Fate worse than death? NOT! I lost the deal? What is that all about? What goes up does come down. Markets fluctuate all the time. News organizations love to talk about descending real estate markets. They don’t seem to brag nearly as much about markets rising, or even nice solid normal real estate markets. They just like to sensationalize our real estate expectations.
So what is going on right now? Many buyers are able to enter the market for the first time in this 2018-2019 sales cycle. They have jobs, are improving their credit, and are saving for the first time in many years. The economic growth has been a huge factor. BUT they are still new at this process. Behind every real estate sales is a topic no one likes to discuss (yet another elephant in the room). And that is FEAR. The fear factor can cause a normal human being to become overly sensitive about any number of issues.
Because the housing in California has not been in a building boom for years, most of our inventory is not new. Houses age, too, and some do not age gracefully. When a buyer goes into escrow and then begins having their inspections, all sorts of issues can be revealed. Some are minor repairs, but others can be daunting. As a result of this, buyers can become fearful.
Fear also translates when the house is very well priced and the buyer pays more than they really expected to pay, or there are multiple offers, and then the buyer may get cold feet.
It is NORMAL for those of us who have been selling real estate to walk our buyers through these periods. Newer, less experienced agents don’t have the tools available that come from experience to deal with the fear factor. This results in buyers “walking” and escrows cancelling.
When this happens, we are all disappointed to be sure. My job, as I see it, is to help the sellers pick up the pieces and market the home as quickly as possible to get it back in escrow. On behalf of buyers I try to walk them through their fears without having to bail on their escrow just because they are fearful. Often this just requires me educating them to the normal variables one finds when buying a home.
The old escrow file is DEAD. We cannot and do not use that paperwork. We begin anew. The reports, however, do stay with the seller, and become a disclosure item. More about Disclosures in another blog, but for now, please understand when an escrow cancels, it is a dead file. We take only the reports (septic, well that sort of thing), and transfer them to the disclosure side of the property file. Just so we all understand, the advantage to being able to present these reports to the next buyer is that these reports can save you money. If you have had a septic, or a back flow device plumbed, there is not a need to repeat this! If you have a pest report, it must be disclosed.
Can the new buyer use these reports? They will be seeing them, and signing off that they have seen them. However it might be advisable for a new buyer to have their own reports. One never knows if the ones provided might just be inaccurate. I have had pest reports be contradictory and had one so far off that it was $4000 more than reality. This, again, comes with experience. Call me. I will walk you through the fears of buying your home.
As a seller, I will navigate the escrow with you every day! Sometimes I am unable to save a deal but I will do all I can to work with the other side to come up with any viable solution to the issues involved. This takes time, tenacity and experience. I put it all to good use.