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Old 03-18-2010, 09:09 AM
 
Location: Living on the Coast in Oxnard CA
16,289 posts, read 32,239,939 times
Reputation: 21890

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Why do you want to repaint the roof? Or did you mean re roof the roof?
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Old 03-18-2010, 10:42 AM
 
89 posts, read 185,550 times
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If I'm serious enough about a property to make an offer, I pay for a home inspection before I put in the offer. Then you can specify what you're willing to offer--and the specifics of why you are offering a low bid.

It can be that your offer will be turned down. It can be that you'll decide you don't want the house after all, and won't submit an offer. In either of these cases, your home inspection fee is lost.

But "lost" doesn't mean "wasted." A few hundred dollars is very little in the context of an investment that runs into the hundreds of thousands of dollars.

It's unconventional to do a home inspection before making an offer, but most sellers will let you if you pay for it. I think it's well worth it.
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Old 03-18-2010, 01:20 PM
 
Location: Tempe, Arizona
4,511 posts, read 13,544,422 times
Reputation: 2201
Quote:
Originally Posted by JRLudi View Post
We recently negotiated an offer with a bank. The purchase contract specified that they would buy us a Home Warranty. They did not counter that and the deal was eventually accepted and signed by all. THEN, they sent their Addendum, which had a clause in it stating they would make no concessions at the close of escrow. ...
That's unusual. Normally, the bank does not sign the purchase contract before having the buyer sign the addendum. You would get a verbal acceptance followed by the addendum for you to sign, then the bank signs the contract+addendum. The addendum usually has language that overrides many terms in the main contract, like your request for a warranty as a concession.

You should have pushed back for the warranty when you got the addendum and before signing it. The addendum normally has all the costs paid by the bank spelled out and should have included the cost of the warranty if they were going to provide it.
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Old 03-19-2010, 08:52 AM
 
Location: Phoenix, AZ
108 posts, read 305,458 times
Reputation: 96
Quote:
Originally Posted by rjrcm View Post
You should have pushed back for the warranty when you got the addendum and before signing it. The addendum normally has all the costs paid by the bank spelled out and should have included the cost of the warranty if they were going to provide it.
I fully expected them to counter on the Home Warranty, but they didn't. Nothing in the Addendum referred to the Home Warranty. Only the one clause about not paying concessions. I assumed that because the Home Warranty was a condition of sale, that had already been agreed on, that it was NOT a concession. Once we get moved out there we'll see if there is anything that can be done. I mean, I know there's no way to get them to pay for the Warranty but I'm still going to send it on to the AZ AG. I don't expect much to come of it. But if this is a recurring problem maybe others have reported them too. We'll see.
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Old 03-19-2010, 11:15 AM
 
Location: Tempe, Arizona
4,511 posts, read 13,544,422 times
Reputation: 2201
Quote:
Originally Posted by JRLudi View Post
I fully expected them to counter on the Home Warranty, but they didn't. Nothing in the Addendum referred to the Home Warranty. Only the one clause about not paying concessions. I assumed that because the Home Warranty was a condition of sale, that had already been agreed on, that it was NOT a concession. ...
I sympathize with your situation, but you asked the bank to pay for a warranty at closing. Is that not a concession?

How did you get agreement on the warranty before they signed the addendum? Did the bank sign something agreeing to it? Without their signature, you had no agreement.
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Old 03-20-2010, 09:08 AM
 
Location: Phoenix, AZ
108 posts, read 305,458 times
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Quote:
Originally Posted by rjrcm View Post
I sympathize with your situation, but you asked the bank to pay for a warranty at closing. Is that not a concession?

How did you get agreement on the warranty before they signed the addendum? Did the bank sign something agreeing to it? Without their signature, you had no agreement.
No, we asked for the Home Warranty as part of the original offer, they countered several things on the original offer but NOT the Home Warranty. We then all agreed on the conditions of the sale and signed all the offer/counter offer paperwork. Then came the addendum, which supplements the original offer and in cases where the two are in disagreement, overrides the original offer. There was no specific mention of the Home Warranty in the Addendum, only this "Concessions" clause. However, since the Home Warranty had been a negotiated condition of sale, I did NOT consider it a concession.
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Old 03-20-2010, 10:14 AM
 
