“...because I truly feel I owed a duty of care”
I don’t usually talk about deals that didn’t happen, but I just "un-sold" a house...and I feel pretty good about it. Let me explain:
A potential buyer called me to inquire about a townhouse I have listed for sale. The buyer, let’s call him Bob, explained that he was looking for a house to purchase as a small investment property and I proceeded to confirm how perfect this place would be for him because of its great location, proximity to his residence and it's already tenanted with good people who would love to stay.
“So far, so good”
I made arrangements to meet Bob and show him the house the following day. After the viewing, Bob was happy with the house, with the info on the house that I had provided him and he was happy with the tenants so we sat down to discuss how to proceed. So far, so good. As we talked, Bob explained that he went over the numbers and asked me to prepare an offer. At one point, he also mentioned how he was financing the purchase.
On my way to the office, I realized that this property may not be suitable for Bob after all. Once I got to the office, I looked up all the figures again and confirmed that, because of how Bob was planning to finance the purchase, he would be experiencing a very high negative cashflow on a monthly basis. I immediately called him and even though he claimed he went over all the figures, I went over them again with him. I then asked Bob if he could manage such a monthly outflow of cash. Bob replied that he couldn't afford it. And no other acceptable financing options were available to Bob at that time.
“He looked extremely relieved when I met with him”
We obviously didn't proceed with an offer, but I made sure Bob understood that I would look for something more suitable for him. He looked extremely relieved when I met with him again and I was actually happy that he didn't get himself in financial trouble.
And this is how I un-sold a house!
I take pride in my work. I like to feel like I've done my job (in this case, as a dual agent) when I exercised a duty of care to a "customer" even though the seller is my "client".
I sold that house to a lovely couple a few days later and Bob became my client. Everyone was happy.
If you are ready to purchase or sell a property, I can surely provide you with excellent representation to protect you at every step. So please feel free to contact me even if it’s only for advice, direction or suggestion.