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We are in the process of purchasing a home in Florida. A lot of what we are going through is new to me. First we found the house we fell in love with. Now our agent tells us it's an "AS-IS" contract. That the LLC or flipper did not live in the house and even if he did repairs there will be no disclosure. And if after your inspection you may be able to cancel the contract if major items are an issue.
We had our inspection, and much to our agents dislike, we choose to use our own inspector. (I learned my lesson using the agents inspector) I was not aware of all the different things I needed to help our insurance for the home end up at a price we could live with. I learned about Clips, and 8D nails, and hurricane windows, and straps for the garage door. Things that offered a discount.
The roof is only 2 months old. And even this did not stop the house from failing it's 4 point inspection. These items seemed big to us, but small and petty to our agent. Even though they replaced the main roof, the flat roof on the back of the house was almost 16 years old. (way past it's life) A HVAC condensation line and refrigeration line in the attic had been a party snack to some rodents in the area. And lastly, live wires hanging from under the cabinets in the kitchen that need a junction box.
So we sent in an "Addendum to Contract" and the seller almost blow up the agents phone answering and telling us that everything on the addendum will be satisfied.
I guess my question to everyone is, should I be nervous that this company grabbed our offer first and even though we had items that needed addressing, it seems this company is trying to finish up fast and get out of Dodge. Do Sellers often do as the buyer is asking? The rest of the updates in the house are spot on, but when the seller was questioned about the flat roof, he stated, "I would have thought the roofing company would have told me that the flat roof needed to be replaced too." Does this sound fishy?
Thanks
Flippers don't want to have anything to do with the properties longer than they have to, and you're right to be concerned about the quality of the house if it's a flip since some do good work and others do not. Seems odd that they are requiring an as-is contract but then are willing to add in an addendum that tries to turn it back into a regular contract. Sounds like your agent is not necessarily looking out for your best interest either; is it really your agent or a transnational broker representing both sides? A flip that didn't fix HVAC lines and left exposed electrical does not sound like a high quality flip to be honest. If they're chomping at the bit to get you to sign and fix your list, that makes me wonder what your inspector may have not been able to see that could be lurking behind the walls.
Unrelated to the above, the flat roof is cause for concern. Many insurers will offer much higher rates for wind coverage if any part of the roof is flat, so you may want to have your intended insurer quote you on the home before you sign the contract.
Many flippers and/or investors try to avoid filling out disclosures or are advised by bad agents not to fill them out. The most worried you have to be if the agent is related to the investor which happens a lot. We have seen many agents at a brokerage like CH....R......... being related to an investor and just having a license to sell these homes. Often sinkhole homes and beautiful remodeled but just cosmetically!
What behind the walls is that is not important to them and as the OP describes...one roof new while the other is not touched and then they act like they had no clue but they are oh so willing to fix things.
Two weeks ago we had one of these stressfree investors/flippers selling a sinkhole home without any disclosures. I told the broker/owner/investor that we needed for him to fill out all disclosures and there came the excuse that he wasn't aware it was sinkhole home while it was all recorded in the public records!!!!
His agent didn't even know what disclosures were and he had a license for 12 years!!!
Be aware of 3 day cash buyers, stressfree investment, St.... Action Jackson, etc.... (Keep in mind these people have numerous LLC's and change names faster than we buy clothes) We have run into them often and they all own their own brokerage and never disclose that the owner is related. In the case of the first one he doesn't have to disclose it since he doesn't have a license but still is the owner of the brokerage.
Overall they deal with some shady title company and we tell our buyers to run or hire a very good home inspector and we always provide at least 3 names in case a buyer has no clue who to hire and we are not affiliated.
If a seller is too willing to fix everything that can be nice or something to be very cautious about.
In an AS is contract a buyer can walk away easier but only within the contingencies that are listed in the contract and within the time frames or walk away from the escrow money....
Buyer be ware...a good agent will pay off since we often know who we deal with since we have seen them...
We always tell all our sellers we don't accept any listing without all disclosures filled out. We advise buyers also to get all disclosures. Investors who own a rental do know what is good and bad about their rental since they have paid for repairs so no excuse not to fill out a disclosure.
Last edited by bentlebee; 02-17-2014 at 07:03 PM..
