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It was one I liked, but I felt like I was kind of being pressured into the deal of making an offer on the house, it's banked owned and my agent is in for 2.5% and $1250 agent bonus.
Well come to find out I offer 100k, the th is listed at 109k and the reason my bank takes the offer is a week earlier I come to find out the th right next to mine was put up for sale at 100k list price and it's end unit. My realtor knew if I would have found this listing I would have offered a lower price on the current TH.
All I have is a purchase agreement agreed upon. No closing date set, no inspection setup. Is it to late to walk away? I could care less about losing 1k in earnest money if I could save 10k on the th next door.
Another thing that could really hurt the deal is my lender notified me that I will have to put 5% down due to the bond program I'm participating in. If I refuse to put 5% down wouldn't that just cancel out the whole deal?
I really feel I've rushed into this buying decision too fast. I need to look at more places and even if I don't get a long with my agent, I can't dump him cause I got an exclusive contract till Dec.
It was one I liked, but I felt like I was kind of being pressured into the deal of making an offer on the house, it's banked owned and my agent is in for 2.5% and $1250 agent bonus.
Well come to find out I offer 100k, the th is listed at 109k and the reason my bank takes the offer is a week earlier I come to find out the th right next to mine was put up for sale at 100k list price and it's end unit. My realtor knew if I would have found this listing I would have offered a lower price on the current TH.
All I have is a purchase agreement agreed upon. No closing date set, no inspection setup. Is it to late to walk away? I could care less about losing 1k in earnest money if I could save 10k on the th next door.
Another thing that could really hurt the deal is my lender notified me that I will have to put 5% down due to the bond program I'm participating in. If I refuse to put 5% down wouldn't that just cancel out the whole deal?
I really feel I've rushed into this buying decision too fast. I need to look at more places and even if I don't get a long with my agent, I can't dump him cause I got an exclusive contract till Dec.
What are my options?
You state that "all I have is a purchase agreement agreed upon". Well, you're in luck because you have a binding contract that spells out the rights of both parties. The fact that no closing date has been set and no inspection set up does not necessarily void the contract. From a "doing what is right" perspective, just determine what your options are based on what is in the contract.
Without knowing the terms of your contract regarding any loan contingency, I can't give you a valid opinion on the 5% down issue. However, I don't think it would just be an issue of your refusing to put 5% down, but rather your ability to put it down or not that would determine if the contract was cancelled.
Wow. This is difficult and to be answere dby a lawyer I guess. How can you be in a contract with a realtor for another 9 months. Do you understand the housing market otherwise you need to get some body you trust to help you with this and a realtor is in it to make money and a realtor only gets paid if you closew on the house so that is what the realtor wants you to do. A lawyer gets money either way, if you close on the house or not, so that makes a huge difference although it will cost you money but can also save you a ton of money if you get good advise. Ask around for a good real estate lawyer because there are also bad once out there. I just closed on a short sale and the seller was a real estate lawyer and not a very good one and certainly not a honest one, her husband was a shabby realtor so be aware. Good Luck you need good advise.
There are times when one needs to contact an attorney, and there are times when it is not necessary to spend the money.
Your agent understands your contract and knows what has to be done in order to complete it. S/he also understands at what point you can walk away from the contract without losing your earnest money.
You have already stated that you don't mind losing the $1000 earnest money. You can walk away most any time and only lose your earnest money; depending on your state laws and your contract.
Your agent should be interested in helping you to find the home that you want. And apparently s/he did just that. However, you discovered the other home and want to buy it instead.
So talk this over with your agent and together examine the contract and determine how the two of you can proceed to legally cancel this contract and proceed with buying the other home.
It was one I liked, but I felt like I was kind of being pressured into the deal of making an offer on the house, it's banked owned and my agent is in for 2.5% and $1250 agent bonus.
Well come to find out I offer 100k, the th is listed at 109k and the reason my bank takes the offer is a week earlier I come to find out the th right next to mine was put up for sale at 100k list price and it's end unit. My realtor knew if I would have found this listing I would have offered a lower price on the current TH.
