Home Buying getting me stressed

[KKJohnson]

We just put a cash bid in on a house for my mother and sister! I am so anxious with the waiting to see if the seller accepted, its a flipped home that they bought in March so we offer 15k under their asking (kinda sketchy area) but with a 2 week close. My mother really needs this as they are both on a fixed income and it will help them with cheaper household bills, the ever increasing rent prices are just too much for fixed income individuals.

 

[redwood66]

What a cute house! Good luck!

 

[prs]

Start thinking about what you are going to do if you get a counteroffer.

 

[KKJohnson]

Start thinking about what you are going to do if you get a counteroffer.

We can give full asking but the area just doesn't support it, there hasn't been a house sold over 93.5k in the area for the last 6 months. So we offered well over the market value but since we know what they paid we also considered how much work they put into the place. When I said the area was sketchy people didn't even what to get out of the car (my realtor and another couple looking at it after us) I am not sure how many showings the place has had but I know they are planning an open house this Saturday.

 

[KKJohnson]

They came back pretty arrogant, saying they wont accept anything under list but then countered at a lesser amount. We countered in the middle of what we offered and what they were asking and pay title, we shall see.

 

[prs]

If they don't accept your latest offer, you will have to decide the maximum you are willing to pay for the house and hold firm there. Your all cash offer and close in sixty days is definitely worth a discount from list, particularly in a poor neighborhood where almost all buyers will be struggling to meet loan requirements.

You are now in a negotiation, use any and all tactics to get your deal done at the best price. If you threaten to walk away, the real estate agents will be motivated to get the deal done. Likely time is on your side. IME sellers generally become more motivated once their house has been on the market for sixty days.

Good luck, and remember there will always be another house come along, if this seller proves to be stupid.

 

[hypermom]

I agree an all cash offer is very valuable. Hope it works out. It’s a cute house. But be willing to walk away—cash offers don’t come along every day for sellers.

 

[GliderPoss]

Cute house, fingers crossed for you. Definitely stay firm on your offer!

 

[mrs-b]

If the area is so iffy that some people wouldn't even get out of their car to check out the house, are you sure that's where you feel comfortable having your mother and sister live? Facilities vs price is always a difficult balancing act - I hope this works out for you all.

 

[KKJohnson]

If the area is so iffy that some people wouldn't even get out of their car to check out the house, are you sure that's where you feel comfortable having your mother and sister live? Facilities vs price is always a difficult balancing act - I hope this works out for you all.

Yeah I actually spoke to my mother prior to making the bid, I wanted to see how she would feel about it. They currently don’t live in the best area either so she said they can handle it, I figured as much (didn’t grow up in the best areas either, I use to carry a shank to school in elementary to give you an idea). Neither my mother or sister can drive and the house is 2 minutes from a bus stop and 5 minutes from grocery store, for them it’s location location location even if the neighbors are what they are.

But the sellers agent hasn’t said anything so I’m thinking they are not going to accept and that is fine. On to the next!

 

[mrs-b]

Yeah I actually spoke to my mother prior to making the bid, I wanted to see how she would feel about it. They currently don’t live in the best area either so she said they can handle it, I figured as much (didn’t grow up in the best areas either, I use to carry a shank to school in elementary to give you an idea). Neither my mother or sister can drive and the house is 2 minutes from a bus stop and 5 minutes from grocery store, for them it’s location location location even if the neighbors are what they are.

But the sellers agent hasn’t said anything so I’m thinking they are not going to accept and that is fine. On to the next!

I really wish them both well, @KKJohnson; relocating in general is such a stressful thing. Hoping they find the ideal home, whether it's this or something else!