Good for us, this was not a cash buy. We feared it would be. We found the house ourselves, even though we have an agent who told us to just sit back and let her find the houses for us. (as I stated above, this is not my first home, and I have learned a lot) We also had our own inspector, and he is returning for the re-inspection (this also pissed off our agent, but we don't care.) I also pulled every permit on every house that we looked at. So knowing that the work was done before we hit the threshold.
The owner of the company, who also owns the house was background checked. And the house was bought as most around this area are, in a foreclosure auction. I don't believe he ever showed up after most of the work was done.
After most of the work was completed I was under the impression that the seller would need a pre-inspection before placing it on the market? But after some of the dumps we have seen, and some of the short sale/forgiveness homes...it doesn't surprise me one bit if the sellers are waiting for the buyer to pay for the first inspection.
We have agreed to let him replace the flat roof, but now after reading other posts, we did not specify a time frame and I free he will make our settlement date later then scheduled. We are hopeful that he is ready to finish up all the work and turn it over to us. Keeping our fingers. Buying a house now-a-days is like taking a trip to Vegas....hoping we strike it rich. Thanks
It sounds like you are dealing with one of the "well known flippers" be aware with permits and inspectors who signed off on that since we have seen many issues that county inspectors didn't even check on. We had our stucco redone for free by KB home and the county inspector signed off on the permit without even getting access to see it since our gate was closed. I called the county and the person told me he had seen it from another street???well that is reassuring.
Pulte homes is now in a law suit for stucco and 2nd level floors not bolder correctly to the 1st floor and this is something that was suppose to be checked by a county inspector and missed on an entire community....so a permit on itself only gives you some information but is not a full guarantee.
In Pinellas County a lady taped a county inspector inspecting a roof and signing off on a permit and the inspector stepped out of his car and within seconds back in the car ...not even going on a ladder or even getting close on the roof but the roof passed inspections! Wow!!!
Quote:
Originally Posted by RainbowConnection62
Good for us, this was not a cash buy. We feared it would be. We found the house ourselves, even though we have an agent who told us to just sit back and let her find the houses for us. (as I stated above, this is not my first home, and I have learned a lot) We also had our own inspector, and he is returning for the re-inspection (this also pissed off our agent, but we don't care.) I also pulled every permit on every house that we looked at. So knowing that the work was done before we hit the threshold.
The owner of the company, who also owns the house was background checked. And the house was bought as most around this area are, in a foreclosure auction. I don't believe he ever showed up after most of the work was done.
After most of the work was completed I was under the impression that the seller would need a pre-inspection before placing it on the market? But after some of the dumps we have seen, and some of the short sale/forgiveness homes...it doesn't surprise me one bit if the sellers are waiting for the buyer to pay for the first inspection.
We have agreed to let him replace the flat roof, but now after reading other posts, we did not specify a time frame and I free he will make our settlement date later then scheduled. We are hopeful that he is ready to finish up all the work and turn it over to us. Keeping our fingers. Buying a house now-a-days is like taking a trip to Vegas....hoping we strike it rich. Thanks
We are in the process of purchasing a home in Florida. A lot of what we are going through is new to me. First we found the house we fell in love with. Now our agent tells us it's an "AS-IS" contract. That the LLC or flipper did not live in the house and even if he did repairs there will be no disclosure. And if after your inspection you may be able to cancel the contract if major items are an issue.
We had our inspection, and much to our agents dislike, we choose to use our own inspector. (I learned my lesson using the agents inspector) I was not aware of all the different things I needed to help our insurance for the home end up at a price we could live with. I learned about Clips, and 8D nails, and hurricane windows, and straps for the garage door. Things that offered a discount.
The roof is only 2 months old. And even this did not stop the house from failing it's 4 point inspection. These items seemed big to us, but small and petty to our agent. Even though they replaced the main roof, the flat roof on the back of the house was almost 16 years old. (way past it's life) A HVAC condensation line and refrigeration line in the attic had been a party snack to some rodents in the area. And lastly, live wires hanging from under the cabinets in the kitchen that need a junction box.
So we sent in an "Addendum to Contract" and the seller almost blow up the agents phone answering and telling us that everything on the addendum will be satisfied.
I guess my question to everyone is, should I be nervous that this company grabbed our offer first and even though we had items that needed addressing, it seems this company is trying to finish up fast and get out of Dodge. Do Sellers often do as the buyer is asking? The rest of the updates in the house are spot on, but when the seller was questioned about the flat roof, he stated, "I would have thought the roofing company would have told me that the flat roof needed to be replaced too." Does this sound fishy?
