iamshack Posted April 23, 2013 Author Share Posted April 23, 2013 QUOTE (RockRaines @ Apr 23, 2013 -> 08:43 AM) Looked at that unit yesterday, very nice but not with a lot of "living room" space. However a very large unit. The part that I liked is the agent told me he isnt paying attention to the comps as the owner wants list price. I can respect someone who is honest like that and I will probably walk away even though I like it. The comps are about 30k less than his list. I agree...I have no problem with someone being ridiculous about their asking price as long as they are just truthful about what they will accept up-front. Everyone has a right to demand what they want for their own real property. Quote Link to comment Share on other sites More sharing options...
RockRaines Posted April 23, 2013 Share Posted April 23, 2013 QUOTE (iamshack @ Apr 23, 2013 -> 10:57 AM) I agree...I have no problem with someone being ridiculous about their asking price as long as they are just truthful about what they will accept up-front. Everyone has a right to demand what they want for their own real property. Exactly, just be honest. I dont need to hear about fake other offers to try to get me to big against myself. This guy said he bought it for X he really wants Y. I had my realtor call and tell them what our max is and to call if they are interested after this first wave. To be honest I saw the other groups walking through their yesterday and I know someone is going to give them what they want. Not a biggie. Quote Link to comment Share on other sites More sharing options...
iamshack Posted April 24, 2013 Author Share Posted April 24, 2013 I'm having so much fun teaching these idiots trying to buy my house about negotiating, contracts, and real estate law... This has made my day, in the middle of a really s***ty week overall. Quote Link to comment Share on other sites More sharing options...
farmteam Posted April 24, 2013 Share Posted April 24, 2013 QUOTE (iamshack @ Apr 24, 2013 -> 04:02 PM) I'm having so much fun teaching these idiots trying to buy my house about negotiating, contracts, and real estate law... This has made my day, in the middle of a really s***ty week overall. Care to elaborate? Quote Link to comment Share on other sites More sharing options...
iamshack Posted April 24, 2013 Author Share Posted April 24, 2013 QUOTE (farmteam @ Apr 24, 2013 -> 02:43 PM) Care to elaborate? I was hoping someone would ask Well as I said earlier, they submitted this great, clean offer on the house, which was for full-list price, and for cash. Additionally, there is a clause which allows the buyer to specify that the seller will be liable for up to "x" dollars for repairs revealed in the inspection. They put "N/A" in that clause, effectively stating I would be liable for $0 for repairs revealed in the inspection. They submitted their offer this way purposefully - so that it would be a very strong offer and increase the chances that I would accept it. Well, now that we are in contract, and they have had their inspection performed, they submit this laundry list of ticky tack repairs that they want me to have a licensed contractor take care of. They also asked me to sign this lease agreement (because one of the conditions of acceptance of the offer was that they allow me to rent back from them for 3 weeks at $500 a week) which stated that no animals were to be allowed on the premises. Well, the entire point of me renting back from them was so I had a place for my dogs to live in case it took us a bit beyond close of escrow to close on another home, and they knew this. This infuriated me. And so I told them I would not sign such a lease agreement, nor would I repair anything. They came back with this email to my listing agent: Jody, I understand you and your sellers frustration. The no animal clause in the lease back was a big mistake by my buyer and she is embarrassed about it, but the seller needs to let it go. Renegotiating terms after an inspection is not uncommon and within the buyer's rights per the contract. That's what a due diligence period is for. If we would have put $1000 in repairs in the contract and the inspection discovered something major would the seller have been offended if we tried to renegotiate? Let's move past this petty stuff because none of it really matters. My client emailed me this morning saying that they want to cancel the transaction. Since your clients are willing to extend due diligence until Friday for the chimney inspection, I think I can talk her off the ledge. The bottom line is that we're only $1000 apart and if the seller wants to cancel over that and try to get another buyer, then good luck to him. I'm giving the exact same message to the buyer so hopefully cooler heads will prevail and we can get this done because I think the transaction as it stands is a win-win for everyone involved. Thanks, Phil To which I replied with this: Seller does not dispute that renegotiation of terms after an inspection is neither uncommon nor outside of buyer's rights under the contract. Attempts at renegotiation are never outside of either party's rights prior to the consummation of the transaction. However, the buyer submitted an offer which did not contemplate seller paying any repairs revealed in the inspection. It is not lost on the seller that the offer was submitted this way so as to be extremely attractive to the seller, relative to other potential offers submitted by other potential buyers. It was the intention of the buyer to submit the "winning" bid, and the buyer keenly submitted an offer designed to do so. Ultimately, the buyer did submit the winning bid. If the buyer believed it was an