 

[Daisys and Diamonds]

We can give full asking but the area just doesn't support it, there hasn't been a house sold over 93.5k in the area for the last 6 months. So we offered well over the market value but since we know what they paid we also considered how much work they put into the place. When I said the area was sketchy people didn't even what to get out of the car (my realtor and another couple looking at it after us) I am not sure how many showings the place has had but I know they are planning an open house this Saturday.

i live in a neighbourhod like that
its not too bad really
its nice of you to help your mom out
is she ok in this kind of area ?.
we are, but my sister for instance wouldn't be

house buying is so much stress so you have my sympathies
good luck getting it

we had to fight a property investor for our's but the guy who sold it once lived in it with his family before it was his rental so we got it because he liked the idea of a *family owning it again, he had alot of trouble with the tennants
*(our family = a couple with a fur baby)

 

[Daisys and Diamonds]

Yeah I actually spoke to my mother prior to making the bid, I wanted to see how she would feel about it. They currently don’t live in the best area either so she said they can handle it, I figured as much (didn’t grow up in the best areas either, I use to carry a shank to school in elementary to give you an idea). Neither my mother or sister can drive and the house is 2 minutes from a bus stop and 5 minutes from grocery store, for them it’s location location location even if the neighbors are what they are.

But the sellers agent hasn’t said anything so I’m thinking they are not going to accept and that is fine. On to the next!

sorry i didn't see your reply
it sounds ideal for your mom then
when my mom moved to another city she chose a house in a bad area - my cop friend adviced aganist it
but after some big earthquakes mum's street was fine and she did well when we sold it when she went into a home
so i guess you can't write slightly dodgy areas off
i hope you get it

 

[KKJohnson]

Seller had their open house this past weekend and accepted our offer tonight, inspection is Wednesday so fingers crossed there isn’t any big surprises

 

[missy]

Seller had their open house this past weekend and accepted our offer tonight, inspection is Wednesday so fingers crossed there isn’t any big surprises

Congratulations @KKJohnson fingers crossed that everything goes smoothly during the inspection.

 

[KKJohnson]

I am so ready to walk away from this house, the estimated repair cost on the electric alone are 6k+ just based off the inspection report so I am guessing closer to 10k once a contractor starts but what makes me what to walk away is the selling agent. This lovely individual just so happens to be the owner of the property (which he didn't disclose nor has admitted to after a point blank question), I am wondering if he can be fined for this. Also this person isn't willing to adjust the price and said they would get back to us after the weekend about what repairs they are willing to fix, our contingency option ends tomorrow so we asked for an extension. He wanted another $100 to extend, I said no and that we will be sending a termination letter at 5 to which he then agreed to extend for $1.00.

The inspection report was 50 pages long, basically the house needs to be completely rewired and needs a new electrical panel. The duct work needs to be fixed as it is a mess, plumbing needs to be addressed (a/c condensation line is tied into the sewage vent along with low unexplained water pressure), mold in the kitchen but not terrible, outside there are some live wires exposed that need to be capped, windows need to be replaced (broken seals, nonfuncting locks, nailed or rusted close), bathroom tubs need to be replaced as the are repaired improperly, siding needs areas addressed, and my personal favorite 2 roof trusses are cut in half so the roof isn't supported property. The foundation and roof are ok.

 

[hypermom]

I’m sorry for the inspection report. Can you trust this person to make the appropriate repairs?

 

[pearlsngems]

It is highly unethical for the agent not to reveal up front that they are the owner of the property. This is not an honest person. What else are thy not being honest about?

https://www.nar.realtor/sites/default/files/policies/2008/PREP-Article-4.pdf

 

[KKJohnson]

I’m sorry for the inspection report. Can you trust this person to make the appropriate repairs?

Most likely not that is why I want to walk but my husband doesn't, at least not yet

 

[KKJohnson]

It is highly unethical for the agent not to reveal up front that they are the owner of the property. This is not an honest person. What else are thy not being honest about?

https://www.nar.realtor/sites/default/files/policies/2008/PREP-Article-4.pdf

I found that code as well (not as much detail as yours) but I just can't figure out what happens when they haven't disclosed. I did find out they can be fined $50.00 for not updating the MLS listing to contingency, showing they are under a contract.

