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Old 04-05-2008, 06:47 PM
 
4 posts, read 14,513 times
Reputation: 11

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Hey Guys,

I'm kind of in a bind with a current real estate deal. We contracted and are about to close on an apartment in NYC that was listed and marketed as 850 sq ft. Long story short, the appraisal came back at 685. We wound up in a bidding war 3 days after the first OH, there was huge interest in this place due to low ppsf based on 850, little did we know that when the real sq ft was calculated that we are paying the highest ppsf in the buildings history.

I questioned the brokers and they said that was what was in the listing system they use and that they are not architects and I should have meaured myself before signing the contract. I am waiting to hear back from the seller to see if he is willing to renegotiate, but do I have any recourse here? And does closing on the apt waive an legal recourse I might have later?

When we offered on this place we sold our current apartment through the same brokerage firm, who did her due diligence when she listed my place, she even had the sq ft verified by an earlier appraisal done on the place. I assumed the sales broker on our new purchase would have done the same, obviusly sh did not. Also this isnt a case of the method of measurement, when we were at the OH, i asked if the sq ft was gross interior and was told that was correct.

sadly enough when the brokers (bothe buying and sales) pulled the comps, they missed the fact that an identical unit on a similiar floor was listed as 700 sq ft. We discussed the comps verbally based on total price, sq ft was never mentioned... seems shady to me.

In NY all buyers know there is "shrinkage" you buy a 700 sq ft place, its probably 665, 1000 is probably 925. Everyone rounds up, but how do you get approx 850 from not even 700?

On a side note, the seller pushed for a signed contract and the brokers would not let my lenders appraisal schedule an appointment before the contract was final. Is this normal?

Anyone else gone through this or know someone who has, I'd be interested to know what the outcome was.
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Old 04-05-2008, 06:50 PM
 
Location: Columbia, SC
10,364 posts, read 20,161,247 times
Reputation: 9307
You should consult a RE attorney. I have heard of people renegotiating over gross SF differences. Perhaps the seller will take the same price per sf with the new measurements in hand.
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Old 04-05-2008, 07:06 PM
 
4 posts, read 14,513 times
Reputation: 11
To be honest I am not even looking for that much back... If he used the same ppsf, he would be losing almost 100K.. Since its a coop, the brokers always try to waive any liability for representations made about the apartments. Basically they say they are selling shares in a corporation, not sq ft. Funny though that all their listing show the sq ft, not the shares...

Thanks for the reply though, if anyone has any legal links or knows a broker who has dealt with this I be interested.
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Old 04-05-2008, 07:15 PM
 
Location: Columbia, SC
10,364 posts, read 20,161,247 times
Reputation: 9307
Tell them your shares aren't as large as you thought and you need to pay less for the reduced shares:-) I stand by my original statement to contact a real estate attorney Monday Morning.
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Old 04-05-2008, 07:23 PM
 
4 posts, read 14,513 times
Reputation: 11
Will do... I just never like the idea of dishing out more money to attorneys...

I just never fee truly comfortable when I'm talking to a person and they bill out by by the quarter hour.. its like a little "cha ching" goes off every 15 minutes!!
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Old 04-05-2008, 08:32 PM
 
Location: GA
2,791 posts, read 10,254,096 times
Reputation: 1168
I believe the shares are calculated on the square footage. You might check into that.
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Old 04-05-2008, 09:02 PM
 
Location: Palm Coast, Fl
2,249 posts, read 8,515,916 times
Reputation: 1006
Quote:
they said that was what was in the listing system they use
Um, it's one of them that put it into the listing system they use so one of them is responsible for what it says. Here we use the tax records to verify the sq ft we are told by the sellers. And if they won't let you in beforehand to verify the facts before signing the contract, exactly how are you supposed to take responsibility for not doing your due diligence? You ARE doing your due diligence now.
As suggested above I would also suggest you see a good real estate attorney asap to see what your options are. Wait...NY is an attorney state anyway, isn't it? You should already have one, no?
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Old 12-03-2008, 09:59 PM
 
1 posts, read 4,229 times
Reputation: 10
Default how did you issue get resolved?

Hey - I am in a similar situation right now. My apt got appraised at 12% smaller then the seller claimed. Also the seller sold it w/o an agent, but i have an agent.

Curious to see how your situation got resolved?
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Old 12-03-2008, 10:19 PM
 
Location: Charleston, WV
3,105 posts, read 7,017,754 times
Reputation: 842
Don't be shocked and NEVER believe anything you are told about a home - that was the lesson I learned. We were told our house was 9 years old, in a certain school district, and in a certain county. At closing we discovered our house was 19 years old and in an entirely different county and school district.

Since then, we have bought 2 other homes and a piece of property (no we are not investors or flippers). Trust me, I do my own due diligence before signing the contract.
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Old 12-30-2017, 12:01 AM
 
1 posts, read 716 times
Reputation: 10
Any follow up on This ? Would like to know what happened eventually
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