Luke HarrisParticipantApril 17, 2018 at 6:52 amPost count: 145
Hey All, I’d love to hear ideas and input on whether to offer refunds/ money back guarantees. Do you guys do that? I used to, but then you get a number of people taking advantage of it and it really sucks.Jason L.ParticipantApril 17, 2018 at 7:18 amPost count: 39
Sore subject with me right now. Had a buyer use credit card to put $500 down. 2 weeks later called and said he was getting a divorce and didn’t want the land right now. He wants it, just not now until divorce final. He requested a refund via certified check. Ok, not a problem. Sent a check for $401 and I kept $99 which he agreed to. He then pestered me by txt every hour to track the package so he knew when it would get there. I paid to have it 2 day so he could get it faster. 23 minutes after he got the check and and cashed it, he disputed the credit card transaction. Stripe gave him his $500 and hit me with a $15 refund fee. I am now out $401. I disputed it with stripe and sent the signed agreement, all the txt and emails of him saying thank you so much for the land it is exactly what he always wanted. Stripe said they will make a decision by June 28th. yes June 28th!!! If stripe finds in his favor then I will be charged another $30 for the dispute fee.
I removed the guarantee for 1 month because I was pissed. I noticed that I put it back in over the weekend so I guess I am done being a crybaby over getting scammed for $401. I am being more picky on who I offer guarantee to. I actually use it as sales closer now. If they are on the fence about buying I will offer a 14 or 30 day guarantee to get the property sold. I am not in this business to screw anyone but I can’t keep the doors open if I continue to get scammed.
Maybe I should only offer on cash sales? or terms sales under a certain amount or terms sales over a certain amount. Something to think about now.MilanParticipantApril 17, 2018 at 7:19 amPost count: 446
This is a great topic. I am also going through a cash sale refund beside terms sale refund right now. No more terms refunds after this one.
I paid $750 for the property on cash refund.
The buyer wants refund. I’m giving her an option to keep the property. Or refund with $750 transaction fee for staff time, expenses and processing.
I give refunds but I keep what I paid for the property. I think it is very fair. Our time is valuable too.Jason L.ParticipantApril 17, 2018 at 7:29 amPost count: 39
@milan wow that is steep. You keep the price of the property. That is genius! Do you tell them how much it is up front? If so, I bet you get very few refunds. If I went to buy a car and they said you can return it but we are keeping ‘X” dollars. I would seriously reconsider before buying. Well, ya know that is what earnest money is. If you are serious about the purchase then making a small down payment or earnest money deposit should not be an issue.
If the buyer is asking about a refund then they are already thinking they cant pay for it? I think I will be vetting my buyers that way from now on. If they ask for a guarantee, or talk about it very much then I will probably pass on the sale. It is not easy to sell, do all the paperwork and then refund, and get it relisted. Takes time!!MilanParticipantApril 17, 2018 at 7:30 amPost count: 446
Also for the future I’m leaning toward no refunds. Not interested in customer is always right BS.MilanParticipantApril 17, 2018 at 11:12 amPost count: 446
I don’t think it’s very smart to advertise that you provide refunds – returns. I would like to hear more opinions on this guys. What do you guys think? Does it really help your sales?
Not only they waste huge amount of your time and positive mental energy. They Throw you in risk too. What if a person dumps there or just leaves there something that county doesn’t like? You become an owner of the property again, so you’re responsible now.
That brings me to a earlier discussed NHD – natural hazard disclosure. If you give refund make them sign it in front of notary too. Ad – leaving a clean dump free property clause and so on. Make sure they provide driver license number. Just generally make it kind of Sean like a big deal, which it really is. They are making your life difficult too.
Now, I know you guys are all about credit cards and making it easy for them to buy. But the kind of customer we deal with for the most part will swing plastic impulsively all the time. And day or month later wants refund.
Anyway, From now on, I’m making purchase of my properties difficult for them. Not easy.Jason L.ParticipantApril 17, 2018 at 12:47 pmPost count: 39
I can see both sides. I am trying to win customers. I try not to make it hard for them to give me money. On other hand, that makes it easy for them to take it from me. All business’s go thru this. It’s part of it. I’m wondering if this is a forest and trees thing. I’ve done 100’s of credit card and land transactions. I got burned by 1! Keeping my eye on the prize of financial stability, I can’t be downtrodden by the actions of 1 person. Everyone else pays as requested and our relationship does not suffer. I think I will continue to offer one until someone else changes my mind again.Kevin FarrellModeratorApril 17, 2018 at 12:58 pmPost count: 674
For what it is worth, my ads all state “No refunds. Properties are sold ‘As is’.” Does it hurt my sales? I don’t know. Out of approximately 100 sales I have had one guy ask for a refund on a cash purchase. I offered him 50% of the price he paid. He said “That sounds fair. I’ll think about it.” Never heard from him again. Why make it easy for them.
My opinion is – don’t build a refund expectation into the sale and you will avoid SOME of the problem people.
Jason – I take credit card payments all the time. In fact, I use that as a selling tool when they ask “How do I know that you will process the deed after I pay you?” I tell them when they pay on a credit card, they can dispute the purchase if I don’t deliver and they are comfortable with that. But I don’t give refunds and I don’t trade for “Like-Kind property in my inventory.” As I have seen some people do. I sell on price. Period.
Great discussion. Thanks for posting all of your experiences. We can all learn from each other.
You must be logged in to reply to this topic.