I was representing a seller. Interest rates had just risen and would continue to do so. The market was rapidly changing from a boomtown to a ghost town fast. We had a couple of interested buyers but negotiations always fell through because they wanted a lower price. This home was in an exclusive and desirable suburb of Salt Lake City. The home needed some updating but had good bones, and an amazing large lot. We ended up having to drop the price several times.

An investor decided they wanted to buy the home for themselves, did not haggle on the price and so their offer was quickly accepted. A few days before the original settlement date we learned they needed an extension to secure their financing. My seller was going through a divorce, had just gotten rid of all of his furniture, sold his businesses and planned to travel the world in retirement. A two month extension to Halloween was not desireable. My seller decided to grant the extension because the market was not great but I suggested he require additional earnest money ($50k) as a condition for doing so.

I wrote an addendum with specific terms to ensure the additional earnest money was truly non-refundable and would be paid quickly without a court battle if the buyers cancelled. The buyers agent responded with a “counteroffer” that listed only 1 term for the additional earnest money (later deadline to pay). A counteroffer instead of an addenum was inappropriate as the home was already under contract. Additionally the counteroffer from the other agent attempted to erase the non-refundable clause for the additional earnest money as it only contained 1 term/not all terms outlined by the seller. The Buyers Agent refused to use an addendum confirming all terms and claimed I was being too particular about the paperwork. We held firm and responded to the “counteroffer” with another addendum that reconfirmed all the previous terms plus the new deadline date that the buyer wanted. This prevented any wiggle room for the buyer. If they truly agreed with all the terms as they claimed despite the limited counteroffer then they would have no problem signing our addendum right? It took them several days but they eventually signed and we waited two more months to close.

A few days before the later closing date the buyers agent disclosed that the buyer had not been able to obtain financing for the contract price but could close on time if my seller dropped the price by $100k. No I’m not kidding. The Buyer was threatening to back out again unless they got a substantial price drop at the last minute. We’ve wondered if this was the plan all along. My seller declined, the Buyer cancelled the contract and my Seller picked up the $50k in non-refundable earnest money from the Title Company two days later. If I had not known better about “Counteroffers” and told my seller to just accept it instead of insisting on an Addendum that clearly outlined all terms as well as the $50k being non-refundable/due in full within 2 days if the contract was cancelled this could have ended very differently.

It’s so important to have an agent that represents you and that understands Contract Law. I excel at both and would love to help you with any of your Real Estate Needs.