711,852
This has become common in our market. The seller needs to have assurance that the buyer will stick. If the buyer wants the home, let him/her know that if they can't perform, they lose their earnest money.
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Nina Hollander, Broker
Charlotte, NC
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Pete Xavier
Pacific Palisades, CA
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Kasey & John Boles
Boise, ID
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Lyn Sims
Schaumburg, IL
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Candice A. Donofrio
Fort Mohave, AZ
1,052,196
This may or may not be a reasonable request, depending on why the week extension is required. Is title just taking longer? Is financing in place? What contingencies remain, if any? How long has the property been tied up by buyer? Are there backup offers? Is seller cooperating?
Many questions, grasshopper! ;)
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Nina Hollander, Broker
Charlotte, NC
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Tony and Suzanne Marri...
Scottsdale, AZ
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Lyn Sims
Schaumburg, IL
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Susan Haughton
Alexandria, VA
1,574,666
Most buyers I have worked with would probably tell he seller to not test them and threaten to walk away. Most sellers, if motivated and have a good agent, will understand it takes a long time to find and close another seller whether a house goes back on the market today or or seven days.
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Nina Hollander, Broker
Charlotte, NC
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Frank Rubi
Metairie, LA
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Lyn Sims
Schaumburg, IL
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Teri Pacitto
Westlake Village, CA
1,543,623
What's the problem with asking for it? I'd prep the agent, send the extension contingent on all in and see what they say. If they say "no" it's your seller's call as to whether they kill the deal or not...I doubt they would unless there's more to this than that 1 issue?
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Nina Hollander, Broker
Charlotte, NC
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Kasey & John Boles
Boise, ID
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Lyn Sims
Schaumburg, IL
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Candice A. Donofrio
Fort Mohave, AZ
1,027,602
I cannot tell if you are representing the buyer or seller, but either way, prepare the party you represent for all ramifications and send the paperwork as directed. If it floats, fine, if not, then your client has a decision to make.
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Nina Hollander, Broker
Charlotte, NC
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Candice A. Donofrio
Fort Mohave, AZ
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Teri Pacitto
Westlake Village, CA
3,587,835
How hot is your market? Perhaps there is a back up offer in place that is higher?
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Nina Hollander, Broker
Charlotte, NC
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Lyn Sims
Schaumburg, IL
989,652
I'm with Candice A. Donofrio - it really depends on the situation
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Candice A. Donofrio
Fort Mohave, AZ
3,071,489
Candice A. Donofrio nailed this one!
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Candice A. Donofrio
Fort Mohave, AZ
1,622,432
Well, by the time you ask for 1 week extension the contingencies are usually removed, so EMD is already non refundable.
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Candice A. Donofrio
Fort Mohave, AZ
599,274
if the buyer's are serious, they should be willing to demonstrate that with a deposit.
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Nina Hollander, Broker
Charlotte, NC
321,564
Depends why they need extension and how bad they want the home. Seller may have another motive? Find the real issue. Good Luck!
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Nina Hollander, Broker
Charlotte, NC
2,684,009
677,422
In a Seller's market like we have, it is relatively easy for the seller to request this. We use this language: "EM Deposit to be Immediately Released to Seller."
Had to go this route last summer when the buyer's lender changed loan types and they hadn't obtained enough buyer income documentation for the new loan.
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Lyn Sims
Schaumburg, IL
352,976
Marc Swartz, CPA, CA, Real Estate Broker has your answer and mine. We've all or most had this arise and every situation is different. There are way too many marbles rolling around in times like this. My experience is if handled properly it does work out.
Also, with all the TRID rules and changes in our business these are discussions that should be had with buyers and sellers up front and let them know that things can happen and what we will do it does. Often tempers flare for no reason and posturing by both parties creates more trouble than there is.
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Lyn Sims
Schaumburg, IL
151,633
Sounds like buyers need to decide if their 1 week extension is worth the risk of their earnest money deposit. If they are extending because it's more convenient for them, then they may want to go ahead and close on time. If they are extending because of an issue with the loan, then there would be more risk involved. They just need to weigh it out.
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Teri Pacitto
Westlake Village, CA
1,157,785
5,216,381
Call their bluff and say buyer wants to cancel so the sellersare free to pursue a new course, like starting over. Then say this can be solved by signing an extension and saving everyone time and aggravation!