intelligent strategy to submit an offer which was advantageous to the seller, only to then expect to successfully renegotiate terms explicitly contemplated and agreed to in said offer after it was signed and executed, then the buyer was sorely mistaken. Submitting an offer which contemplated no liability by the seller for any repairs with the expectation by the buyer that repairs would be negotiated after the execution of the sales contract effectively strips away the right of the seller to choose between competing offers which might have differed in that respect; which is precisely why the buyers strategically submitted the offer the way they did to begin with. Seller's home is not a new home. The buyers must have anticipated there would be minor repairs needed. However, the buyers were certainly in no position to anticipate any major repairs that would have been necessary. That is precisely why the due diligence period exists - to protect the buyer from things he could not have known until he performed his due diligence. The due diligence period does not exist as a "second round" of negotiations for the buyer. Such negotiations put the seller at a major disadvantage, due to the fact that the buyer may walk away from the transaction, while the seller is bound to it original terms. Therefore, the seller has a large vested interest in the specific terms set out in the contract that he agrees to. The seller does not dispute that the buyer may walk away from the transaction within the due diligence period if the repairs revealed in any inspections or certifications leave the buyer in a position which he is uncomfortable. However, the buyer should not walk away from a transaction because he is unsuccessful in negotiating the costs of minor repairs to the seller, when such costs were explicitly waived by the buyer in the executed contract for sale. Again, if the buyer intended that the seller would be liable for such minor repairs, the buyer should have submitted an offer to this effect, rather than submitting an offer which did not. That being said, the seller does recognizes the buyer may ultimately walk away from the transaction for almost any reason in the due diligence period, and seller encourages the buyer to do so in this case if the buyer is not comfortable moving forward with the transaction according to the contract upon which it was signed and executed. My realtor got a kick out of it and thinks they will run away...I don't really care at this point either way...I am just letting them know I am not going to deal with any bs. Quote Link to comment Share on other sites More sharing options...
StrangeSox Posted April 24, 2013 Share Posted April 24, 2013 lol, probably didn't realize they were dealing with someone with a legal background Quote Link to comment Share on other sites More sharing options...
iamshack Posted April 24, 2013 Author Share Posted April 24, 2013 QUOTE (StrangeSox @ Apr 24, 2013 -> 02:57 PM) lol, probably didn't realize they were dealing with someone with a legal background Yeah, I guess not...their agent called my agent and was singing a completely different tune now...saying he cautioned the buyer against asking for repairs, yada yada yada. So I guess we are moving forward with the sale, except we're going to close at the end of May instead of having me rent back. Whatever...works for me. Quote Link to comment Share on other sites More sharing options...
bmags Posted April 25, 2013 Share Posted April 25, 2013 I really hope the buyer is on this board. Quote Link to comment Share on other sites More sharing options...
StrangeSox Posted April 25, 2013 Share Posted April 25, 2013 My in-laws are sort of going through a similar situation with a condo they're selling. Someone came in and offered what they were asking (which was about 60% of what they paid in 2004 before putting $10-15k into renovating it back then), then was trying to nickle-and-dime over some repairs. Now they just found out that the FHA appraisal was several thousand less than the selling price. They're so sick of that place that they're willing to take the appraisal amount as long as they drop all of the repair claims, hopefully it all works out. Quote Link to comment Share on other sites More sharing options...
RockRaines Posted April 25, 2013 Share Posted April 25, 2013 QUOTE (StrangeSox @ Apr 25, 2013 -> 08:24 AM) My in-laws are sort of going through a similar situation with a condo they're selling. Someone came in and offered what they were asking (which was about 60% of what they paid in 2004 before putting $10-15k into renovating it back then), then was trying to nickle-and-dime over some repairs. Now they just found out that the FHA appraisal was several thousand less than the selling price. They're so sick of that place that they're willing to take the appraisal amount as long as they drop all of the repair claims, hopefully it all works out. Thats the thing, so many things can go wrong so you have to assume nothing until closing. Inspection is one thing that can throw a deal apart, little bit of water damage or an almost dead water heater and things get interesting. Quote Link to comment Share on other sites More sharing options...
iamshack Posted April 25, 2013 Author Share Posted April 25, 2013 QUOTE (bmags @ Apr 25, 2013 -> 06:02 AM) I really hope the buyer is on this board. I really hope you poop your pants. Quote Link to comment Share on other sites More sharing options...
farmteam Posted April 25, 2013 Share Posted April 25, 2013 QUOTE (iamshack @ Apr 25, 2013 -> 10:08 AM) I really hope you poop your pants. Maybe you'll both get your wish! Quote Link to comment Share on other sites More sharing options...
