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.
That's good to know that OP's state practices differ. At least the buyer can walk if things get worse. -- I think OP should demand seller fix any foundation items, and if not either negotiate a lower price or walk.
I'm glad I didn't read those other worse stories. It goes to show you, every house is different, every seller is different, every situation is different. Some turn into horror stories, others are nice, neat little packages with a bow on the top.
Well, if the price is really right, it may not be unreasonable for the OP to absorb the foundation repairs.
This is where the listing agent says, "Lemme see your appraisal."
"Oh... The house is going off $25000 under appraisal? That foundation looks pretty dang good to me..."
Getting to walk with the EMD returned isn't the end-all, be-all, when you can assume that the OP has some significant non-recoverable skin in the game already.
It is not unusual for a buyer to take a $1500--$2500 hit for walking. Cost of DD and all.
And, she really needs to proceed with an engineer, not a contractor, IMO. More skin in the game, most likely.
Well this is what I was wondering because yes the appraisal did come in good. I need to know if I'm being unreasonable. Someone else in better shoes financially would probably see this as a steal. If I'm to be honest, I just dont have the extra cash to absorb this additional cost. The cash that I have reserved is for emergencies and home repair costs and maintenance that are normally expected when owning a home, not structural defects.
Someone else in better shoes financially would probably see this as a steal.
I just don't have the extra cash to absorb this additional cost.
And the house is 13,000 under appraisal.
Park the car somewhere else for a while.
When you have the cash to do the repair... KNOW you'll need to do it.
Of course you still need to have the engineer in to evaluate the problem
AND write a "prescription" for what the remedy needs to be...
AND you need to get that prescription estimated to know how much to save
and be certain of the scope and latitude to delay the work.
I've worked as the office manager in a real estate office for 15+ years. In all that time, and thousands of transactions, I would say MAYBE 1% use an attorney here. Usually only transactions that involve an estate or trust, or in commercial deals. Not always even then.
But you don't know the outcomes and the opportunities missed for either party because they didn't have proper representation by a real estate attorney.
People who don't use a real estate attorney don't have any idea how they are being taken advantage, which is why you should have a real estate attorney involved in real estate transactions. It isn't just what it says in the contract, it is what it DOESN'T say in the contract. It is the only person involved in the process which is on your side. The realtors are full of self-interests because they are on commission and want the sale to go through no matter what. The only one looking out for you is the real estate attorney. We sold a home to someone who didn't have a real estate attorney, and while I was certainly open to negotiations to the buyer, they simply didn't ask for any of them because they had no representation to advise otherwise. The buyer's realtor didn't care, because either way, it wasn't money that would come out of her pocket, but it did for the seller. This is why some states require a real estate attorney for real estate transactions, to protect both parties.
The Broker was quite concerned because the Seller's Daughter said she had no where to go.
I did an Escrow Hold Back of 5k for eviction costs and PITI for each day until vacant.
Worked well.. the Seller really got into gear since it was their money on the line... it took 17 days for her to leave and they were charged for 17 days and got the rest back minus the court filing fee.
I wanted the property, they wanted to sell and were at their wits end with this wayward daughter...
No reason not to go ahead provided you fully understand the situation.
I did speak with the Daughter and said we can do this the easy way or the hard way... but she would be leaving either way.
Oh... I did pop for the cost of a U-haul and covered the $70 out of my pocket... even helped her load to make sure she had everything... no hard feelings and no worries about retaliation. I met her at U-haul and paid for the rental with cash... nothing in my name.
I'm not a social worker. I would have my real estate attorney handle all this and make sure they were out of the property by final walk through prior to closing. I would also have a prior agreement with a locksmith to meet me at the property the second I take possession of it to change the locks. No reason to get involved with the seller and their house squatter. Buying real estate is a business transaction. Getting involved with the seller and their problems isn't a good idea. You claim it worked out for you, but that's like claiming I didn't wear a seat belt today and didn't get into an accident. You plan to avoid problems and make things a smooth transaction in business dealings.
Yeah, but you're buying investment property. Most people are buying single family homes. They expect to move in minutes after closing. Why create the angst if there are lots of other homes that are owner-occupied and the seller gets out before the closing because they're also all lined up to move somewhere.
Because some people like to play amateur social-worker. They want to get involved in other people's problems so they can do a quick fix, like give them money, and feel like they solved the world's problems. It gives them an ego boast and a story to tell others as an example of what a kind, thoughtful and generous person they are. A friend told me about a new job he started, where outside the building two homeless women were there asking for money to get themselves off the streets. 15 years later, he got a new job, and the day he left those two same women were still standing outside his building asking people for money to help get them off the streets. Leave social work to the professionals.
Sorry, but am not going to read 80+ posts to see if my comments have been made already....
Have the contract state that if any inhabitants are still there, seller agrees to $100. first day, $200. second day, (no $100 per day, but amount doubling for each day).
Have seller put 10,000 in escrow at close to cover this.
You will see how quickly this deadbeat is out of the house....
'nuff said.
Then you run the risk of having the home trashed and now you own it!
Well this is what I was wondering because yes the appraisal did come in good. I need to know if I'm being unreasonable. Someone else in better shoes financially would probably see this as a steal. If I'm to be honest, I just dont have the extra cash to absorb this additional cost. The cash that I have reserved is for emergencies and home repair costs and maintenance that are normally expected when owning a home, not structural defects.
And the house is 13,000 under appraisal.
Thanks again. My answer is becoming more clear.
If you don't already have one, you should consider getting a HELOC so you don't have to drain your emergency cash reserves for things like this.
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.
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.
