Posted on 04/24/2020 9:37:55 AM PDT by CaptainPhilFan
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.
That is terrible news. Why would my RE Agent and lawyer let this go ahead?
We weren’t told about the LLC and package deal until weeks later - as an aside, off-hand remark by our realtor. As if it’s no biggie.
Thank you for the insight, though. I appreciate the lesson.
After you described the situation, I say pocket the earnest money and fire your agent.
Nor any kind of expert but, generally,if I price a thing to go and I start getting any kind of runaround I move on fast.
Seems like you and I are the only ones on this thread who knows that CV19 has done boogered up the Real Estate Market.
All these other blowhards stating “fire your agent”... “start over...” may have been good advice 2 months ago.
But now? That’s bad advice.
Under normal circumstances I would be fine with delays from the ChiCom Flu screwing everything up.
BUT on top of that is a screwy deal that I wasn’t informed of when I accepted the offer. This is not a regular person wanting to buy the house with a regular mortgage.
That was my first reaction, but I have also heard that buyers and sellers agents often agree to split the commission.
Yes, whatever the split is, the 2 agents share the commission.
In this case, the buyer IS a real estate professional - whether an Agent or a Broker, and I believe he has ties to the banking world, too.
We just sold our house last July. Our buyers were having issues with their buyers. They did not make our sale contingent upon the sale of their house. So our agent informed them that after one week that it was going cost them an additional 300 a week. The motivated them. In fact, we ended up closing 3 days early. Our agent just knew how to handle their agent as well as all the other situations. If you have a good agent they are worth the money.
Thank you, that is more than reasonable.
If I can keep my head straight and not let my temper loose I will give this a go.
Your agent is terrible. Tell your agent to contact the second offeror and let them know the house is back on the market and do they want it. If your agent refuses to do it, have them put his or her broker on the line. If the broker gives you the runaround, tell them (in writing) you want the $2000 deposit and you will get another agent.
You need to put the pressure on them NOW. I would also highly recommend that everything you say to them you write a follow-up letter. Pretend that the letters will be read in a court of law, so be nice, but firm.
Real estate agents, on the whole, are the laziest, stupidest, and greediest group I have ever run across (there are exceptions, of course).
The only thing that makes them move is the possibility of losing their commission.
Doncha know, Real Estate only goes up, never goes down, impervious to economic and societal calamity??? And if it does fail, the gobbmint just bail you out, give you free money?
The downturn of Real Estate right now is not as bad as 2008/etc, but in 6 months it might be. Imagine how many of these currently unemployed folks are not going to be able to pay their mortgage? Or, perhaps the banks will soon accept photocopied bills or monopoly money?
Dang, and think about commercial real estate? 80% of bars and restaurants will be toast after another month or so. And the pain/cost/grief of opening a new restaurant along with lack of demand will keep the industry withdrawn for many years to come.
But hey, “if it all just saves one life...”
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.
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Had this happen to me once.
Had a property to sell. I wanted to divide it into one 6 acre lot with haouse and five 3 acre tracts for other houses. Realtor said county wouldn’t approve. One months after we sold it our realtor had signs in the ground on all the tracts divided out. Realtor, buyer and county commissioner all in on it. I seriously considered trading some satisfaction for freedom. My children were young. I chose wisely.
You said in post 1 that you are paying two mortgage payments.
If you now believe that the deal you signed two months ago isn’t gonna happen, then fine. Walk away. Pocket the $2,000 and use it to pay past, present and future mortgage payments. And get a new agent.
I hope I’m wrong. I really do. But I think back to 2008 and we all know what a disaster that was. COVID 19 has already had an effect on real estate. And it could get worse.
Good luck.
So, you gotta wonder if this squirrely deal is better than trying to start over.
There is no deal. Take the 2k and find a new broker.
I doubt the first deal is good/doable, and the bank may refuse to accept the purchase price for sake of collateral at this point.
Most especially if the deposit is in your broker's bank account (not sure about NY).
Under the theory of dealing yourself some cards to expedite a disposition, might consider planting a sign announcing the property is back on the market (you may also get some decent backup offers). Guard against taking any steps that could be interpreted as extending the contract time or any broker listing duration.
Otherwise, would strongly consider directing your attorney to advise buyer by letter that it has defaulted and by cc direct your broker to cancel the listing and forward to you the amount of the deposit (if applicable).
Good luck.
1) Is your agent a Buyers Agent? If not, you need a new agent. If yes, you need a new agent.
2) did your contract have a “ time is of the essence’” stipulation in closing...or any other part of the contract? If so, see #1 If not, see #1.
3) get an attorney and get this contract enforced giving the buyer a deadline to perform ( time of the essence) or declaring buyer default. Then get a signed release. Hopefully You have some deposit money to use to get his cooperation. In most contracts he loses the earnest money if HE does not perform.
4) get an attorney and specify in any future contract that he is handling settlement.
Good luck
You may have a suit for damages against your agent and his broker.
I’m in the industry FYI. The appraisal was on April 1 and the closing was set for March 30. You probably mean it was inspected, not when the lender got the written report, which would be a few days later if the appraiser wasn’t swamped with work. Some thoughts.
1) The fact the appraisal was done after the initial closing date shows something is up with the buyer’s financing. But it would seem he got it straightened out or an appraisal would not have been ordered by the lender.
2) The lender usually has everything they need to close by the time they order an appraisal. Ask your current loan processor if you are currently getting a mortgage for your new house to get a second opinion on that.
3) The current covid 19 is disrupting the market. Why not give the guy 2 more weeks before pulling out?
Realtor for thirty years. Did buyer obtain financing (a formal letter of commitment) within the thirty days as stipulated and were you given a copy of that commitment? Is the purchase agreement signed by the buyer as the principal of the LLC? What is the time line of the agreement, when does it expire? Is the buyer a Realtor and if so, was that disclosed to you in the agreement? It sounds to me like there is a lot wrong with this agreement and a lot of mistakes have been made. If so, I am stunned that your realtor has said. “Sit tight, he really wants the property “ “ we’re getting closer” the only concern your realtor should have is YOU the seller and their client in meeting the terms of the agreement as to your benefit.
I’m looking at a larger home nearby (Bakersfield, CA).
Here’s what I found; it’s a buyers market and I will have no problem securing the new purchase..........they have sold it me at $25K below marked, but I’m having real difficulty selling my existing, yeah I’m stuck with 2 payments and you can bet I’ll be discounting mine greatly.
For buyers the rates are low and their bargains out there.
In writing. In real estate everything must be in writing.
With time of the essence. No more jerking the seller around.
With a letter from the lender stating the status of the loan application.
ALWAYS stick to contract dates. Always.
If 30 days goes by and the guy hasn’t closed, keep the earnest money, and provide a formal notice of the action. If he wants to continue, then he needs to provide a new contract and more earnest money. If he closes, then he can have his original earnest money as part of the deal.
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