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Answers (18)
- Tonya Brobeck, "Tonya Brobeck"
- Contributions:637
Great questions, good responses from the agents and other contributers. My #1 concern was why in the world weren't you walked through a general buyer's process when you orginally met with your agent. There are quite a few things an agent needs from their buyer, especially participation and understanding where in the process you currently are. This relationship doesn't sound like it demonstrates the type of communication you need as a buyer.
3 weeks is normal if a 3rd party approval is needed, bank etc. That should have been disclosed to you prior to submitting your offer. Regardless I would want my agent to stay in contact with me. Not to mention I would have put a deadline response date so my buyer could move on to another potential home.
Inspections upon mutal acceptance are normal
Earnest money sent with the offer is normal. Many contigencies can be attached to insure the buyers earnest is returned should the sale fale.
Letter of approval is normal
It's odd that negotiating repairs or price reductions would occur while submitting the offer. The inspection addendum should be attached to the offer being sent. Negotiate the inspection report after completed. (now if it was listed as is, it could be, as others have mentioned, bank owned and needs to sell the way it is etc)
Interesting they didn't counter your offer in writing even though they appear to know what the seller is looking for.....
Again, depending on what type of properties you are looking at, distressed, or in that arena you will find these sales are harder. The banks respond on their own timing. Some banks better then others.
VA funding has a checklist so it shouldn't be confusing or all too difficult if your real estate agent & lender work well together.
Best of luck
3 weeks is normal if a 3rd party approval is needed, bank etc. That should have been disclosed to you prior to submitting your offer. Regardless I would want my agent to stay in contact with me. Not to mention I would have put a deadline response date so my buyer could move on to another potential home.
Inspections upon mutal acceptance are normal
Earnest money sent with the offer is normal. Many contigencies can be attached to insure the buyers earnest is returned should the sale fale.
Letter of approval is normal
It's odd that negotiating repairs or price reductions would occur while submitting the offer. The inspection addendum should be attached to the offer being sent. Negotiate the inspection report after completed. (now if it was listed as is, it could be, as others have mentioned, bank owned and needs to sell the way it is etc)
Interesting they didn't counter your offer in writing even though they appear to know what the seller is looking for.....
Again, depending on what type of properties you are looking at, distressed, or in that arena you will find these sales are harder. The banks respond on their own timing. Some banks better then others.
VA funding has a checklist so it shouldn't be confusing or all too difficult if your real estate agent & lender work well together.
Best of luck
- nealadler
- Contributions:199
It would seem to me you do not have an accepted offer. Did they put these terms in a counter offer? If so you can accept, reject, or counter the counter offer. I do not give legal advice but it would seem to me the deposit check should go to escrow upon acceptance. But then it depends on your state and who holds the buyer's deposit check. The bottom line is you should either discuss this with your agent or an attorney.
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
My hubby goes out to sea - I have to keep busy or I go nuts.
- Nancy Lee, "An OrderLee Home"
- Contributions:1195
Grad school, multiple houses, and living in the house you are rehabbing!?! You don't need a project, you need a nap!
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
I bought it that way. It's the house I am living in for grad school. What do you expect when the house is 40k? It no longer rains in the living room. We'll call it "I did my own inspection and planned to gut the bathroom anyway since I knew it was highly questionable but thought I might get to take 2-3 showers while I was building the (new) second bathroom before I redid the original bathroom, but not".
It's fine now. Even has a whirlpool bathtub. I'm in the process of rebuilding the kitchen now. I wanted a project - I got one.
It's fine now. Even has a whirlpool bathtub. I'm in the process of rebuilding the kitchen now. I wanted a project - I got one.
- NTETS, "Mr Caveat"
- Contributions:6436
tiff? you OWN a house that rains in the living room? rental property? i would have figured you for a more responsible landlord...^_)^
- jaymebales
- Contributions:4
I am not even an agent and this doesnt confuse me! i think you need to get a new agent!
the seller can put whatever stipulations they want to on your offer. its up to you whether or not you want to accept them.
from what i read, i would not.
the seller can put whatever stipulations they want to on your offer. its up to you whether or not you want to accept them.
from what i read, i would not.
