Home Buying in Springfield>Question Details

homeforsale1, Home Buyer in Springfield, IL

Can I sue even though I never requested earnest money, and the house appraised for less?

Asked by homeforsale1, Springfield, IL Thu Mar 21, 2013

I signed a contract with a buyer last year with the contingency to be on December 15th for the buyer to obtain financing. At the time of the contingency, I required a $5000 down payment due on December 15th. At the time the appraisal was not done yet, so I extended the mortgage contingency to January 31st at which time, I required the $5000. Beginning of January the appraisal came back $25,000 less than what I was asking. So, because the buyer would not be able to obtain financing, I lowered the purchase price to the appraised value - but the buyer did not agree to it anymore and decided to move on, so they did not sign the amended order or give me earnest money. Am I able to sue for breach of contract or specific performance even though I did not get earnest money, nor did it appraise, and essentially was a new deal?

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Answers

5
If you really want to sue I recommend you speak with an attorney. Even if you can sue its probably not worth it anyway.
0 votes Thank Flag Link Sat Sep 7, 2013
This is a legal question for sure but I have to agree with Tim, it doesn't sound like it would do you any good and why bother. No one can force a buyer to buy a home. Even when a breach of contract does happen you can sue for damages but you can not make someone buy a home. It will sell and with the market picking up this year you may get a better appraisal than you did 6 months ago. It depends on what your market area is doing. Call an agent who can help you. Good luck!
0 votes Thank Flag Link Fri Jun 14, 2013
Oh my, We may not have here all the little details and were they in writing....
But first of all you need to consult with an attorney not to sue, but with a real estate attorney for you to
understand exactly the terms as they are stated in the original contract, the rejection of the lender to
give the loan commitment based on the appraisal....
Once you get educated on the legal issues and terms, you will be able to decide what to do, i.e. what
will be in your very BEST interest.

I am wondering if you worked a) with a Realtor b) with a real estate attorney or if you sold your home for sale by owner...

If the appraisal comes in low, if the lender does not provide the loan commitment at the requested or extended date there is probably a clause in the contract that deals with this very issue....

If a price is going to be changed on a sales contract it can only be done in writing and with the written, signed approval of both parties....

Talk to your attorney.... and you will probably be better off to put your home on the market with a
good Realtor, price it right, prepare it well and stage it may be with great photos and go on, but you
will know what to do once you talked to an attorney about the legal terms of your contract.....

Good Luck to you

Sincerely yours,
Edith YourRealtor4Life & Chicago, North Shore & Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and
Investors alike....And always with a SMILE :)

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0 votes Thank Flag Link Fri Mar 22, 2013
So would lowering the price to $240,000 on an amended change order create a new deal?
0 votes Thank Flag Link Thu Mar 21, 2013
Welcome to America where anyone can sue anyone for any reason. The question is would you win or be wasting your time and money on a lawyer. To answer the question will take a lawyer to read and review the original contract you had. If it says that it is contingent on the buyer obtaining a loan, then you are not likely going to win because the appraisal came in too low and no lender will make a loan. The rest is moot since they did not sign anything lowering the price.
0 votes Thank Flag Link Thu Mar 21, 2013
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