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Thanks for your feedback! I did forget to note that the buyers are past their 7-day option period, so it's safe to say that the ball is in our court, so to speak. I will strongly consider giving them a $500 concession, but will be hesitant to reduce the price drastically IF the house doesn't appraise.
Well that's a significant point! Once past the option period there isn't a lot that can kill the deal. In my opinion what I would do is counter by agreeing to pay the $500 as long as they waive any other reasons for the deal to go South such as a bad appraisal. I wouldn't state the possibilities and only generally word it to cover all possibilities. That way I would have additional protections against last minute additional money grabbing by the buyer. I would expect your Agent may already have discussed this with you?
Well that's a significant point! Once past the option period there isn't a lot that can kill the deal. In my opinion what I would do is counter by agreeing to pay the $500 as long as they waive any other reasons for the deal to go South such as a bad appraisal. I wouldn't state the possibilities and only generally word it to cover all possibilities. That way I would have additional protections against last minute additional money grabbing by the buyer. I would expect your Agent may already have discussed this with you?
And if I were the buyer, I'd tell you to go pound sand.
Well that's a significant point! Once past the option period there isn't a lot that can kill the deal. In my opinion what I would do is counter by agreeing to pay the $500 as long as they waive any other reasons for the deal to go South such as a bad appraisal. I wouldn't state the possibilities and only generally word it to cover all possibilities. That way I would have additional protections against last minute additional money grabbing by the buyer. I would expect your Agent may already have discussed this with you?
You'd be out of luck. Most contracts have a contingency that the buyers can get financing. You can't get blood from a stone. Houses have to appraise to be financed.
If this is how you want to play, then the deal is off. I'd tell you to shove your house where the sun doesn't shine. And now an entire real estate firm knows to avoid showing this house because the seller is beyond unreasonable.
And real estate deals fall apart all the time well after the option period. It's not a done deal until it has closed.
You'd be out of luck. Most contracts have a contingency that the buyers can get financing. You can't get blood from a stone. Houses have to appraise to be financed.
If this is how you want to play, then the deal is off. I'd tell you to shove your house where the sun doesn't shine. And now an entire real estate firm knows to avoid showing this house because the seller is beyond unreasonable.
And real estate deals fall apart all the time well after the option period. It's not a done deal until it has closed.
That's a pipe dream and the house will shown again and again IF this deal were to fall through. The buyer is out of their option period and is uninformed by their Agent or unrealistic in expecting anything more until the title policy and appraisal both of which I would fully expect to complete anyhow if the seller's Agent did their job of helping the buyer understand a reasonable sales price for the home. In essence the seller can now tell the buyer to "shove your demand where the sun doesn't shine"!
about my 1/4'' crack . . . I thought I was quoting the inspector that just wrote an inspection report on our house that we just put under contract. Since I threw the novel away, I am thinking it said 1/4'' may indicate foundation problems. Anywho, our buyer picked 6 things to be fixed and I was thankful, bc the report had about 100! So we are paying about $1600 toward closing costs. No emo's here! Thankful BTW my crack is less than 1/4''. lol.
vansgirl, honey, you REALLY need some professional advice. You're getting into dark waters, here.
1. Assuming that the buyer was out of their "option" period, which I take to mean "due diligence" period WHEN THEY MADE THE DEMAND FOR $500 -- then ALL of this moaning and groaning is moot. In this state, at least, a buyer and a seller have the due diligence period to come to an agreement on what kind of repairs, if any need to be addressed. If the buyer allowed the due diligence period to slip by, then the ONLY thing you had to do, as the seller, was to say, "I'm sorry, but the time to bring this to the table was by (X) date. We're past that date, now." Your mileage may vary according to your state laws, but that's how it works here. Due diligence dates are VERY important, and not to be taken lightly.
2. The appraisal is a separate issue. You would be within your rights to refuse to negotiate over a low appraisal. And your buyer would be within their rights to walk away if you do. Serious game of chicken you're starting here, over what -- $500?
Escalan, if a buyer has a valid appraisal contingency clause, they would be beyond foolish to waive it over $500 lousy dollars. vansgirl, you are getting your panties in a wad over something that is miniscule. As others have recommended, agree to the $500, and run, don't walk, to closing. If the appraisal doesn't come up to value, then that's your out -- as long as you realize that you will run into the same problem with any other sale.
I don't think so. If the seller was changing the original agreement to ELIMINATE the appraisal contingency, and I saud no, I won't agree to that - either the original agreement stands or the whole contact is void and my earnest money gets returned.
I don't think so. If the seller was changing the original agreement to ELIMINATE the appraisal contingency, and I saud no, I won't agree to that - either the original agreement stands or the whole contact is void and my earnest money gets returned.
If the appraisal comes in low like the OP kind of expects, the inability to get financing would bring an end to the contract anyway. So eliminating the appraisal contingency, would really not mean anything. If the seller would not agree to alter the contract to appraised value, it would mean the home was really off of the market at that point, until the seller brings down his price to the appraised amount no one will finance it. He would either lower the contract price accordingly, or lose that sale and any others till he finally lowers the price. Once the word gets around among the Realtors that the property will not sell for asking price, and the seller will not lower the price to appraised value, that property is off of the market.
I remember years ago, a real good friend of mine and sometimes investment partner, owned a Realty World office. His staff brought in 33 contracts that were signed by both sides one month. Due to over pricing property and they failed to appraise at contract price, etc., 30 of those contracts failed to close and he only closed 3.
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BTW my crack is less than 1/4''. lol.
Off the wall
