When selling your home or investment property, some buyers you come across may become a big pain in the a$$ later on.  I was reading an article on the WSJ Real Estate section that clues sellers in on the 3 buyer types to stay away from.  These 3 buyer types can sap up your time and profits… if you allow them to.

Here they are:

1. The no money down buyer. These buyers must get 100% financing, which can often lead to problems in the loan process.  Especially now, 100% financing is getting harder and harder to qualify for.  Even if qualified, the lender still my shoot down the appraisal on your property and either force you to lower your sales price or walk away from the deal.  If you are looking for a smooth deal, you may think twice when you hear that the buyer needs 100% financing to buy the home.  For all buyers, think about getting an actual “pre-approval” that has already been sent through Automatic Underwriting.  This will make it a bit easier for you… but still doesn’t guarantee that the deal will get done.
2. A bully buyer. These buyers think that they can “weasle” a better deal out of you by pointing out every little thing that they see is wrong with the property.  And of course, these bully buyers will place a price tag on each defect and either ask for a discount in price or that they be fixed before they buy the property.  Yes, it is the responsibility of the buyer to check over the property well… but these bully buyers will point out petty defects just so they can get a discounted price.  One good thing to do is tell the buyers that the price is adjusted for the condition of the property before they ever make an offer.  This way, when they point things out they will be less apt to try to force you to lower the price because you have made it clear that the price has already been adjusted for those defects.
3. The sight-unseen buyer.  These buyers can be among the worst and the biggest waste of time for you.  Sight-unseen buyers will browse the MLS and throw offers out on homes they like from the pictures.  This usually isn’t because they love the house so much… it’s so they can tie up the property to get it off the market.  From there they will make a decision on whether they like it or not.  This can cost you a lot of time because many sight-unseen buyers will place many clauses in their offer that allow them to easily get out of the offer if they don’t like the house.  An easy solution… just require people to set an appointment and actually visit the house.

While these 3 buyer types are generalities, you should keep them in the back of your mind when selling your next property.  You could save yourself a few bucks when you recognize one of these buyers before hand and move on to buyers who are less trouble.

Check out the entire article on the Real Estate Journal.

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