Home Selling in 97232>Question Details

nowsgood2, Home Owner in Portland, OR

If I verbally agree to sell a property to an acquaintance for 465 and loan papers are drawn up but not seen or signed, can i simply change mind

Asked by nowsgood2, Portland, OR Mon Dec 16, 2013

My home for 550,000 . 25 viewings in 3 weeks with no offer. Realtor suggests i drop to 499,000 and i immediately accepted an offer. upon inspection about 5k in fixes needed. The buyer pulled offer and re-offered 450,000 I said NO Take the sign down and cancel my listing

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Yes .
1 vote Thank Flag Link Tue Dec 17, 2013
All real estate contracts must be in writing in the State of Oregon. Your acquaintance would not be able to get loan docs drawn up without a fully executed contract to present to the bank or mortgage company.

Let me know if I can be of further assistance.

Garett Chadney
Principal Broker / Owner
The Broker Network
(503) 970-0858
1 vote Thank Flag Link Tue Dec 17, 2013
Real Estate that is going to be sold and have a binding agreement no matter what a buyer and seller agree to verbally is not a binding contract so you do not have to sell but if you do you might have to pay your listing agent a fee. Good Luck. Tom Inglesby, Broker RE/MAX
0 votes Thank Flag Link Wed Dec 18, 2013
It sounds like you had your home listed with lots of showings and a big price adjustment and then the buyer offered another $50k less. Wow, unless there is something significant going on with your home I do not see a 10% price concession necessary within 3 weeks with that kind of showing activity - especially this time of year. If you want to sell your home, I would stick with the listing to thoroughly vet the price for at least another 30 days. Selling on the open market is your best opportunity to achieve the highest price sale.

Separately, it sounds like you have also agreed to sell the home to a friend for a slightly higher price than above and presumably without a commission, although technically your Realtor may still be able to collect per the listing agreement. Sounds like your acquaintance has gone quite a ways through the process if loan papers are drawn and ready for signatures. Why have you decided not to sell your home?

At this point you really need to seek the advise of a qualified attorney, who will be able to determine what your obligations are to each of the parties involved. Lots of potential complications here and communication will be very important to protect your best interests going forward. Good luck.
0 votes Thank Flag Link Tue Dec 17, 2013
You can because our society cares very little anymore about honor and integrity. There was a time when a verbal contract was every bit as binding as a written one, but dishonest people have won the day, a handshake and a man's word are no longer good enough. Really quite a shame...
0 votes Thank Flag Link Tue Dec 17, 2013
Yes you can. You are not bound to anything unless it is in writing and signed by both parties. Even if an offer is in writing, a simple error in the contract can jeopardized its legitimacy. Most people do not realize the importance of the details in the contract unless there are complications and the deal goes to court.
0 votes Thank Flag Link Tue Dec 17, 2013
I doubt seriously anyone could enforce a verbal agreement.
0 votes Thank Flag Link Tue Dec 17, 2013
Most of the answers below are correct. However, I would not take advice from someone who is not an Oregon-licensed broker or attorney. Unless they are licensed in Oregon, it is beyond the scope of an out-of-state broker's license to even answer these questions. It's quite possibly beyond the scope of an in-state broker's license to answer these questions as they affect your legal rights and there's no agency relationship. In my opinion, the best piece of advice is to speak with an attorney. They will be able to flush out more details and give you the answers you need for your particular situation.
0 votes Thank Flag Link Tue Dec 17, 2013
25 viewing in 3 weeks.
Appears your agent did their job effectively.
No offers.
Always means the price did not match the 'value bracket' of the buyer.
YOU set the price, not your agent.
$60,000 price reduction.
(Now that is a value bracket adjustment)
Market responded....immediate offer.
$5K discovery. $450,000 adjusted offer.
Fired agent.....???? How does that make since?
Now want to back out deal with acquaintance.
Did you even give your agent a chance to win for you? To negotiate that up to $480?
The only error I see is OVERPRICING followed by indecisiveness.
As others have stated, you don't have an offer in place. And yes, you can change your mind, since in reality, you did not make a real decision.
You, however, really need to recognize the outstanding services your agent provided. No fault lies with the agent.
0 votes Thank Flag Link Tue Dec 17, 2013
The Statute of Frauds requires that all contracts be in writing. Your question leaves out some details, I think. Is the agent demanding a commission after the listing was canceled and you verbally agreed to sell to an agent? I think a lender also requires an earnest money contract for underwriting purposes. Can you provide more details?
0 votes Thank Flag Link Tue Dec 17, 2013
I agree, contracts need to be in writing and signed. However, if you are still interested in selling your house i would continue the negotiations via counter offer until you come to a compromise. The job of a Realtor actually begins after a buyer has made an offer, negotiations and closing the deal takes work, knowledge, and experience! Good luck, kali
0 votes Thank Flag Link Tue Dec 17, 2013
As others have mentioned, verbal terms do not create an obligation to either party. This is why agents prefer all offers to be in "written form." On the other hand, shouldn't there be a higher level of committment when someone says, "yes, I do, or absolutely."

0 votes Thank Flag Link Tue Dec 17, 2013
For it to be a contract it has to be in writing and signed by all parties. As far as when the buyer pulled the offer and then made a new offer. You should not jump the gun and pull your listing but simply counter offer them back to reflect a reduction of the 5000 in repairs. Now that you know those repairs are needed, chances are any new buyer will also find them and they should be addressed by you.
0 votes Thank Flag Link Tue Dec 17, 2013
Hi nowsgood2,

A verbal contract is not binding in real estate. All contracts to be legally binding must be in writing.

Shanna Rogers
SR Realty
0 votes Thank Flag Link Tue Dec 17, 2013
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