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Replies (10)
- wetdawgs
- Contributions:26854
Are you saying that you've made an offer, but they are rejecting appraisal for a financing contingency and septic inspection? If that is the case, I'd run as fast as I could in the opposite direction. If you've not made a formal offer, make a formal offer and put a financing contingency and inspection contingency (including the septic) in writing.
- Margaret Seme, "bikeragent"
- Contributions:23
The FHA Fiancing addendum states that its value must be there. If they aren't allowing for a spetic inspection I would as wetdawgs says run for the hills.
I would add that if the contract is contigent that the house must appraise for the contract/sales price and the septic must pass inspection also that you are doing a home inspection.
Yes you have the right to both once (depending on your state) you have an accepted contract. I know of a few states that you have a proposal to purchase do inspections then do a contract based on that, but most are the other way around contract, inspections and appraisal
I would add that if the contract is contigent that the house must appraise for the contract/sales price and the septic must pass inspection also that you are doing a home inspection.
Yes you have the right to both once (depending on your state) you have an accepted contract. I know of a few states that you have a proposal to purchase do inspections then do a contract based on that, but most are the other way around contract, inspections and appraisal
- DavidPlatt8
- Contributions:9
I made an offer, they countered, I countered, they say can't go lower due to the fact they would have to pay for septic..I suggested they test the septic, and if it just needs a small upgrade then perhaps I could work with it, but I need to know actual costs before I agree to anything..they won't test the septic prior to offer..also I believe fha wont appraise it above 115,000-120,000(tax value is 108,000)..But I did suggest an Fha appraisal, then I would consider making a final offer based on those numbers...they won't even agree to that...they want 149,000...and I know FHA won't appraise it at that as suggested by my father in-law who was a realtor for a couple of years....they did counter at 124,900 but I would pay my closing costs, and I would have to pay for the septic..which would make a 203k at 144,900 which I won't do... I feel once an appraisal brings the truth to light, then they may budge or take the listing off of the market
- SoCal_Engr
- Contributions:5667
You do not have "a right" to have the septic tested or have an appraisal done as part of the negotiation process.
If you are currently in a situation where the seller is asking too high (in your opinion or based on CMAs) and refusing to come down, it's somewhat unrealistic to expect the seller to allow you to do either, or to have the seller pay for either.
If you can get into contract, which assumes you and the seller are able to agree on a sale price, then you can add inspection and appraisal contingencies to protect yourself from a low valuation on appraisal or structural defects. I don't know if the septic is included in a general inspection contingency, but I'd make sure it was covered in any offer.
In the meantime, until you can agree upon a price, the only real "right" you have is to walk away. I'd suggest that the fact you have been attempting to negoitate for a month may be sending the wrong message to the seller. If you're really serious about the house, do as Wetdawgs suggested. Make a written offer, complete with contingencies, and then see what happens. If the seller remains unrealistic, walk.
If you remain interested in the house, let the seller's agent know that you remain interested, but will continue looking based on the price, etc. If, as you say, the seller has been on the market that long, a written offer may start looking better after some time has gone by. But, hanging around and trying to haggle weakens your position.
If you are currently in a situation where the seller is asking too high (in your opinion or based on CMAs) and refusing to come down, it's somewhat unrealistic to expect the seller to allow you to do either, or to have the seller pay for either.
If you can get into contract, which assumes you and the seller are able to agree on a sale price, then you can add inspection and appraisal contingencies to protect yourself from a low valuation on appraisal or structural defects. I don't know if the septic is included in a general inspection contingency, but I'd make sure it was covered in any offer.
In the meantime, until you can agree upon a price, the only real "right" you have is to walk away. I'd suggest that the fact you have been attempting to negoitate for a month may be sending the wrong message to the seller. If you're really serious about the house, do as Wetdawgs suggested. Make a written offer, complete with contingencies, and then see what happens. If the seller remains unrealistic, walk.
If you remain interested in the house, let the seller's agent know that you remain interested, but will continue looking based on the price, etc. If, as you say, the seller has been on the market that long, a written offer may start looking better after some time has gone by. But, hanging around and trying to haggle weakens your position.
- Margaret Seme, "bikeragent"
- Contributions:23
There is one additional issue you must realize.
Even if you agree on a price and all contingencies.
Most contracts will also allow the seller during repair negotiations to back out of the contract and not to reduce the projected sales price if it doesn't appraise. Which means you've spent money on inpsections and appraisals if after all this they won't repair and reduce.
I would suggest you speak to your agent and maybe a good real estate attorney in your area to verify what the seller's obligations are if both of these issues come to light and what your obligations are also.
This is a buyers market and I'm sure there are many other properties with more accomdating sellers
Even if you agree on a price and all contingencies.
Most contracts will also allow the seller during repair negotiations to back out of the contract and not to reduce the projected sales price if it doesn't appraise. Which means you've spent money on inpsections and appraisals if after all this they won't repair and reduce.
I would suggest you speak to your agent and maybe a good real estate attorney in your area to verify what the seller's obligations are if both of these issues come to light and what your obligations are also.
This is a buyers market and I'm sure there are many other properties with more accomdating sellers
- SoCal_Engr
- Contributions:5667
Read your latest, and your other posts (assuming same property).
Quite frankly, it sounds like the seller may be in a position where they need X to get out of the house, and may have already decided it is a "sell or walk" decision. Either way, it also sounds like you believe an appraisal will be a deal killer vice a real negotiating tool.
Sounds like it may be time to find another property.
Quite frankly, it sounds like the seller may be in a position where they need X to get out of the house, and may have already decided it is a "sell or walk" decision. Either way, it also sounds like you believe an appraisal will be a deal killer vice a real negotiating tool.
Sounds like it may be time to find another property.
- DavidPlatt8
- Contributions:9
I never thought of the fact that " Im look to eager" to purchase( I have another child on the way)...the smart thing to do is just back off...in trumbull county all offers are subject to appraisal, and subject to septic inspection( the actual request for the quote is in the offer.....being that they don't live there, and still make a mortgage payment then they will have to live with it longer then think about it...the big mistake I made, was I fell in love with the place
- SoCal_Engr
- Contributions:5667
Not to mention the REA only gets paid if the place sells. If it goes into foreclosure...DOH! So, walking away from the deal could encourage their REA into getting "creative' to get the seller to "see the light and make a deal".
However, if they countered at $125K and you're looking at $110K and then evaluating cost of septic repairs? Well, a $15K delta is more than 10% of the last counter, so it sounds like there's a lot of ground to close.
However, if they countered at $125K and you're looking at $110K and then evaluating cost of septic repairs? Well, a $15K delta is more than 10% of the last counter, so it sounds like there's a lot of ground to close.
- DavidPlatt8
- Contributions:9
Actually short sales have been 10% of the sales last year; and short sales are pretty simple in approach.....appraisal(or list price whatever is lower)..subtract the septic, subtract repairs, and closing costs and that is usually the offer to be accepted....therefore patience could pave the way for a golden opportunity..I actually thought about that in the beginning, and that I may be able to prevent that, but then again that is not my call, and they have the right to protect their credit, and choose as they see fit.....but nobody wants a foreclosure to take place...and considering the PMI rates are drastically increasing, I really don't either.....lol....I never considered looking at the agent from that point of view, but they don't benefit from a failed negotiation either so.....I really appreciate the input, learned a lot!!
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