 

[hypermom]

Most likely not that is why I want to walk but my husband doesn't, at least not yet

My husband and I had a rental property we were trying to rent years back and this potential tenant came in. I knew pretty early on this tenant was going to ask us to pay for everything—leasehold improvements to the sum of probably 20-30k. I told my husband to move on but he was determined to negotiate. When the tenant asked us to pay for his agent my husband then told the agent—I’m not his dad. So we were finally done with that one. I guess my husband thought he could make it work. We still laugh about—I’m not his dad!

 

[partgypsy]

I normally think that people freak out too easily what is in an inspection report, but that is a rather lengthy list! Unless he/she is selling as/is, they do need to address deficiencies before selling. If you decide to stick with it you will definitely need to check to make sure repairs were made as specified. Hoping things work out!

 

[Rfisher]

If the realtor didn’t disclose he was the owner, and didn’t admit to being so when asked-
How do you know? Just curious.
If that’s the case - there’s probably other known conditions of the house that’s not being disclosed.
Plus. It’s a flipped hone that I’m assuming they’ve done cosmetic work on. And it needs that much electrical work plus all the other stuff you listed? No thanks.

 

[KKJohnson]

My husband and I had a rental property we were trying to rent years back and this potential tenant came in. I knew pretty early on this tenant was going to ask us to pay for everything—leasehold improvements to the sum of probably 20-30k. I told my husband to move on but he was determined to negotiate. When the tenant asked us to pay for his agent my husband then told the agent—I’m not his dad. So we were finally done with that one. I guess my husband thought he could make it work. We still laugh about—I’m not his dad!

I was ready to walk when they didn't accept our amended offer with the inspection. I guess my husband still thinks it could pan out but I am very doubtful, oh well they have to learn lol

 

[KKJohnson]

If the realtor didn’t disclose he was the owner, and didn’t admit to being so when asked-
How do you know? Just curious.
If that’s the case - there’s probably other known conditions of the house that’s not being disclosed.
Plus. It’s a flipped hone that I’m assuming they’ve done cosmetic work on. And it needs that much electrical work plus all the other stuff you listed? No thanks.

I googled the LLC the home is listed under and it’s hilarious that the same name is listed as the sellers realtor, this isn’t uncommon if they flip lots of homes or rent them.



Also they bought the home in June, we got the list of “updating” they did and it’s like a handful of things. New water heater (not installed properly nor was a permit pulled to do it), new stove (that doesn’t work per our inspection), new bathroom vanity, new kitchen sink faucet, and some exterior soffit repairs. So basically this guy is looking to make 40k on a “flipped” home without putting any work into the safety repairs

 

[KKJohnson]

I normally think that people freak out too easily what is in an inspection report, but that is a rather lengthy list! Unless he/she is selling as/is, they do need to address deficiencies before selling. If you decide to stick with it you will definitely need to check to make sure repairs were made as specified. Hoping things work out!

I agree, most do and we actually didn’t freak about this list as we know we have the funds to fix it but we won’t pay what they want in order to do so otherwise we end up upside down on the property.

 

[LinSF]

Sounds like they put a lipstick on a pig, so to speak. Are you sure you want to keep dealing with this person, even enough to negotiate the repairs needed. I would absolutely walk away from 50 pages of repairs.

Good luck on this, its always stressful!

 

[KKJohnson]

Sounds like they put a lipstick on a pig, so to speak. Are you sure you want to keep dealing with this person, even enough to negotiate the repairs needed. I would absolutely walk away from 50 pages of repairs.

Good luck on this, its always stressful!

I do not trust them to do the repairs and I honestly think the house needs a good 30-40k to make it a nice safe home, I have already told my husband this and I am not sure if he is just getting caught up in the idea of fixing it up or what. If the seller doesn't fix things properly with a licensed contractor he is opening himself up to a lawsuit and combine that with the fact he already hasn't disclosed information to us from the beginning as he is suppose to, a judge would rule in our favor. Granted he could file for bankruptcy under his LLC and just start up a new one for $300.00

 

[ksage92]

Don’t walk away...RUN!

 

[KKJohnson]

I have scheduled to look at another property