It's not uncommon for a prospective Buyer to request an extention on their loan contingency period. As Emily mentioned earlier sometimes there are delays with the Lender. These delays can therefore delay the removal of the Buyer's loan contingency. Your Realtor should be able to explain to you exactly why the Buyer's are making this request. This will allow for you to decide what your response will ultimately be.
With regards to the repairs. It's very common for Lender's to request that work be completed prior to funding a loan to purchase. These repairs are what is referred to as pre-funding conditions. The Lender believes these repair issues are safety and soundness issues. Therefore the Lender requires they be repaired prior to loan funding and close of escrow. Your desire to sell "as is" does not mean a thing to the Lender. I would imagine the Buyer's are trying to lessen the inconvenience for you and your family while the repairs are being made, hence their offer to pay for your Hotel stay. You do not see Buyer's making this offer very often. I think it's nice of them to make the offer to you. You will not be giving up possession of your home to them with regards to making the repairs. They will not be moving into the home during the repair period. You do not have to, nor do I recommend that you give them a key to your home. The repairs will be made and you have the right to let the repairmen in and oversee the repairs.
As far as the Buyer's $2.500.00 credit. You should know it's very common to see the "as is" in home sales. Infact, every Seller I have worked with over the years have told me they want to sell "as is". I explain to them that this is not always possible. I ask them to keep an open mind. The Buyer's will have various inspections. And therefore, things will be discovered that were unknown to the Seller. The Buyer has every right to request that repairs be made at the Seller's expense. It does not matter that the sale was "as is". You as the Seller have every right to reject the Buyer's request for repairs. However, the Seller must consider prior to rejecting the Buyer's request the severity of the repairs. Is the Lender requesting they be repaired prior to funding and close of escrow? Are these repair issues a big enough problem that any prospective Buyer will request they be made? If the answer is yes to these questions then the Seller will need to change their initial plans with regards to "as is". Now I cannot say that the repairs that covered the $2,500.00 in your transaction fell into this area. I'm not privy to those details of your transaction. However, it is very common to see Seller's make an exception like you made. And it does not mean that you got duped.
That being said, your Realtor must turn over to you a copy of the pre-funding conditions that show these repairs are infact required prior to loan funding and close of escrow. Simply telling you to use the email from your Broker does not cut it. You have the right to receive something from the Buyer's Lender that reflects these repairs. I would ask your Realtor again for a copy of the pre-funding conditions.
Lastly, I do not see anything wrong with your Agent working with all of the prospective Buyer's who have seen your home thus far. That is what you pay them for, to show qualified prospective Buyer's your home and ultimately sell your home. I hope this helps to answer your questions. Should you have any further qustions I would be glad to help. Good luck!
Q: were selling as is the buyers lenders appraiser is requestin work to be done
A: As mentioned below, if the appraiser is asking for work to be done, it MUST be done before the loan funds. Sounds to me like it is a buyer with an FHA loan or similar (Fannie Mae) â€“ flaking paint and other such repairs are very common requests from an FHA appraiser. And it doesnâ€™t matter if you are selling â€œAS-ISâ€ â€“ itâ€™s a loan funding condition set by the bank. No repairs, no loan. You might not like it, but thatâ€™s just the way it is.
Q: and the buyers will get us a hotel. during this time
A: Sounds like they are willing to cooperate for the inconvenience this is putting you through.
Q: do we allow this escrow isnt even closed
Q: and they need an extension on their loan contigency too,
A: Often happens when conditions get thrown in by the underwriter â€“ they issue the conditions and then everyone has to scramble to get things done. Extensions are VERY common in cases like this â€“ the underwriter wants to make sure ALL conditions will be met before they sign off on the loan.
Q: can some one help me understand why they would need to fix this and it not theirs
A: Itâ€™s a lender condition. Banks have started asking for things like this â€“ itâ€™s VERY common â€“ and there is nothing you can do about it if you want to close - except to do what the bank asks. I know you donâ€™t like it and it does not seem fair in an â€œAS-ISâ€ transaction, but itâ€™s the way it is. Peeling paint is considered a health and safety issue by many appraisers, so they want it taken care of to protect the buyers. No repairs, no loan. And it has to be done BEFORE the loan is funded. We currently have a transaction in escrow where the underwriter is mandating that flaking paint chips be fixed AND an outbuilding be removed prior to funding.
Q: not only that what if it falls through we are stuck with work that may not be up to another prospects par..
A: Do everything you can from your end to make sure it does not fall apart. If it DOES fall apart, then there is nothing you can do â€“ there is no recourse UNLESS the contingencies have all been removed.
Q: i mean our broker already convinced us out of good faith to give them 2500 for un anticipated expenses against my better judgement help...please
A: Without knowing all the details, we cannot second guess your broker â€“ they are there to get the deal done for you and they are your legal representatives. If they recommended you kick in $2,500, they must have had a good reason.
this is not intended to be a solicitation.
Sounds to me like you may be getting put together big time. Whatever you do don't lose possession of your home now. In fact you may want to be getting ahold of an attorney real soon if not the cops. This smells like a hostile takeover of your home right out from under your nose. Be very careful from here on out.
If there are lender required repairs then no matter what they are, or who pays for them, they have to be fixed and reinspected by the appraisar prior to closing. Failure to put the property into required condition will mean denial of the loan.
As-is sales are great for cash buyers...but if a mortgage company is involved and there are repair issues..there is no middle ground. Someone mentioned a credit...most lenders won't allow the seller to do anything outside of routine closing costs because it could be misconstrued as an inducement to buy.
I don't often recommend attorneys because I think that folks rely far to heavily on them and just dish out a lot of money out of fear, panic or shear laziness because they don't want to take the time to do a little homework on their own.
I see you're in the LA area. I would suggest that you call Bill Handle "Handle On The Law" on AM 640 radio 800 521-4KFI on Saturday Morning and pose this question to him. It's absolutely free and you just may get some very interesting perspective. Just a thought.
Seems to me you have golden borrowers. I am willing to bet a number of sellers and agents here on trulia would love to take them off your hands. LOL! Best of luck!
Regarding the Loan Contingency: It's not uncommon for a borrower to need more time to close, there are always unexpected kinks in the loan process that just happen & it's not necessarily anyone's fault. 7-10 days is a good extension, anything longer than that & there's a major issue with the buyer.
As is: As is means As is means $0 coming from you & going to the buyer.
Purchase Price: Not taking into consideration the $2500 you got 'duped' out of, are you getting a good price for the house? Do you feel you're selling it at the absolute Top Price possible?
Fixing things for the appraisal: What kinds of things need to be fixed? Is this a termite issue? YOU SHOULD NOT BE MOVING OUT SO THE PROPERTY CAN BE FIXED PRIOR TO CLOSING.
I would really like to assist you but I need more details about what you're being asked to fix so I can give you a more accurate answer. I'm an insomniac Realtor & am happy to help. Just shoot me an email directly. i don't look back on this same Trulia thread for answers after mine.
Realtor Since 1996
Main Street Realtors