REALTOR® Magazine Online: 7 Reasons Customers Cancel Deals¿And What You Can Do

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	Keep the Transaction on Track Advanced Tip Advanced Tip Advanced Tip Broker Tip Getting to Close Advanced Tip Mortgage Basics Advanced Tip Advanced Tip Advanced Tip Inspections and Repairs Broker tip Closing Countdown Advanced Tip Going for the Close Advanced Tip Advanced Tip Advanced Tip Commission Disbursements Broker Tips Broker Tip Post-Closing Strategies Quiz: Contract to Close Bright Ideas: Contract to Close Code of Ethics: Contract to Close More Resources: Contract to Close		KEEPING THE TRANSACTION ON TRACK 7 Reasons Customers Cancel Deals—And What You Can Do 1. Buyers’ remorse. Try to get to the root of the problem and solve it. Is it simply an irrational response brought on by the stress of buying and moving? Or is it a legitimate concern, such as concern over affording the home? TIP: “Half the buyers’ remorse problems aren’t house- or money-related. They’re often emotional reasons—fear or anger, for instance,” comments David Rathgeber, Century 21 Laughlin, REALTORS^®, McLean, Va. 2. Home defects. Remind buyers that no property is perfect. Try to work out an agreement and an action plan to repair problems or renegotiate the price. 3. Financing. Suggest that buyers reduce their credit obligations by selling an expensive item, such as a boat or luxury car. Talk with the sellers about taking back a purchase money mortgage for the difference between the mortgage and the sale price. 4. Unforeseen emergencies. See if the emergency is a temporary setback, such as an illness, that you can fix with some brainstorming or by asking sellers for a longer period to close. 5. Contract misunderstandings. Taking the time early to explain what each contract provision requires will help prevent buyers and sellers claiming ignorance later. Keep a paper trail of everything you have explained to both parties as a way to demonstrate that they were informed. 6. Anger. If customers feel they haven’t gotten a fair deal, the anger may fester until they try to cancel the contract. Try to be sensitive to this dissatisfaction and take the time to go over the terms of the negotiation with the customer again. As a last resort, consider re-opening the negotiation. 7. Friends’ advice. Avoid the temptation to disparage the customers’ “helpful friends” who are negative about the home. Try to reassure the customers by reminding them how much they liked the house initially. 5 Tips for Resolving Closing Disputes 1. Don’t let emotions rule the day. If tempers flare, suggest that you would like to take a 10-minute break to let everyone cool down. Speak slowly and in a low-pitched voice to give a sense of calm to the situation. 2. If you made a mistake, admit as soon as possible. For example, perhaps you told the buyers that they could move in on the 12th instead of the 15th. Often, the issues will not derail the transaction, but putting off a revelation builds mistrust. 3. Try negotiating over lunch; the social atmosphere may help everyone relax, especially if there are only one or two points to be resolved. —William Pivar and Richard Post, Power Real Estate Negotiating(out of print; Longman Financial Services, 1990) 4. Ask your broker to help with the negotiation. Sometimes bringing in a person of greater authority prompts the parties to listen to reason. 5. Use third-party mediation to save the deal. Check out the Virtual Library on mediation and conflict resolution for more details. (Log in with your REALTOR.org username and password.) TIP: Warn clients that it’s to no one’s benefit to try and squeeze out another $100 by endlessly haggling over petty items. A dispute over $100 can loose a $250,000 sale. 2 Strategies for Resolving Earnest Money Disputes >

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