Year round living in Maine. (Thomaston, Windsor: 2014, rental, buyers)

[YorktownGal]

Originally Posted by phoebesmom

We are purchasing a house in Western Maine right now and how it worked was we made a formal purchase offer lower than what they were asking but did not send earnest money, they countered and we accepted their counter, and then we sent the earnest money check.

The purchase sale agreement specified a period for inspections where we could walk if we found something not to our liking. There is also a financing contingency.

So at least in our case, the earnest money was not put in trust until we had a signed agreement, and without the signed agreement, was not the seller's to keep.

If during this inspection period, we choose not to proceed, our earnest money comes back to us. If the financing falls apart for something like the title issue you mentioned, our earnest money comes back to us.

This is how it worked for us previously. We negotiated the purchase price. We signed a purchase sale agreement with an agreed closing date and handed over the earnest money amount. We had the inspection. We asked for certain repairs to be done. At that point, either party could end the agreement.

Clear cut, no drama. Once a seller backed out because they could not part with their beloved home. This was early enough in the sales cycle to be manageable.

The problem is for some reason, in NY, - there are no purchase sales agreement signed until after the inspection. As a result, I've had multiple offers and home inspections without any follow through.

One couple decided after an agreed upon offer and the inspection that they just couldn't leave NYC. After I accepted their offer, I had two other offers which I turned down and lost. They had no consequence for making an offer and backing out on a whim.

The couple who agreed to our purchase price and paid for inspection which told them that our 14 year old house had a 14 year old central air. Duh! What a surprise! They wanted a $10,000 lower price because the central air was 14 years old. Without a signed purchase agreement, they thought they could change to agreed upon purchase price.

Our present "potential" buyer making offers on two different houses. There is no date for an inspection, so I doubt it's going to happen.

As OutdoorLover said

Without earnest money, an offer has little real weight.

I've been finding this whole process difficult. I have at least five showing a week. My house is always spotless which is a time consuming pain. I've asked for two hours notice for a showing. I've had people pull into my driveway and then request a showing. I've had people show up a half an hour early and peer into my windows. I've had people show up an hour or more late. Don't get me started about stealing my tomatoes!

In the meantime, all my favorite Maine for sale houses are off the market. I was sad when this one's status went to pending https://www.realtor.com/realestatean...x=ME2921685742

Anyway, thanks for listening to my bellyaching!

[OutdoorLover]

Originally Posted by YorktownGal

This is how it worked for us previously. We negotiated the purchase price. We signed a purchase sale agreement with an agreed closing date and handed over the earnest money amount. We had the inspection. We asked for certain repairs to be done. At that point, either party could end the agreement.

Clear cut, no drama. Once a seller backed out because they could not part with their beloved home. This was early enough in the sales cycle to be manageable.

The problem is for some reason, in NY, - there are no purchase sales agreement signed until after the inspection. As a result, I've had multiple offers and home inspections without any follow through.

One couple decided after an agreed upon offer and the inspection that they just couldn't leave NYC. After I accepted their offer, I had two other offers which I turned down and lost. They had no consequence for making an offer and backing out on a whim.

The couple who agreed to our purchase price and paid for inspection which told them that our 14 year old house had a 14 year old central air. Duh! What a surprise! They wanted a $10,000 lower price because the central air was 14 years old. Without a signed purchase agreement, they thought they could change to agreed upon purchase price.

Our present "potential" buyer making offers on two different houses. There is no date for an inspection, so I doubt it's going to happen.

As OutdoorLover said

I've been finding this whole process difficult. I have at least five showing a week. My house is always spotless which is a time consuming pain. I've asked for two hours notice for a showing. I've had people pull into my driveway and then request a showing. I've had people show up a half an hour early and peer into my windows. I've had people show up an hour or more late. Don't get me started about stealing my tomatoes!

In the meantime, all my favorite Maine for sale houses are off the market. I was sad when this one's status went to pending https://www.realtor.com/realestatean...x=ME2921685742

Anyway, thanks for listening to my bellyaching!

In Massachusetts, first comes the Offer to Purchase, normally submitted with earnest money - this is usually a modest amount, say $1,000-$2,000. An expiry date is put into the offer, so that the seller can't keep the buyer in limbo indefinitely. The buyer signs the offer letter, and if the seller chooses to accept the offer, then they sign it also. The Offer to Purchase is a legally binding contract. Significant obligations ensue, but there are still a few protections for the buyer, including satisfactory home inspection outcome.