Location: Cypress, TX
587 posts, read 1,416,236 times
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Quote:
Originally Posted by JRLudi View Post
No, we asked for the Home Warranty as part of the original offer, they countered several things on the original offer but NOT the Home Warranty. We then all agreed on the conditions of the sale and signed all the offer/counter offer paperwork. Then came the addendum, which supplements the original offer and in cases where the two are in disagreement, overrides the original offer. There was no specific mention of the Home Warranty in the Addendum, only this "Concessions" clause. However, since the Home Warranty had been a negotiated condition of sale, I did NOT consider it a concession.
Unfortunately, that would indeed be considered a concession, as a concession is them paying for anything on your behalf or giving you back money for anything, etc. It sucks, but I'm sorry that your Realtor didn't know that, because they probably should have. Basically, the banks won't pay for ANYTHING as they're already not collecting anywhere near in full on the loan.
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Old 03-21-2010, 07:41 AM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 14,740,228 times
Reputation: 3876
Quote:
Originally Posted by JRLudi View Post
No, we asked for the Home Warranty as part of the original offer, they countered several things on the original offer but NOT the Home Warranty. We then all agreed on the conditions of the sale and signed all the offer/counter offer paperwork. Then came the addendum, which supplements the original offer and in cases where the two are in disagreement, overrides the original offer. There was no specific mention of the Home Warranty in the Addendum, only this "Concessions" clause. However, since the Home Warranty had been a negotiated condition of sale, I did NOT consider it a concession.
Your purchase offer was an agreement between you and the seller. The seller agreed to the home warranty. However, you also signed a Short Sale Addendum which states that the contract is contingent upon the lender acceptance. So the lender can and does come back in their addendum and wipe out the items that are concessions in the original purchase contract.

I always tell my buyers to write a clean contract for a short sale or REO. By that I mean that the price offered is all the seller and lender has to consider. Don't ask for the seller to pay for anything. You consider everything in your offer price.

The way to do that is to consider your bottome line. How much will it cost you for closing costs, a home warranty if you want one, any repairs that you want to make. Add all that up and subtract it from the price you want to offer.

Let's say you're willing to pay a total of $200,000 for the house inluding closing costs, HOA transfer fees, repairs and home warranty.

Assume those extra costs are $4,000.

So you subtract $4,000 from $200,000 and your offer on the purchase contract to the seller will be $196,000, and not asking for any concessions.

That makes a very clean offer. If the banks bottom line requirement is more than the $196k, then you move on, or negotiate on price a little more, if the bank is willing to negotiate.
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Old 03-22-2010, 07:26 AM
 
Location: Phoenix, AZ
108 posts, read 305,458 times
Reputation: 96
Quote:
Originally Posted by Captain Bill View Post
Your purchase offer was an agreement between you and the seller. The seller agreed to the home warranty. However, you also signed a Short Sale Addendum which states that the contract is contingent upon the lender acceptance. So the lender can and does come back in their addendum and wipe out the items that are concessions in the original purchase contract.

I always tell my buyers to write a clean contract for a short sale or REO. By that I mean that the price offered is all the seller and lender has to consider. Don't ask for the seller to pay for anything. You consider everything in your offer price.
This isn't a short sale, this is an REO, so it was the bank that we negotiated the original offer with and it was the bank who accepted it with the Home Warranty clause in it. Like the pool and the Palm trees, the Home Warranty was part of the package that I was basing my offer on. Had they countered without the Warranty then I would have countered with slightly less money, but they didn't. They agreed to pay for the Title Insurance in the original offer, which they are doing. Why is that not a concession too? They agreed to lower the price some in the original offer. Isn't that a concession too?
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Old 03-22-2010, 08:42 AM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 14,740,228 times
Reputation: 3876
Quote:
Originally Posted by JRLudi View Post
This isn't a short sale, this is an REO, so it was the bank that we negotiated the original offer with and it was the bank who accepted it with the Home Warranty clause in it. Like the pool and the Palm trees, the Home Warranty was part of the package that I was basing my offer on. Had they countered without the Warranty then I would have countered with slightly less money, but they didn't. They agreed to pay for the Title Insurance in the original offer, which they are doing. Why is that not a concession too? They agreed to lower the price some in the original offer. Isn't that a concession too?
I'm not sure what transpired in your case, but rjrcm spelled it out exactly as to how the negotiations are normally always carried out by the bank.

Buyer presents written offer. Bank negotiates verbally until an agreement is made, then bank sends the addendum for buyer to sign. Buyer signs addendum, then bank signs contract and addendum. I've never seen it different, but then again I don't see every bank contract.

If you haven't signed the addendum, then you can play hard ball and tell them you're walking if they don't pay for the home warranty.
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