How to get a buyer to walk away?

[Gaylord_Focker]

Originally Posted by Silverfall

Yes. I have a friend that paid the buyer first in line to terminate so that they could move forward with the purchase. It cost them $50,000.

I know it's market and person specific, but I don't think 50,000 will get anyone to restart the process in most markets.

[MidValleyDad]

When we bought our first house the price had just dropped that day because a RE-Lo service had just taken over when the previous owner was transferred by a major compabny and had not sold it in 60 days. We saw it at 2 PM, put offer in at 3:30 PM. The next day we found out our agent had but in an offer at 4 PM! ( She told us) We were young and naive at the time. This was in 1980 . Our loan was negative amortization 16.7% interest rate ( so don't complain to me about rates going UP to 4 or 5 %). Everything ended up going through fine and we were able to convert to a 12% VA loan a couple years later (for a higher amount since with negative amortization the toatl amout on the loan increased for the first 3 years)


But when I later thought about it over the years the fact that it would have benefited my agent if I bailed or couldn't get a loan and close on the house. Especially the Professionals on this list - Was this a violation of professional ethics on her part to put in a contract directly behind mine? Should she have excused herself as my agent when she put in her own contract?

[MikeJaquish]

Originally Posted by MidValleyDad

When we bought our first house the price had just dropped that day because a RE-Lo service had just taken over when the previous owner was transferred by a major compabny and had not sold it in 60 days. We saw it at 2 PM, put offer in at 3:30 PM. The next day we found out our agent had but in an offer at 4 PM! ( She told us) We were young and naive at the time. This was in 1980 . Our loan was negative amortization 16.7% interest rate ( so don't complain to me about rates going UP to 4 or 5 %). Everything ended up going through fine and we were able to convert to a 12% VA loan a couple years later (for a higher amount since with negative amortization the toatl amout on the loan increased for the first 3 years)


But when I later thought about it over the years the fact that it would have benefited my agent if I bailed or couldn't get a loan and close on the house. Especially the Professionals on this list - Was this a violation of professional ethics on her part to put in a contract directly behind mine? Should she have excused herself as my agent when she put in her own contract?

I think what your agent did was disgusting.
However, 1980 was before the time of buyers agency. She was a sub-agent to the listing agent and representing the sellers' interests when dealing with you. So, she had no fiduciary duty to you, no duty of confidentiality when bidding against you, only her duty to the seller client.
Still it reeks, IMO.

at your loan parameters. Yup. Those were the days.
Even in 1986, we got a mortgage at 12.09% and felt like we hit the lottery. Market rates were in the 14's at that point.

[johngolf]

Originally Posted by MikeJaquish

I think what your agent did was disgusting.
However, 1980 was before the time of buyers agency. She was a sub-agent to the listing agent and representing the sellers' interests when dealing with you. So, she had no fiduciary duty to you, no duty of confidentiality when bidding against you, only her duty to the seller client.
Still it reeks, IMO.

at your loan parameters. Yup. Those were the days.
Even in 1986, we got a mortgage at 12.09% and felt like we hit the lottery. Market rates were in the 14's at that point.

Mortgage at 12% from a bank but the bank was paying 10% on your CD's. Been there, had that. The 2% spread is always there.