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Lyn Sims
Schaumburg, IL
3,416,038
I just had that and it killed the deal. Nothing is done until it is done. The buyer would not make their money non refundable and seller was hell bent on it. The buyer walked and now the house is back to square 1. Pretty dumb of the seller to be direct
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Julie Larson Realtor® ...
Sarasota, FL
4,319,419
William Piotrowski - explain the risk to your buyers and do what they want you to do. Simple, isn't it?
5,868,472
1,502,998
If you're at the original closing date, by this point the contingencies should have been removed and the EMD is already non-refundable. If that hasn't happened, it is standard procedure out here to ask for something in return. Either contingencies removed or financial compensation.
We have a seller's market out here. The seller can usually sell the home again for a little more money. I've done it. Buyer's walked on Friday, by Friday night I had the home back in escrow with someone else at more money. It's on the buyer out here to make the extension worth the seller's time.
5,104,931
Either buyer agrees or it sounds like the seller can void the contract. Not much you can do at this stage but try to negotiate. Maybe offer have the EMD as not refundable?
969,888
5,229,945
Suggest half, William Piotrowski - if your buyers are good with that, then it's a win-win.
4,936,033
3,164,269
1,466,207
William Piotrowski You should follow your client's request. If the reason for the extension isn't more than just needing a little more time to close then it shouldn't be an issue.
2,178,553
The seller has probably made moving arrangements based on the terms of the contract. I don't think it is unreasonable to want the security of the E.M. deposit becoming non-refundable.
6,393,154
667,615
417,221
In order to advise, need to know why there is a hold up, and what is solution. would offering to pay seller a perdium amount (whatever a 95% mortgage taxes and insurance are divided by 30 days and agree to a 5 day extension with buyer paying this at closing?
809,258
If the buyer doesn't close on time according to the contract would they lose the EMD anyway? In my market this is not an unresonable request. Some sellers will want it and some are ok with just agreeing to an extension with no EM. Depends on circumstances. It is up to the seller to agree to an extension and all terms must be agreed to by buyer and seller of course. But if the buyer is unwilling it can be seen as a red flag that they are worried it wont actually close.
3,345,091
That is up to your clients. I say let the voice of reason prevail. The only way to make an informed decision is to have all the facts ... and this question does not provide the details of why the extension is requested. Digging deeper allows us to mitigate the risk on both sides of the table.
1,844,271
Not happening in my area. Contract with terms has already been signed. Let the contract go into the 'void' area & see how smart the seller thinks he is. If buyer did not default & needs an extension, it's a ridiculous request.
259,005
Present it and see how it falls. The reason for the extension could be a deal breaker. If the buyer is waiting to see if another property comes up, then the deal isn't a deal anyway.
1,725,996
You must in writing alert your buyer to the risk and have him/her acknowledge receipt.
921,504
Your action is dictated by the cause and whether that issue was addressed in the listing agreement or purchase offer.
It is very likely if the cause is lender based, the seller can not make this demand. Your broker should be able to give guidance more relevant to your location of business. If the cause is buyer preference, the buyer will need to pay up or back up #1 does the 'happy dance.'
1,239,801
In our area it is the contigiencies release. If one has released one or more, the seller has the option to forfeit the emd after buyers fail to proceed.
1,712,676
In Oklahoma the real estate commission would frown on this and if it went to the commission in a dispute I would predict that the buyer would win. Sounds like a bad seller to me.
4,800,082
Ultimately it's up to the buyer. Though, I would give him/her all the facts about the possibility of losing their money.
2,781,153
864,658
I would not advise either way. Just explain the ramification of all the options. If you represent the buyers and they need the 1-week extension due to financing, then the risk seems high.
3,988,007
If the buyer really wants the house and the lender says it will close, let the buyer make the decision. I have seen this happen before. It is usually after the seller feels he has given more than the buyer and is beginning to have doubts about the buyer closing.
509,449
What's the extension for? Is the lender slow? Depending upon the reason, in Texas chances the seller isn't going to release the earnest money with or without extension. We also have a financing addendum and if it's pass the days there then that spells trouble for the buyer. Is seller willing to put the house back on the market and wait for another month for it to close? Do they have back up contract?
4,434,127