This will be recorded in the Official Log of the Real Estate Business (I’m sure there is one) as The Year of Reluctant Buyers.
Every day the MLS shows the number of new listings, pending listings, sold listings, price reductions and back on market listings. And for the second half of this year, the number of properties coming back on the market has been about the same as the number of new listings each day.
Personally, I’ve had more terminations this year than in the previous 30 years combined.
Buyers seem just barely able to convince themselves to buy and are quick to terminate, usually because of buyer’s remorse.
But there is no Buyer’s Remorse clause in the purchase contract. There is a Good Faith clause, though. That means using the inspection, HOA documents review, due diligence documents review, survey review, property insurance review, or loan conditions to terminate and have the earnest money returned to them. So buyers have lots of outs. And they are using them.
The underlying cause for this termination epidemic seems to be free-floating anxiety. Every time the stock market loses a thousand points or some presidential candidate who shall not be named sends another stupid tweet buyers rethink their position.
One buyer returned from attending the Republican Convention and immediately terminated his contract.
Usually there’s a back-up contract that results from the multiple offers we get for most properties, so things still get sold.