Home Buying in Phoenix>Question Details

jacky_Home b…, Home Buyer in Phoenix, AZ

Buying and negotiating a house..

Asked by jacky_Home buyer, Phoenix, AZ Sat Dec 15, 2012

I made an offer to buy a house and when the offer was accepted seller told me he will not spend anything on repair, which we accepted now, the cost for repair 2 % cost of the house, is this normal, Sometime i think my agent is trying to push instead pushing the seller. Also we never negotiated the actual price for the house, need some honest answers on this.

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If the Mona Lisa were on sale for $100, you wouldn't care whether the frame was damaged.

We don't know what the house is worth, but not every transaction has a lot of negotiation. Sometimes, it's a great deal as is, sometimes it's not. If I were your agent to buy the Mona Lisa for $100, I'd be pushing you, and not the trustees of the Louvre. Hard. I'd be beating you with a stick!

If you can find a better deal elsewhere, walk away. If you can't, then . . . maybe you should take it?
0 votes Thank Flag Link Sat Dec 15, 2012
You really need to sit down with your agent and/or their Broker to have this discussion. We, as outsiders, would be speculating, at best, since we do not know any of the particulars of the transaction. Make that appointment ASAP and good luck!
0 votes Thank Flag Link Mon Dec 17, 2012
Really, these are questions you should ask your agent and without having specifics which only you and your agent have, all the responses are worthless. If you're not sure about your agent, contact their broker. I hope it works out. All the best!
0 votes Thank Flag Link Mon Dec 17, 2012
You never negotiated the actual price for the house? Do you have an executed contract on the home? This should have the sales price on it. Your negotiations happen BEFORE you execute the contract, especially if they said up front they won't do any repairs.

If you have questions that you don't feel your agent is giving you a straight answer to, you need to speak with their broker and find out more information. If you can't speak with their broker (or they are the broker), you may need to speak to a real estate attorney for some help.

Best of luck

Brian Rayl
B&B Realty Group - Keller Williams Elite Dallas TX
214-601-4192
Brian@Rayl-Estate.com
http://finddallashomesforsale.com
0 votes Thank Flag Link Sun Dec 16, 2012
That is a discussion I would certainly have with your agent. Not knowing what was discussed during the buyer consultation it is hard to comment about another agent.

I can speak for myself: I have a discussion with my buyers about expectations. We discuss the market and how we need to go in and put offers in on properties.

On this specific property where does the value lie? Did you offer on the low end knowing it needed repairs or did you go in without having all the facts.

Are you financing the property or paying cash? Where you aware of the issues prior to putting your offer in or was this discovered during the inspection period. Is the property bank owned, traditional, short sale or flip.

All these can contribute to what you can and can not expect.

I would certainly discuss any issues with your agent. I'm sure as a Real Estate Professional they sat down with you and discussed the best strategy to achieve what you want on home purchase.

Hope that helps.

Debbie Nieman
Real Estate Professional
Keller Williams Sonoran Living
602-799-5239

diverdebi@cox.net
0 votes Thank Flag Link Sat Dec 15, 2012
It certainly depends on the house. Each home is different in the repairs that they do or do not need. Did you have a home inspection completed on the house?
0 votes Thank Flag Link Sat Dec 15, 2012
Does the price of the property reflect the condition of the house? Regardless of the 2% repair cost, how was it listed -- as a fixer upper? Handyman special? Does the price take into consideration what comps in the are are selling for, and is the price less than comps due to the condition of the property?

Seller may insist on no repairs, but some lenders, especially FHA, may want some things done before they approve the loan. Typically the repairs may be safety/hazard issues. If that's the case with your purchase, the seller may choose NOT to repair, and in which case you may want to look at 203K type loans to finance the repairs, etc.

But think of the current market value of the property IF it is in good condition and how it compares to other properties in the neighborhood. Are you paying significantly less because of the condition of the property? Are you willing to undertake the costs as long as you get the property at a certain price?

Have an honest conversation with your realtor, and share your concerns. Nothing can be gained without clear communications between you. Don't let this doubt and dissatisfaction fester. Your realtor works for you....but you need to talk.
0 votes Thank Flag Link Sat Dec 15, 2012
Listing to your question, several things are evident:
You are making the decisions, but holding your Agent responsible.
You did not go in to the Offer with all the facts; Condition, Repairs and Market Value.
There is no "normal" cost of repairs.
0 votes Thank Flag Link Sat Dec 15, 2012
You couldn't have an accepted offer unless you have and agreed upon price and terms. Many homes are sold as is in today's market, but you should be able to cancel after you inspect if you don't want the home due to something you found in the inspection. I don't have any idea what you mean by the repair is 2%... It doesn't sound like you are purchasing a home how it is normally done, or maybe you are just a bit confused. The best thing is to talk to you agent and let him know you are not completely understanding what is going on.
0 votes Thank Flag Link Sat Dec 15, 2012
Jacky,
Your agent would probably go through the offer price and terms with you. If you made an offer, your offer has a price. After your inspections, if you have discovered that the cost of repairs is higher than what you would like to accept, you can request one of 3 things: (1)the seller to complete the repairs, (2) cancel and receive your earnest money back or (3)accept the property without the repairs.
Web Reference: http://www.talktosteffy.com
0 votes Thank Flag Link Sat Dec 15, 2012
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