that expired 16 days later.  At every frustrating point in the transaction, the buyer’s only remedy was to cancel but they didn’t want to cancel.  They wished to buy the property per the terms in the purchase agreement that was mutually executed by all parties.  When one party blows past the dates + terms in the contract, it’s frustrating that there’s no way to force performance and the only remedy is cancellation.  The buyer closed because they wanted the property, but the experience was a disappointing one.

 

Similarly, on two recent transactions where we represented sellers, the buyers didn’t remove their final contingencies until right before closing.  The sellers can serve a notice to perform and cancel when the buyers don’t perform.  Sellers aren’t looking to cancel, especially all the way at the end of a transaction. They’re looking for full contingency removal so they can make plans with full commitment, such as scheduling movers or planning a concurrent purchase.  Buyers and sellers in transactions can’t ever make anyone else do anything; their only remedy is to cancel.  People don’t want to cancel; they wish for all parties to act in accordance with the terms in the purchase agreement that was mutually executed by all parties.  It’s frustrating when there’s nonperformance that there’s no way to force performance and the only remedy is cancellation.

 

As we end the Jewish Year 5784 and look forward to a new year, I think back to all the clients who inspired me over the years.  I’m inspired by buyers in 2017 who were so excited to buy the house of their dreams that they sponsored a year of groceries at a local market for someone less fortunate, and then they kept continuing it because they only grew to love their house more and more. I’m inspired by buyer clients in 2019 who uncovered a massive amount of necessary repairs in inspections…and removed contingencies asking nothing of the seller…because they saw requests after inspections as renegotiation.  I’m inspired by a buyer at the end of 2020 who spontaneously bought a house with cash as a gift for his wife’s brother and family for the holidays.  I’m inspired by a couple who bought and sold concurrently in 2021; they’ve been married for over 60 years and they act like newlyweds. I’m inspired by one of our current sellers who bought a house for the wife’s parents (and are selling now because the parents moved to a retirement community.) I’m inspired by a current buyer whose sibling is spearheading and generously participating in her purchase.  My wish for myself, my family, and all of us is to keep being inspired to grow to become more kind, more caring, more generous, more patient, more listening, and more empathetic. I love good people and it’s an extraordinary honor to work with people who inspire me for years and years long after their transactions have closed!

 

Wishing all who celebrate a Sweet, Healthy, Happy New Year and a Special Holiday!

Xoxoxoxo,
Sheri