Seller balking, and we’re not happy (appraisal, negotiating, agent)
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So here is the scenario: We put an offer in on a house. At the time we made the offer, we were aware that there was a one year old mechanics lein on the property. Seller accepted our full price offer. We are in the process of negotiating repairs. We made a counteroffer, but also tossed out the potential for a cash “as is” purchase (with a price concession). Initially seller said no to “as is” offer, but gave a counter with most ( it all) of our requested repairs. We countered, to which he gave us an A or B option. “A would involve even more of our requested repairs, or B would be the cash “as is” option we offered previously. We selected The cash “as is,” option. We were just waiting for him to double sign the contract.
On the last day he had to respond, our agent contacts us and says that seller needs more time, because he does not want to fulfill mechanic’s lein. Evidently, there is some bad blood between the contractor and seller. He basically says, “it’ll be a cold day in ...”. He wants “time” to resolve the lien. We told our agent to give him a 48 hour extension to resolve issue, but we weren’t going to be strung along. It’s been 48 hours, and we haven’t heard a peep.
From our perspective, we have made financial investments in this property. We negotiated in good faith, and accepted the offer he made (which was the same offer we had made previously). Do we have any recourse? can he simply change his mind. Can we recover our financial costs (although it does not appear he has a history of paying his debts anyway).
What really pisses us off is that just last week we saw another property that was nearly perfect, but opted to turn that property down (which is now under contract) in order to honor our commitment on this deal. Had we known he was going to pull this stunt, we would have pulled out of this deal. What can we do now (if anything)? Thanks.
Mainly home inspection. Not sure about other costs yet (i.e. appraisal, Title Insurance , etc.). Those probably will not be incurred. I’m really pissed we didn’t walk last week, but figure we probably don’t have much of a leg to stand on. It’s a sh***y way to conduct business, but there are no rules against being a sleeze.
We are trying to do a 1031 Exchange, so we need to the something suitable fairly quickly.
Mainly home inspection. Not sure about other costs yet (i.e. appraisal, Title Insurance , etc.). Those probably will not be incurred. I’m really pissed we didn’t walk last week, but figure we probably don’t have much of a leg to stand on. It’s a sh***y way to conduct business, but there are no rules against being a sleeze.
We are trying to do a 1031 Exchange, so we need to the something suitable fairly quickly.
None of that is an investment, and nobody in the deal cares if you’re pissed.
Sorry about the deal - but you’re pissing into the wind.
If the other property is available I’d back out, eat the inspection cost, and go for the other one. You have no recourse for an inspection that is meant to protect you, anyway.
I’m so sorry the seller is being like this, but if he won’t deal with it in the 48 hour window it’s not worth more of your time or energy.
We put an offer in on a house.
Seller accepted our full price offer.
At the time we made the offer,
we were aware that there was a one year old mechanics lein on the property.
This implies the seller doesn't have much cash available.
Quote:
We are in the process of negotiating repairs (after inspection).
On the last day he had to respond, our agent contacts us and says that seller needs more time,
because he does not want to fulfill mechanic’s lein.
Evidently, there is some bad blood between the contractor and seller.
Probably a lack of cash as well.
Quote:
He basically says, “it’ll be a cold day in ...”. He wants “time” to resolve the lien.
He wants (needs) the lien to resolve at settlement... with YOUR cash.
Make that easy for him. Do your own repairs.
This implies the seller doesn't have much cash available.
Probably a lack of cash as well.
He wants (needs) the lien to resolve at settlement... with YOUR cash.
Make that easy for him. Do your own repairs.
That’s the point. We offered just THAT. We offered to do ALL the repairs, and let him walk - for a small fee (price concession). He walks away, and the lien is resolved. It does t get any easier than that. He essentially “agreed” to that, then started this crazy stuff about not wanting to pay the contractor the money he owes.
If that was the way he felt, he had no business listing the property until he resolved the issue. He sounds like he is a cheap, greedy bas***d, with poor business ethics.
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