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| How to handle home sellers remorse disease in Marco Island, FL
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A few days ago, I ran into an old friend at the local post office. She acted like I was her long-lost best friend. We're really just long-time acquaintances, nothing more. Then she told me she sold her house. The sale is supposed to close on Jan. 15 after the holidays. After I congratulated her, she told me she acted too hastily when she listed her home for sale before thinking about the consequences. Now she's having second thoughts as she realizes this will be her last holiday season in the home where she, and her late husband, raised their three now-grown children.
It sounds like my friend has caught the dreaded "seller's remorse disease."
"How can I get out of selling?" she asked me. Then I replied by asking her "Why did you decide to sell?" She gave me a list of at least four reasons, including (a) taking the $250,000 tax-free profit, (b) moving to a warmer area where she owns a second home, (c) comfort from having the home's cash sales proceeds in the bank, and (d) freedom from home repairs (she recently had to install an expensive new roof).
Then my friend asked me, "What will happen if I give the buyers their deposit back and refuse to sell?"
I politely pointed out if they really want to buy the house, the buyers can force the sale by suing for specific performance of the sales contract and recording a "lis pendens" to prevent refinancing or a sale to another buyer. Unless the seller has an escape clause loophole in the sales contract (highly unlikely), the court can order the seller to deliver the deed as agreed. If she refused to comply, the seller would be in contempt of court. Then I pointed out the reason a judge can require the seller to convey the title as agreed in the sales contract, instead of paying monetary damages, is every home is unique. That's why the buyer is entitled to delivery of the purchased property, not money instead.
Having heard many "seller's remorse" stories, I quickly reminded my friend that her listing agent, and the buyer's agent, might sue her for the sales commission if she refuses to complete the sale. She was shocked to learn her long-time realty agent friend could sue for the sales commission if she refuses to complete the sale. Even if the buyers might agree to accept refund of their deposit and not to force you to honor your sales contract, I emphasized to my friend, your realty agent might not be so willing to cancel her right to the large sales commission she earned. "You mean I would have to pay her the full commission even if I don't sell my home?" was the startled response. I responded that's the situation, especially since the buyer's agent probably is just as eager to receive the other half of the sales commission.
After I left my friend, perhaps more befuddled than before we met, I thought of all the additional factors I should have mentioned in our brief 15-minute conversation. These include:
1. List the pros and cons of the home sale. I wish I had suggested my friend list the pros and cons of the home sale on piece of paper. Maybe she would then realize a sale might be a smart idea after all. The old "Ben Franklin T-Method" is a great way to solve problems. In case you're not familiar with this method for solving any problem, on a sheet of paper, draw a large T with the line running down the middle of the page. On one side, write the advantages. On the other side, list the disadvantages. I'll bet the advantages of selling the home outweigh the disadvantages.
2. Talk with the listing agent. Most experienced real estate agents have encountered home seller's remorse many times. They usually know how to remind sellers of all the benefits of selling that the seller might have overlooked or forgotten. However, listing agents often aren't even aware the seller is having second thoughts about selling until the seller refuses to sign the closing papers.
3. Consider the possible consequences of not selling. My friend must have been highly motivated to sell otherwise she wouldn't have listed her home of many years for sale. Long-time residents usually don't decide to sell on a whim. Perhaps a recall of those reasons, or considering the possible consequences of not selling, including litigation costs if the buyers won't cancel the sale, will be sufficient to make the sale close on schedule.
If you've ever sold your house or condo, you probably had mixed emotions, especially if you lived there for many years. Maybe it had very good or very bad memories. But you weren't the only person who ever contracted seller's remorse disease. It's quite common among home sellers. Perhaps you thought, after signing the sales contract, it will be difficult to find a place to live that you will like as well. No home is perfect. But especially when a homeowner has lived in their residence for many years, it's easy to overlook its imperfections. However, the time to think very carefully about selling your home is before putting it on the market for sale. After it is listed for sale and a buyer makes a purchase offer that you accept, no matter how severe a case of seller's remorse you encounter, it's difficult and potentially very costly to turn back.
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