should I stay or should I go?

[larrylujack]

I am in escrow on an around 1.5 mil custom house on an acre+ (don’t want to give it all away) in a very nice area around san diego. I am getting push back from the seller re my request for a 25k credit for repairs revealed via professional inspections. It’s incredible that this is the case given that the home is vacant and there was no disclosure of any of these issues in the sellers disclosure.

It’s a very nice (1 story) floorplan and this is not a 92127 location where there are tons of distressed homes for sale, and these homes went for around 1.8-2.5 mil at the top of the market. The home is also in a good location for my family, and I have invested mucho time and $ to do the necessary diligence on the property, otherwise I would have bailed already.

Anyway, I am almost about to cancel since the sellers now plan on getting a “second opinion” on some of the issues raised in the pool inspection!

The reason I post is not for advice, but that this seller’s attitude may reflect the higher end market and why there has not been a much of a decrease in the asking price for this price of homes.

[no_such_reality]

It’s a buyer’s market and you don’t need that BS.

Frankly, take your time, find a better place for the same or less.

[NotCranky]

If you are basing your demand on inspections, I believe it is appropriate for them to ask for a second opinion and for you to be open minded about it. You had the right to just walk but you said “I want the house and 25K”. It ‘s reasonable for them to suspect an extortion is is occurring and verify.(I am not saying that is what you are doing). I wonder if you walk, without letting them get a second opinion, if they could refuse to give your deposit back for specific performance reasons? Haven’t been through this before so I hope there is more discussion on it. I know if it happened to me or my client I would find out all the particulars.

[larrylujack]

I wonder if you walk, without letting them get a second opinion, if they could refuse to give your deposit back for specific performance reasons?

First of all, “they” don’t have the deposit, escrow does. And, not worried about that, there is no legal requirement for a buyer to accept a second opinion from a seller. if the opinion I got was in good faith and I asked for repairs or a credit based upon the reports, I can walk if the seller refuses. Consequently, I can cancel if the seller refuses and escrow sends me the earnest money deposit, end of story. if the seller contests, then I file a lawsuit tangling up title to the property. think they will do that? not likely.

[NotCranky]

Larry the seller has to release your deposit.

“then I file a lawsuit tangling up title to the property. think they will do that? not likely.”

I wouldn’t be so sure. You are dealing with all kinds of people in the world. I have never had this particular situation but I am aware cases where a stubborn seller gives a buyer hell. What would you do if the seller requested mediation?

[larrylujack]

I wouldn’t be so sure. You are dealing with all kinds of people in the world. I have never had this particular situation but I am aware cases where a stubborn seller gives a buyer hell. What would you do if the seller requested mediation?

I am sure. Although what you say is true in theory, given the circumstances is unlikely since I know this seller needs to sell. I would say no to mediation since there is nothing to mediate, the issues I dsicovered were NOT revealed but knowable by the sellers and were not disclosed, care to mediate that? No way the sellers would win.

The odds of someone haggling over earnest money and risk tying up the property for months is small, but I appreciate you mentioning and have duly considered the possibility, but am not worried since they will have not performed in accordance with buyers request for repairs and other reasonable requests.
the bottom line is in escrow, a buyer has certain rights that allow them to cancel.

[NotCranky]

Good luck to you.

[drunkle]

not advice but uneducated commentary:

you’re asking 25k on a 1.5 mil property. the owner/seller is balking. one or both of you are being really dumb.

if you’re asking for exactly the estimated value of “repair”, you’re asking for relative peanuts. why are they balking when they “need to sell”?

otoh, if you had asked for 1% of the sale price for repair costs, then you have something to fight over. but… less than a quarter percent? if it were a 250k condo with 25k in repairs, ok, but… a 1.5 mil sale?

come on. the upper end market is not being held up by nickle/dime buyers/sellers.

[larrylujack]

if you’re asking for exactly the estimated value of “repair”, you’re asking for relative peanuts. why are they balking when they “need to sell”?

I dunno, suspect its principle? Not a nickler for sure, cost me alot to get to this point, but you are right, it is peanuts, but I guess at some point it becomes principle between both parties which dig in and then it becomes illogical and then it unravels. we will see.

