What to do When Your Contract Gets Canceled

There are very few things that can ruin a wholesaler’s day and that’s when a contract that you’ve been working on gets canceled.

It’s not just that you had been working on that contract for a few days, a few weeks, even a few months in some cases; that’s a lot of hard work put in just to see it all disappear.

And you might think that’s the worst thing, but it’s actually not.

Having your contract get canceled can really mess up your confidence.

Lessons on Getting Your Wholesale Confidence Back

A great example of this is a conversation I had with one of my Astro student members, Leslie.

For an entire week, she had 5 contracts fall through and in speaking to her fellow Astro members, she found a similar trend with them as well.

But again, it was just these lost contracts that bummed her out – it was the shake up in her confidence, that burst of the bubble she had built momentum up.

You can watch our conversation in the video below:

Now before I go on, just to be clear – having your contract canceled isn’t terrible; it happens and there will be situations where either you or someone else has to cancel.

That’s part of the journey we’re on.

The difference here is the amount that seemed to be happening in a short amount of time – that’s not normal.

However, instead of focusing on the cancelation part, our focus should be on the insights we can glean from this particular trend.

And as Leslie and I continued, the particular trend we were seeing was happening across the US. We saw decreases in a lot of real estate areas, like:

• The number of mortgage applications

• The number of home searches on Redfin and Zillow

• Offers on retail properties

These were just some of the aftermath of a trickle-down effect that was happening, so the good thing is it’s not just Leslie and people in her location experiencing this.

But Jamil, there must be a bad side, right?

Yes – the downside is having your confidence shaken, but as I told Leslie, this is a great opportunity to change the way we as wholesalers are speaking to agents.

Before the agents had somewhat of a power balance with their listings and sellers, but now, we as the buyers and the sellers have the power.

The reason being is that sellers are trying to sell and they may not want to wait an extra 20 days on the MLS, especially when their house has already been listed for 30, 60, or 90 days.

Or longer!

That means both sellers and agents are more willing to work down pricing, which means that we as buyers also need to review our pricing so that it aligns to the trends we’re seeing.

Guys, this is a beautiful time in the market right now and the opportunities are only going to grow.

So don’t get glum about that second, third, or fifth canceled contract!

Learn from what’s happening in the market and start talking to more of your agents because I guarantee you they’re in a much better position to listen to you.

If you’ve found yourself with some canceled contracts this quarter, let’s talk about them!

Come and join the Astro group so you can get – or give – valuable advice and guidance to help shake off the disappointment and lift up your wholesale spirits.