U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 08-15-2013, 01:16 PM
 
517 posts, read 767,212 times
Reputation: 612

Advertisements

Looking for advice if anyone has had this happen to them.

Situation
  1. House was listed for 275. Buyer made offer of 270 with a no negotiation contingency. We accepted
  2. House was inspected.
  3. Buyer came back with list of repairs to be done. I told my agent we accepted a non negotiation offer and now he wants to negotiate? We worked out a deal where I would do the repairs I could and would reduce the house by $600 to cover the rest.
  4. I completed the repairs 2 weeks ago and provided recipients for the materials
  5. Buyer did not have anyone re inspect
  6. The day before closing the buyers father comes over to do a walk through. Makes a list of all these items never discussed like sprinklers need to be adjusted, floors need refinishing, screen door is wood not metal and other BS crap. We refused.
  7. Buyer is now saying that repairs we did were not done by licenses contractor (I was very clear that I was not using one)]
  8. Buyer wants us to pay for a contractor to come inspect the work or they will not close.

I told our agent that we are done negotiating and expect the buyer to honer the agreement. She agreed and said we have done everything we need to do and if they do not close tomorrow they will be in default.

What does that mean for us? Do we need an attorney? Anyone been through this before? I'm really pissed and don't want to let that cloud my judgment and decisions I make right now.
Reply With Quote Quick reply to this message

 
Old 08-15-2013, 01:32 PM
 
Location: Funky town
951 posts, read 1,418,792 times
Reputation: 640
Quote:
Originally Posted by pharpe View Post
Looking for advice if anyone has had this happen to them.

Situation
  1. House was listed for 275. Buyer made offer of 270 with a no negotiation contingency. We accepted
  2. House was inspected.
  3. Buyer came back with list of repairs to be done. I told my agent we accepted a non negotiation offer and now he wants to negotiate? We worked out a deal where I would do the repairs I could and would reduce the house by $600 to cover the rest.
  4. I completed the repairs 2 weeks ago and provided recipients for the materials
  5. Buyer did not have anyone re inspect
  6. The day before closing the buyers father comes over to do a walk through. Makes a list of all these items never discussed like sprinklers need to be adjusted, floors need refinishing, screen door is wood not metal and other BS crap. We refused.
  7. Buyer is now saying that repairs we did were not done by licenses contractor (I was very clear that I was not using one)]
  8. Buyer wants us to pay for a contractor to come inspect the work or they will not close.

I told our agent that we are done negotiating and expect the buyer to honer the agreement. She agreed and said we have done everything we need to do and if they do not close tomorrow they will be in default.

What does that mean for us? Do we need an attorney? Anyone been through this before? I'm really pissed and don't want to let that cloud my judgment and decisions I make right now.
From what I know, a buyer can walk away from any deal at any point before the ink meets the paper at the title office. So I don't think an attorney will do much. This is why you have non-negotiable, non-refundable option money and period for them to get the deal closed. I don't know how tight you were from your end on refunding any deposit to the buyer, but I think most likely the buyer found some other house and they are trying to back out of this house without having them to lose deposit. So I think regardless of what you do, they are not going to buy. This is where your Realtor can be really important. I don't think an attorney will be needed. If it was a non-negotiable offer and you have shown good faith, the deposit should be forfeited and let them bring an attorney if needed.
Reply With Quote Quick reply to this message
 
Old 08-15-2013, 01:35 PM
 
Location: Hot Springs, Arkansas
389 posts, read 949,703 times
Reputation: 443
I agree with the above. The buyer obviously got cold feet and wanted out. Happens all the time. One can sue but it will cost money for the lawyer and may not yield the results desired. If the disclosure is deemed to be incomplete the prospective buyer may win the suit. More good money after bad money.

We have bought and sold 10 houses over the years. We once had the "buyer from Hell" who turned up on our doorstep about every day with some new gripe. I finally told our agent to tell him he could back out if he wanted to. We were tired of messing with him. He stopped coming around but did close the deal and moved six months later himself. Go figure.

