Let's all go sell some houses! None of us "should" have time for all this nonsense! I keep getting email updates for this tread, and am surprised that we (yes, me too) are so focussed on this! The next person to sell a house gets a surprise from me!! NO FSBO's!

JR

Apology accepted. :-)

"J R" - MY POINT IS > MANY people come to this site looking for answers to their questions. All we ask is that the answers are professional, straight and to the point. Thanks...

I'm sorry, I mistook your reply for sarcasm, especially when you used the word "disgust".

Jane, you don't need to read this thread anymore if you don't want to.

... there is another web forum for legal advice if you want to check it out. It is all sub-divided into areas and there is a Real Estate area. The address is http://www.freeadvice.com and then click on forums. It is helpful, but very harsh - very harsh, ugh, even harsher than this thread LOL, but given that it's free, they give good information (probably similar to what you've seen below, i.e. types of contracts, clauses, etc., that might enable you to get out of the contract, negotiate repairs, etc.

Can't we all just get along? Maybe you should continue your conversation by exchanging email addresses or something. My Inbox is getting full of "updates" that are no longer even related to the original posting here. Move on already! Thank You... =)

JR

Obviously your reading comprehension is every bit as challenged as mine. Read my post prior to this one again. You will find the words "mistook" and "apologize."

When did stating facts become a form of "chastising"?

These questions always make us agents ask "why did you decide not to have representation?"
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And we know the answers! Because they don't need us! Unless a problem comes up then they expect us to tell them for free. And we do. And they still don't like us. Go figure.
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My fault JR. I mistook your apparent disgust with Todd and others as a form of chastising. I apologize.

This thread has disturbed me on two fronts. We have JR, Chris, John, Steve, Tina, Maria, Real Estate Pro in Memphis, and Bill all chastising Todd for being unrepresented. If you are going to chastise him for something, chastise him for something that in my mind is a bigger issue. That being, not being a man and living up to an agreement, and instead trying to weasel out of it.

Three other agents, Tonje, Rob, and Real Estate Pro answered the question politely and professionally. They are a credit to their profession. They neither passed judgement or criticized. That is three against eight. This further exemplifies why the general public may be uneasy when searching for a Realtor thinking that most are greedy with their own self interests totally at heart. This thread makes it seem like the odds are against you finding a Realtor of Tonje, Rob, and Real Estate Pro's ilk.
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Where did I chastise Todd?

Jay pointed this out pretty clearly before...no one can answer Todd's question, because no one (aside from Todd and the seller) know what kind of purchase contract was written. It could have been a 10 line contract written on a napkin at Denny's, stating not much more than a purchase price and close of escrow. It could have been one of those "download for $10" contracts off the internet. It could have even been an AAR contract purchased at one of the local associations. But we don't know.

And then, with any of the boiler plate contracts, there's always the ability to change the language, where you strike out language or add language. Again, we don't know.

In general, when one party or the other talks about unilaterally canceling a contract, if the contract doesn't have a specific contingency that allows the contract to be voidable, then that party needs to consult a lawyer. Any further advice, offered by your hero agents is likely to be erroneous, because we don't have a framework with which to make an educated guess, regarding what this buyer's options might be.

And for the record, my comments were meant to be directed at my fellow colleagues, and not at Todd. Reading them now, I can see how I missed that mark. Nearly a month later, Todd never came back to clarify any of the questions posed by numerous folks here, so it would appear he wasn't reading this thread anyway.

Even if he purchased "as is", an inspection clause (if it was included in Todd's contract) still allows him to exit the contract unharmed (earnest money returned).

He's indicated that it's "after the inspection... taking into account the inspection items", and that sounds as though he's found some things that are not in as good a condition as he thought, that have given him second thoughts.

If he had no "inspection clause", then I agree... he's outta luck.


btw... welcome azrob!

ELV!S

Your point is well taken. However, from my interpretation of the post by Todd is that he has just gotten cold feet. If he does have an exit clause, then so be it. If he doesn't and has agreed as is, and meant as is, he was dumb in doing so without an inspection first.