Then the home inspection is done. If any issues arise, then (a) the buyer can withdraw their offer, and since this is one of the "escape clauses" specified in a normal Offer to Purchase, they get their earnest money back from the escrow account. (b) they can negotiate an adjustment - normally either the seller fixes the issues at their expense, or they adjust the price down to account for the problems discovered.

Assuming the purchase is still going forward, then a second contract, the Purchase and Sale Agreement contract is signed by both parties. Now a larger amount of money, a down payment is submitted for the buyer with the P&S and goes into the same escrow account. Recourse for the buyer narrows. Typically the only significant "out" for them is that they must be able to obtain satisfactory financing - the mortgage contingency. The seller is also protected, because there is normally a date specified by which the buyer *must* obtain financing so the house can't be in limbo indefinitely. A closing date, time and place are also specified in the P&S.

After the loan is approved by the bank, the balance of the money due to the seller and the ownership of the property are later exchanged at a meeting known as the closing.

As is always the case with contracts, they are not set in stone, and the terms may always be adjusted - when it's agreeable to both parties.

[phoebesmom]

Mass sounds a lot like Illinois, with the two-tiered system, with the large down payment put into escrow at the second tier.

Maine seems to be a one-tiered system. Earnest money deposits can be quite small.

New York sounds kind of tilted towards the buyer, Yorktowngal! I am so sorry you had to pass on the other two offers and then got let down by the first buyer.

What does your realtor say--it doesn't sound like you are being protected here. And I am super sorry about the Boothbay house--so pretty! We looked in Midcoast Maine for months and kept losing out on houses, and it was easier to find something in the West, which is not my favorite, but I need to be near my parents in Portland, who are in assisted living, and it will be easier to get to them and my kids from the West. Sigh. Someday I will own a house in Belfast, I swear!

[phoebesmom]

YorktownGal, check out this one in Newcastle:

https://www.zillow.com/homedetails/3...pid/?mmlb=g,22

[gf2020]

Originally Posted by phoebesmom

YorktownGal, check out this one in Newcastle

Funny, I looked at that house in Newcastle, that's a nice area. The downsides are those railroad tracks are active and Mills Road is a busy street (for Maine).

[YorktownGal]

Originally Posted by phoebesmom

New York sounds kind of tilted towards the buyer, Yorktowngal! I am so sorry you had to pass on the other two offers and then got let down by the first buyer.

What does your realtor say--it doesn't sound like you are being protected here.

I think she is doing her best.

I could have accepted all three offers made within a few days. I could have allowed each one to do an inspection one day after another and waited out their reactions. However, I think having buyers spend time & money on an inspection only to be out-bidden isn't right or ethical.

People are thinking about fleeing NYC without thinking it through. It's a knee jerk reaction. No wonder as I've gotten messages from NYC residents on C-D saying how scared they are. My problem is I think each offer is a promise to buy. The prospective buyers think an offer is rehearsal of whether or not to leave NYC.

These are strange times in NY.

[YorktownGal]

Originally Posted by phoebesmom

YorktownGal, check out this one in Newcastle:

https://www.zillow.com/homedetails/3...pid/?mmlb=g,22

It's nice and I've seen so many house I would love to buy - its driving me crazy! I need a 12 step program to get me off Realtor.com/Zillow.com.

[phoebesmom]

So funny! We are under contract and I can't stop looking.

[Demolitionman2]

Just sold a home in Maine. Bought 3 years prior. The offer is made first and haggled over. Then once it is signed the earnest money comes ($500-$1000). Then the inspection(s) is/are set up. And further price haggling sometimes comes as a result of the inspection. Then a date is set for the sale, if it hasn't already been. The last sale and purchase that I was personally involved in was done through a title company, NOT a lawyer's office. If something significant is discovered during the inspection(s) the buyer has the right to tell the seller to either fix it or give them a reduction in sale price. If this does not happen and it is within the discovery period (usually 15 days from signing the contract, during which time the inspection(s) are completed) the buyer can back out of the purchase and get their earnest money refunded. I did this twice with homes that I had inspected to purchase.

[OutdoorLover]

Originally Posted by phoebesmom

So funny! We are under contract and I can't stop looking.

Yeah, I haven't built yet, but I bought land almost 2 years ago, and I still look all the time... I'll probably still wind up sticking with what I have as it's an outstanding location, but I paid a good deal more than I originally planned, and with retirement coming, think about recovering some money with a less expensive piece of land.