Listing sqft was too much by 300 sqft! $/sqft increased by $10. Get Escrow back?!

user8974082
Contributions:1

Somethig happened when the sqft was entered in the listing. Nobody is claiming fault. The county's taxes have the county's appraisal. It is even 210 sqft too lower than the listing sqft. In our neighborhood, an increase of $10 sqft is equivalent to having a full pool in the backyard. If I had to sell this house next year, I would loose lots of money just because I would have to sell it at the lower sqft. We are past our 10 days but have not signed the contract yet. Considering backing out. What are you thoughts? Back out? Can I get deposit/escrow money back despite it not mentioning sqft issues in the contract? By the way, to get the house at agreed upon $/sqft to the new sqft, its a difference of $27k in home value! in TX
-patriot

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May 09 2012 - Houston

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Replies (4)

You don't mention an appraisal. Are you getting a bank appraisal for a mortgage? If so you can use that reduced value to renegotiate the price or back out of the contract.

It is also possible that the county has the sq ft wrong in the tax records. That happens quite frequently.

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May 09 2012

Dan, "the_country_hick"
Contributions:4827

Read this.

Holmes v. Summer: dilatory disclosures and the damage done | first tuesday journal online

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May 09 2012

Gina Nyland, "Gina Nyland"
- (3 reviews)
Contributions:36

"We are past our 10 days but have not signed the contract yet?" If you have not signed the 1-4 Family Residential Contract, you are not legally bound to purchase the house and you should be able to get a refund on your earnest money. The Termination Option period doesn't begin until there is a fully executed contract. If you are purchasing a foreclosure and your offer has been acknowledged by the seller, your earnest money may be at risk if you terminate past your 10 day inspection period. However, you don't typically receive that acknowledgement without submitting a signed 1-4 Family Residential Contract and signing the seller's addendum.

I would be interested to know how your Realtor is suggesting you proceed.

Good luck,
Gina Nyland
Prudential Texas Realty

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May 10 2012

Houston Metro Pro
- (13 reviews)
Contributions:2464

It states in the contract that the home has to appraise. Will it with the smaller sq footage? But like mentioned before, if you haven't signed the contract, you haven't started your 10 days. There is no legally binding contract obligating you to this property if your explanation is right. Best advice... consult a real estate attorney.