Real Estate question for someone outside of this forest looking in....

[Sharon in SC]

This is a WWYD dilemma regarding our home we've had on the market since early June.....

 

In the face of a buyer with remorse (scheduled to close this Friday) and the need to sell this house sooner than later, we've bent over backwards (financially and physically) to meet his every desire. We forfeited $22K in the name of getting to a price he would agree to. We've committed to fixing every blasted little thing wrong with this 20yo house to meet his demands. The one thing we felt we could draw the line on was replacing the 20yo HVAC that is working like a charm (disclosed before he ever made an offer but carrying a 12 mo home warranty in the contract) in light of the fact that we'd already conceded so much financially and that this home, otherwise, has a brand new roof, brand new never been used appliances, brand new carpet, new paint job throughout, newly refinished hardwoods, etc, etc, etc. Our line leaves us $4 apart and that still means an additional $600 out of our pocket.

 

We got the word today it's a no go for him. He wants the house only if we replace the HVAC and the $600 window repair (4 of our 20yo windows have a break in the seal of the double panes) and sell it to him for the already greatly reduced contract price. Meanwhile, a $12 shower faucet repair turned into a $990 plumber bill, 3 holes cut in the house that have to be filled/repainted (2 in the wall, 1 in a ceiling), and a ceiling that has to be repainted due to a water leak from the fiasco over the weekend!!

 

Calgon, take me away.

 

This "buyer's market" really. bites. Our dilemma tonight - do we let this guy go 'cause he wants the sun, the moon, and the stars for a song and hope for a better situation around the bend or do we allow him another $4k of our investment in this home in the name of getting out (warm buyer at the table versus two in the bush)? For all I know, he may not still want it. Our last word to him today was that we would sell our home for $4k more if we had to put a new HVAC in. Further insight is this - it will cost us $4600 more to sell our home to this person on his unbendable terms. Contrarily, we will owe the county an extra $2600 in non-residential taxes if the home doesn't sell by 12/31. OUr monthly expenses to have this home in our possession are between $800 and $900/month (taxes, insurance, water, electric, extra interest paid on other loans 'til the equity is obtained from this house, etc).

 

FWIW, the homes in our area of basically appreciated for about 1% while the majority of the country's homes have tanked in price. Our area was cited #4 I think in a list of 25 best places to live for real estate in the latest Smart Money magazine. Basically, while homes have taken longer to sell, they've held their value. It's been in the last two months, though, that there has been a decrease in price. Things may be heading down or they may be leveling out. I don't have any way of knowing.

 

Please share your thoughts. We're too numb to know which end is up just now. :-{

 

(Just to recap for those not totally familiar with our saga - this is the second offer in 5 months on the market. What does it take to reach a close these days?!)

 

TIA for any thoughts you have to share.....Me

Edited November 18, 2008 by Sharon in SC

[Julieofsardis]

The reason I ask is because this is where a Realtor should be worth their weight. To me, the negotiation process is the most important part of a Realtor's job. If you have one, you might want to consider someone else. If you don't, you might want to rethink what one might be worth in a situation like this.

 

Julie

[Sharon in SC]

The reason I ask is because this is where a Realtor should be worth their weight. To me, the negotiation process is the most important part of a Realtor's job. If you have one, you might want to consider someone else. If you don't, you might want to rethink what one might be worth in a situation like this.

 

Julie

 

It's funny you ask - our family is convinced neither REA involved (ours or his) are earning their keep. Basically, they're communicating our terms to him and vice versa. I've seen no real attempt on anyone's part to facilitate this. Both are very seasoned agents. His has been in the business for 20yrs. You'd think she could help in educating him on what you expect in a 20yo home but I don't see it happening. Clearly, he wants it to be the equivalent of new construction.

[gardening momma]

If you can afford to hold out (and possibly not sell to this buyer), then I'd tell him "Heck No!"

[texascamps]

I don't know what state you are in, but, if you are closing on Friday then I would think all of his deadlines that let him out of the deal are over. Here, once the inspection is over repairs have been negotiated (usually a few days after the inspection) then the deadlines pass. Here, if he wants out of the deal, he forfeits his earnest money. And, after all you are offering a home buyers' warranty.

 

Are you using a realtor? Sounds like he has a real good one, one who is willing to pick to get every last thing.

[Unicorn.]

If you can afford to hold out (and possibly not sell to this buyer), then I'd tell him "Heck No!"

 

I don't know what state you are in, but, if you are closing on Friday then I would think all of his deadlines that let him out of the deal are over. Here, once the inspection is over repairs have been negotiated (usually a few days after the inspection) then the deadlines pass. Here, if he wants out of the deal, he forfeits his earnest money. And, after all you are offering a home buyers' warranty.

