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My end buyer walked at 6pm the night before closing over a roof he'd already seen

Small three bedroom, tired but nothing dramatic. I had it locked up and a flipper I'd sold to twice before was taking the assignment. Fee was 9k, which is fine for my market.

He walked the property with me. He was on the roof. He took pictures of the roof. Eleven days later, 6pm the night before we close, he texts that the roof is worse than he thought and he's out.

What had actually happened, and I found this out later from someone else, is he'd gotten into two other deals that week and ran out of cash. The roof was just the thing he could point at.

So I spent that night calling everybody. Ended up with a landlord who I'd talked to exactly once at a meetup, who came in at 6k instead of 9k and made me eat a week's extension with the seller. Seller was a woman selling her late mother's house and she was gracious about it in a way that made me feel worse than if she'd yelled.

The lesson isn't "have more buyers," I had buyers. It's that a buyer who's excited on the phone and a buyer with money in an account are two different people and I had no way to tell which one I had.

6 replies

I'm reading everything twice right now and I don't understand one part. When he walked, were you still on the hook to actually buy the house yourself? Or does the contract just end?

The roof was the excuse, sure, but I'll defend him slightly. I've been on a roof, felt fine about it, and then priced it out at home and found out the decking was gone in two spots. Eleven days is exactly how long it takes to get a real number back from a roofer. He probably had both things happening at once.

6k in my rural market would be a good week. The part I'd struggle with is having enough buyers within driving distance to make a night of phone calls productive at all. There are maybe four cash buyers who work my county.

The detail about the seller being gracious is the whole post for me. Everything I read about this business is about the spread and nobody mentions that there's a person on the other end who's already having a bad year.

To answer @juniper since nobody did, and I might have this wrong, but as I understand it your contract with the seller is still your contract. If your buyer walks you either find another one, close it yourself, or use whatever contingency you have to get out. Which is why people ask about proof of funds before they ask about anything else.

@compass that's right, and it's why the extension mattered more than the 3k. @quarry the way I got past this was making buyers show me the last two closings they actually funded, not a proof of funds letter, those get emailed around like memes. Doesn't catch everything. Caught two guys.