Margaret Rome's Blog

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Even With Cash It Can Go Awry!

 

The definition of AWRY is when something goes wrong

even with a decent plan

 

My latest blog But it's a cash offer reminded me of the following transaction.

 

It was a small inexpensive condo in a secure luxury building. We received a full price cash offer, closing in thirty days with a $10,000 EMD.   

To me, it looked like a perfect fit, with sellers moving out of state.

But the sellers were leary.

 

 

Note:

In our Maryland contract, if a deal does not go through, and the deposit is forfeited to the seller, that deposit is split with the broker. So sure of this deal, it was stricken from the listing agreement. My commission is paid when the property sells, not when one falls through. 

 

 

Sellers pack up the condo, hire the moving truck, bring in the cleaning crew, and are ready to go.

The night BEFORE closing, we get a call from the buyer's attorney. The client is not going to move forward. The lawyer wanted to make sure we would accept the ten thousand with no further legal action.

 

To some, it may sound like a good deal for the seller...getting ten grand for nothing.  How wrong that assumption would be.

Think about it. The seller is in a hotel, with an empty unsold condo. The home they were purchasing out of state for cash now could not happen. A loan had to be secured, and the property had to be put back on the market with a $10,000 price reduction. 

 

 awry

 

 Even with cash, the best-laid plans can go awry!

Remember...It's not over until it's over!

 

 

Margaret Rome

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Broker-Owner HomeRome Realty 

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Author of Real Estate the Rome Way

mrome@HomeRome.com

410.530.2400

 

 
Comment balloon 14 commentsMargaret Rome Baltimore 410-530-2400 • December 20 2019 05:14PM

Comments

Hello Margaret - yes, "awry" is certainly an appropriate word choice in this situation.  It's not over until it's over.  

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 7 months ago

We also always give the seller any earnest money due, we have an option to choose that in our listing agreements. And this transaction is an Argh, and yes, gone awry is an apt description. Wow, that is one sad story. So sorry for the poor sellers - and you. D 

Posted by Debb Janes EcoBroker and Bernie Stea JD, REALTORS® in Clark County, WA (ViewHomes of Clark County - Nature As Neighbors) 7 months ago

Michael Jacobs Awry was the best word for this transaction.

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 7 months ago

Debb Janes EcoBroker and Bernie Stea JD  It was not a fun evening when that call came in. The condo very quickly sold, thank goodness. 

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 7 months ago

Morning Margaret.

This is the second post I've read today about deals going south. My goodness, all I can say is that, it happens

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty) 7 months ago

Hi Margaret,
I hope the second sale happened quickly and the sellers were able to minimize their financial loss.  Did you ever find out why the buyer changed their mind?

Posted by Carol Williams, Retired Agent / Broker / Property Manager (Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals.) 7 months ago

James Dray This one happened over twenty years ago. 

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 7 months ago

Carol Williams I know why she needed so fast. Getting out of a marriage and looking for a safe secure place for her and her young child.  I never heard from her after the attorney call. Don't think it could have been a happy ending!

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 7 months ago

I had a cash deal that never closed last year.  While we had the EMD in the contract, the buyer never deposited the EMD.  He had no intention of doing so until he knew he could get the hard money loan he was actually getting, not the cash he represented.

Posted by Chris Ann Cleland, Associate Broker, Bristow, VA (Long and Foster REALTORS®, Gainesville, VA) 7 months ago

Chris Ann Cleland I had an agent who did not deposit the 10k EMD. I found out when I called the title company. We got it deposited. The buyer defaulted and that deposit is still in escrow..over two years.

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 7 months ago

Good afternoon Margaret Rome, Baltimore Maryland - if I were the seller I would want the closing cash and move on.  I am sure the 10,000 was burned up in extra costs.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) 7 months ago

Grant Schneider They got the cash, had a quick sale for 

$10k less and moved on.  

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 7 months ago

Wise words Margaret Rome, Baltimore Maryland .  And it seems it's always the easy ones where this happen.  

Posted by Elyse Berman, PA, Boca Raton FL (561) 716-7824 CRS, ABR, GRI,ePR (Best Connections Realty, Inc.) 7 months ago

Elyse Berman, PA So true. Simple cash contracts can become complicated.Always good to see you. Happy Chanukah 

Posted by Margaret Rome Baltimore 410-530-2400, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 7 months ago

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