 

Are you using a realtor? Sounds like he has a real good one, one who is willing to pick to get every last thing.

 

:iagree: Tell him no deal, you've done more than enough. If he says no, then let him lose his earnest money. Chances are, he is expecting you to cave to his wishes, because you've done everything else he wanted. If it were me, I'd say " take a hike", but that's me.

[readwithem]

What does it take to reach a close these days?!)

 

TIA for any thoughts you have to share.....Me

 

 

Oh Sharon!!:willy_nilly: My head hurts from reading all this. Agreeing with the others, kick your realtor's behind to get them to earn their keep on this. Can you add the cost of the HVAC to the guy's earnest money? I'm pretty sure a builder would add any changes to the amount held against closing.

 

As for us we had a motivated buyer, he was moving from out of state. When I look back, I'm amazed at how smoothly our sale went.

 

:grouphug:

[Sharon in SC]

I don't know what state you are in, but, if you are closing on Friday then I would think all of his deadlines that let him out of the deal are over. Here, once the inspection is over repairs have been negotiated (usually a few days after the inspection) then the deadlines pass. Here, if he wants out of the deal, he forfeits his earnest money. And, after all you are offering a home buyers' warranty.

 

Are you using a realtor? Sounds like he has a real good one, one who is willing to pick to get every last thing.

 

Here's the deal, pun intended - This was a quick closing date situation because the house is vacant and he has nothing to sell. A brand new (1 month old) state law says the seller does not have to provide a clear heating/air letter. That's good for us because while this unit is working beautifully the electrical components cannot be assessed because the "house" around them is so corroded. *However*, according to my REA, he is entitled to walk out of the contract (deadlines are midnight tonight) because the corrosion showed up on house inspection. Therefore, all he has to say is "I want that corrosion fixed or no deal." To fix the corrosion means replacing the HVAC. The housing itself is not replaceable alone.

 

Make sense????

[TraceyS/FL]

I think the market is going to go down for the next few months at least - no matter where you live.

 

I think he's being an a**.

 

Are the windows "newish"? A friend had a leak in her double panes and they had a LONNGGGG (lifetime?) warranty on that! She was shocked when she called, but it's a no $$ repair for her. So make sure you have checked with the manufacture.

 

Is there anything else he can use to walk even if you agree to the HVAC unit? Gee, i wished we had that kind of law here.... i'dhave a new one :D All we got was $3500 worth of electrical.

 

The bottom line comes down to - if you let him walk, are you still going to have to put the HVAC in for the next buyer - because now the inspection should be perfect right? Are they going to say well gee, "all" that needs to be fixed is the heater - we want it done. Not knowing you fixed it all before.

 

I wish i had more wisdom to spew - so i 'll just send you a :grouphug:

[Ria]

I'd tell him no deal. With his history, you've got a huge chance that once you make the repairs he'll come up with something else that he must have in order to close. It's not worth it. I'd put your foot down and let him walk away. Then after a few weeks list the house again at the price you started with. It really sounds like this guy is trying to take advantage of you. Getting a deal is one thing, but I think he's gone beyond.

 

Ria

[Quiver0f10]

I'd tell him no deal. With his history, you've got a huge chance that once you make the repairs he'll come up with something else that he must have in order to close. It's not worth it. I'd put your foot down and let him walk away. Then after a few weeks list the house again at the price you started with. It really sounds like this guy is trying to take advantage of you. Getting a deal is one thing, but I think he's gone beyond.

 

Ria

 

ITA. He is being greedy due to the market situation. I'd tell him to take a hike and if I had to I'd rent out the house until the market improves.

[elegantlion]

As someone who has lost the sale of a house one day before it was supposed to close, I feel your blood boiling. Our realtor did not disclose something to us and we had no time to fix it and the buyer walked.

 

I say call his bluff and give him his walking papers. You've done above and beyond what should be required. :grouphug:

[Scarlett]

As someone who has lost the sale of a house one day before it was supposed to close, I feel your blood boiling. Our realtor did not disclose something to us and we had no time to fix it and the buyer walked.

 

I say call his bluff and give him his walking papers. You've done above and beyond what should be required. :grouphug:

 

I agree. The result of all his demands has been that you now have a new list of things to show to your next interested buyer to show them how much has been done to the house.

[Halftime Hope]

Tell the realtor if s/he wants the commission, s/he better get off his/her sorry behind and help with this!! (If the buyer walks, the realtor gets nothing....)

 

First the reality check: it is a buyer's market. I'm so sorry, but that's a fact. Deep breath....

