Hi,

I'm selling a small multifamily building. Two buyers made offers. Buyer1 came a month before Buyer2 (Buyer1 jerked me around enough until Buyer2 showed up). Buyer2 offered $25K more than Buyer1. Therefore I chose Buyer2. However Buyer2's lawyer was inexperience and thought that my building had building code violations even thought I showed them all court paper that all violations were cured and dismissed. Buyer2's lawyer successfully convince his client not to proceed until all violations are fixed. The problem is that there is nothing to fix. They were all dismissed. So I had to switch to Buyer1 and sent a cancellation letter to Buyer2. Couple days later, Buyer2 came back and said they're ok with the violation and would like to reinstate the contract... Sadly it was too late. I already signed the contract and cleared the attorney review/inspection period. We're looking to close on August 31.

Here is my question. If Buyer1 has to ask for a week extension (not able to close on August 31), could I do one of these two things:

1. Sell to Buyer2 (cash buyer)?

2. Ask Buyer1 to up his offer by $25K to match Buyer2, or I would sell to Buyer2?

If you've got a contract, it sounds like you've got a contract.

If Buyer 1 has a history of jerking you around, and wants to jerk you around past Aug. 31st, then it sounds like you've got a valid reason to cancel the contract, on the grounds that he hasn't done his part in the timeframe he'd agreed to.

Then I'd go sell to Buyer 2.

If Buyer 1 can't get his act together in the timeframe agreed to, then I wouldn't hold my breath that he'd ever be able to get his act together + $25k in any particular timeframe.

But if Buyer 1 does get his act together, then I wouldn't lose any sleep about the $25k-that-never-was, since you were happy to accept $x when $x+$25k fell through.

I agree with Deanna's assessment. Your only hope of getting the higher sale price is if Buyer 1 fails to close by the time agreed.

Normally, I don't mind granting a one-time, brief extension for reasonable cause, but in this case when there's significant extra money on the table...go for it. Just keep in mind what could happen if you walk away from Buyer 1 and then Buyer 2 backs out.... be sure not to burn any bridges with Buyer 1.

Don't lose sleep over it. Buyer 2 knew buyer 1 was in the picture so they offered a higher price to remove buyer 1. Once you send buyer 1 packing, I'm betting buyer 2 will find an excuse to lower the price.

They already tried to do so once. I doubt it was an inexperienced lawyer. I'm thinking it was a very experienced buyer. They only agreed to do without the repairs when they realized they were losing the property.

Sounds like you have one buyer that can't get their act together, and another buyer willing to bid high but make you spend money on your end to increase it's value.

I won't deal with inexperienced agents, brokers, buyers, banks, inspection company, etc. Before I list a property for sale I have everything checked out.

Once you are free of Buyer 1, what is to prevent Buyer 2 to set his own new terms,----- there is no reason to pay the extra 25K.

Landlord ofthe Flies [TX], I agreed with you totally.

Robert J[CA], nice.

Mary [MI], I would only entertain Buyer2 when they agree to make their $30K earnest money non-refundable. Period.

cjo'h of CT, said it best tell them both to take a hike!!!

Plus its best to have a pre-inspection of the property so there are no surprises by a buyer.

Thank you everyone for your reply.

plenty [MO], Buyer2 insisted that the violation info on city website changed. I have no control over how the city update their website.

MikeA [TX], Great idea. I'll do that :-)

Landlord ofthe Flies [TX], Sounds great. I'll tell my attorney to do that.

cjo'h [CT], LOL yes I've got annoyed from both of them as well. Oh well, like Brad20K always say "do you want to be rich, or do you want to be right" :-) I'd rather be rich.

Tom [FL], I hope one of them could close.

If buyer 1 needs an extension of more than a day or two, Put a price on it. It is costing you Mortgage, taxes, insurance, plus risk. Have the contract extension include the NON refundable extension FEE that is RELEASED TO YOU IMMEDIATELY.

As for buyer 2. You had a great suggestion for a contingency contract above.

Get the contingency contract signed FIRST, then hit buyer 1 with the extension fee.

Until you get the fish in the boat, it ain't caught.