Posted on 04/24/2020 9:37:55 AM PDT by CaptainPhilFan
First off, I pay $25 a month to support Free Republic and maybe that gives me one free vanity a month :)
Second - I don't need anyone telling me that free advice is worthless so go away if that's you.
Third - I appreciate the wisdom and experience of FReepers everywhere and I know that in between beebers and manatees will be some genuine help.
Thank you.
In early February we listed a property for sale and got an offer in 2 days, made by a real estate professional.
He gave a deposit of $2000.
We were NOT told at that time that he was buying this property as part of a package deal of financing, AND he was GOING to be putting together an LLC for the deal.
"Conventional Financing" was stated.
A tentative Closing Date of March 20 was the deadline and he had 30 days to obtain a mortgage.
We had a second offer come in the day after the first was accepted that we didn't take because of the first.
It's been stall after stall now, with our lawyer and real estate agent only saying "we're getting closer" .
The appraisal was only done on April 1st and we still don't know what happened with that.
We priced the property at least $10,000 below what it should have been, for a Quick Sale, and we now are paying 2 (or more) mortgage payments we would not have been paying if the deal had gone through honestly, because of whatever BS is going on with the buyer.
Our agent is telling us to "sit tight because the guy really wants the house".
I asked about signing an extension of time because we're past the contract date, but was told that is hardly ever done and it's not necessary.
I just sent a truly pissed off email to Lawyer and Agent to blow off steam, let them know I'm angry, and to fire a warning shot that we may kill the deal and start over if this isn't resolved. .
I'm wondering if I am being an unreasonable bitch, or if we're getting jerked around.
Any thoughts? I am not a real estate nor finance professional so maybe I'm just being a pain in the butt?
Does this sound kosher?
Following since I’m about to put property up for sale. Can’t speak for anyone else, but I would have done the same thing (your email). Please keep us updated.
Fire your agent....Your agent is supposed to work for you and not give a hoot about the wants of the potential buyer who is not following through in a timely manner...the agent should ask you what you want and then go teeth first after the other side...or you are being robbed of services due you.
Since he’s already past your contracted deadline, you can keep the earnest money.
If you want to let it go through, give him a written notice that you intend to pull out and keep his money if he does not secure financing within X time. You don’t even need to do that, but that would be the nice thing to do. Make it 5 days or something and be done with it.
Get a new real estate agent.
I’d sit tight and hope this deal works.
Now is NOT a good time to sell a house. NOT a good time to start over.
Yes, mortgage rates are dropping, but so are the pool of qualified employed buyers.
If the mortgage crisis of 2008 comes back - even if only half as bad - we will see real estate prices fall.
Sit tight. Hope your deal comes through. You do not want to start again.
Thank goodness you had a lawyer.
Oh, wait....
the buyer has not performed
change agents and get out this deal
Welcome to Real Estate
Whatever your closing date is, toss it out the window, I never had one where I closed on that date.
Lawyers, agents, banks all take their own sweet time
But they should give you a new date to shoot for, the lawyers should know where in the process they are and relay that message to you.
Most realtors I know say location, location, location.
Seems to be a missing detail.
. It's been almost 90 days. What was the agreement when the deepest was made?
I used to sell commercial real estate and residential real estate. Hopefully that small deposit will pay some of your attorney fees.
My assumption is that you are being jerked around. The way to handle this sort of thing is as follows:
The deadline comes and goes with no deal? You have 2k in your pocket and it’s time to find another buyer. Period.
See if that other buyer is interested.
End of Line...
I am a real estate attorney and an investor in residential real estate properties. I can tell you from experience that he is not going to get a conventional mortgage if the property is owned by an LLC. That would be the case even if only your property were to be owned by the LLC. With multiple properties in the LLC, there isn’t a shot. There is a reason you are being jerked around. If I were in your shoes, I would move on.
Good one. :D
We just went through something similar but with a standard buyer. It wasn’t their fault it got delayed, but we all had to resign an extension.
Same with the house we bought. The mortgage company dropped the ball and it didn’t look they were going to have everything ready by the closing date. I was told if we didn’t close that date, we would have to all sign an extension.
Fortunately they got it done. But the mortgage company was still trying to verify my employment while we were signing the papers. I will give you one guess what country the loan officers were residing in.
The real estate market realistically speaking is now somewhere between 15-30% lower than what it was pre coronavirus. That factors in asset declines, ability to obtain financing from a bank.
So, you gotta wonder if this squirrely deal is better than trying to start over. Your agent knows that if you fire the prospect, his/her chance of being paid goes down. R/E agents rarely have the same interests as their clients....
I agree you are getting jerked around by your agent who more than likely made a deal with the buyer. I would get a new agent.
They already broke the deal when it was not disclosed special financing was being obtained. You can keep the $2000.
I would be really mad at your agent. They work for neither you or the buyer but only care about themselves and their commission.
I bought and sold houses back in the 1990’s. RE agents make used car salesman look like saints
What part of the country?
As some have mentioned, this is a tough market for sellers....although...in some areas, like parts of TX, sales are still doing well.
I agree with others that your realtor is NOT doing you any favors.
If you do end up cancelling the deal....remind ALL of them that Time Kills All Deals.
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