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We are selling house in Victoria TX we bought for my SIL about 4 yr's ago--this is about 5 hrs from where we live--she paid us minimal rent--just enough to cover our insurance/taxes so we made no rental income
She had to move in w/her son recently due to health
We put house on market about 6 wks ago--showings slow initially because of spring break and Easter
Had 5 last week so picked up -- plus we asked realtor to have better photos posted on MLS--first were crap
Realtor we used is one we used to buy the house--daughter of friend of the SIL--
not someone we know, but we had no one else since don't live there...
Anyway
She called today, said couple getting FHA mortgage were going to make offer
Offer was for 15K below list--they would pay closing and other fees, close in 30 days--
We said too low--countered at 2K off list--no offer to help w/closing
They countered w/full price offer if we paid closing--maybe 4-4500K--
We said fine--we would come out about where we wanted after RE fees--and paying closing costs
Realtor just called back to say buyers pulled out, retracted offer...
So I know there are no sure answers to my questions since we are not them but--
1--why would you make an offer you wouldn't honor if the sellers accepted it?
2--why do you think they DIDN'T honor the contract
3--should our realtor be asking for more specific info on buyers' qualifications w/future offers?
And,lastly, I know this could sound like I am accusing her of impropriety but just looking for professional insights--
The other times we have sold a home we knew the realtor better and were actually living in that town--
4--We saw no e-file of the first offer we countered. When we said we would accept the second offer, the realtor said (again w/o sending any e-files/doc to us) "I will ask them to make a clean copy of the new offer for you to sign"
Then she calls back in hour or so to say they backed out--
Should we be asking for e-files of the documents themselves to verify it is a legitimate offer?
Could it be she is just "testing" the waters with these verbal offers--
I don't know if the buyers' agent was from her office or another one--
Or could even have been HER clients--she never said-- and my husband did not ask who represented them
She said this was young couple, first time buyers. Supposedly they avoided credit and used cash which was why credit score might have been low, maybe they were using income tax refund for closing or downpayment...so it sounded like she was not their agent--but still could have been someone in her office
She said they had been looking at less expensive homes--around 175--so ours was probably newer/nicer
I just realized there was no mention of earnest money in either the 1st or 2nd offer--
just the $100 for the 10 day inspection period used in TX...
So I know there are no sure answers to my questions since we are not them but--
1--why would you make an offer you wouldn't honor if the sellers accepted it?
2--why do you think they DIDN'T honor the contract
3--should our realtor be asking for more specific info on buyers' qualifications w/future offers?
4--We saw no e-file of the first offer we countered. When we said we would accept the second offer, the realtor said (again w/o sending any e-files/doc to us) "I will ask them to make a clean copy of the new offer for you to sign"
Then she calls back in hour or so to say they backed out--
Should we be asking for e-files of the documents themselves to verify it is a legitimate offer?
Could it be she is just "testing" the waters with these verbal offers--
I don't know if the buyers' agent was from her office or another one--
Or could even have been HER clients--she never said-- and my husband did not ask who represented them
She said this was young couple, first time buyers. Supposedly they avoided credit and used cash which was why credit score might have been low, maybe they were using income tax refund for closing or downpayment...so it sounded like she was not their agent--but still could have been someone in her office
She said they had been looking at less expensive homes--around 175--so ours was probably newer/nicer
1-2. Another listing may have come on the market that peaked their interest so they decide to pursue that one. They may have made an offer without crunching the numbers and decided they didn't want to go that high once they crunched their PITI payment.
3. Not sure what you are wanting to know here. They were FHA buyers which is 3.5% down loan program. This is a common loan program for first time home buyers. It is also common for first timers to lack credit so they don't have credit scores high enough to qualify for conventional loans so they use FHA which has a lower credit threshold. I don't find either of those issues unusual or concerning.
4. Then you didn't actually have an offer. It sounds like the other agent might have been feeling you out since verbal offers aren't enforceable.
Sounds to me like you had two agents, yours and the buyer's agent, trying to work out a deal that both sides could agree to... and it almost came to fruition, but not quite.
It's disappointing, but not necessarily concerning. Not all offers pan out. Hopefully the next one will!
1-2. Another listing may have come on the market that peaked their interest so they decide to pursue that one. They may have made an offer without crunching the numbers and decided they didn't want to go that high once they crunched their PITI payment.
3. Not sure what you are wanting to know here. They were FHA buyers which is 3.5% down loan program. This is a common loan program for first time home buyers. It is also common for first timers to lack credit so they don't have credit scores high enough to qualify for conventional loans so they use FHA which has a lower credit threshold. I don't find either of those issues unusual or concerning.
4. Then you didn't actually have an offer. It sounds like the other agent might have been feeling you out since verbal offers aren't enforceable.
Re 1 & 2--
Maybe--but I would think their agent would have said let's see what that does to your payment--
Re 3--so their offer would have required they have a higher $ for the down payment vs offering us the lower figure of say 205--which we would have taken if they paid their own closing costs
The FHA itself didn't worry me -- our daughter who is teacher bought house in FL when market was still dragging using FHA--she bought in her name only because her husband owned condo from before their marriage he was underwater on...
most sellers in FLA don't like to take FHA because of the more strict inspections--many older homes there come up with so many dings on the report that sellers don't want to address they won't consider an FHA contract...
Re 4--
So in future should we ask her to send us e-copies of any offers? contacts?
And 5--Would you consider an offer "legitimate" if there was no proffer of earnest money--even say 500 or 1K?
Or is that less likely in first-time buyers w/limited resources...
And 6--should we ask her who represented that couple?
She didn't say
Other agents we used when we sold homes did tell us as much as they knew about the buyers AND who their agent was--like "I have experience with her/him and they get their ducks in a row" or when we sold last house our agent told us the buyer's agent was her mother so likely she would give back her fees to her daughter...
Made a difference in how we countered...
Was there anything in writing? To me it sounds like there never was. Either way it was a case of buyer and seller not coming to terms. If you had it in writing it still would be like it is where both sides don't agree. I guess I don't understand what the question is.
Was there anything in writing? To me it sounds like there never was. Either way it was a case of buyer and seller not coming to terms. If you had it in writing it still would be like it is where both sides don't agree. I guess I don't understand what the question is.
I don't know if the initial offer was in writing--
We didn't see it, if it was...
But-correct me if I am wrong
They made an offer--in writing--for the sake of argument--
We counter--on that same document--return via email--
They made a different proposal--on the original and now marked up/initialed document
We accept that--sign/initial--return it
We have a contract--
Is that not correct?
And my point is, I think, I don't want my RE agent jerking my chain with people who aren't serious about buying the house...
The offer should have been in writing. I would never have called you without emailing you the initial written offer.
After the initial written offer, many times negotiations will be verbal but I want to see that written offer first along with their Pre-qual letter from their lender.
Victoria is a small town. Maybe the agents were on close terms. Small towns work different.
The offer should have been in writing. I would never have called you without emailing you the initial written offer.
After the initial written offer, many times negotiations will be verbal but I want to see that written offer first along with their Pre-qual letter from their lender.
Victoria is a small town. Maybe the agents were on close terms. Small towns work different.
ask the same questions of the agent you will be paying good money to before coming to the internet for 3rd hand hearsay advice.
I will email her my questions
Unfortunately I was not able to go down when my husband had the discussion with the agent initially and signed the contract--she emailed it to me later and virtual signed...
Our dog was really sick and I stayed home
But I don't know many people who ask when they interview an agent "will you only give us written contracts?"
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