Seller may cost me the deal. - Posted by Marlon(OH)

Posted by Marlon(OH) on September 18, 2000 at 08:13:17:

I told the seller that I wanted to show the house so that I can have someone in it when it closes. He thinks I’m looking for someone to buy on land contract. My contract doesn’t say anything about him being able to cancel the contract if he finds another buyer. I used a standard contract that I modified a little. My sellers don’t have any doubts about me closing. The contract says that I’m allowed to show the house. The sellers gave me their keys without any questions asked. Their friend at the title company stopped them and said that I should be able to show the house with only one of them being present. I agreed to that only because the sellers understand what I’m doing and also because they will most likely give me the keys anyway.
Doing the meeting, their friend kept asking me questions like who made the contract for me and who showed me how to write an addendum. Then she kept bringing up that I looked to young to be an investor. She didn’t really bring up my ability to close or not. All she seemed to be focused on was my age and what I’m doing in real estate.

Marlon(OH)

Seller may cost me the deal. - Posted by Marlon(OH)

Posted by Marlon(OH) on September 17, 2000 at 11:48:22:

I finally got my contract signed with my seller. I had put an add in the paper for the house earlier in the week. Its an “owner will finance” add without the address of the property. I have a couple of people who have the down payment and who are very interested in the house. I had one lady just call an asked if I can hold it for her. The problem is that the owner put his sign back in the yard and also put his ad back and the paper. And his ad is directly above mine in the paper. I can have this thing sold in another week or two but now I have people who have called me earlier calling back asking why is there another ad in the paper advertising the same house cheaper. I told them that I’m closing on the house and the old owner hasn’t taken his ad out yet. I’m going the call my seller and talk to him about this. Any suggestions will be helpful. I think that his ad is going to cost me this deal, if it hasn’t already.

Thanks in advance,
Marlon

Re: Seller may cost me the deal. - Posted by Craig

Posted by Craig on September 17, 2000 at 12:52:21:

Didn’t realize you had lined up your own financing just in case. In any case Marlon, until you close on the deal this seller has a right to continue looking for prospective buyers, he does not have the right to weasel out though when you are ready, willing, and able to close so a valuable lesson here for next time might be to have your seller sign and notarize a Memorandum of your agreement so if he does choose to try and back out you can at least cloud his title and make it difficult for him.

It seems like this seller is just trying to make sure you don’t earn a profit until you’ve borrowed the money yourself and closed the deal. Next time try not to give the seller so much info about what you’re doing. Just tell them that you’re buying and are just trying to get someone in it as soon as possible. Try not to give them any impression that the deal hinges on whether or not you do.

Re: Seller may cost me the deal. - Posted by Craig

Posted by Craig on September 17, 2000 at 12:31:42:

Marlon,

When someone calls from your ad let them know up front that you have an agreement with the seller to purchase and that he still has his sign in the yard but they will not get the same deal from him as they will from you. You are offering “owner financing” and the seller is not(at least I hope not). Tell them to disregard the sign that’s in the yard when they drive by. Also if you do not already have one consider putting your own “owner will finance” sign in the yard. Hopefully people will call that number instead of the sellers.

I can’t tell you how to deal with the seller here, because I would probably do the same thing he has. He just wants his house sold Marlon and unless you’ve given him a strong reason to believe that you’re going to close the deal then he is going to do whatever it takes.

Re: Marlon may cost Marlon the deal. - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on September 17, 2000 at 12:14:03:

Marlon,

It’s not the seller who jumped the gun here it is you. So when this deal flops, please post here and tell us:

  1. What you learned. and

  2. What you would do different next time.

I know I am interested and looking foreward to your post…ED

Re: Marlon may cost Marlon the deal. - Posted by Marlon(OH)

Posted by Marlon(OH) on September 17, 2000 at 12:30:17:

I’m sorry but I don’t quite understand by what you mean by I jumped the gun. I talked to the sellers Thurs. night and explained to them that I wouldn’t do this deal and explained why I couldn’t. On Friday we meet and I sat down with them on told them that I would need 45 days to close and access to the property. I also told them that I was planning to resell the house but if couldn’t I would buy it myself (I found a lender to do this). I then met with their friend at the title company and a laywer and went over the contract. After 3 hours they agreed to my terms. I think that it was his friend who influened him to put his ad back in the paper. I thought I did everything except get i writing that he couldn’t have an ad in the paper.
Maybe I have to add that on the next deal I do.
Marlon(OH)

Re: Perhaps I jumped the gun. - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on September 17, 2000 at 15:24:02:

It sounds like you might be in a better position than I first thought. I still hope that you let us know how it comes out…ED

Re: Marlon may cost Marlon the deal. - Posted by JohnBoy

Posted by JohnBoy on September 17, 2000 at 14:26:44:

Does your contract allow the seller to take another offer and sell to that buyer if he finds one by being able to have the right to cancel his contract with you? Or is he allowed to advertise to take back up offers in the event you could not close? What does your contract say?

If you are planning to close this deal no matter what even if it means getting your financing on it, then why not just close on it and get the seller out of the picture all together?

How did his friend influence him to put the sign and ad back in? What does your contract say? It sounds more like you agreed to their terms. You don’t tell a seller that you want to tie up their home for 45 days while you try and find a buyer that will pay you more for it than what he will let it go for so you can make some money off his house. Sounds like he has a good friend looking out for his interest.

Since you have lender that will close this deal for you and you plan to close yourself if you have to, you should have just said you wanted the 45 days to close to allow you a little time to find a suitable tenant to rent the property too. You are buying it for rental. Then if you find a buyer you could flip to, you close the deal and never tell the seller what your intentions were regarding selling it to an end buyer.