I rarely experience a buyer who gets buyer’s remorse.
But, I dealt with that experience a couple of years ago with clients who were concurrently sellers and buyers.
They listed their home with me at a price above what I recommended and the house needed some repairs that they didn’t want to make.
Their attitude was “we like it the way it is and the buyers can take care of that stuff!”
Like many sellers, they were concerned that their home would sell before they could find their next home.
Then, I suggested they check with their lender to see if they could qualify to buy their next home without first selling their present home.
To our surprise, their lender pre-approved them to buy without first selling.
Armed with their pre-approval, I went to work and found the perfect home for them in a beautiful development, backing to common area, a three-car garage, and everything they wanted.
Their offer was accepted and we got through the home inspection, repairs, and appraisal easily.
We were set to close on a Monday.
Then, my client called me the preceding Friday and said “we’ve decided we’re not going to close!”
They were not only unwilling to close; they had no remaining contingencies in their purchase and sale agreement, and wanted their earnest money back because they had “changed their minds”.
My clients even called their lender and fraudulently tried to get them to withdraw their loan approval to create an “out” and avoid closing.
To make things more interesting, the sellers had purchased a new spec home from a builder that was scheduled to close concurrently with the sale of their home.
That builder, thinking he had his spec home sold, had gotten a construction loan and started another home.
Further, the sellers had already moved most of their possessions out of the home, thinking that we were going to close in a couple of days.
Can you spell d-a-m-a-g-e-s?
The sellers and their listing agent were understandably enraged.
If you’re a buyer and unsure about the consequences of changing your mind and failing to close, you should pay close attention to the language in your RE-21 Purchase and Sale Agreement that explains the consequences of defaulting on your contract.
Changing your mind (aka buyer’s remorse) can quickly become very expensive.
Among other things, you can lose your earnest money, become liable for all transaction costs incurred during escrow, and also become liable for damages in a costly lawsuit.
In case you’re wondering, my buyers finally came to their senses and closed.
The home they purchased has since appreciated substantially.
I released them from their listing, they listed their previous home with another agent, and it eventually sold for the exact price I had recommended.
They made several more mortgage payments before it sold, they paid the buyer’s closing costs, and had to install a new roof to achieve a sale.
Now you know what can happen when you get buyer’s remorse.