 

Now...moving forward. Here might be one way to solve it:

 

What if you get the cheapest estimate you can for replacing the HVAC with something comparable to what is there, not something expensive or efficient. Do this today. Then put the money for the HVAC into escrow, on the condition that when the house closes, then he can take that money and spend it however he likes. Maybe he wants to spend it; maybe he'll buy an HVAC. But, he only gets the money after the house closes.

 

Would that seal this deal? If he does not close, you haven't lost anything, but if it closes, you are out from under the house, and good riddance.

 

With the house we bought, the sellers came down another $2K (they should have come down $7 according to mkt. value), because they could either hold out and pay ~$2 for all the next month's expenses, or they could get it over with and take our offer. They decided to get if over with. Sounds like you all are pretty close to that same type of a deal, except you might lose a couple grand by meeting his request. OTOH, what will the costs be if you let him go?

 

What it boils down to is, do you want the sale, or do you want to be landlords? Only you can decide what is best for your family. May God give you wisdom.

 

I'm sending you the very. best. wishes. and praying for you all!!!!

Edited November 18, 2008 by Valerie(TX)
clarifying

[Holly IN]

Fire that realtor!! Wow! She should be facilitating this in your best interested but it seems she is not.

 

I would say no to the deal and just rent the house until the market gets better.

 

Holly

[lynn]

Sounds like he's taking advantage of your situation. As hard as it may be for you I'd say NO. You've given so much already. If the realtor is not doing their job call the parent company and ask for someone else

[Kari C in SC]

Tell the realtor if s/he wants the commission, s/he better get off his/her sorry behind and help with this!! (If the buyer walks, the realtor gets nothing....)

 

First the reality check: it is a buyer's market. I'm so sorry, but that's a fact. Deep breath....

 

Now...moving forward. Here might be one way to solve it:

 

What if you get the cheapest estimate you can for replacing the HVAC with something comparable to what is there, not something expensive or efficient. Do this today. Then put the money for the HVAC into escrow, on the condition that when the house closes, then he can take that money and spend it however he likes. Maybe he wants to spend it; maybe he'll buy an HVAC. But, he only gets the money after the house closes.

 

Would that seal this deal? If he does not close, you haven't lost anything, but if it closes, you are out from under the house, and good riddance.

 

With the house we bought, the sellers came down another $2K (they should have come down $7 according to mkt. value), because they could either hold out and pay ~$2 for all the next month's expenses, or they could get it over with and take our offer. They decided to get if over with. Sounds like you all are pretty close to that same type of a deal, except you might lose a couple grand by meeting his request. OTOH, what will the costs be if you let him go?

 

What it boils down to is, do you want the sale, or do you want to be landlords? Only you can decide what is best for your family. May God give you wisdom.

 

I'm sending you the very. best. wishes. and praying for you all!!!!

 

:iagree:

 

I would do this. As a landlord of a house that wouldn't sell, I can tell you that you don't want to rent it out. As somebody that lives in the same area as you, I can tell you that everything I am hearing is not looking good for the housing market. My dh is a mechanic. Everyone that walks in his shop is having hard times. My bil is a painter. There are no news houses for him to paint. Times are getting tough here in SC. I wouldn't replace the AC and then hope he closes. I would do as this poster said and put the money aside upon closing. Then I would say goodbye to your headache and move on. This is what we have decided to do when we put our house back on the market in FL. We will sell for less to just get it sold. As of right now, I am still waiting on $500 rent for this month from my tenants. I just want to get rid of my other house and move on. I am sorry you are getting such a rough time. It is no fun!

[TraceyS/FL]

Now...moving forward. Here might be one way to solve it:

 

What if you get the cheapest estimate you can for replacing the HVAC with something comparable to what is there, not something expensive or efficient. Do this today. Then put the money for the HVAC into escrow, on the condition that when the house closes, then he can take that money and spend it however he likes. Maybe he wants to spend it; maybe he'll buy an HVAC. But, he only gets the money after the house closes.

 

I would do this - this is how our electrical work was done since it was paid after closing by the seller (we had a 5 day escrow).

[Sharon in SC]

Tell the realtor if s/he wants the commission, s/he better get off his/her sorry behind and help with this!! (If the buyer walks, the realtor gets nothing....)

 

First the reality check: it is a buyer's market. I'm so sorry, but that's a fact. Deep breath....

 

Now...moving forward. Here might be one way to solve it:

 

What if you get the cheapest estimate you can for replacing the HVAC with something comparable to what is there, not something expensive or efficient. Do this today. Then put the money for the HVAC into escrow, on the condition that when the house closes, then he can take that money and spend it however he likes. Maybe he wants to spend it; maybe he'll buy an HVAC. But, he only gets the money after the house closes.

 

Would that seal this deal? If he does not close, you haven't lost anything, but if it closes, you are out from under the house, and good riddance.