[eyePod]

I’m with Rustico on this one, Larry. From the tiny bit of information you offered it doesn’t seem to involve “principle”. What in the world is wrong with a second opinion? What in the world is wrong with paying 1.525M instead of 1.500M (max difference)?

[HLS]

If seller is paying a full commission of 6%, it’s $90K.

I’ll bet that the agents might split that $25K cost and take $65K to share instead of losing the deal completely
….don’tcha think ??

Or if seller offers $10K or whatever, it can all be worked out…. Can’t we all get along ??

If it were my deal, I’d make sure that it closed.
65 potatoes is better than no potatoes.

[drunkle]

“I dunno, suspect its principle? Not a nickler for sure, cost me alot to get to this point, but you are right, it is peanuts, but I guess at some point it becomes principle between both parties which dig in and then it becomes illogical and then it unravels. we will see.”

honestly, i think that you’re the one holding up the show. your appraisal or inspection costs have to be trivial in comparison… the seller is already taking a bath at this point, a pittance of a credit request compared to the large percentage sale price cut is really cheesy. a larger request might have been less offensive, something to haggle with, but…

not to mention, you would have incurred costs for due diligence anyway. right?

perhaps maybe you’re just looking for an out? you see the cliff looming ahead and your sensors are screaming “Eject!”?

[NotCranky]

HlS, I know this sounds crazy but depending on the situation I wouldn’t capitulate. I have had people try that in a case where it was indeed extortion of the agents and both of us said “no way!”. We got paid, but that really isn’t the point.

I think in 90+% of cases the seller will let Larry cancel with no hassles. The fact that they came up with this suggestion of a “second opinion” might mean that they have something to follow it up with in case Larry doesn’t perform. There are problems with the contract over this contingency and this case proves it. I think it is unfair to sellers..I know…… “boo hiss”. Some people hire an inspector in advance and make reading and approving of the report a condition of the offer. Smart thinking.

What I didn’t like about the tone of this thread after reading the first two posts was that any random seller deserves to take abuse.This particular seller isn’t a demonstrated case of someone deserving abuse.

Please let us know how it goes Larry.

[Eugene]

It’s a buyer’s market, in all likelihood you’re the only bidder on the property, and he’s bluffing to make you pay more than he’s willing to take for the property.

Pull the offer, resubmit a new one for $50k below previously agreed price with 72 hour deadline. If it expires, go away and wait.

[SD Realtor]

Larry it is almost comical but I have seen 7 figure transactions go south for spats of thousands of dollars. Usually it is because of underlying emotion rather then the economics of the situation. No matter what either party says, they always both fall back on the same line, “it is the principle of the situation” or something of that nature.

If this is a home you really do love and will be staying there for a long long time then between all parties and agents involved, somebody should just say “let’s get it done.” HLS really captured it right. Alot of people are making alot of money.

Now regarding earnest money, yes escrow is holding the deposit but as indicated by Rustico, escrow will need to receive authorization by both parties to cancel escrow if you cannot reach a resolution. Similarly escrow will also need to be authorized by the seller to release the entire deposit back to you. If there is a dispute (such as the seller keeping part of the deposit) then there are avenues you can take to try to retreive it. Consult with your realtor and they can discuss your options.

BTW it is certainly well within the sellers right to ask for a second opinion for inspections that you have had performed. Again, consult your realtor on this request. Perhaps having your inspector present while the sellers inspector performs their own inspection would be an amiable way to make sure everyone is on the same page?

SD Realtor

[Alex_angel]

1.5 million and you guys are bitching about 25k? Get real.

[larrylujack]

1.5 million and you guys are bitching about 25k? Get real.

There is actually more to the issue than the repair credit request, but I am willing to let this other issue go, which is why I did not mention it in my original post.

If you look at all the facts, some of which I have not mentioned, I don’t think I am being unreasonable.

[NotCranky]

“1.5 million and you guys are bitching about 25k? Get real.”

Think Alex. If the seller has not so much equity, 25K matters. If Larry was counting on a 25k cash credit to escrow after dumping some percentage of his savings into a down payment then 25k matters. And then there is the principle of the matter in there somewhere evidently.

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