Y2HH Posted April 25, 2013 Share Posted April 25, 2013 QUOTE (RockRaines @ Apr 25, 2013 -> 09:21 AM) Thats the thing, so many things can go wrong so you have to assume nothing until closing. Inspection is one thing that can throw a deal apart, little bit of water damage or an almost dead water heater and things get interesting. Yea, I remember going through this myself, selling into a bad market and buying from a bad market (in 2009), contingent on one selling in order for the buy to go through. Talk about a huge pain in the ass. I recall having issues with the person buying our old house, wanting all this stuff fixed (and some of it needed it), and I was like hmmm, well, I'll tell you what, I'll knock 500$ off the house and that's that. If that's unacceptable, the deal is off. Needless to say, they accepted. Moved from Des Plaines to Clearing (Chicago). I really like the house I have now, and getting certain things fixed/replaced has been a pain in the ass, but I'm glad it's out of the way, and I won't have to worry about it for the foreseeable future. I love living in the city, without living too close to downtown. Quote Link to comment Share on other sites More sharing options...
bigruss Posted April 26, 2013 Share Posted April 26, 2013 Ugh, so the place I really wanted apparently is under contract already. There are just a few other places I would seriously consider buying, but the one place that had it all is now unavailable. Hopefully some new places come onto the market because right now there isn't a whole lot. Quote Link to comment Share on other sites More sharing options...
iamshack Posted April 26, 2013 Author Share Posted April 26, 2013 QUOTE (bigruss22 @ Apr 26, 2013 -> 07:48 AM) Ugh, so the place I really wanted apparently is under contract already. There are just a few other places I would seriously consider buying, but the one place that had it all is now unavailable. Hopefully some new places come onto the market because right now there isn't a whole lot. I feel your pain! We're at a standoff on the other house we offered on... There is a house a few blocks down from mine that is absolutely awesome...I've been stalking it through the public assessor's website for awhile...anyways, the deed had been conveyed to the trustee's office because they were delinquent in paying their property taxes, so I was waiting for it to go up for auction...but they just paid back the delinquent taxes. So I found the owner on LinkedIn and asked him if he was interested in selling. He's an investor living in NY...anyways, we are setting up a time to go walk through it and trying to get a ballpark number out of him. I'm trying to think out of the box here because there is just no inventory worth a s*** right now, not for the right price, anyways. This is how I actually found my current home...found someone to sell to me that wasn't even on the market. Maybe this will work. Quote Link to comment Share on other sites More sharing options...
bigruss Posted April 26, 2013 Share Posted April 26, 2013 QUOTE (iamshack @ Apr 26, 2013 -> 10:02 AM) I feel your pain! We're at a standoff on the other house we offered on... There is a house a few blocks down from mine that is absolutely awesome...I've been stalking it through the public assessor's website for awhile...anyways, the deed had been conveyed to the trustee's office because they were delinquent in paying their property taxes, so I was waiting for it to go up for auction...but they just paid back the delinquent taxes. So I found the owner on LinkedIn and asked him if he was interested in selling. He's an investor living in NY...anyways, we are setting up a time to go walk through it and trying to get a ballpark number out of him. I'm trying to think out of the box here because there is just no inventory worth a s*** right now, not for the right price, anyways. This is how I actually found my current home...found someone to sell to me that wasn't even on the market. Maybe this will work. Hopefully that owner comes back with a decent price for you. Also, that's some pretty awesome digging on your part. Quote Link to comment Share on other sites More sharing options...
