Seller Wants Out of Deal - Posted by Chuck Perry - TX

Real Estate Investing
1

Posted by Gene S Hou Tex on March 07, 2001 at 19:40:59:

I basically agree with Monique. However, just today I’ve been contemplating contracting some deals that I usually would be a little scared of to go “hard” on immediatly. For example, a low equity $400,000 home or a home with a bad location or floor plan. In lieu of an option agreement (easy to breach on) I thought I’d use the Texas R E contract & write it as an option. Then I would get a PERFDOT with a face value of the beginning equity in the deal. What do you think?

Gene S

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Seller Wants Out of Deal - Posted by Chuck Perry - TX

Posted by Chuck Perry - TX on March 07, 2001 at 11:24:36:

I’m sure this happens a lot in REI, but I would like to get some feedback.

This probably goes to the heart of the deal that once a contract is signed and the selling party starts to talk to “friends and relatives,” suddenly they get seller’s remorse. Keep in mind, the seller called me, not the other way around.

I am going to try two tracks:

  1. Negotiating to overcome the “problem”
    If negotiating fails -

  2. Letter to seller stating the fact that they have entered into a legally binding document and that they can’t sell it to anybdoy else without dealing with me. An affidavit has been recorded.

I think in the future it might be prudent to close this kind of a deal quickly as opposed to trying to “flip it” to another buyer while it’s under contract.

I would like to hear from the experiences of other investors on how to handle this problem or better handle the deal next time.

Thanks,
Chuck

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Re: Seller Wants Out of Deal - Posted by Monique

Posted by Monique on March 07, 2001 at 12:14:36:

Chuck,

There is a third option, let them out of the deal.

I know, that stinks. But, if they’re that unhappy now, they’re only to get be unhappier later.

You might try to salvage it first, by listening to undertand their concerns and see if there is a workaround. But, if they aren’t absolutely delighted about working with you after you talk with them, let them go.

Check the wording of your agreement, if there is recourse for them backing out, you might consider using it. Just enough to cover any out-of-pocket costs that you have spent so far.

Good luck with it!
Monique

PS: BTW, your Seller has a house much, much farther away than I thought. We’re not going to be able to do anything to help her. Thanks for the lead just the same!