Seller Problems

[sitedrifter]

What is the name of your state? NJ


First, attorney review has taken 27 days largely due to the seller and their lawyer delays. While the seller agreed to most of my requests during attorney review (trust me, nothing big just standard legal ease), they balked at my appraisal and closing date contingency (to coincide with my closing of the house I am selling) requests. Both of those are such standard requests but they said *NO*. So we get past that (I caved) and now comes requests from me based on the home inspection. Lots of problems with many minor but the major ones are the leaking toilet and bad flooring (small amounts of rot in the sub floor) in the bathroom and the 4 posts that support the front porch roof which need to be replaced (rotted at base of posts). The owner said no to my request to repair so I countered with a 10K credit request at closing. The owner countered with *NO*. What is this persons problem? This person bought this house as an investment 5 months ago, put a bit of money into the home and now seems to want to get every penny of the selling price. I know that is their choice but, I feel they are giving lowsy performance as a seller. They won't even agree to fix the leaking toilet. Am I really being penalized for using a good home inspector who found these things.,,,, sheesh!

Does anyone have any ideas on how to deal with a seller like this? Should I just use my home inspection contingency to back out? My contract plainly states I can and shows no sign of penalties but the way these sellers are, I am afraid they will try and keep my earnest monies. I am really trying to justify this as I already have 2k into this process (not counting earnest money) between the home inspection, lawyer etc. Plus the fact my house I am living in (I own) is sold and set to close in 2 weeks although there is a contingency that I have to have purchased a new home to close.

Talk about stress

Thanks

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[Souix]

What is the name of your state? NJ


First, attorney review has taken 27 days largely due to the seller and their lawyer delays. While the seller agreed to most of my requests during attorney review (trust me, nothing big just standard legal ease), they balked at my appraisal and closing date contingency (to coincide with my closing of the house I am selling) requests. Both of those are such standard requests but they said *NO*. So we get past that (I caved) and now comes requests from me based on the home inspection. Lots of problems with many minor but the major ones are the leaking toilet and bad flooring (small amounts of rot in the sub floor) in the bathroom and the 4 posts that support the front porch roof which need to be replaced (rotted at base of posts). The owner said no to my request to repair so I countered with a 10K credit request at closing. The owner countered with *NO*. What is this persons problem? This person bought this house as an investment 5 months ago, put a bit of money into the home and now seems to want to get every penny of the selling price. I know that is their choice but, I feel they are giving lowsy performance as a seller. They won't even agree to fix the leaking toilet. Am I really being penalized for using a good home inspector who found these things.,,,, sheesh!

Does anyone have any ideas on how to deal with a seller like this? Should I just use my home inspection contingency to back out? My contract plainly states I can and shows no sign of penalties but the way these sellers are, I am afraid they will try and keep my earnest monies. I am really trying to justify this as I already have 2k into this process (not counting earnest money) between the home inspection, lawyer etc. Plus the fact my house I am living in (I own) is sold and set to close in 2 weeks although there is a contingency that I have to have purchased a new home to close.

Talk about stress

Thanks

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***What are you basing the $10K in repairs on? Did you have a licensed contractor give you a bid? The way you can deal with this is to either back out during the contingency period for the inspection, being sure to sign cancellation instructions and a document to release your earnest money deposit to you.......or...........you can limit the amount of the repairs to lender required repairs only. Are you getting a loan? Most lenders will require dryrot and bug issues be fixed before closing. So maybe that is a way to save the deal and have the seller comply.

Another way is to write up an Addendum. Say something like "Buyer hereby withdraws sales agreement unless seller agrees to repair or replace the following items, not to exceed such and such amount, or to be split between seller and buyer 50/50 or whatever (you get the idea?)

Sellers don't like to be hit with repairs when they are selling "as is" or if they have priced the property to reflect the fact that they are selling as is. $10k is alot to ask for those little items you mentioned, so maybe you had better get a bid

 

[sitedrifter]

I came up with 10k as a slightly inflated figure hopefelly figuring the seller would offer a counter other then *no* and we could work from that monetary point. The actual estimated (my estimate from having experience with contractors and pricing) is about 7k for the items.

I really like the house but the stress and pressure this is causing is cazy. of course my attorney thinks these items (but I only look to attorneys for legal support not their Bob Vila prowess) are not a big issue but when I look at cosmetics being fixed and not serious issues like the front porch posts and the subfloor having water rot being rejected... I get mad and want to back out but I don't want my anger towards the buyer to mess this deal up because I think the house is nice and the property size is great but I don't want to move in and drop another 7k to fix things that really should have been fixed by the seller


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[sitedrifter]

Sellers don't like to be hit with repairs when they are selling "as is" or if they have priced the property to reflect the fact that they are selling as is. $10k is alot to ask for those little items you mentioned, so maybe you had better get a bid

This house in no way was offered as-is. The price of the property was majorly inflated by 20 grand for 2 months and the seller dropped it from 399 to 379 and accepted my offer of 369,500 (which was not my first offer by no means). if the seller accepted one of my first two offers for the house there would not be such an issue but now with the house at what I and the realtor think is at maximum market value compared to comps in the area, I am in a hard decision making position. Heck the house appraised only $500 over the purchase price!