This thread has disturbed me on two fronts. We have JR, Chris, John, Steve, Tina, Maria, Real Estate Pro in Memphis, and Bill all chastising Todd for being unrepresented. If you are going to chastise him for something, chastise him for something that in my mind is a bigger issue. That being, not being a man and living up to an agreement, and instead trying to weasel out of it.

Three other agents, Tonje, Rob, and Real Estate Pro answered the question politely and professionally. They are a credit to their profession. They neither passed judgement or criticized. That is three against eight. This further exemplifies why the general public may be uneasy when searching for a Realtor thinking that most are greedy with their own self interests totally at heart. This thread makes it seem like the odds are against you finding a Realtor of Tonje, Rob, and Real Estate Pro's ilk.

OK.

I posted this earlier and realized I had missed Carlos' post. He is one of the good guys as well and since ElV!S's there is another one. The odds are getting better. :)

Poor Todd, just like ME, - he's just a squirrel tryin to get a nut!!! lol and I think we can ALL agree these are some pretty tough times(for seller's especially),
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This statement from a seller, of course.

It's time to step outside yourself and put yourself in someone else's shoes. Most sellers are not under water. Most homeowners either own their homes OUTRIGHT, bought before 2002, or are having no trouble paying their mortgages. Back between 1999 and 2004 it was BUYERS who were uncomfortable, now it's sellers turn.

I'd add that it is a tough time for an agent, also. Sellers are the most stubborn people I have come across. Even when presented with the facts most of them "want" more than their house is worth.

If the contract you signed gives you the right to "exit" the contract, based on your inspection findings, then you could simply use that clause to renegotiate the terms.

ie: "I've found $5,000 worth damage to the foundation. If you'll give me a $5,000 credit for that repair, I'll stay in the deal... if you're not willing to give me that credit, then I'm using my inspection cancellation clause, and request the return of my earnest money".

Then the seller will have to make a decision as to whether they want to begin remarketing the property, or offer a credit (or negotiate the credit) to the 'bird in the hand'.

This isn't an instance of "being a man, and living up to an agreement". The inspection is a legitimate tool to identify structural issues that you were unaware of, and allows you to exit the contract with no penalties if you should find something you can't live with. It also infers the ability to renegotiate (although that's not, in truth, what it's designed for).

Todd,

Why do you wait until now to consult real estate professionals? At this point your question should be directed to a real estate attorney.

Good luck,
The "Eckler Team"

This may depend on what type of contract you used when you wrote your offer. Did your contract specify an inspection period? To anyone reading this, you might consider buying a contract or two from the local realtor's association office, as they cover many of the typical details, if you are going to go FSBO.

Well, assuming you DID have an inspection period in your contract, request all the repairs you want, and in a seperate addendum, offer to waive all the repairs if your new price is accepted. Even agents skew this up often, and ask for price reduction on the repair request, which is not correct to do in the inspection period.

Poor Todd, just like ME, - he's just a squirrel tryin to get a nut!!! lol and I think we can ALL agree these are some pretty tough times(for seller's especially), but for Buyer's it's actually a pretty good time. WISH THEY KNEW THAT IN VERRADO!!! What's the deal out there ANYWAY? Some of the seller's out there are REALLY IN LA LA LAND with their prices!?! They think they're in Scottsdale or something! Oh well, Good Day all...

WOW, I have to agree, most of these answers are the reason why some people do shy away from using us. If agents have no interest in answering questions for free, then simply don't answer them!

Maybe I should have better clarified where i was coming from. I agree that the best advice for this situation is to consult an attorney like my original answer stated. My second answer wa merely saying that this is a Q&A forum and if someone should have a question we as professional can give our opinion but to make sure that we protect the integrity of the Real Estate transaction. We do not need to as professionals make some of the other comments I have read here. Either provide some constructive advice or don't post your "free" advice.

Wow comments like this is what gives our profession a bad name and sends people to FSBO. The purpose of this forum is for individuals to ask questions. If you think they should have to "pay" for an answer don't respond. No one is complaining that this is a source for "free" leads.

