I ended up canceling another escrow yesterday because it was obvious that my clients and I were in front of a fake seller. I’m getting better at how to identify fake sellers. Missing deadlines contract, non-cooperative, etc…give you sign of what I call fake sellers. So let me share with you some tips on how to spot fake sellers. This may be helpful before going in escrow.
The not motivated sellers:
A seller is always willing to talk, at least through his/her Real Estate agent. When you have no answer or stuck seller – you know, those seller whom will not touch anything, price or terms -, you can easily identify a not motivated seller. You are going right into trouble. You need to identify the motivation in your deal: job transfer, baby on the way, wedding, pre-foreclosure, etc…
The unrealistic sellers:
The price is almost the only common reason why a property doesn’t sell. So it happens that sellers sometimes just test the market. He/she’s wasting everybody’s time. They’re not real sellers. Real sellers may initially overprice their home but very quickly (generally within 5 days) bring their price back to the realistic market value. So try to spot that and move on…
The don’t have timelines sellers:
Fake sellers don’t have a timeline. If there’s a job transfer they have a timeline, if a school is starting they have a timeline, if they’re closing escrow on their next home, they have a timeline. But, if you’re working with a seller without a timeline, you may not be working with a motivated seller. Timeline is a proof of motivation.
If you heard “my seller has all the time in the world” or “he/she’s not on a hurry to sell”, move on.
The not forthright sellers:
Fake sellers are not forthright. They try to hide things. Real sellers, on the other hand, are extremely forthright. In fact, they are disarmingly candid about the condition of the home, the area that you are buying into, and even the neighbors next door. Listen more than talk. You’ll get the picture almost right away and you will easily understand the sellers’ situation.
The non co-operative sellers:
Fake sellers are non-cooperative as they have no reason to co-operate with you. Real sellers will be co-operative as much as they possibly can. They want the transaction to go smoothly, they want to work with you to solve problems. They have a ‘let’s make things happen’ attitude.
So, if you’re suddenly running into inconsistent behavior, having a lot of surprises, you may be working with a fake seller. Don’t walk away from such transactions, RUN!
With some experience, you will be more than happy to save time and avoid your buyers with bad Real Estate experiences. Good luck!
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