I’ll believe it when I see it

From an agent I choose to keep anonymous:

I keep hearing reports of deals being done (contracts signed) but brokers afraid to report for fear of buyers walking away from their deposit! If true, one of these days we’re going to see a flurry of “solds” with no early warning. Very unusual.

I’m from Missouri.

3 Comments

Filed under Uncategorized

3 responses to “I’ll believe it when I see it

  1. huh?

    Sorry I’m slow today. Are the brokers afraid that the people won’t come up with the down payment? If not I am confused as to what the brokers are afraid of?

    If I was the seller I’d want to make sure the buyer was going to buy else I am missing other people who might buy my house..

    • christopherfountain

      I think they mean that buyers will get cold feet and retrieve their deposit, which isn’t that easy to do, particularly now when there is no one else behind them ready to buy the same house. Which is why I’m skeptical.

  2. gideonfountain

    “…fear of buyers walking away from their deposits”.
    Seems to me that’s a reference to a situation where a buyer signs and returns the contract with the (usual) 10% deposit, but in the weeks or months before closing, decides NOT to buy the house and forfeits the 10% deposit.
    He might do this because he expects prices to drop further and he will therefore “recover” that $200,000 on his next, presumably cheaper purchase. This is why lawyers are starting to insist on 15-20% deposits if the closing is more than a month away. Get it?