If you have a ready and willing buyer and seller you do not need a broker. As on of the other realtors so nicely state "attorney specializes in law; Realtors specialize in conducting real estate transactions". Ignoring the fact that a real estate transaction is nothing more than a legal contract for the sale of property, I assume they were referring to the other services an agent provides - marketing, showings, price negotiations, etc. It sounds like you got throught that just fine. What you have is a legal issue.

As I am sure you already know what you need (and should of had) is a lawyer who specializes in real estate review and explain to you the contract and your rights thereunder. I am both a broker and an attorney and I can tell you that nothing that I l(or any other broker) learned in the broker training classes made me an authority on contract law or authorized me to give legal advice/interpretations or otherwise practice law in the state of AZ. That's why I went to law school. Run from any broker who tells you or infers otherwise.

I lawyer will charge you between 500-1000 to take an initital look at the contract. Brokers on both sides 5-7%. If you want out of the contract that you already signed there is nothing a broker can (or maybe I should say "should") be doing at this point. If you want to find another house consider using a broker next time.

I had a feeling that that one was coming. As professionals we represent our industry and our industry is about Real Estate and protecting the transaction whether or not we are monetarily involved in it. Realtor.com gives free information that anyone can look up to either buy or sell a house. So our value is not in the information we horde but in the accuracy of our information and our ability to protect the integrity of the industry.

With all due respect to the Agents AND their licenses-This IS a Q&A forum, and it takes about 2 minutes to answer a question here. If you feel it's not profitable to answer a question, spend your time doing something else then. We're NOT rapists, just regular people who came to a website that WELCOMES Q&A...

Hello Todd
Although hindsight will not help you...but this is why a profesional Realtor earns their keep. Now you are in trouble and who do you go ask....the very people that you did not hire to watch out for your interests.... or the seller either one. My advice would be find a closing attorney to see if you can legally void your contract that you are currenlty in with the seller.
Good Luck
Don

Todd if you used a Arizona Real Estate Contract then you should have had a 10 day inspection period to inspect the house. Even pruchasing a home as is you are allowed this 10 day time to inspect the house to make sure it is livable and insureable. But since you did agree to purchase the house as is you may not have the option to ask for repairs or reduction in price. The best person to seek advice about legal contracts at this point is a Real Estate Attorney.

"There is a place in each state's real estate contract that addresses the Inspection Period."

I haven't looked at the standard contracts in all 50 states, so I can't say if that is a correct statement or not.

"There is also a resolution of unacceptable conditions form and a period following the Inspection Period where negotiations may occur and during that time, neither party may withdraw unless both agree to mutually withdraw."

I have seen the Arizona (where the questioner is from) "standard" contract, and can say this is factually incorrect.

It's unlikely that the questioner is using the standard AAR Residential Resale contract. (Since neither party appears to be using a Realtor). Assuming that is the case, no one here has a clue what is, or is not, in the questioners contract. Even *if* they were using a AAR contract, how would we know if additional language/provisions were included that altered the boilerplate language??

There is a place in each state's real estate contract that addresses the Inspection Period. There is also a resolution of unacceptable conditions form and a period following the Inspection Period where negotiations may occur and during that time, neither party may withdraw unless both agree to mutually withdraw. You need to know this information before you make an offer to purchase. If you do not know this information then you would be well-advised to find a realtor to represent you. You could hire an attorney but an attorney specializes in law; Realtors specialize in conducting real estate transactions. I have talked to many people who bought "As Is" from FSBO's; none were happy with what they got. This is one of the many reasons why less than 10%of real estate transactions without realtor involvement make it through to closing. Other possible pitfalls you have not yet encountered include possible clouds on the title, inability of the seller(s) to perform, documents that are not legally binding, and the list goes on. You may be trying to save yourself some money but it sounds like you may be in for a big surprise when you start adding up the expenses you will incur with the purchase of this home.
Realtors save you time. Save you money. Save you getting a big headache.

WOW!

Thanks Tina. That is all that I was thinking and more. Very well written and eloquent.

My hat is off to you. (figurativly of course!)