Thanks
make sure you read that contract in detail, especially the part about the conditions in which you can get the escrow refunded. The realtors will lie and tell you it's not refundable unless there is a "major problem" unveiled during the inspection period. I am also a first time buyer currently under an as-is contract. I have read the buyer right-to-cancel paragraph thoroughly and it says NOTHING about any particular conditions in which I can cancel my contract during the inspection period. It says "at the buyer's discretion", which means I can cancel for something as simple as no longer wanting to deal with a crappy realtor.
The seller is probably doing everything very quickly and grabbed your offer first because they are desperate to sell the house.
make sure you read that contract in detail, especially the part about the conditions in which you can get the escrow refunded. The realtors will lie and tell you it's not refundable unless there is a "major problem" unveiled during the inspection period. I am also a first time buyer currently under an as-is contract. I have read the buyer right-to-cancel paragraph thoroughly and it says NOTHING about any particular conditions in which I can cancel my contract during the inspection period. It says "at the buyer's discretion", which means I can cancel for something as simple as no longer wanting to deal with a crappy realtor.
The seller is probably doing everything very quickly and grabbed your offer first because they are desperate to sell the house.
I'm very disturbed by your comment that realtors will lie about the money not refundable if it is refundable.
The rules for escrow money is very clear and when it is fully refundable and when not.
You are a first time buyer so you probably have not dealt with this issue and to make false statements is very disturbing to me.
If all time lines are taking in consideration and not elapsed than the money will be refunded right away....
Keep in mind right away can mean 2 weeks since in some case a personal check may not have cleared yet if a person backs out soon after providing the escrow money.
In our office we don't keep escrow money but it is kept at the title companies escrow account and all that is needed is a cancellation signed by both parties to release the escrow.
In case of a short sale there is an expiration date and if that expires the contract is null and void and escrow money will be released.
In case of an escrow dispute we are not even involved since our office is not holding the escrow and we never had any escrow dispute ever since we own the office.
There are rules for escrow disputes and they are very clear.
But it's easier to blame a Real Estate Agent for items not understood.
A Buyer in a Legal Contract and that has to be remembered. A bad feeling about someone isn't enough and the Seller can hold that person to the contract. Short of failing to get a mortgage or having an appraisal come back higher than the price, the buyer may be legally liable.
The majority of AS IS homes For Sale are that way for convenience of the Seller. I have found most people to be completely honest. But if a home needs a little TLC to make it look new, that may cost upwards of 10,000. Someone may not have that amount of money, so they elect to sell it as is with the right to inspect.
The Right to Inspect doesn't just mean signing and contract, then backing out if you don't like something. The buyer has a lot of leeway to cancel up until the end of the inspection period, but their are limitation on what will allow them to walk away without at least losing Escrow Deposit.
I'm very disturbed by your comment that realtors will lie about the money not refundable if it is refundable.
The rules for escrow money is very clear and when it is fully refundable and when not.
You are a first time buyer so you probably have not dealt with this issue and to make false statements is very disturbing to me.
If all time lines are taking in consideration and not elapsed than the money will be refunded right away....
Keep in mind right away can mean 2 weeks since in some case a personal check may not have cleared yet if a person backs out soon after providing the escrow money.
In our office we don't keep escrow money but it is kept at the title companies escrow account and all that is needed is a cancellation signed by both parties to release the escrow.
In case of a short sale there is an expiration date and if that expires the contract is null and void and escrow money will be released.
In case of an escrow dispute we are not even involved since our office is not holding the escrow and we never had any escrow dispute ever since we own the office.
There are rules for escrow disputes and they are very clear.
Bentlebee, you don't know me and you don't know who I've dealt with. So you don't have any grounds to accuse me of making false statements.
What I said in my prior post was the truth. If you took that personal then perhaps it's because you are "very disturbed" that I have exposed something that you do not want your buyers to know.
It's pretty simple really and your question can be summed up in just a few sentences.
Your seller is disclosing that he has no disclosures because he doesn't know. He's saying that anything that is found will be up to you to fix, he's not going to be responsible and might not lower the price either (or he might). You will have the house inspected, and once complete, you can either take it or walk away.
That's it
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The rest of the updates in the house are spot on, but when the seller was questioned about the flat roof, he stated, "I would have thought the roofing company would have told me that the flat roof needed to be replaced too." Does this sound fishy?
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