We have several properties for sale here at our office and I ran into a potential buyer of properties at a networking. This person asked what we had for sale and I mentioned the properties in passing. This person wanted more information. I said to contact the listing agent. The response was I did, but the agent would not call me back. Why won’t the agent call me back?
And I did not have the heart to tell this person why they were not called back, but I hope this article will address it.
You may have heard the story about the boy who cried wolf. Most of us learned of this story in grade school. If you have not heard this nursery school story, it would be worth looking it up and reading it as it has an excellent learning lesson for all of us in real estate or life in general.
But back to this investor.
They joined the group and talked a good game.
- Cash Buyer
- Knows Exactly What they Want
- Getting out and LOOKing at Properties
- Making Offers
- Getting Contracts
However on the flip side, every buyer’s agent who has worked with this person after showing a few properties and making a few offers, quits taking the buyer’s calls because usually the offers are just way to low to be considered. It may be that there might be a deal someday, but the offers are very unrealistic. So not a lot of hope for the buyers agent to get paid a commission for showing all these properties and writing all these low ball offers.
But of late this investor, who I am assuming is hunting down properties all on their own these days without the help of a buyer’s agent, has been getting accepted offers. I have heard of several accepted offers in the past few months. But no closings. When ever I ask about a closing I get a remark about how horrible the deal was so they did not close.
What I think is happening is the buyer gets the house under contract, but is either getting it under contract at a price that while acceptable to the seller is more than the buyer wants to pay. But to get the contract, they offer more with the plan of negotiating the price down on inspections. Or the Buyer is just talking themselves out of a deal.
So back to why no one in our office will call this buyer back.
Well after showing multiple properties that were exactly what the buyer was looking for, the buyer would not make an offer. This buyer has done the same with many people that we know in our office and friends of our office. The buyer has a reputation as a time waster who looks at a lot of properties, makes way to low offers and if they get a deal, walks out on the deal before it gets closed.
This buyer has cried wolf, way to many times. So no one will answer calls or emails because of the reputation they have built for themselves as a time waster. Sad to say as it could be an awesome sale if and when this buyer ever does buy a property.
So if you are new at this game . . don’t cry wolf.
For example . . . making offers . . . use realistic numbers. If agents are showing you good deals that are of the type you want and after 4 or 5 you don’t make a realistic offer, you are wasting time.
If you get houses under contract, but inspect them to death and get out of every contract, then you probably are offering too much money or being unrealistic on what condition a property should be in and wasting time.
If you are dragging a contractor to inspect and make bids on house after house after house and not paying him for his time or giving him some actual work, you are wasting your time.
And eventually, people will stop returning your calls.