All I have is a purchase agreement agreed upon. No closing date set, no inspection setup. Is it to late to walk away? I could care less about losing 1k in earnest money if I could save 10k on the th next door.
Another thing that could really hurt the deal is my lender notified me that I will have to put 5% down due to the bond program I'm participating in. If I refuse to put 5% down wouldn't that just cancel out the whole deal?
I really feel I've rushed into this buying decision too fast. I need to look at more places and even if I don't get a long with my agent, I can't dump him cause I got an exclusive contract till Dec.
What are my options?
I don't know how the mn realtor contracts are but in wisconsin you may leave your agent at anytime if you do not feel comfortable with them you need to terminate your exclusive buyers agency agreement. also I would talk to your agent and the broker and tell them how you feel and if that doesn't work find an attorny that specializes in real estate to give you a counseltation to explain your rights.
...Well come to find out I offer 100k, the th is listed at 109k and the reason my bank takes the offer is a week earlier I come to find out the th right next to mine was put up for sale at 100k list price and it's end unit. My realtor knew if I would have found this listing I would have offered a lower price on the current TH...
Banks take several weeks to make a decision on selling a home. The paperwork has to go through multiple hands before it gets to the final decision maker. You say that the home next door came on the market a week before the bank accepted your offer.
You would have seen the sign when you visited the th you bought had it been for sale at the time you made your offer, and would have had a choice. From what you are saying, that th was not for sale at the time you made your offer, and your agent would have not known that it was for sale.
Also, you had already made your decision to buy this one and had submitted the offer.
Once you submit your offer your agents job is to work to get that offer accepted, not to continue looking, so s/he may have not known about the other th.
Banks make their decision based on a number of factors, and one is the BPO that get from an agent that gives them the comps. That BPO may have been done prior to the next door unit coming on the market, and it may have not made any difference to the bank. You made an offer and they accepted it.
You don't know what will happen to the th next door. The seller may sit on it for months before accepting an offer. They may wait for multiple offers. Someone may offer more than list price if the price is a really good one.
It may be in your best interest to go ahead and close on this one while you have a deal, because you may not get the deal on the other one.
If you still want to cancel this one and bid on the other, then discuss it with your agent and s/he will work with you on getting it done the legal way.
Banks take several weeks to make a decision on selling a home. The paperwork has to go through multiple hands before it gets to the final decision maker. You say that the home next door came on the market a week before the bank accepted your offer.
You would have seen the sign when you visited the th you bought had it been for sale at the time you made your offer, and would have had a choice. From what you are saying, that th was not for sale at the time you made your offer, and your agent would have not known that it was for sale.
Also, you had already made your decision to buy this one and had submitted the offer.
Once you submit your offer your agents job is to work to get that offer accepted, not to continue looking, so s/he may have not known about the other th.
Banks make their decision based on a number of factors, and one is the BPO that get from an agent that gives them the comps. That BPO may have been done prior to the next door unit coming on the market, and it may have not made any difference to the bank. You made an offer and they accepted it.
You don't know what will happen to the th next door. The seller may sit on it for months before accepting an offer. They may wait for multiple offers. Someone may offer more than list price if the price is a really good one.
It may be in your best interest to go ahead and close on this one while you have a deal, because you may not get the deal on the other one.
If you still want to cancel this one and bid on the other, then discuss it with your agent and s/he will work with you on getting it done the legal way.
All of this might happen BUT, it is in your BEST INTEREST to do what YOU feel is right. Don't settle for this home because you feel guilty for already making an offer. Been there, done that. If you have discovered that you do not want this home, you need to look over your contract and see what you can do about it. You should have taken your time finding a home but I think you already realize that. There are too many homes on the market right now to settle for one you aren't going to be happy with. I hope you aren't stuck with the house.
Here in Texas, listing agreements and buyer's rep agreements are with the broker, not the individual agent. So, if that is the case where you are, yes, it is and you would need to get the broker to release you from it or s/he would assign another agent who works for them to you as your agent.
I have no idea what the law is in your state, however.
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