I like the home and the property size and location and looked forward to living there until retirement (25 years or so). I know this person is an investor and don't understand when they have a buyer at their door step and can get only 7-10k less then what they are planning, but can get it NOW, why don't they take it?

I am going to probably go with your addendum idea and have my attorney send them the letter with my final request. basically, take it or leave it so I can move on.

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[Souix]

This house in no way was offered as-is. The price of the property was majorly inflated by 20 grand for 2 months and the seller dropped it from 399 to 379 and accepted my offer of 369,500 (which was not my first offer by no means). if the seller accepted one of my first two offers for the house there would not be such an issue but now with the house at what I and the realtor think is at maximum market value compared to comps in the area, I am in a hard decision making position. Heck the house appraised only $500 over the purchase price!

I like the home and the property size and location and looked forward to living there until retirement (25 years or so). I know this person is an investor and don't understand when they have a buyer at their door step and can get only 7-10k less then what they are planning, but can get it NOW, why don't they take it?

I am going to probably go with your addendum idea and have my attorney send them the letter with my final request. basically, take it or leave it so I can move on.

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***You might also ask your attorney to draw up an addendum requesting an extension of your inspection and repair contingency period so that you can get actual repair bids from contractors. In your repair addendum make whatever cost "no more than" so the seller won't think he is going to have to keep dumping money in for a place he is not going to be living in. This is how sellers think, 'by me doing all these repairs I am taking less on the house'.

So it all in the negotiations. I have one in escrow right now, beautiful home, just a few little things to be done and the buyer wanted a new house. The seller's contention was, if they wanted a new house they should have bought one. My seller countered with what she would only do and they accepted that. I guess they wanted the house more than the seller wanted to put it back on the market.

Hint: a seller will be more open to a buyer's requuest for repairs if it is "lender required" rather than "buyer requiired". Good luck and let the professionals stress out, thats their job

 

[sitedrifter]

I don't think there is a need for an extension to the inspection contingency since there was no time period put on it other then it must be done (inspection) within 10 days after attorney review is completed. Well, because of the seller, the attorney review lasted 27 days and finished Thursday this week.

My realtor is working with the seller's realtor to see if they can get out of him the possibility of working with me if I get a contractor estimate. I will tell you, if the seller does not agree to that, see ya!!! If the seller loses the chance to sell the house to me, he can have the best of luck trying to sell it and I wish him the same. Hey he might get a crazed buyer next time around


I will keep the board posted as to what comes about


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[HomeGuru]

Yes, do keep us posted.

 

[sitedrifter]

I had my attorney send a letter stating my final offer and that they must accept or reject the deal in whole by close of business today. Whoa, thats one hour from now.


Will post updates


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[sitedrifter]

My attorney contacted me last night and said the seller has agreed to put repair money into escrow and for it to be released after 30 day when repairs are done. I am not sure on the specifics as the official written response has not come through yet (their lawyer is very busy....). So as it looks now, it seems like the sale is still on. Will keep my fingers crossed an pop a few more aleves for my headache!!!


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[HomeGuru]

We'll also take some Aleve's to help you.

 

[sitedrifter]

Got the paperwork. it is a little vague from them but it basically says they will put money in escrow until they complete the repairs up to 30 days after closing.
What is missing is what happens to the escrow money after 30 days or after the repairs. My attorney responded with:

if repairs are not made by 30 days end, the escrow money is released to the buyer (me). if the repairs are made by 30 days end, the escrow money is released to the seller.

My luck is they will probabaly reject that with their track record

i have a feeling this is not over...

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[HomeGuru]

Did the fat lady sing yet?

 

[sitedrifter]

Not yet..

These people are unreal as well as their attorney (and Mine for that fact)

The closing date is Friday but no time is set yet and of course I am at the whim of the attorney's time. As it is now it is going to cost me an extra G in moving expenses since I had to book extra hold over days since there is no set time for the closing. I have to pay for those days even if I don't use them for storage.

Will post more info as I am sure there is more to come the closer we get to Friday

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[sitedrifter]

forget their attorney being unreasonable or not able to be gotten a hold of, it is their paralegal who is doing all the dance work. In NJ from what I understand it is illegal for a paralegal to offer legal advice and from what I can tell, they are to the seller but, I can't prove that so F it. In any case, the closing has been pushed back to this Monday since the buyer of my house could not get the bank to wire the money until late today. too late for funds to be available.

Now back to the tank and what not. All seems OK for the clsoing but can't wait for them to thrwo some loop into the transaction process.

I did tell my attorney be ready for a lawsuit if the tank is not pulled or costs 100 ercent covered by seller. The rpairs should not be an issue since they agreed to a decent escrow in which they have 30 days to repair or it is released to me.

Will keep all you fine people posted

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[sitedrifter]

Did a walk through today since the closing is Monday and time is critical Monday so might not have the time but...

The sellers failed to repair numerous items they agreed to repair and stated the repairs were done in writing. My agent contacted their agent to complain and I have a meeting with my attorney tomorrow. Can't wait to see what happens Monday at the closing and looks like another walk through.

What could happen if they state.. We are not fixing anything, take it or leave it? Especially since I have signed documents by them stating the repairs are done or they agreed to repair them.

Not having a good day!

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