iamshack Posted April 26, 2013 Author Share Posted April 26, 2013 QUOTE (bigruss22 @ Apr 26, 2013 -> 08:09 AM) Hopefully that owner comes back with a decent price for you. Also, that's some pretty awesome digging on your part. Another funny story... So my house is going to close around the end of May...if we don't find something by then and close on it, we will have to either live with the gf's parents, or find something to rent. Finding something to rent will be nearly impossible with the dogs I have...so I'm basically screwed... Well, this morning I am perusing facebook, and I see my ex is listing her home...she is moving to LA, and wants to either sell or lease her home....so I ask her if she doesn't sell it right away if she would lease it to us...she said "I would lease it to you!" It's a freaking awesome house...of course, how do we all think the gf reacted to that idea? But honestly, how much do you think I want to live with her family? Quote Link to comment Share on other sites More sharing options...
bigruss Posted April 26, 2013 Share Posted April 26, 2013 QUOTE (iamshack @ Apr 26, 2013 -> 11:42 AM) Another funny story... So my house is going to close around the end of May...if we don't find something by then and close on it, we will have to either live with the gf's parents, or find something to rent. Finding something to rent will be nearly impossible with the dogs I have...so I'm basically screwed... Well, this morning I am perusing facebook, and I see my ex is listing her home...she is moving to LA, and wants to either sell or lease her home....so I ask her if she doesn't sell it right away if she would lease it to us...she said "I would lease it to you!" It's a freaking awesome house...of course, how do we all think the gf reacted to that idea? But honestly, how much do you think I want to live with her family? Yea seriously, ex's house >>>>> living with any parents. Plus you can at least get all your stuff in one place, don't have to worry about storage, etc. Quote Link to comment Share on other sites More sharing options...
iamshack Posted April 26, 2013 Author Share Posted April 26, 2013 QUOTE (bigruss22 @ Apr 26, 2013 -> 10:30 AM) Yea seriously, ex's house >>>>> living with any parents. Plus you can at least get all your stuff in one place, don't have to worry about storage, etc. Yeah, especially when you consider this is the ex's house... House Quote Link to comment Share on other sites More sharing options...
bigruss Posted April 26, 2013 Share Posted April 26, 2013 QUOTE (iamshack @ Apr 26, 2013 -> 12:33 PM) Yeah, especially when you consider this is the ex's house... House If your current GF says no to this....jeebus. Just curious, how much would a place like that go for? Quote Link to comment Share on other sites More sharing options...
iamshack Posted April 26, 2013 Author Share Posted April 26, 2013 QUOTE (bigruss22 @ Apr 26, 2013 -> 10:36 AM) If your current GF says no to this....jeebus. Just curious, how much would a place like that go for? She's listing it for $675k...i believe she paid $575k, cash, back when the market was pretty crappy. So it is priced pretty well, but these ultra modern homes take a little bit longer to sell. Quote Link to comment Share on other sites More sharing options...
IlliniKrush Posted April 26, 2013 Share Posted April 26, 2013 QUOTE (iamshack @ Apr 26, 2013 -> 12:33 PM) Yeah, especially when you consider this is the ex's house... House Doesn't have enough shoe storage Quote Link to comment Share on other sites More sharing options...
bigruss Posted April 26, 2013 Share Posted April 26, 2013 QUOTE (iamshack @ Apr 26, 2013 -> 12:38 PM) She's listing it for $675k...i believe she paid $575k, cash, back when the market was pretty crappy. So it is priced pretty well, but these ultra modern homes take a little bit longer to sell. I would imagine the pool of interested buyers is definitely smaller. That's definitely a place I would love to lease but not buy. Quote Link to comment Share on other sites More sharing options...
iamshack Posted April 26, 2013 Author Share Posted April 26, 2013 QUOTE (IlliniKrush @ Apr 26, 2013 -> 10:42 AM) Doesn't have enough shoe storage The ex works for an upscale shoe retailer Of course, all I heard about from the current gf is how my house didn't have enough closet space for all her shoes... Quote Link to comment Share on other sites More sharing options...
iamshack Posted April 26, 2013 Author Share Posted April 26, 2013 QUOTE (bigruss22 @ Apr 26, 2013 -> 10:42 AM) I would imagine the pool of interested buyers is definitely smaller. That's definitely a place I would love to lease but not buy. Yeah, the newer developments from that builder start at around $750k...I would buy one, but I can't afford it. I think she will rent it to me for $2500 a mo, which, while it's a lot for a rental, I don't really have many options right now. And it would only be for 6 months to a year, most likely. Quote Link to comment Share on other sites More sharing options...
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