I will give you one very important piece of information though, since no other licensed agent who has done so as of this writing: If the Seller's agent put in an Offer on your behalf, that agent is now by definition a "Dual Agent". By law, this had to be disclosed to both you and the seller in writing. And, both you and the Seller had to agree to this in writing. If this agent did not make this disclosure, you and the sellers should report this unethical behavior to the Commonwealth's Board of Registration for Real Estate Agents and Brokers. I have provided a link below for your convenience - while hoping that this was not the case.
So if you had used a Buyer's Agent you would have known the value of the property prior to the appraisal. They would have known the required inspections and who would be a good choice as an inspector.
There are also Buyer Agents who will rebate a portion, and sometimes a significant portion, of the "cooperating fee" back to the buyer. Don't call me; I'm not one of them. But you could have saved a lot of time, money, and aggravation. It shouldn't cost you any more to use a Buyer's Agent and it will probably cost you less.
I think perhaps you may have misperceived the role of a buyer's agent to be that of a taxi driver and order taker.
So now what? Working with your lender, you could probably have a second appraisal. Then it is up to the seller to decide if they want your offer or not. Why would anyone pay more than the property is worth? The seller will run into the same problem with any other buyers using a lender.
I hope this works out for you and I hope you can see the value in using the services of an experienced, real estate agent who follows the Realtor Code of Ethics. You may need to buy or sell again some day.
I thought as a Sellers Agent, we would be a dream come true, seeing they were solely making the profit. Little bits and pieces come out here and there so its been an inconvenience on more than one part of getting information because you are not told til the end what you actually need or are mandated to have, like a Rodent/Termite Inspection for a VA loan. I think that the Appraisal could have come at a better time as well so that you don't go through a whole P&S battle only to find out the property isn't worth its value in the long run. Everyone makes mistakes but this one was costly adn very time consuming to us if we lose the sale. We are protected all around with contingencies so that is the least of our worries..
I'm sorry to hear that you have to go through this. Much of this could have been prevented if you had an experienced buyer's agent working for you. An experienced agent would be able to perform a market evaluation of the property you are purchasing to make sure that it appraises and you are not overpaying.
If the seller is unable to sell, I recommend moving on. There are plenty of homes out there.
Paul Shao, REMAX
I know your in a world of hurt if it stays on this course and I can only send my best wishes that it works out.
If you need help on this or any other real estate issues, feel free to call me at 978-335-9092 I will do my best to help.
Jamin Jones - Century 21
I also agree with another comment on here that you did not have proper professional legal representation because the Bank's Attorney is only concerned with the Bank - not you. So, in an attempt to cut costs, you paid a very high price, my friend.
Before I take any buyer client to see any properties with me, I sit them down or a complimentary, buyer counseling session in which I explain the entire process from Offer to Closing. I provide a list of ancillary professionals whom I know to have the same high ethical standards that I have, and who really know what they are doing (lenders, attorneys and home inspectors). I write the Offer with my buyers' best interests in mind, and manage the entire process from start to finish to ensure that nobody drops the ball.
I do hope that the next time you decide to buy a property, that you engage the services of an Accredited Buyer Representative who is also a Realtor so you will have someone working for you that has the education, experience and ethics to ensure that nothing like this happens to you again.
Realtor thinks Appraisal is B.S but he doesnt hold title as an Appraiser. They can start from scratch but I see it as more loss of time and if the market doesnt recoup and fast more loss of money in the long run. I know the Electrical has to be brought up to code before a sale. Waiting on the Lawyer as well as the Bank to call in the am...thanks everyone for your opinions and answers. I don't believe the Seller will negotiate as this was a process of negotiating already from a $40,000. price drop and then some when a final price was obtained. Some people just don't want to realize the Market is not what it was 5-7 yrs ago and when it will be that again...
b. The realtor (listing agent) or real estate office representing the seller, since you do not have a buyer's agent could be on both sides of the transaction, check the commission paragraph in the P&S (name or Real Estate office and % or amount, if it is more than 2.5 or 3% the total commission)
c. As far as, what is next, you should not pay more than the appraised value.
d. What happens if the seller is not willing to negotiate? Walk out or not,
that will be something that you will have to decide, if it comes down to that.
Best of luck,
If the seller is serious about selling then the appraised value is what they should receive. Obviously they don't have to agree to that, but then you don't have to buy it and they will have difficulty selling for a higher price unless they find a cash buyer.
It doesn't sound like getting things done on your own in a timely manner is working. It still may not be too late. The fact that you are seeking answers here shows that you realize there are Realtors who could have been of help.
Appraisals frequently come in lower than agreed upon sales prices.
A good local professional can help navigate a tricky sale like this. It may be too late at this stage to get an agent involved.
Buying with a va loan is difficult enough to do so without representation is really setting yourself up for a headache.
I am so sorry you have to deal with this situation.
Who wrote the offer for you? Does it contain a mortgage contingency date if so are you within it?
What other contingencies are included if any?
Do you have an official denial letter based on appraisal? If so you need to supply it to an experienced real estate attorney and ask for their advice quickly to protect yourself as best as you can.
Your options are limited by your contingencies.
Best of luck!!
the info that you provided are very limited:
Your other option is to walkout of the deal
So I understand, you are using the Listing Agent as a dual agent or are you buying directly from an owner?
Was your submitted offer subject to appraise at agreed price or not?
As far as the right thing to do, if you want to proceed yes.
I know that you are doing this on your own, but a buyers agent won't cost you anything. You are doing the right thing though. You are 100% correct in giving a new offer for less. The only other option is to pay the difference out of pocket. Also, have you had your inspection yet? That can also help with negotiation if items show up during the inspection.
Let me know if I can help. My clients actually get a 25% commission rebate.
Best of luck.
At this point, you really should talk to an Attorney and see if there is anything you can do. Good Luck!
As for the right thing to do.? You need the mortgage to buy the home. An apraisal is meant to protect the bank from lending on an overvalued property. It can also protect you as a buyer. There is no shame in not willing to over pay for a property, but you need to consult a Real Estate attorney to make sure you are not breaching your contract in any way.