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A few days ago I submitted a cash offer on what I thought was a three bedroom home. I was just informed by my agent that the house is actually a 2 bedroom, as listing agent did not list it properly. The "third" bedroom is too small to qualify as a bedroom by the town's standards (and was always considered a two bedroom). Again, listing stated this was a three bedroom home and I placed my offer on a three bedroom home. My agent said not to worry, it does not change anything, except if I relist the home in the future, I will have a two bedroom listing as opposed to a three bedroom. That sounds like something to worry about to me! At first I did not think much about it, as I was aware of how small the so called "third" bedroom was. But now I am thinking, had I gotten a mortgage, would home even assess, as I was using three bedroom comps, instead of two. But, appraiser would have to assessappraise as a two bedroom? Secondly, I do not plan on staying in the home for more than five years. It seems a lot harder to garner interest in a 2 bedroom (heck, I would have never looked at this house had it been listed as it should, a 2 bedroom). So, I have an accepted offer, but this changes everything, or should it? Should I resubmit a lower offer or no, it isnt like the square footage has changed. Opinions please! thank you.
I am not a realtor, lawyer, or anyone other than someone who might be a buyer for your home.
I wouldn't resubmit a lower offer. That doesn't really solve the problem of a two-bedroom house being harder to sell.
I would tell my real estate agent that I was deceived and was choosing not to move forward. He/she should know how to proceed from there. There will be an inspection issue; there always is. But he/she may be able just to withdraw your offer.
If I had to, I would contact a real estate lawyer. I feel that strongly about 2 bedrooms vs. 3 bedrooms. The 2 just doesn't sell as fast. You knock out as buyers just about anyone with a family.
But again, I am just an ordinary person telling you what I would do.
I would rescind or retract my offer. If I still wanted the house I would offer less for it since it is a 2 bedroom, if you buy and eventually go to list it you can list it as a 2 plus office, but that will cut out a lot of the people who put 3 br in the search box. It's not less square feet but it's a smaller category home than you were planning to buy.
I'm not an pro or expert, but an agent told me that if there is something in the listing it has to be correct. Such as a listing saying they put a new roof on 2 years ago can't be a patch job.
A few days ago I submitted a cash offer on what I thought was a three bedroom home. I was just informed by my agent that the house is actually a 2 bedroom, as listing agent did not list it properly. The "third" bedroom is too small to qualify as a bedroom by the town's standards (and was always considered a two bedroom). Again, listing stated this was a three bedroom home and I placed my offer on a three bedroom home. My agent said not to worry, it does not change anything, except if I relist the home in the future, I will have a two bedroom listing as opposed to a three bedroom. That sounds like something to worry about to me! At first I did not think much about it, as I was aware of how small the so called "third" bedroom was. But now I am thinking, had I gotten a mortgage, would home even assess, as I was using three bedroom comps, instead of two. But, appraiser would have to assessappraise as a two bedroom? Secondly, I do not plan on staying in the home for more than five years. It seems a lot harder to garner interest in a 2 bedroom (heck, I would have never looked at this house had it been listed as it should, a 2 bedroom). So, I have an accepted offer, but this changes everything, or should it? Should I resubmit a lower offer or no, it isnt like the square footage has changed. Opinions please! thank you.
I would retract my offer ASAP. There's probably something in the contract that will allow you to get out of the contract because the house was misrepresented. Two bedroom houses are Much harder to resell than three bedroom and it would definitely affect the appraisal value if one needed to be done. Probably the house would not have appraised at your sale price unless you're paying significantly under FMV. If you really like the house and can get a great deal, make a new lower offer using 2 bedroom comps. However, since you're planning to resell in less than 5 years you probably shouldn't buy this house unless you run the numbers and know it would pencil out to go in and renovate into an actual city approved three bedroom house before you need to resell. Definitely don't buy it if you aren't willing/able to renovate it into a real 3 bedroom before you sell.
What did you think about the tiny non-third bedroom when you looked at the house?
I would retract my offer ASAP. There's probably something in the contract that will allow you to get out of the contract because the house was misrepresented. Two bedroom houses are Much harder to resell than three bedroom and it would definitely affect the appraisal value if one needed to be done. Probably the house would not have appraised at your sale price unless you're paying significantly under FMV. If you really like the house and can get a great deal, make a new lower offer using 2 bedroom comps. However, since you're planning to resell in less than 5 years you probably shouldn't buy this house unless you run the numbers and know it would pencil out to go in and renovate into an actual city approved three bedroom house before you need to resell. Definitely don't buy it if you aren't willing/able to renovate it into a real 3 bedroom before you sell.
What did you think about the tiny non-third bedroom when you looked at the house?
Ditto.
The value of the house has changed, if it can't legally be considered a 3 bedroom. Retract the offer.
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