William  Piotrowski, Just Call William 630-881-8655 (Diamond Residential Mortgage Corporation )

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Rainmaker
608,970
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

This has become common in our market. The seller needs to have assurance that the buyer will stick. If the buyer wants the home, let him/her know that if they can't perform, they lose their earnest money.

Feb 15, 2017 07:04 AM
Rainmaker
945,526
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

This may or may not be a reasonable request, depending on why the week extension is required. Is title just taking longer? Is financing in place? What contingencies remain, if any? How long has the property been tied up by buyer? Are there backup offers? Is seller cooperating?
Many questions, grasshopper! ;)

Feb 15, 2017 07:06 AM
Rainmaker
1,574,499
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

Most buyers I have worked with would probably tell he seller to not test them and threaten to walk away. Most sellers, if motivated and have a good agent, will understand it takes a long time to find and close another seller whether a house goes back on the market today or or seven days.

Feb 15, 2017 06:42 AM
Rainmaker
1,357,502
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

What's the problem with asking for it? I'd prep the agent, send the extension contingent on all in and see what they say. If they say "no" it's your seller's call as to whether they kill the deal or not...I doubt they would unless there's more to this than that 1 issue?

Feb 15, 2017 06:27 AM
Rainmaker
1,027,535
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

I cannot tell if you are representing the buyer or seller, but either way, prepare the party you represent for all ramifications and send the paperwork as directed.  If it floats, fine, if not, then your client has a decision to make. 

Feb 15, 2017 06:34 AM
Ambassador
3,402,564
Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

How hot is your market?  Perhaps there is a back up offer in place that is higher?

Feb 15, 2017 07:29 AM
Rainmaker
945,523
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

I'm with Candice A. Donofrio - it really depends on the situation

Feb 16, 2017 05:41 AM
Rainmaker
3,070,984
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Candice A. Donofrio nailed this one!

Feb 16, 2017 04:06 AM
Rainmaker
1,558,346
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Well, by the time you ask for 1 week extension the contingencies are usually removed, so EMD is already non refundable. 

Feb 15, 2017 11:32 PM
Rainmaker
598,824
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

if the buyer's are serious, they should be willing to demonstrate that with a deposit.

Feb 15, 2017 09:04 PM
Rainer
320,129
Melissa Jackson REALTOR
Trinity Premier Properties - Azle, TX
Helping You Make The Right Move

Depends why they need extension and how bad they want the home. Seller may have another motive? Find the real issue. Good Luck!

Feb 15, 2017 08:27 PM
Ambassador
2,608,498
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

     Can the Buyer walk if there is no extension?

Feb 15, 2017 10:54 AM
Rainmaker
627,508
Alexander- Slocum
Premiere Property Group, LLC - Vancouver Washington - Vancouver, WA
Realty Team- Vancouver WA Real Estate

In a Seller's market like we have, it is relatively easy for the seller to request this.  We use this language: "EM Deposit to be Immediately Released to Seller." 
Had to go this route last summer when the buyer's lender changed loan types and they hadn't obtained enough buyer income documentation for the new loan.

Feb 15, 2017 07:28 AM
Rainer
352,876
Teri Pacitto
Compass - Westlake Village, CA
Real Estate, Your Style...Your Home...My Specialty

Marc Swartz, CPA, CA, Real Estate Broker has your answer and mine.   We've all or most had this arise and every situation is different.  There are way too many marbles rolling around in times like this.  My experience is if handled properly it does work out.  

Also, with all the TRID rules and changes in our business these are discussions that should be had with buyers and sellers up front and let them know that things can happen and what we will do it does.  Often tempers flare for no reason and posturing by both parties creates more trouble than there is. 

Feb 15, 2017 07:01 AM
Rainmaker
146,758
Julie Larson Realtor® Sarasota FL 941-284-9826
White Sands Realty Group FL | 941-284-9826 | Serving Sarasota, Manatee & Charlotte Counties - Sarasota, FL
When you're thinking of moving...ThinkSuncoast.com

Sounds like buyers need to decide if their 1 week extension is worth the risk of their earnest money deposit. If they are extending because it's more convenient for them, then they may want to go ahead and close on time. If they are extending because of an issue with the loan, then there would be more risk involved. They just need to weigh it out.

Feb 15, 2017 06:38 AM
Rainmaker
1,157,535
FN LN
Toronto, ON

You could obtain legal counsel.

Feb 15, 2017 06:35 AM
Rainmaker
4,567,784
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Call their bluff and say buyer wants to cancel so the sellersare free to pursue a new course, like starting over. Then say this can be solved by signing an extension and saving everyone time and aggravation!

Feb 15, 2017 06:19 AM
Rainmaker
3,384,451
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I just had that and it killed the deal. Nothing is done until it is done. The buyer would not make their money non refundable and seller was hell bent on it. The buyer walked and now the house is back to square 1. Pretty dumb of the seller to be direct

Feb 15, 2017 06:17 AM
Ambassador
4,316,215
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

William Piotrowski - explain the risk to your buyers and do what they want you to do. Simple, isn't it?

Feb 17, 2017 11:21 PM
Rainmaker
5,323,059
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

It is the Seller's home, they have the last word.

Feb 17, 2017 02:00 PM
Rainmaker
1,430,221
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

If you're at the original closing date, by this point the contingencies should have been removed and the EMD is already non-refundable.  If that hasn't happened, it is standard procedure out here to ask for something in return.  Either contingencies removed or financial compensation.

