I was the high bidder on a Homepath home, prior to closing they sent my attorney a Notification of Code/Ordinance Violation on the piece of property.

Asked by Brian Greene, Homer Glen, IL Sun Mar 9, 2014

After reviewing the code violations, it is clear that I may need to spend an additional $10,000 as a result. Does anyone here have any experience negotiating a lower price with Homepath after receiving a Notification of Code/Ordinance Violation. Thanks

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5
Jeff Nobleza, Agent, Chicago, IL
Sun Mar 9, 2014
Brian,
I noticed below that you stated that only the listing broker is involved in this transaction and you have no on representing and advising you. The situation you are going through is the textbook example why you should have a realtor representing your interests and advising you properly. How is one broker supposed to represent the seller in getting the home sold AND getting the higher price possible for the seller and simultaneously advise the buyer on the property course of action AND get the buyer the lowest price possible? Consult a realtor and a good attorney.
1 vote
Terry McCarl…, Agent, Cape Coral, FL
Sun Mar 9, 2014
You can have your real estate agent or attorney attempt to negotiate a lower price - sometimes works - sometimes doesn't. Or as Larry said you can cancel the contract and resubmit a lower offer.
1 vote
My NC Homes…, Agent, Chapel Hill, NC
Sun Mar 9, 2014
I would suggest you terminate your offer and immediately submit a new lower one based on the knowledge you now have. If you're working with a buyer broker (and I hope that you are) they can renegotiate on your behalf. I actually would suggest you terminate and not buy the property at all, trust me you have less than a 1% chance that the home is the deal you think it is. See link below and good luck.
1 vote
Thanks for your quick response. I am a Remodeling Contractor for the past 28 years & a former Home Inspector. I know exactly what I'm looking at and I have no problem doing the work. Since this is my first Homepath purchase I was looking for tactical advise on how to lower the purchase price moving forward based on the addendums added. FYI - The Realtor is the listing agent
Flag Sun Mar 9, 2014
Brad and Sha…, Agent, Orland Park, IL
Wed Jun 11, 2014
Brian

I completely agree with Jeff comments. Many people underestimate the importance of having a realtor in your corner that's solely responsible is to protect your interest in a real estate transaction. Good advice would have potentially resolve this problem from the start and saved you a great deal of worry and frustration. There is probably little change that you will get price concessions at this point to address the problem, but perhaps going to the city in person you might be able to convince them to accept a Performance Letter of Credit in lieu of cash. The letter of credit should cost you roughly 2% of the gross amount that the city requires, but some Bank have a minimum charge for smaller Letter of Credit. I think paying the Letter of Credit fee and doing the required work beat by a long margin tying up money with the city AND having to fund the cost of the work out of pocket. Best of Luck!
0 votes
Suzanne Hami…, Agent, Orland Park, IL
Thu Mar 13, 2014
Brian

Homepath can be difficult. They believe their prices are already discounted. BUT, I have been able to negotiate with them in the past - sometimes it was difficult, sometimes not. Just depends how much demand for the home and how much they want to sell it.

As far as the village is concerned, ask them if you can do an irrevocable letter of credit or a surety bond. That may reduce your cash outlay.
0 votes
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