Profile picture for ada01

REASONS A SIGNED, ACCEPTED OFFER MAY FALL THROUGH?

Our offer yesterday for our DREAM HOME was not accepted and another buyer's offer was.  We were led to believe that it was not due to numbers but to the fact that we had two contingencies:  a septic and home inspection.  We are fairly certain that the septic would not pass.
Could this deal fall through because the buyer would have to, in all probability, replace the septic?   Could the buyer's lender "back out" because of the high probability of having to finance upwards to $20,000 for the project.
To further complicate matters, (hope you like a challenge folks!) the new buyer would have to get permission from another property owner for an easement in order to run the city sewer line to the home.
The buyers have yet to get this permission and it may take a while to do so...thus stalling a deal that I know the owner is very motivated to complete.

THANK YOU for your advice!!  I am holding out hope...or maybe I should just throw in the towel!?...the crying towel.
- ada

  • July 08 2010 - US
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Answers (7)

Profile picture for wetdawgs
Clarifying that your original offer was contingent on your home sale, and nothing was extended in writing adds loads to the understanding of the situation.   Your post appears to focus on the septic etc contingencies, while chances are good they simply got tired of waiting on your home sale.

  • July 10 2010
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Profile picture for SoCal Engr
@ ada01 - I'm really sorry to hear that your buyer's agent did so little to help you out in the process. The hard lesson you learned was that you really do need to keep your finger on the pulse. Even "good agents" can screw up at times.

@ Agents - Okay, so this buyer did have a buyer's agent - and things still got screwed up. By this account, and others, it was at least in part due to the buyer's agent. So much for "have a buyer's agent to look out for your best interests"?
  • July 10 2010
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The basic answer is that the more contingencies the more outs the buyer has to the deal.  The less contingencies the more likely the deal will close.  The issue with the septic depends on what you mean will not pass?  Is this the buyers requirements or the cities? If there is not an out per the contract, then the buyer seller need to work through this.  I have never, done a deal where the septic was not inspected so I am not sure how a lender would even know there was a issue with the septic. 

The septic issue might have to be resolved with a holding tank or change who the fingers or laterials are designed.  It all depends on the size of the land and the soil tests.  

A deal can always fall thru, so only time will tell.
  • July 10 2010
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Profile picture for ada01

We are working with a buyer agent and it is coming to light that the communication between her and the seller's agent was little to nil.  They are both to blame, but, it appears from our agent's end that the seller's agent rarely returned phone calls.  Nevertheless, our agent could have been far more aggressive in her efforts.  Also, my husband and I regret that we did not insist that a well-channeled stream of communicatoin was established from the beginning.

Our offer was not cash.  We at first put an offer in and it was accepted contingent upon the sale of our house (which has yet to happen).  That offer's time expired and our agent told us they said they would entertain our offer until September...BUT NOTHING WAS PUT IN WRITING.  Again, we were remiss in getting this in writing and asking our agent to do so.  She, however, never even suggested it to us.

When we realized we had a competing offer brewing, we hustled approval of a bridge loan so that our home's sale contingency did not exist.

We are fairly certain the successful (thus far) buyer's offer was not a cash deal.

I have learned some extremely hard lessons with this.  I should have researched real estate policy and procedure far earlier than I did so that I could instruct my agent.  I falsely assumed that our agent (who has an excellent reputation) would guide us through on the best way to go to secure this "dream home".

  • July 10 2010
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Profile picture for spanic_mechanic
Are you a first time home buyer? I'll tell you from experience that no matter how much you've fallen in love with a property but missed out on it, there will be another one that you'll love as much if not more. There are some things that are not worth conceding on (i.e. a septic system that needs replacing). Let it go and move on.

  • July 09 2010
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Profile picture for ABBAUSA

Nothing ventured, Nothing gained.............but some of the time you have to back up and punt........

If you want the house some of the time you have to make some concessions as well.

Have your agent run at again and make your best offer.
If you have an emotional attachment to this home go for it.

Good Luck!

James Callas - Realtor®

  • July 09 2010
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Profile picture for Ofe Polack
To be honest with you.....with the amount of properties in the market, that do not have these issues, I would probably move on and start looking for another one.  You do not mention if the accepted offer was cash and whether you are working with a buyer agent, are you? 
  • July 09 2010
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