If it seems too good to be true, it probably isn’t….
This year has been crazy year in real estate, what could go wrong went wrong at one end of the year or the other. Never before have we been called upon to manage so many little and big emergencies before, during and after homes are purchased.
I want to tell you about Tracy and her nerve racking adventure to buy a new home. Like most buyers, she had to sell her home first. Once she made the decision to sell, Tracy was determined to find her next home. House hunting commenced quickly and Tracy found a couple of houses that would fit the bill. Unfortunately, her home didn’t sell, and didn’t sell, and didn’t sell. Finally, the magic day arrived and she accepted an offer from the perfect buyer on her beautiful home. Days after, Tracy found the perfect home to buy and all seemed to be on track for Tracy to host Thanksgiving in her new home… or not.
Where this story gets complicated is the buyer of Tracy’s home, Mary was selling her home and needed those funds to purchase Tracy’s home. This is fairly common but what made Mary such a good buyer was that she would be paying cash for Tracy’s home. Wonderful! No financing worries because the buyer of that home was paying cash also. Almost too good to be true and it was. If you can keep this straight, we have three buyers , three sellers and each is depending on the other for everything to go forward, but two of these deals were for cash and that was supposed to make it easy.
What we didn’t know until later was that Mary decided to sell her home on her own, without an agent. The nice buyer that said would pay cash for her home and he could close in 30 days. Mary, not knowing how to check, just believed the nice buyer and the day before closing, the buyer didn’t have the cash. Since he didn’t have the cash, Mary didn’t have the cash to buy Tracy’s home and Tracy didn’t have the funds to buy the home she wanted and that seller, who was in her late 80’s had moved out without her house selling.
The good news is that Tracy was able to buy her home, the bad news is that it was three and a half weeks late and it cost more money. The interest rates had increased over that time so Tracy’s loan costs were higher, she had to reschedule the movers three times and the real estate agents had to do way too much paperwork to keep changing the contract dates because it got delayed and delayed. So instead of Tracy having a wonderful Thanksgiving in her new home, she moved in the day before Thanksgiving. All’s well that ends well though, Tracy didn’t have all those dishes to do Thanksgiving night.