 

With the house we bought, the sellers came down another $2K (they should have come down $7 according to mkt. value), because they could either hold out and pay ~$2 for all the next month's expenses, or they could get it over with and take our offer. They decided to get if over with. Sounds like you all are pretty close to that same type of a deal, except you might lose a couple grand by meeting his request. OTOH, what will the costs be if you let him go?

 

What it boils down to is, do you want the sale, or do you want to be landlords? Only you can decide what is best for your family. May God give you wisdom.

 

I'm sending you the very. best. wishes. and praying for you all!!!!

 

Valerie,

You've pretty much hit the nail on the head with where we are. Dh and I talked things through last evening, decided to pray over it and sleep on it, and make a decision in the morning.

 

Long story short - it will cost us $4100 to meet his demands. If we let him walk and unless we can close with someone else by 12/31 (pretty unlikely), we'll owe an extra $2600 in taxes and another $800-900 in monthly expenses on the place. That leaves a remaining balance of $650 or so. Right now, peace of mind is worth something and unless we closed by middle of January we'd be paying that out ($650) anyway.

 

This buyer is still interested in the purchase on his terms (something we weren't sure of 'til a phone call was placed this morning). Closing will be rescheduled 'til next week due to lawyer schedules. If he still ends up walking so be it but, for now, we feel it in *our* best interest to do what we can to make it work. (Warm buyer at the table and all that...).

 

(Incidentally, we have absolutely no desire to rent this home - it is in such pristine condition that thought of someone getting in there and mucking it all up is not appealing. at all.)

 

I do want to be quick to say that our decision here is rooted solely in the fact that the economy is what it is and this buyer's market bites. hard. Except for that, we'd have stuck to our guns and told this guy bye and good riddance!!!! :cursing:

 

Thanks to all for your input. I really do appreciate it.

[Halftime Hope]

I do want to be quick to say that our decision here is rooted solely in the fact that the economy is what it is and this buyer's market bites. hard. Except for that, we'd have stuck to our guns and told this guy bye and good riddance!!!! :cursing:

 

Yup - I hear you; it is what it is.

 

The Lord very graciously allowed my FIL's house to sell, so we aren't enduring this market. (Very good for dh's sibling relationships!!) However, we've already lost big money on the house we've been in for nearly a year and a half. If we had to sell it now, I'd lose my shirt, my camisole, and my foundation garment on it. :)

 

But, that's the reality of uncertain times...

 

Oh, Sharon, I'll pray that your house will sell. Wouldn't it be nice to have a quiet, all-stress-behind-you winter? {{Sharon}}

[Amy loves Bud]

Can you credit him the amount to fix the AC at closing, rather than fix it yourselves? Then you don't risk paying to fix it and then having him bow out anyway.

 

I was going to say no deal, but when you factor in the additional taxes you face if you don't sell, it does seem financially prudent to go ahead and get rid of it.

 

It's so hard when you are dealing with a jerk to eliminate that factor from your decision-making, but in the end, making a decision because he is a jerk won't help you. You have to make the best decision for *you*. Of course that includes protecting yourself from his jerkiness, but don't spite yourself in order to teach him a lesson.

[Sharon in SC]

It's so hard when you are dealing with a jerk to eliminate that factor from your decision-making, but in the end, making a decision because he is a jerk won't help you. You have to make the best decision for *you*. Of course that includes protecting yourself from his jerkiness, but don't spite yourself in order to teach him a lesson.

 

:iagree: If I've verbalized that to one person today I've verbalized it to three. It really did boil down to making the best decision we could for our family, despite his disposition.

 

We're leaving money on the table for him made out to the H&A company and the glass repair company. This way, he's burdened with scheduling it all and he doesn't get our $ until he's given us his.

 

Thanks for chiming in!

[Sharon in SC]

Oh, Sharon, I'll pray that your house will sell. Wouldn't it be nice to have a quiet, all-stress-behind-you winter? {{Sharon}}

 

 

Yes, Valerie, it most definitely would. After 2+ years of carrying two homes, I don't know if we'll know how to act with the responsibility of only one! :tongue_smilie:

 

Thank you for your words of encouragement!!

[bettyandbob]

I haven't read the responses, but I'd say no deal. Because it sounds like he wants to walk away and just finding excuses.

 

Can you rent the property for a couple of years. I know that sounds like a terribly long time to be in a holding pattern with a house, but that will give the market a little time to recover.

[Sharon in SC]

I haven't read the responses, but I'd say no deal. Because it sounds like he wants to walk away and just finding excuses.

 

 

Before today, I'd have thought the same thing (that he wanted an excuse out). Today, after receiving his excuse yesterday, he walked back to the table voluntarily (with the understanding we'll be meeting him on his terms, of course). But, he walked back. of his own accord. :-}