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
Depends on the inspector you get. I have had one hold up a sale on a historic house for not all outlets being grounded (some were original), and I got a loan underwritten on one of the homes I own where is rained in the living room when you took a shower upstairs.
- Terri Linnell, "DebtsNMesses"
- Contributions:6728
'Habitable' is pretty easy for a home to meet. No bare wires, a leaky roof, etc. But it doesn't need to have carpet, it could be cement. It must have running water, working heat source, and kitchen/ba... but inside water leaks are fine. Holes in walls, no closet doors, all that is habitable. Not even sure the sink has to hold water! lol
Your agent should have put in an end date. Your agent should also give you as many 'outs' in the contract in case you change your mind. Your agent should get this 'counter offer' in writing, since no real estate contract is legal in the verbal form and all written contracts override verbal ones.
Good luck. You may back out of your first few offers until you figure out what's 'normal'. lol :-)
Your agent should have put in an end date. Your agent should also give you as many 'outs' in the contract in case you change your mind. Your agent should get this 'counter offer' in writing, since no real estate contract is legal in the verbal form and all written contracts override verbal ones.
Good luck. You may back out of your first few offers until you figure out what's 'normal'. lol :-)
- NTETS, "Mr Caveat"
- Contributions:6436
va does offer a loan type for homes than need work... correct me if i'm wrong, but this is what 203k rehab is for?
granted there are bare minimum reqs, but it is worth noting.
granted there are bare minimum reqs, but it is worth noting.
- Connie Wildasinn, "Connie Wildasin"
- Contributions:1178
You got some good advice here... from a number of agents, and quite frankly if your agent didn't understand the sellers agent.. you need a new agent... your offer was shelved or more accurately put in the circular file... get a new agent, and always get everything in writing... and remember EVERYTHING is negoicable.. but on a VA the property must be habitable... so don't look at home that are a wreck.. good luck
- John Stewart, "nwhome.us"
- Contributions:2158
Real Estate 101: if it isn't in writing, it doesn't exist.
1) What did the listing say about inspections? Even if it says "sold-as-is" your offer described a time when you would do the inspection. If the seller wants to change the dates in your offer, they simply need to cross out what you suggested, initial it, and send it back to you for agreement. The counter-offer needs to be in writing.
2) What did the listing say about earnest money? What did your offer say you would do with the earnest money? The options go from: write a promissory note for earnest money to give a check to the listing agent with the offer. Everything in between is frequently negotiable, unless the listing agreement was clear about what was to happen with the EM check. The counter-offer from the seller should be in writing. They can just change the information that you sent in your offer and ask you to initial the change.
3) A pre-approval letter and a copy of the EM check, attached to your initial offer is common practice.
4) The listing agent is, by law, required to present your offer to the seller. They are also required to make an effort to communicate with your agent. The seller is not required, by law, to respond to your offer. If, however, the listing agent did not return your agent's calls, that were being made on a regular basis for 3 weeks, on your behalf, there may be grounds for a complaint against the listing agent through the Department of Licensing.
5) The seller is not required to do anything as the result of an inspection. When was the last time you went to the grocery store and negotiated on the price of a six-pack of soda? You either pay the price or find something else.
In writing: most of the issues appear as though they could have been handled in a written counter-offer from the seller. It sounds a little as though one, or both, of the agents involved are not very motivated to solve problems in the deal. Talk to your agent's managing broker and see if they have any other thoughts about the way this was handled.
Stick around here and keep asking questions.
1) What did the listing say about inspections? Even if it says "sold-as-is" your offer described a time when you would do the inspection. If the seller wants to change the dates in your offer, they simply need to cross out what you suggested, initial it, and send it back to you for agreement. The counter-offer needs to be in writing.
2) What did the listing say about earnest money? What did your offer say you would do with the earnest money? The options go from: write a promissory note for earnest money to give a check to the listing agent with the offer. Everything in between is frequently negotiable, unless the listing agreement was clear about what was to happen with the EM check. The counter-offer from the seller should be in writing. They can just change the information that you sent in your offer and ask you to initial the change.
