Praful Thakkar, Andover, MA: Andover Luxury Homes For Sale (LAER Realty Partners)

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Rainmaker
894,690
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

When people buy with their egos, have no business overbidding, get all eBay and then remorseful, if the home even appraises.

Also, if anything is wrong with that house that they now perceive they overpaid for . . . they will want it fixed or become a flight risk. And the seller's also coming from ego thinking fine, let them go, someone else will pay it. And they usually won't because . . . hey, the house fell out. Now, what can we get it for? 
:: disclaimer - I am jaded ::

May 04, 2018 12:21 PM
Rainmaker
1,230,031
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Buyer's Remorse from the heated battle of multiple offers...very common last 3 years.

May 04, 2018 12:19 PM
Rainmaker
4,209,376
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Problems disclosed upon inspection and appraisals are the common reasons.

May 04, 2018 01:40 PM
Rainmaker
4,099,156
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

I have seen this as well and so have my clients.  I will answer as I have told them. . . "stuff happens".  People change their minds.  People decide they do not want to be in a multiple offer situation after the fact. People talk. To neighbors.  To their relatives. And co-workers. Everybody else--it seems. People lose jobs. Or get transferred. People become pregnant.  People pass away- - usually not at the same time.  Yes...stuff happens...sometimes we know why and sometimes we don't. 

 

May 04, 2018 12:19 PM
Rainmaker
6,606,233
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This will be a good blog topic for you.

May 04, 2018 12:16 PM
Rainmaker
1,722,845
Lyn Sims
Schaumburg, IL
Schaumburg Real Estate Agent Retired

I believe we discussed this last year & I guess it is happening again. We came up with a 30 to 35% fall out rate of contracts. Buyers & sellers just don't have the same mindset.

They don't keep stats on this stuff even though they should.

May 04, 2018 12:15 PM
Rainmaker
384,652
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

I think there are several reasons. As you said many go under contract because buyers are in a hurry and don't want to miss out. Sometimes they go under contract "sight unseen". Then when they get to examine the house they change their minds.

In other cases, there are inspection issues that scare the buyer off.

And often in a multiple offer situation, the buyers bid too high trying to get the contract only to find the property will not appraise for the offer price.

Sometimes the seller is better off accepting a lower offer if the buyer is better qualified and more serious.

We just had an offer accepted on a home and the Listing Agent confided in me afterward that they had a higher offer, but chose ours because they knew that the other offer had too many variables.

May 04, 2018 12:14 PM
Rainmaker
1,606,069
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

The nature of a multiple offer means that buyers have to make a quick decision and many times they come to regret it.  I can recall a time that a lot of the due diligence was done before an offer was made. Can't do that now.

May 04, 2018 01:36 PM
Rainmaker
5,586,209
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Praful,

You have excellent comments here, and I especially like Michael Jacobs.   

May 04, 2018 12:57 PM
Ambassador
4,256,918
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

This is exactly why I tell my seller clients NOT to ask for highest and best, Praful. Work with the best Offer and have one of the others as a back-up. 

Buyers who 'win' are playing JUST to 'win'...and then, they sleep on it and wake up realizing they are paying FAR too much. 

May 04, 2018 03:32 PM
Ambassador
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Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

  What did they use for the "out"?  The inspection contingency?

May 04, 2018 01:16 PM
Rainmaker
5,571,886
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

not typical.... it's often because of a surprise after a home inspection.... 

May 04, 2018 02:23 PM
Rainmaker
2,641,652
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Greed...

May 04, 2018 01:53 PM
Ambassador
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Low appraisals would be my guess.  And the sellers do not want to reduce the price to meet the appraisal. 

May 04, 2018 03:37 PM
Rainmaker
4,116,764
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I think it's buyer's remorse... they made a decision to quickly and now are having second thoughts after the thrill of the hunt is gone.

May 04, 2018 01:53 PM
Ambassador
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Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I suppose there are all sorts of reasons indlucing buyer's remorse and feeling they overpaid. I don't know the percentage of homes in our area that come back but it does not seem significant.

May 04, 2018 03:55 PM
Rainmaker
4,433,693
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

No.

May 05, 2018 06:38 AM
Rainmaker
3,069,984
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Wayne Martin nailed this one!

May 05, 2018 06:18 AM
Rainmaker
577,189
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

I guess it wasn't the best offer after all!

May 05, 2018 06:03 AM
Rainmaker
4,799,491
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I can only guess that many of these offers are a bit premature and sellers are not doing their due diligence in vetting them.

May 05, 2018 05:44 AM
Ambassador
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Praful Thakkar 

Maybe they didn't pick the BEST offer from the RIGHT buyer.

Maybe the accepted offer was not negotiated with the seller's interest being most important. 

As a listing agent, the buyer really wanted the house. The home was sold as is with inspections, waiving the appraisal contingency and a substantial EMD.  When there is that much activity, the seller has a right to negotiate for the deal that is going to make it too closing.

May 04, 2018 10:02 PM
Ambassador
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

not seeing things come back on the market here.

May 04, 2018 09:31 PM
Ambassador
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Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Once gone few come back.

May 04, 2018 09:12 PM
Rainer
482,447
Bruce Kunz
C21 Solid Gold Realty, Brick, NJ, 732-920-2100 - Howell, NJ
REALTOR®, Brick & Howell NJ Homes for Sale

HI Praful Thakkar. We don't often "suffer" from multiple bids in my area, but as most others have said, inspection issues, 'cold feet', and low appraisals are most common reasons for homes returning to Active status. Then there are a few mortgage denials due to facts getting in the way after the pre-approvals, too.
Bruce

May 04, 2018 08:00 PM
Rainmaker
166,398
Jerry Thomas-Construction Loans
Cranbrook Loans - Farmington Hills, MI
Construction Loans in MI, OH, VA, GA and FL.

First, inspection issues. Second, appraisal issues. 

May 04, 2018 07:14 PM
Rainmaker
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Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Cold feet. Just like some engagements one party or both get the jitters and bolt Praful Thakkar .

May 04, 2018 04:50 PM
Rainmaker
529,195
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

I have not seen this alot, however, if it happens the main reasons would be:

Buyer's Remorse

A Home Inspection that disclosed damages the buyer was not willing to do

Appraisal issues

And like Michael Jacobs said, Stuff Happens

May 04, 2018 04:16 PM
Rainmaker
1,707,423
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Not in my world.

Jun 03, 2018 09:10 AM
Rainmaker
2,023,890
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Test and Inspections ?

Jun 03, 2018 07:36 AM
Rainmaker
4,938,372
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

We still see 25% of listings come back on the market, and some are from buyers writing on more than one home, and winning the bid.  They have to get out of one (or more).

May 08, 2018 09:14 AM
Rainmaker
3,985,865
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

That is the downfall of taking the highest offer.  The home may  not appraise out and then the buyers can't get the loan!...Just one example

May 05, 2018 10:11 PM
Ambassador
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Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Multiple offers are risky for the sellers as they may pick the wrong one, get mislead and then have to start all over again.

May 05, 2018 07:06 PM
Rainmaker
1,387,173
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Could be lender issues, inspection issues, buyer didn't bring in the EMD.  I've seen it before.  House sells again pretty quickly and often for more money.  Doesn't bother me.  :)

May 05, 2018 09:05 AM
Rainmaker
187,033
Erika Rae Albert, Austin Real Estate Expert
E*Rae Realty - Austin, TX
Exceeding Expectations in Every Transaction

I do not see this very often in my market.

May 05, 2018 08:42 AM