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Old 05-30-2010, 10:54 AM
 
Location: Dallas/Ft. Worth, TX
1,983 posts, read 6,027,028 times
Reputation: 3317

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Quote:
Originally Posted by ilikepizza View Post
They didn't turn on the utilities until halfway through the inspection period. We got an inspection the last day of the period .....
Your Real Estate Agent should be assisting you in this process and be familiar with the compressed time frame of the contingency period. After your inspection, you need time to also obtain estimates for any items found. Once you came even close to your option period end I would have expected your Agent to either obtain an extension for the option period or at least advise you of the consequences of running out of time.

Quote:
Originally Posted by ilikepizza View Post
....I informed my realtor the ac wasn't working. She told the listing agent about the ac on the last day of the inspection period. The listing agent hasn't said whether it would get fixed or not. Still waiting to hear the results.
Did your Agent explain your offer contract to you and whether you can still back out, if needed, without losing large sums of money? Was the price well low enough to afford repairing/replacing the system yourself if you continue with the purchase? Do you have the funds available to repair/replace the unit if need be?

Depending on the condition and age of the system, both heat and AC components, replacement of the entire system can potentially run $1000+ per ton of cooling capacity. The $1000 is for units on the lower end of the efficiency ratings. Without a HVAC Tech calculating your actual needs (many items are taken into consideration) a rule of thumb to use is that for every 400 - 500 Sq. Ft. of conditioned space will require 1 ton of cooling capacity.

Quote:
Originally Posted by ilikepizza View Post
We live in the south so don't think heat is a requirement. We haven't had the appraisal yet. Does the appraiser take into consideration broken ac units?
The appraisers generally do check for very basic operation of the HVAC system and would potentially note this in the appraisal report. With the new HVCC appraisal rules the Appraisers have been noting many things they did not before. The mortgage providers are also looking at these items closely as well!
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Old 05-30-2010, 10:59 AM
 
Location: Salem, OR
13,990 posts, read 32,812,463 times
Reputation: 12717
Quote:
Originally Posted by ilikepizza View Post
Thanks for all the info.
I think I would be able to get the money back,as we did the inspection within the 10 day frame and my real estate agent informed the listing agent about the AC. Being a holiday wknd I'm guessing I won't hear anything until Tuesday. My biggest worry would be moving into a house in the middle of summer, in Texas, with no AC and having to dish out thousands to get it replaced.
I'd clarify with your agent what they said. Calling the listing agent and saying "hey the ac is broken will you fix it?" is not the same thing as saying "my clients are disapproving of the inspection report and terminating unless the seller fixes it." Did you put the termination request in writing?

You also need to verify if your contract is calendar days or business days. If it is calendar days then weekends count.
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Old 05-30-2010, 11:31 AM
 
360 posts, read 698,273 times
Reputation: 188
My agent tried to email me the paper to sign and return but she said her email wasn't working right so I never received it before the inspection period ended. She asked me to email the listing agent and tell him my concerns so I did that, but that was the day after the inspection period. The listing agent asked for a copy of the inspection report so I sent that to him and haven't heard from anybody since.
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Old 05-30-2010, 11:52 AM
 
Location: Pomona
1,955 posts, read 9,509,299 times
Reputation: 1535
On my house, the A/C was broken during the inspection. The issue ... the contractor (big relay) contacts were worn out, so power wasn't getting through to the compressor. $100 to check it out, $45 in parts.

If you're getting a good deal on the house and everything else checks out fine, I wouldn't let a broken a/c stand in the way. With the energy star tax credits, and possible rebates from your utility company, a new unit may be worthwhile even if it was working properly!
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Old 05-30-2010, 12:51 PM
 
Location: Dallas/Ft. Worth, TX
1,983 posts, read 6,027,028 times
Reputation: 3317
Quote:
Originally Posted by ilikepizza View Post
My agent tried to email me the paper to sign and return but she said her email wasn't working right so I never received it before the inspection period ended. She asked me to email the listing agent and tell him my concerns so I did that, but that was the day after the inspection period. The listing agent asked for a copy of the inspection report so I sent that to him and haven't heard from anybody since.
Because it was the last day of the inspection contingency period did your Agent call you? Did your Agent try to meet you to have the appropriate paperwork completed so the Agent could submit it to the listing Agent? Has your Agent explained to you why they decided to rely on email alone?
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Old 05-30-2010, 01:01 PM
 
360 posts, read 698,273 times
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Thanks Narfcake, I'm hoping its that easy.
Just spoke with my realtor and she said since its fannie mae, we can't back out just because of what the inspection report says. It has to be a lender required repair.
The way I read the contract, I'm able to walk if I find that there are repairs needed and the seller isn't willing to fix them.
Gonna have the AC checked asap and hope all works in the end.
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Old 05-30-2010, 01:19 PM
 
360 posts, read 698,273 times
Reputation: 188
Okay I guess there are 2 contracts. One is the real estate purchase addendum. In that one it says we can walk if we're not happy with the home inspection. Second is the TREC contract that states property is sold AS IS and buyer accepts property in present condition. Both parties have signed both contracts so now I'm confused. Does one outweigh the other?

In response to escanlan, no she never did try to meet face to face to finish paperwork and didn't say why she relied on email.
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Old 05-30-2010, 01:31 PM
 
Location: Tempe, Arizona
4,511 posts, read 11,895,493 times
Reputation: 2193
Quote:
Originally Posted by ilikepizza View Post
Okay I guess there are 2 contracts. One is the real estate purchase addendum. In that one it says we can walk if we're not happy with the home inspection. Second is the TREC contract that states property is sold AS IS and buyer accepts property in present condition. Both parties have signed both contracts so now I'm confused. Does one outweigh the other?

In response to escanlan, no she never did try to meet face to face to finish paperwork and didn't say why she relied on email.
Usually AS-IS clauses still allow you to cancel based on inspection results, you should reread yours to check. Also, generally, the bank addendum will override any conflicting clauses in the original contract.
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Old 05-30-2010, 01:37 PM
 
Location: Pomona
1,955 posts, read 9,509,299 times
Reputation: 1535
Quote:
Originally Posted by ilikepizza View Post
Both parties have signed both contracts so now I'm confused. Does one outweigh the other?
Without reading them in its entirety, the way I see is is that the TREC contract says that "the property is what you see, so don't try to asking to fix something you don't like". The addendum says "if you don't like it, you can walk away".

Like I said, if the deal is good and the rest of the place is fine, don't pass it up just because of the a/c. Even if you had to get a new unit, the 30% tax credit and the reduced operating costs makes it a much less "scary expense".

Federal Tax Credits for Energy Efficiency : ENERGY STAR
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Old 05-30-2010, 01:42 PM
 
Location: Salem, OR
13,990 posts, read 32,812,463 times
Reputation: 12717
Quote:
Originally Posted by ilikepizza View Post
Okay I guess there are 2 contracts. One is the real estate purchase addendum. In that one it says we can walk if we're not happy with the home inspection. Second is the TREC contract that states property is sold AS IS and buyer accepts property in present condition. Both parties have signed both contracts so now I'm confused. Does one outweigh the other?

In response to escanlan, no she never did try to meet face to face to finish paperwork and didn't say why she relied on email.

Every bank addendum I have seen says that it overrides any previous verbiage. They also typically say that if there is any conflict in clauses the bank addendum is the right clause. Re-read your bank addendum.
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