3) A pre-approval letter and a copy of the EM check, attached to your initial offer is common practice.
4) The listing agent is, by law, required to present your offer to the seller. They are also required to make an effort to communicate with your agent. The seller is not required, by law, to respond to your offer. If, however, the listing agent did not return your agent's calls, that were being made on a regular basis for 3 weeks, on your behalf, there may be grounds for a complaint against the listing agent through the Department of Licensing.
5) The seller is not required to do anything as the result of an inspection. When was the last time you went to the grocery store and negotiated on the price of a six-pack of soda? You either pay the price or find something else.
In writing: most of the issues appear as though they could have been handled in a written counter-offer from the seller. It sounds a little as though one, or both, of the agents involved are not very motivated to solve problems in the deal. Talk to your agent's managing broker and see if they have any other thoughts about the way this was handled.
Stick around here and keep asking questions.
- NTETS, "Mr Caveat"
- Contributions:6436
i dont know what is even confusing to be honest.
their response to you is as follows:
"this home is for sale as-is and the asking price is 179k."
they are well within their rights to request these things...your offers should come with earnest money attached, that is your agent's fault... you should have a preaproval letter drawn up in the amount you are willing to spend* (not the full amount you are authorized to borrow) and should be submitting this as part of your offer too... again your agent should have asked for this.
i agree with jkonstant that there is an issue if your agent found these requests strange and unfamiliar, and that it took weeks for their agent to get back to him about the offer you put in. he should have been on them by the second day.
however, i don't think this seller is interested in actually selling the house if they won't even entertain offers below list price... as-is usually means we want a cash offer and cash offers usually mean lower prices, even lowball prices...
VA is known for having tough underwriting guidelines, especially re- homes needing work, but these statements have little, if anything to do with the VA
ask your agent to go over the comparable sales in the last 6 months. if 180k is a good price, keep talking. if not, move on.
their response to you is as follows:
"this home is for sale as-is and the asking price is 179k."
they are well within their rights to request these things...your offers should come with earnest money attached, that is your agent's fault... you should have a preaproval letter drawn up in the amount you are willing to spend* (not the full amount you are authorized to borrow) and should be submitting this as part of your offer too... again your agent should have asked for this.
i agree with jkonstant that there is an issue if your agent found these requests strange and unfamiliar, and that it took weeks for their agent to get back to him about the offer you put in. he should have been on them by the second day.
however, i don't think this seller is interested in actually selling the house if they won't even entertain offers below list price... as-is usually means we want a cash offer and cash offers usually mean lower prices, even lowball prices...
VA is known for having tough underwriting guidelines, especially re- homes needing work, but these statements have little, if anything to do with the VA
ask your agent to go over the comparable sales in the last 6 months. if 180k is a good price, keep talking. if not, move on.
- Gary Collier, "gcoll100"
- Contributions:8
This all seems to be a normal transaction to me. However, when I bought my home, I did the home inspection after the price was negotiated and agreed upon by me and the seller. I don't see much reason to do a home inspection if you or the buyer can't come to an agreement on price.
The earnest money is a typical request. It shows a good-faith to the seller that you are serious about buying the property. When you close, it is applied to the closing cost. Buy usually, the seller don't hold onto the check.
Letter of approval is normal also. Don't forget to get the certificate of eligibility from the VA. (If your agent hasn't already)
Sometimes, the seller insist that they won't pay for any repairs, but this is something that you & your agent will negotiate. But put in your offer that if there is anything in the inspection that you don't agree with, you can cancel the entire deal and get your earnest money back.
If you think something isn't right with the transaction, then it probably isn't. You might want to consider searching for another property.
I hope some of this helps you a bit.
Good luck
Gary
- Miguel Beltran, "Miguel Beltran"
- Contributions:47
I agree with Maria. It looks like a bank-owned (REO) property which are usually sold "as-is". This means that they will not allow any repairs or price reductions based on the inspection results. I think they are asking you to do an inspection before they accept the offer so you are fullt aware of all the issues.
