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Buying and Selling a Home – Case Study

Realtors tend to only show you our highlights. What we don’t show you is the late nights, interruptions in time with family, the constant anxiety while we work hard to keep deals together. If you are thinking of buying and selling a home at the same time, this case study is for you.

There is a lot of talk out there about realtor commissions right now. Whether we should be paid, how much we should be paid, whether the seller pays, buyers pays, either pays their respective commissions. Where it gets tricky is that you do just see the highlights. You don’t see what good realtors are doing behind the scenes.

Buying and Selling a Home – Case Study

This is a case study of the good and the bad. My clients were buying and selling at the same time. The thought of this strikes fear into many. Juggling a contingency and hope everything goes right. Well actually you don’t have to hope because that is part of hiring a good realtor.

When my clients came to me, they knew the home they wanted. They weren’t necessarily planning on selling and buying so this all had to happen pretty quick.

Once we had negotiated a good offer with the buy side. Starting the work on the sell side was paramount. We had made a offer contingent on them selling their current home. What that means is the money from selling the current home had to be used to buy the new home. We had to sell the current home and get it under contract fast.

I have a established process for these scenarios which makes it easy on everyone. Once our contingent contract was accepted, I sent the home preparation list to my clients, booked the photographer and we got busy getting ready to list the home within 72 hours.

What Went Right

We had the current home on the market and ready to go within the timeline we had promised on our contingent offer. Giving a timeline helps the seller feel more confident in accepting a contingent offer. These sellers had worked hard, photos and videos looked great and we had multiple offers within 2 days on the market.

An offer over asking was accepted, they even assumed the loan for the solar panels. We were able to get on with the process of buying and selling a home at the same time.

The home we were buying had a great agent and seller on the other side. Things went pretty smoothly including agreeing to inspection items and appraisal terms. One side of the contingent sale went very smoothly.

Buying and Selling a Home

Sale side was not so smooth. Inspection items were negotiated. They asked for several items and myself and my sellers negotiated that down to one key item (this was a newer home that really didn’t need a whole lot fixed). Appraisal came it at the offer price.

What Went Wrong

It was the last few days of the contract where the trouble started.

I am sitting on my couch at 7:06 pm at night and I happen to look at my email and see that a extend had just turned up in my inbox. Opening it I know our deadline had passed on this particular deadline. Hmmm guys deadlines are so important and here is why. Because they didn’t get this extend in by the deadline my clients chose not to sign it. This meant that now my sellers could legally keep the earnest money if the buyers didn’t go through with the contract. That was number 1. If you hire a agent they should be protecting that earnest money either way! Earnest money amounts here in Colorado are not small, they are in the thousands. Those thousands can make or break a buyer and a deal.

So here we are the agent had put their buyers earnest money in jeopardy. I got no call or correspondence along with this extend. So off the couch I go to call the lender and the agent to track down what was going on.

As of now the buyers loan was not approved. There was missing paperwork. This was putting my clients contingent home in jeopardy. The other side really didn’t feel too stressed about this. I sure did. I spend the next 36 hours constantly chasing down this loan approval. Communication was terrible so I had to keep my thumb on the pulse to protect my clients. I pre negotiated a extension on our contingent buy side just in case. I didn’t want my clients to lose their dream home because of a mistake on the other side. Then I kept the pressure on.

The Outcome

We finally got a clear to close/loan approval 2 days prior to closing. Such relief for everyone!! The buyers of my clients home got to use that earnest money towards their down payment and it wasn’t kept my sellers. My sellers got the cash they needed from their current home to buy their next home.

A good agent will watch those deadlines like a hawk, they will communicate with all parties involved in the transaction and they will go to bat for their clients! They will also be 1-2 steps ahead when problems arise (even when it means staying up thinking of answers nights in a row).

This is part of what you pay for! For someone to protect your best interests! You pay for someone to protect your financial interests! Support and Protecting you across the board is a huge part of what you pay for.

Try doing this on your own but good agents have experience, knowledge and tenacity that can’t be learnt from one deal.

I am so glad all turned out for my clients.

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