 

We have a seller's market out here.  The seller can usually sell the home again for a little more money.  I've done it.  Buyer's walked on Friday, by Friday night I had the home back in escrow with someone else at more money.  It's on the buyer out here to make the extension worth the seller's time.

Feb 16, 2017 09:16 AM
Rainmaker
7,034,646
Roy Kelley
Retired - Gaithersburg, MD

Have the buyers agree.

Feb 16, 2017 05:24 AM
Rainmaker
4,490,472
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Either buyer agrees or it sounds like the seller can void the contract. Not much you can do at this stage but try to negotiate. Maybe offer have the EMD as not refundable?

Feb 16, 2017 04:11 AM
Ambassador
956,133
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com

Depends on the reason for the extension. 

Feb 16, 2017 03:56 AM
Ambassador
4,552,705
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Suggest half, William Piotrowski - if your buyers are good with that, then it's a win-win.

Feb 15, 2017 09:59 PM
Rainmaker
4,333,744
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Interesting will have to see what others have to say.

 

Feb 15, 2017 04:46 PM
Ambassador
3,077,100
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

That's a buyer decision, but seller could have a back up.

Feb 15, 2017 12:04 PM
Rainmaker
1,466,027
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

William Piotrowski You should follow your client's request. If the reason for the extension isn't more than just needing a little more time to close then it shouldn't be an issue.

Feb 15, 2017 11:25 AM
Ambassador
1,900,417
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

The seller has probably made moving arrangements based on the terms of the contract.  I don't think it is unreasonable to want the security of the E.M. deposit becoming non-refundable.  

Feb 15, 2017 11:19 AM
Ambassador
5,752,707
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Sounds like either way it may be non refundable.

Feb 15, 2017 11:17 AM
Rainmaker
614,365
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

It SHOULD be non-refundable if the buyer needs an extension.

 

Feb 15, 2017 11:07 AM
Rainer
353,462
Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

In order to advise, need to know why there is a hold up, and what is solution.  would offering to pay seller a perdium amount (whatever a 95% mortgage taxes and insurance are divided by 30 days and agree to a 5 day extension with buyer paying this at closing? 

Feb 15, 2017 10:25 AM
Rainmaker
808,903
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

If the buyer doesn't close on time according to the contract would they lose the EMD anyway? In my market this is not an unresonable request. Some sellers will want it and some are ok with just agreeing to an extension with no EM. Depends on circumstances. It is up to the seller to agree to an extension and all terms must be agreed to by buyer and seller of course. But if the buyer is unwilling it can be seen as a red flag that they are worried it wont actually close.

Feb 15, 2017 09:41 AM
Ambassador
3,158,164
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

That is up to your clients.  I say let the voice of reason prevail.  The only way to make an informed decision is to have all the facts ... and this question does not provide the details of why the extension is requested.  Digging deeper allows us to mitigate the risk on both sides of the table.

Feb 15, 2017 09:22 AM
Rainmaker
1,766,546
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

Not happening in my area. Contract with terms has already been signed. Let the contract go into the 'void' area & see how smart the seller thinks he is. If buyer did not default & needs an extension, it's a ridiculous request.

Feb 15, 2017 09:14 AM
Rainer
258,949
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

Present it and see how it falls.  The reason for the extension could be a deal breaker.  If the buyer is waiting to see if another property comes up, then the deal isn't a deal anyway. 

Feb 15, 2017 09:00 AM
Rainmaker
1,672,115
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West - Carlsbad, CA
Presence, Persistence & Perseverance

You must in writing alert your buyer to the risk and have him/her acknowledge receipt.

Feb 15, 2017 08:40 AM
Rainmaker
915,778
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Your action is dictated by the cause and whether that issue was addressed in the listing agreement or purchase offer.

It is very likely if the cause is lender based, the seller can not make this demand. Your broker should be able to give guidance more relevant to your location of business. If the cause is buyer preference, the buyer will need to pay up or back up #1 does the 'happy dance.'

Feb 15, 2017 08:32 AM
Rainmaker
1,183,850
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

In our area it is the contigiencies release. If one has released one or more, the seller has the option to forfeit the emd after buyers fail to proceed.

Feb 15, 2017 08:19 AM
Rainmaker
1,708,245
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

In Oklahoma the real estate commission would frown on this and if it went to the commission in a dispute I would predict that the buyer would win. Sounds like a bad seller to me.

Feb 15, 2017 08:18 AM
Rainmaker
4,799,732
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Ultimately it's up to the buyer.  Though, I would give him/her all the facts about the possibility of losing their money.

Feb 15, 2017 08:16 AM
Rainmaker
2,691,182
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The seller has a point as do you and the buyer...Need win-win-win here

Feb 15, 2017 07:59 AM
Rainmaker
864,358
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

I would not advise either way. Just explain the ramification of all the options. If you represent the buyers and they need the 1-week extension due to financing, then the risk seems high.

Feb 15, 2017 07:24 AM
Ambassador
3,987,010
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

If the buyer really wants the house and the lender says it will close, let the buyer make the decision. I have seen this happen before. It is usually after the seller feels he has given more than the buyer and is beginning to have doubts about the buyer closing.

Feb 15, 2017 06:57 AM
Rainmaker
508,854
Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

What's the extension for? Is the lender slow? Depending upon the reason,  in Texas chances the seller isn't going to release the earnest money with or without extension. We also have a financing addendum and if it's pass the days there then that spells trouble for the buyer.  Is seller willing to put the house back on the market and wait for another month for it to close? Do they have back up contract?

Feb 15, 2017 06:36 AM
Rainmaker
4,433,809
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good luck.

Feb 15, 2017 06:23 AM