Dear Todd:
Please understand as you read the previous responses from JR, John and Steve, that each is a professional at their job. This forum of realtor/agents is made up of PROFESSIONALS. While we don't mind occassionaly discussing or offering real property advise concerning buyers/sellers that HAVE CONTRACTED WITH AN AGENT, the information being given to home buyers such as yourself purchasing FSBO homes without either party being represented is akin to raping us of our knowledge. Each agent in this forum has paid financially, physically and mentally to learn everything we can about our profession. That doesn't even include the time we spend keeping abreast of legislative changes, local town and state changes, etc. If you decide to purchase direct from a buyer and represent yourself, you have that perogative. However, please do not expect the professionals in this forum to consistently bail you out when some kind of a glitch occurs. The best advice any of us can (and should!) give is the following:
A) Your question regards a legal and binding contract and as such should be addressed to an attorney, as most of the realtors in this forum are licensed only for real estate issues.

B) HIRE A PROFESSIONAL REALTOR. You won't have to then worry about your problem... the professional agent would have already ensured that situation was covered in the contract.

Having said all this, I do apologize if the tone of the reply is harsh. It's not meant to be, but it would really be a boost to all of us if more "FSBO sellers and FSBO buyers" had a higher respect of who we are and what we really do!. Have a great day. And,,,, hire a realtor to represent you!
Tina Evans, Principal Broker

Yesterday I almost answered, "Let me know what you decide". Trying not to be a total j e r k here, but honestly, as professionals, offering free advice in this situation seriously undermines our own worth in the marketplace.

J R ..

I love your answer. In fact I was getting ready to "answer the question" when I thought... ? " Why would you do that. You get paid for that.. If they were paying you, you would not need to ask about their contract...This is stupid, answering blindly on the internet without getting paid.. Do attorneys have free answer webchat forums.. you could direct him there... there you go again, answering the question..." AND I decided to just question why you would exchange very large values of a comodity without a trader.. We dont do it with stocks, most of us do not even work on our own cars, and they are usually 1/10 of the value.. If they are sophisticated enough to buy or sell their own home, let them, dont get involved...

Thats all.

Todd...sounds like you're in a trickbox to me. Unfortunately, you'll likely have to hire an attorney OR renegotiate with the seller if they are willing. Look at all the money and aggrevation you saved by not using a Realtor.

These questions always make us agents ask "why did you decide not to have representation?"
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And we know the answers! Because they don't need us! Unless a problem comes up then they expect us to tell them for free. And we do. And they still don't like us. Go figure.

That will depend on the type of contract that you have. Be aware that on most contracts you have some specific timelines that you need to follow. It is very dangerous to be unrepresented on such an important transaction.

If you are sure that you are still within the time period that you have to cancel (assuming that is was not waived), have a conversation with the seller. If he is going to agree, you should be able to do it with an addendum. Again, make sure that you do not miss any timelines. If he does not agree just cancel the contract.

Again, this advice might or might not apply to you depending on the terms of your contract. Make sure you are very aware of all the timelines, your duties, rights and consequences.

I am hanging with Jay. We would need to know more particulars.

These questions always make us agents ask "why did you decide not to have representation?"

You may want to cancel the contract, request for the cost for repairs and or a price reduction of the sales price! I hope you have representation!

Feel free to contact me if you have any questions!

Todd - just curious, are you using an agent? Or are you describing an unrepresented buyer trying to purchase from an unrepresented seller? If you are unrepresented, what contract did you use? Was "as is" an actual part of the contract? Whether you even have an inspection period you can cancel in is entirely dependent on the terms of your contract.

If you have agreed to buy "as is" in the initial contract, now is not the time to start renegotiating the price based upon the inspection report. You do have the option to cancel the contract based upon what you found in the during the inspection period, assuming you have not passed your deadline.

That said, it doesn't hurt to try, however be prepared for a rejection. If you did want to give it a try, I would write it on an addendum, this does not cancel the contract unless they disagree to it and you reject the property. If you were to cancel the contract and send over a new contract, you do not have a valid contract until new acceptance, hence others can snap it up from underneath you.