Hi,

I hope that your situation has been resolved, and would love an update. I just got a notification of a "Thumbs-up" on this answer, so I read through it again.

I wanted to let you know my couple did close, they did not pay the per diem...and they are very happy with their new home. I hope you are too.

let us know?

Karen

I just came across this question today. I'm sorry, I don't come on Trulia everyday. I was just wondering if your situation worked out OK? Did you end up closing on this home? Was the house in Los Alamitos or in Rossmoor? I hope it did close, but I'm curious, was the seller a bank or Mr. & Mrs. Smith? Normally I only see harsh per diems on REO properties & not with a "normal" seller. Usually as long as you show a normal seller that the lender is in need of a couple more days to close, they'll extend. If it's a bank, that's a different story.

Anyway, I hope all went well & you ended up with the home you wanted.

emilyknell1@yahoo.com

Hi Dp2,

I'm doing it right now. I'm working with a young couple who originally agreed to a per diem of $100/day and then the bank dragged it's feet on getting us an answer on termite clearance. It took them 2 weeks to agreed and then they didn't do all that was necessary for the lender, so we had to change lenders. They only gave us a 5 day extention, and now they are asking for $250/day.

It's making the agent nuts...but I am not allowing my buyers to sign that. The bank is going to have to start all over with new buyers if we close escrow and we will be ready to close on Thursday. So we are just saying NO...not only that, but I've sent them an addendum removing the original $100/day (which comes to about $700) because the delay was caused by the bank dragging it's feet.

My guess is they will want to close Thursday, remove the $700 penalty and get this thing over with.

The key is to represent the clients toughly...we have some power here and we are all trying to accomplish the same thing...get the buyer in the house and get if off the bank's books. If we all remember that's the goal and it's not a game of "gotcha" we can all work together to make it work. But we don't have to just lay down either.

K

Karen, thanks for the extra info!

Until now, I didn't know about or think of trying to negotiate on a per diem after a property is already under contract. :)

"You have rights here too...and they can't close escrow without your permission, so if you want the house...keep going on the escrow. If you refuse to close it, they can't sell it to anyone else while you go through arbitration...which takes a long time."

I also found this statement to be equally enlightening. Although I knew that the buyer and seller both have to agree to close escrow, I never thought of using the way you described. I'm more accustomed to dealing with PSAs and addenda for commercial properties which almost always have some kind of seller opt out clause (that are often written to prevent a buyer from dragging things out). Additionally, I'm also used to dealing with PSAs and addenda for residential properties sold by investors which often include similar opt out clauses.too.

Have you ever used either negotiation strategy, that you recommended, after having waived all of your contingencies? If so, then would you mind sharing more on your experience(s)?

Wow....I'm so sorry!!!

I was just reading through the answers you have here...isn't it great to be able to access so much help on the internet?

I hope that even as I'm writing this you have already contacted the agent's broker. You need more information. One thing to know is that you are not helpless here...you have an open escrow. They cannot simply close it without your permission, especially if you are prepared to pay the per diam. I would start negotiating that though....you do have some control here!

One of the other agents asked WHY the seller needs to close quickly, is the home going to foreclosure? But even then, I would hope that you have an approval prior to incurring costs like a per diam. If the seller is wanting to use another buyer, it could just be they have a better offer.....in that case DO NOT LET THEM TAKE THIS HOUSE FROM YOU!!! Sadly this is why you should never use the listing agent in a transaction as a buyer's agent...

My advice is to make some noise and let them all know that you are not going to just walk away nor do what they want. You have rights here too...and they can't close escrow without your permission, so if you want the house...keep going on the escrow. If you refuse to close it, they can't sell it to anyone else while you go through arbitration...which takes a long time.

My guess is if you are qualified to buy, and make some noise...you will be able to get this home. I would also complain to the broker about a per diam which starts after only 3 weeks, and get that removed or reduced depending on the reason for the delay.

Take care.....hope this helps! As you can see....you have lots of support on Trulia!

Karen

Hi Determined,

The collective wisdom from the answers here is to contact your agent's Broker TODAY! Absolutely, this is the right thing to do FIRST and the agents here have given excellent added advice. I find it remarkable that an agent would try to disuade you from buying this house solely based on a per diem of $175.00 / day, especially when you are so close to your close date. You need to get to the bottom issue that is really motivating this line of thinking.

Wishing you all the best,

Ron Wright

Determined
I am confused. Why can you not close on time? Just from a Realtor's point of view, I do not understand why it should take so long.

If you have a lack of confidence in your Realtor it sounds as though that is based the fact that he is representing both parties. So he man in fact be doing a good job representing your interests, but because he also represents the seller you have a trust issue.

It sounds to me, just from what you posted, that you are not really prepared for this purchase. If you were prepared, first, you'd have a Realtor, and second, you could close in 30 days because you'd have your affairs in order. Sometimes in life, when you are not prepared, you lose out on opportunities. Or, to take advantage of opportunities when unprepared, you pay a price.

Your price is $175 per day. AND perhaps losing the opportunity all together. It may be that this seller HAS TO SELL IN the time frame agreed. Just because you are not organized or prepared is not the seller's problem. IF you have your own REaltor then you'd feel more comfortable, you'd be prepared, and you'd know more answer to the questions you ask.

To wrap up I suggest that you talk with the REaltor you currently have and ask him if he can help you work out this transaction. if you feel that you need more help, ask to speak with his broker. His broker is legally responsible for the Realtor's actions and may be able to offer you some assistance.

Everything is negotiable. However, that does not mean that you still may not end up with this property.

Good luck.

Determined -

As Donald said below, call your agent's Broker TODAY and set up an appointment to meet with him / her right away. Brokers (espcecially in large firms) are very busy people but always want to help resolve issues for the client - most especially when they are on both sides of the transaction. Remember, your Buyer's Agreement as well as any other agreements is with the BROKER - the agent is simply an "agent-of-the-broker" so the Broker is representing both sides as well. More than likely there is a way to resolve this issue to everyone's benefit. You might ask the broker to have another agent represent you to close this transaction and they (agents and broker) can work somethign out internally regarding commissions.

I suspect you made a simple error in your question above - the per diem is $175 or $1,750 ?

What's holding up the closing? Is it an issue on the buyer's side or the seller's side? Is the issue likely able to be resolved? Have you already performed and paid for inspections, appraisals, etc.? Is the new appraisal law delaying your closing?

Here's the website to lookup the agent's license - that will also show who teh broker is:

http://www2.dre.ca.gov/PublicASP/pplinfo.asp

Best of luck!

Thom Colby
Broker & REALTOR
Orange County, CA

Dear Determined:

While your dual agency problem is at the bottom of this pit, you do have an alternative. 1.) Get free consumer advice from your state's real estate commission. It (the commission) usually has a help line and can advise you as to how you may be protected by certain California laws. 2.) Make it a point to set up a face-to-face appointment with your agent's brokler to discuss the matter--either with your agent or just one-to-one with the broker him or herself. As a broker myself, I have been called upon to adjuticate problems stemming from dual representation; it is our job to negotiate a settlement keeping both sides happy. Good luck!

You do realize that if you were to pay that per diem for 30 days, then you'd pay $52.5K (nearly $60K) extra for the home, and you'll be taxed at the commensurate rate. That's a VERY unwise decision.

I believe your agent has advised you well, and I suggest that you re-read the contract to see if the seller has any contingencies to be able to back out of the contract (for whatever reason). If so, then you've been forewarned. If otherwise, then the seller could possibly seek some kind of legal remedy to kill the deal at a some point (to prevent the sale from lasting an eternity).