Seller Frustrations over first time buyers (contingent, appraisal, agent, sale)

[jmw51882]

We just closed on our house sale. A highly upgraded, 4/2 on a large lot. We had multiple offers over asking price within days of listing. We chose an offer with conventional financing and only a standard inspection contingency.

Lesson learned-I think from now on I am going to choose an offer with a home sale contingency. This way I will know it's not a first time buyer.

The buyer got very nit-picky on the inspection. We agreed to about half the repair requests. Then they changed their financing from conventional to a first time buyer program. So appraisal comes in low. This was no surprise since they offered over asking price. And then they want to renegotiate the price.

It's a strong seller's market, as evidenced by our attempt to buy a new home. I wanted to dig my heels in, cancel the contract, and relist. However, we agreed to meet in the middle and come down a few thousand.

And now the final walk through... They threatened to walk away over missing closet doors. The doors are not there in pictures or during any of their viewings, inspections, ect. There are built in organizers with drawers in the secondary bedrooms. Closet doors would prevent you from being able to open the drawers.

We closed, late, but lesson learned. No more first time buyers for me.

[Brandon Hoffman]

Originally Posted by jmw51882

We just closed on our house sale. ....
Lesson learned-I think from now on I am going to choose an offer with a home sale contingency. This way I will know it's not a first time buyer.

The buyer got very nit-picky on the inspection. ...
...
And now the final walk through... They threatened to walk away over missing closet doors. ...

We closed, late, but lesson learned. No more first time buyers for me.

That sounds like more of a yes-man (probably inexperienced) agent issue than a first time buyer issue. A good, experienced agent will guide the buyer and help them be realistic.

When I get multiple offers I first look at terms and loan type, then who the agent is they are working with. I want a strong agent on the other side. Some agents have reps for getting closed smoothly, some are like pulling teeth, and some are known for failing to make it to closing.

I rarely have the issues like you mentioned with first time buyers...but even good agents get difficult buyers sometimes.

[2bindenver]

There is nothing in your post that 2nd time homebuyers wouldn’t also do.

[Spazkat9696]

I would have expected all doors to be there. Even if they weren't hanging I would expect them to be on the property.

[tamajane]

Originally Posted by Spazkat9696

I would have expected all doors to be there. Even if they weren't hanging I would expect them to be on the property.

Then they should have asked about them when they were inspecting the property, not bring it up at a final walkthrough.

[mawipafl]

It's my opinion that the final walk-through is just to verify that promised repairs were completed and that nothing horrid has happened since the time the house was inspected (like new holes in the walls or included appliances removed, etc.). Had the closet doors been removed after the inspection, then the buyers would have had a legitimate gripe. With all contingenicies met, if the buyers had walked they would have lost their good faith deposit.

As said above, it's not just first-time buyers who try to pull this last minute stuff. Seasoned buyers try to do it, too.

[simplechamp]

Originally Posted by 2bindenver

There is nothing in your post that 2nd time homebuyers wouldn’t also do.

I agree with this. You could have this experience with a first time buyer or fifth time buyer. You can try to vet the person and their agent but a lot is luck of the draw.

As far as preferring someone who is contingent on selling their house, that opens up a whole new can of worms. Now you have dominos that have to line up and fall together. Problems with their sale turn into problems with your sale. You just doubled the number of things that have to go right to get to closing. I'd take a first time home buyer over that any day.

[jmw51882]

There were many things that happened during this sale that I hadn't dealt with before. The fact that we are in a hot seller's market made it that much more annoying. For example, offering over asking price, then trying to renegotiate the price because the appraisal didn't match the offer. Um, if you offer over asking price, you have essentially agreed that you are willing to pay a premium. The list price was set by fair market value. I realize this isn't because the buyer was a newbie, but a seasoned home owner, and someone who is in the process of selling their own home, isn't going to try and play those games based on a forum they read from 2010.

[Brandon Hoffman]

Originally Posted by jmw51882

T... For example, offering over asking price, then trying to renegotiate the price because the appraisal didn't match the offer. Um, if you offer over asking price, you have essentially agreed that you are willing to pay a premium. ...

Not true at all. I find it very uncommon that buyers will pay than appraised value. Sometimes they don't have the extra cash, sometimes they just don't want to overpay. Even on a bad appraisal, some buyers put wayyyy to much stock into it IMO.

[blue_sky_5235]

Interestingly, my full price offer for my house is a first time buyer. We've had nothing but pleasant experience so far.

We are in a strong seller's market, so we have all the leverage, but I think a good realtor is much more important. The buyers have an experienced realtor who is guiding the buyers through the process, and giving them good advice on how to work with us through the process.

If not for their pleasant realtor, they may not have been able to buy our house. Their realtor walked them through how to navigate a hot seller's market and be reasonable with expectations.