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Wow! This has certainly generated a lot of interest.
Another regret that I have is going with the attorney that the realtor suggested, this guy obviously wants the deal to go through (the realtor probably gets him a lot of business).
I spoke to my attorney and he said the only contingency that I had left was if the lender decided not to fund my loan. The lender already had given the mortgage commitment and the attorney said the only way to get it cancelled was to show unexpected change in my financial condition.
The attorney had removed all references to liquidated damages clause and this exposes me to a lawsuit going after more than my deposit. He did say that the lawsuit is unusual but with a relo company, you never know.
I definitely stand to lose = 10K + 425(appraisal) + 750(survey) + 800(attorney) + 500(title search) + 500 (inspection) = approx. 13K
In addition, I will get a higher mortgage rate of 4% as compared to 3.5% + 4K lender credit. Finally, I will have to continue paying rent until I get a new place.
Doing the math, there is no point in incurring the aggravation of withdrawing right now and dealing with uncertainty. I am going to be in this house for the long haul and hopefully catch another bubble to sell 12 years down the line.
My advice to any first time home buyers would be to eliminate any possible conflict of interest there is and trust no one. Be extremely careful while choosing your agent and for good measure, do not hire anyone he/she recommends.
.... Be extremely careful while choosing your agent and for good measure, do not hire anyone he/she recommends.
1. Should I only recommend the felons and bums so my clients will not use them?
2. The never answered questions: When my valued client picks a known knucklehead, should I tell them? Do I have more liability for letting them use a known knucklehead they chose, or for recommending someone competent?
You should only get involved if asked to do so, which OP recommends people against being referred to an attorney by the agent.
Actually almost everywhere I read I see that as a solid recommendation, to avoid a buddy network with attorney, re agent, insurance agent etc to avoid any conflict.
That is fine as long as the banks, agents, lawyers, sellers. inspectors, title clerks, appraisers are madewhole by reimbusing them for all thw work they have done to date. All of the work has been done on consignment and they expect to get paid on the day of closing.
Again, this should all be covered in agreements/contracts. If it isn't that is not the buyer's problem.
You should only get involved if asked to do so, which OP recommends people against being referred to an attorney by the agent.
Actually almost everywhere I read I see that as a solid recommendation, to avoid a buddy network with attorney, re agent, insurance agent etc to avoid any conflict.
Without hesitation I have an attorney, home inspector, lender, that I recommend to any client. And back up recommendations should the client not care for my recommended providers.
There's no "buddy" to it. People need contacts of professionals who get the job done competently, and competence serves me, too, for sure.
I have seen hack attorneys, hack inspectors, and hack lenders. There is no benefit to me to recommend them, or to recommend people who could owe me more than they owe the client.
And none of this answers the question, what should I do when the buyer picks a bum? Knowing the inspector is a bum, do I just go along for the ride?
Wow! This has certainly generated a lot of interest.
Another regret that I have is going with the attorney that the realtor suggested, this guy obviously wants the deal to go through (the realtor probably gets him a lot of business).
I spoke to my attorney and he said the only contingency that I had left was if the lender decided not to fund my loan. The lender already had given the mortgage commitment and the attorney said the only way to get it cancelled was to show unexpected change in my financial condition.
The attorney had removed all references to liquidated damages clause and this exposes me to a lawsuit going after more than my deposit. He did say that the lawsuit is unusual but with a relo company, you never know.
I definitely stand to lose = 10K + 425(appraisal) + 750(survey) + 800(attorney) + 500(title search) + 500 (inspection) = approx. 13K
In addition, I will get a higher mortgage rate of 4% as compared to 3.5% + 4K lender credit. Finally, I will have to continue paying rent until I get a new place.
Doing the math, there is no point in incurring the aggravation of withdrawing right now and dealing with uncertainty. I am going to be in this house for the long haul and hopefully catch another bubble to sell 12 years down the line.
My advice to any first time home buyers would be to eliminate any possible conflict of interest there is and trust no one. Be extremely careful while choosing your agent and for good measure, do not hire anyone he/she recommends.
This is good advice. Never accept a dual agency. Always hire your own mortgage pro. Always hire your own home inspector. Agents are always going to want to recommend pros who don't rock the boat. Yet you want hard nosed pros who have no problem rocking the boat, or tipping the damned thing over if that is what needs to be done.
In the final analysis, you probably did not overpay as much as you think. Now I would put all of this aside and concentrate on the fun part of moving into your new home.
By the way, if the house was truly worth $20,000 less than you paid for it, the appraiser would not just automatically rubber stamp it. I kill deals all the time when the buyer is overpaying and I can clearly prove it.
You are doing the right thing by following through on your commitment. You had plenty of legitimate times to pull out of this thing. Now is not the time. I would put personal honor first and close, so as not to screw the sellers, who have made important plans based on you doing what you said you would. You liked the house enough to buy it. Concentrate on what you liked and forget the negatives.
I do not know what your contract reads but if you read contract in regard to this there may be unexpected costs,bottom line is what you signed.I just closed on our property and out of curiosity read this paragraph which was at end of contract you could also be sued for non performance,
Last edited by DanBev; 06-06-2013 at 06:42 PM..
Reason: spelling
My advice to any first time home buyers would be to eliminate any possible conflict of interest there is and trust no one. Be extremely careful while choosing your agent and for good measure, do not hire anyone he/she recommends.
Great advice.
Huge conflict of interest with agent recommended attorneys and inspectors. An inspector does not want to kill a deal with too many "discoveries". If agent refers attorney, what happens if there is a legal issue that involves the agent (their referral source). You should have your attorney up front before you have an agent. You need attorney to review the buyer agency or listing agreement.
Yes, there is a certain luck of the draw to picking these people, but a referral from your agent does not guarantee that they will be quality and in your corner.
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