I'd cut my losses and move on.
Reply With Quote Quick reply to this message
 
Old 08-15-2013, 01:52 PM
 
Location: Austin
7,077 posts, read 16,885,085 times
Reputation: 9484
Quote:
Originally Posted by pharpe View Post
What does that mean for us?
It means when the buyer terminates the contract and sends the Release of Earnest Money form to you, you make sure the earnest money goes to you and not to them. That's basically the only thing you can do. I'm not an attorney, but using my 13 years of experience for my opinion. You could fight for "specific performance" but that's geared more towards a seller backing out. It's hard for a judge to force a buyer to buy a house who doesn't have the means to pay cash because they can refuse the financing.
Reply With Quote Quick reply to this message
 
Old 08-15-2013, 02:17 PM
 
2,206 posts, read 3,792,030 times
Reputation: 2073
It is not your job to put their pants on for them.

But it is your job to make them hurt by keeping the option money and re-list the house. That will teach them not to jack around. You are due compensation for your time spent - and that is what the option money is for.

If they turn into Buyer-from-h**-stalkers, then contact an Attorney.
Reply With Quote Quick reply to this message
 
Old 08-15-2013, 02:22 PM
 
Location: Austin
7,077 posts, read 16,885,085 times
Reputation: 9484
Also, your agent should be reminding the buyers that they will lose their appraisal money (about $500) & option money (about $100) in addition to the earnest money ($1000-2500 is my guestimation but depends on what your price point is). Dpeending on those amounts, they should be more than the repairs the buyer is wanting. If not, you didn't negotiate strong terms.
Reply With Quote Quick reply to this message
 
Old 08-15-2013, 02:24 PM
 
517 posts, read 767,212 times
Reputation: 612
As far as I can see the buyer will be in default if they do not close tomorrow. I don't see why specific performance is not a valid remedy here:

Quote:
Specific performance is granted at the court's discretion. The court will only grant such relief if there is a valid contract between the parties and if the buyer has signed the contract.
Buyer has signed

Quote:
Moreover, all of the conditions of the contract applying to the seller must have been performed.
All conditions have been met

Quote:
The seller must be ready, willing and able to comply with the contract, by being prepared to convey to the buyer marketable title (which means no defects in the title being conveyed) to the quantity of land that he contracted to sell.
We are and plan to be at the closing as scheduled tomorrow.
Reply With Quote Quick reply to this message
 
Old 08-15-2013, 02:29 PM
 
517 posts, read 767,212 times
Reputation: 612
Quote:
Originally Posted by FalconheadWest View Post
Also, your agent should be reminding the buyers that they will lose their appraisal money (about $500) & option money (about $100) in addition to the earnest money ($1000-2500 is my guestimation but depends on what your price point is). Dpeending on those amounts, they should be more than the repairs the buyer is wanting. If not, you didn't negotiate strong terms.
She has. Our agent told us that we have an arbitration clause so we will have to go through that process unless the buyer agrees to forfeit the earnest money.
Reply With Quote Quick reply to this message
 
Old 08-15-2013, 02:30 PM
 
1,474 posts, read 2,975,279 times
Reputation: 2044
Sounds like to me you have a weak agent representing your interests. A good agent will have screened out the bums.

Getting a judgment is one thing, you might get lucky. Collecting on a judgment is another matter.

Pull the plug and forget it.
Reply With Quote Quick reply to this message
 
Old 08-15-2013, 02:38 PM
 
517 posts, read 767,212 times
Reputation: 612
Quote:
Originally Posted by Ollie1946 View Post
Sounds like to me you have a weak agent representing your interests. A good agent will have screened out the bums.

Getting a judgment is one thing, you might get lucky. Collecting on a judgment is another matter.

Pull the plug and forget it.
Not sure I can blame our agent too much. Buyer came in with 20% cash and conventional financing pre approved. Plus he wanted a rapid close which we did as well. It all seemed perfect at first. Then, after a little back and forth over inspection items we were all set for closing. It really was his father's last second "inspection" that soured the deal.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top