How Not To Ruin A Deal
Anyone who’s bought or sold a house knows it isn’t exactly like you see on TV. Shouting “We’ll take it!” doesn’t beam the keys into your hand. Buying or selling property is a complicated business that takes weeks or even months to execute, which means there’s plenty of time for things to go wrong.
Most real estate transactions involve several people who, because of the nature of the business, are divided into two (sometimes more) factions with a common goal — but typically with different views on how to reach it. The obvious difference is about money: Those on the buyer side aim to spend as little as possible and those on the seller side are hoping for quite the opposite. But it’s not always about money.
It doesn’t take much to ruin a deal
The recipe for not ruining a deal is simple. Whether you are the buyer or the seller, be prepared, be certain and be quick. I know that is easier said than done, especially when those several people I mentioned need to agree on price and time. One misstep, one bad word, one misunderstanding or one delayed communication can cause an otherwise solid deal to go belly up.
The time from finding the property or the purchaser to the closing day could be several months. This term is especially long now because of the pandemic. At the beginning, the buyer has a due diligence period and both parties can renege on the agreement without consequence. But, once a contract of sale is fully executed and delivered, the parties are contractually obligated.
Serious sellers are prepared to sell. They know where they will be going next (or are okay not knowing). They prepare the house and property and are agreeable to sell at what they and their agents believe to be a real fair market price. They list the property with their choice of agent and then let the carefully vetted agent do the job. That is, they agree to show with reasonable requests, are sure to have the house looking its best … and then get out of the way. And very importantly, they respond to questions and offers promptly.
Serious buyers are prepared to buy. They know what they can afford, and they know how they will pay for it, and if they need to sell another property before committing to a purchase, they have that transaction underway. They also know the market well enough to look in a price range that suits their budget.
Once you make your decision, try not to talk about it
Both serious sellers and buyers come to a transaction with the intent of navigating a clear path to closing. But even the well-intended sometimes have second thoughts. There are many things both buyers and sellers can seemingly and unintentionally do to quell a deal, but by far the most common mistake either party makes is talking it over incessantly.
At some point during the time between agreement on the price and terms and the closing day, those who talk about their exciting decision are bound to find someone who has a better idea, knows of a better house, agent, attorney, home inspector or builder and who will be happy to tell you what you should do or not do instead. Those buyers and sellers with more or stronger second thoughts are likely to communicate their doubts, which in turn evoke cautionary advice.
When it comes to ruining a deal, talking too much is second only to continuing to monitor online real estate sites. Typically, real estate markets are not volatile. Not much changes in the weeks or months between the so-called handshake and the closing. But, for those who have some moments of questioning their choices and decisions, the alerts from real estate websites can really shake things up.
After I congratulate buyers and sellers on an impending deal, they often ask me what they need to do next. I tell them: Call your attorney, arrange a home inspection, and talk with your banker ... but what I really want to say is: Decline invitations to cocktail and dinner parties and delete your real estate apps and alerts.