My suggestion is to go see the property with a contractor and get an estimate for all the repairs. Good contractors know FHA guidelines and should be able to identify any work required to ensure that it passes FHA inspection. Also, the contractor should do this for free. You may also pay an inspector, but you would not get an estimate for repiring the problems.
I have worked with many contractors and would be glad to give you their contact information. Even better, have your agent do that for you.
Once you get an estimate for fixing the property, decide how much it is worth paying and offer only that much. Your agent should be able to do a market analysis to determine the value of hte house once all the work is done. In this market, the value of the fixed property should significantly surpass the sales price.
There are so many good deals out there that it is not worth spending too much energy on one particular property.
Best luck,
Miguel
My suggestion is to go see the property with a contractor and get an estimate for all the repairs. Good contractors know FHA guidelines and should be able to identify any work required to ensure that it passes FHA inspection. Also, the contractor should do this for free. You may also pay an inspector, but you would not get an estimate for repiring the problems.
I have worked with many contractors and would be glad to give you their contact information. Even better, have your agent do that for you.
Once you get an estimate for fixing the property, decide how much it is worth paying and offer only that much. Your agent should be able to do a market analysis to determine the value of hte house once all the work is done. In this market, the value of the fixed property should significantly surpass the sales price.
There are so many good deals out there that it is not worth spending too much energy on one particular property.
Best luck,
Miguel
- Jeff Konstant, "jkonstant"
- Contributions:1970
While I don't believe anything illegal has happened. I do question your agents ability to do their job. It took your agent three weeks to follow up on an offer they submitted? I think that is where the problem lies.
- Maria Morton, "MariaMorton"
- Contributions:716
The EMD and Letter of Preapproval are normal parts of an offer to purchase. The Inspection Period is defined in the contract. The seller has the right to counter terms and price. Since you say they aren't even going to look at your offer unless it's full price, it makes me think you're buying a bank owned property. Your agent will need to work extra hard to communicate with the seller if it is a bank.
- wetdawgs
- Contributions:26762
Which parts do you not think are legal? What you are describing is not the VA loan process, but the purchasing process. Did you put a deadline on response from the seller?
1. Home inspection - that is up to you but usually offers are contingent on inspection results.
2. Earnest money is a normal to show good faith. It normally is held by someone other than the seller.
3. Letter of approval for the full loan amount is a normal request and offers are rarely considered without this.
4. They are allowed to reject offers of any price, so if they don't like your offer price they can suggest a higher price. You can reject their counter offer.
5. They do not have to respond to inspection findings or reduce the price, but you can write in your offer that if you find things you don't like (e.g. things that have substantial costs to repair), then you can withdraw your offer (and get your earnest money back).
Sounds like a normal house buying process, except sitting on the offer for three weeks.
Is this house a foreclosure or a short sale?
1. Home inspection - that is up to you but usually offers are contingent on inspection results.
2. Earnest money is a normal to show good faith. It normally is held by someone other than the seller.
3. Letter of approval for the full loan amount is a normal request and offers are rarely considered without this.
4. They are allowed to reject offers of any price, so if they don't like your offer price they can suggest a higher price. You can reject their counter offer.
5. They do not have to respond to inspection findings or reduce the price, but you can write in your offer that if you find things you don't like (e.g. things that have substantial costs to repair), then you can withdraw your offer (and get your earnest money back).
Sounds like a normal house buying process, except sitting on the offer for three weeks.
Is this house a foreclosure or a short sale?
Is this legal?
Recently I put an offer on a house. It was listed for 179k. My offer was 165K due to extensive work that needed to be done to the house. The real estate office "seller" took the offer and sat on it for three weeks. Then, my agent contacted them to find out why it was taking so long. The responist at the sellers office said I would have to do the following in order to proceed.
1) I would have to have a home inspection done immediatly
2) Cut the seller a check for the earnist money in which they would hold on to it until the house was sold
3)That I needed a letter of approval from my lender for the full amount of the loan.
4) That they would not even consider my offer unless it would raise to the asking price.
5) That even it the inspection found anything wrong they would not repair it or reduce the price.
This was very confusing to my agent, my loan officer and myself. I did not know a VA loan was so complex and I am still with an answer from the seller.
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