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I have already paid money for the appraisal a while back, and it is underway. I will find out if it still can be cancelled. But, I have decided to back out, regardless of what the appraisal says. I have informed all parties of this by email.
My agent and the seller say that I have no just cause in backing out now. But, right now, they haven't taken any action yet. I am preparing for what they can likely do, and to see if there is something I can do from my side to force their hand.
I have already paid money for the appraisal a while back, and it is underway. I will find out if it still can be cancelled. But, I have decided to back out, regardless of what the appraisal says. I have informed all parties of this by email.
My agent and the seller say that I have no just cause in backing out now. But, right now, they haven't taken any action yet. I am preparing for what they can likely do, and to see if there is something I can do from my side to force their hand.
But, you do have cause. The county considers it a 2 bedroom house and the square footage doesn't agree. There is a reason for that.
If the county permitted the construction they are aware it is there and if they aren't counting it as a bedroom then there is a reason for that. Why? Probably because it is in the basement. This exact thing happened to my in-laws but they changed it before a buyer ever came along.
You're already out $ on the appraisal probably. I am guessing that agent is only looking at his payday side of things and doesn't have your best interest in mind. The seller and his/her agent need to consider that they posted information on the MLS that is false and your agent is ignoring that fact. Intentionally.
I think I would strongly consider coughing up for an attorney consultation in addition to speaking to your agent's broker. If not the broker than the state's RE commission.
Once you are done with this contract and hopefully get your $ back, you need to fire that agent immediately. Poof! Gone!
Your issue that it doesn't match the MLS is weak, sounds like buyer's remorse.
You toured the house and liked it. You saw the basement bedroom/recroom and were fine with it.
There's no legal issue that will come back to bite you with that room; use it as you like, pay taxes on a two bedroom house, and list it as a two bedroom when you sell.
Your issue that it doesn't match the MLS is weak, sounds like buyer's remorse.
We cancelled our current lease, made plans to move & also to remodel. In fact, it is during the research for our own re-modelling that we discovered that issue. We didn't even know about re-assessment records until that time. We genuinely asked the seller to fix the issue at the assessment office. We were not even looking at a price negotiation then, but earnestly wanted the issue fixed. But those concerns were ignored. Once we decided to back out, the seller double downed with justifications to call it a 3 bedroom unit. It is not remorse, but more of nervousness to deal with this grey area & the sellers reluctance to address it cleanly by working with the assessment office.
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There's no legal issue that will come back to bite you with that room; use it as you like, pay taxes on a two bedroom house, and list it as a two bedroom when you sell.
If I have to sell it as a 2 bedroom, then would it not make sense for me to buy it as a 2 bedroom?
I have already paid money for the appraisal a while back, and it is underway. I will find out if it still can be cancelled. But, I have decided to back out, regardless of what the appraisal says. I have informed all parties of this by email.
My agent and the seller say that I have no just cause in backing out now. But, right now, they haven't taken any action yet. I am preparing for what they can likely do, and to see if there is something I can do from my side to force their hand.
That was another mistake. You need to read your contract carefully to see where there might still be some outs. An appraisal/financing contingency may be all there is left for you. You also need to know what the potential downside is of backing out of the contract.
Read your contract carefully and then consult with a good real estate attorney before you do anything else.
What did your agent tell you about the bedroom situation? (I don't think that the square footage is that big of a deal.) Did you ask either agent (your agent or the listing agent) about the basement "bedroom"? What did they say?
Since your agent was supposed to be looking out for your best interests, you may have a cause to complain to the state licensing authority. If the listing agent told you anything, that may have some significance, too.
That was another mistake. You need to read your contract carefully to see where there might still be some outs. An appraisal/financing contingency may be all there is left for you. You also need to know what the potential downside is of backing out of the contract.
Read your contract carefully and then consult with a good real estate attorney before you do anything else.
Thank you! I have begun to realize this and it is making more sense to me now.
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What did your agent tell you about the bedroom situation? (I don't think that the square footage is that big of a deal.) Did you ask either agent (your agent or the listing agent) about the basement "bedroom"? What did they say?
I was told that it can be called a 3 bedroom unit. And that variations with the assessment office are normal. Essentially, they said nothing needs to be fixed at the assessment office & that the MLS listing is accurate.
Regardless of the appraisal's value of the home, my issue is with the basic facts of the property. If I cannot sell it as an unambiguous 3-bedroom tomorrow, then I dont want it.
OP, I don't have any advice to give, but we recently decided not to purchase a house where the home in question had 300 fewer square feet than the county records show (the sketch we were able to view on-line was clearly wrong). When we pointed out the problem to the sellers and listing agent (through our agent), all of 'em just said, "Well, that's what the county records show, so... Do you still wanna buy the house?" Our issue was the same as yours bolded above. Ugh.
FWIW - we bought a house (in Missouri) with 2 bedrooms on the main level and 3 in a walkout basement (built that way originally, not an after the fact improvement). The windows were legal egress windows And each room had a closet. It was marketed in MLS as having 5 bedrooms. But the assessor listed the square footage of only the above grade footprint and that it had 5 rooms (living, dining, kitchen and the 2 bedrooms - I guess assessors in MO don’t get into the bedroom debate, they just count rooms). Basement square footage was listed separately.
I see a lot of real estate advertised with a comment of “two non-conforming rooms in basement” or similar.
Lesson learnt for me, on always having an attorney.
I am OK with 3 bedroom homes with one bedroom in the basement. But, my bigger priority is the legal certainty about the property, implications on tax & resale. The home is not my 'dream home' that I would live in for long. It is meant to be a 3-7 year step up from my current rental.
What would an attorney have done for you in this instance except cost you extra money? Viewed the home and told you prior to the offer it wasn't a bedroom? Researched title and permits prior to your offer? Attorneys already wrote and/or had input into the contract your agent is using if it's the standard contract for the MLS or Realtors Association.
There are certainly times to involve an attorney, but those that frequently offer cut and paste advice that says you should hire an attorney instead or in addition to an agent are usually card carrying members of the testosterone brigade (thanks Mike J) very little valuable content.
The answer to your questions are probably spelled out quite clearly in your contract. Also, FWIW, tax records in my area are not always accurate. I'm not telling you to buy or not buy the home. I defer to your agent to guide you as to normal in your market.
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