Home Buying in Deer Valley>Question Details

dryheat4plus3, Home Buyer in Phoenix, AZ

We are in negotiations to buy a home in arizona,After inspection we presented a list of improvements to the seller.

Asked by dryheat4plus3, Phoenix, AZ Mon Jul 16, 2012

Our agents(it's an exclusive listing) tell us if we do not accept the seller's counter, we could lose the house to a back up cash buyer. Do they have to prove the exsistence of that back up contract? Or do we just take there word. The seller works for the agency.

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9
Thank you all for your input, as for the question about why we weren't working with a realtor, the seller's agency took the home off the mls and wouldn't let us work with our agent. it is a situation where we need this house because of location.
0 votes Thank Flag Link Tue Jul 17, 2012
First, why aren't you working with a Realtor that will represent you? When you go through the seller's agent, they are representing their client first, the seller. When they become a dual agent, they have to be fair to both sides. You really should have contacted a Buyer's agent to represent you and that would have your best interests in mind.

They do not have to prove to you that they have another offer... but if they do, you will lose the deal. I have been able to see the first page of a back up offer to let my clients know that there is such an offer.

I'm sorry that you are having to deal with this issue. It is a seller's market now, and you can get pushed up against a wall if you do not have good representation.

-- Lisa Miller
0 votes Thank Flag Link Mon Jul 16, 2012
In this market the sellers probably have a back up offer. It could even be a signed offer but would have to state that it is in a back up position and would be contingent upon seller's first contract falling through.

I see where the seller lowered the price in lieu of doing repairs. It would be best if you put that on an addendum to the contract. It is really not suppose to be handled on the BINSR.

Best Regards,

Brenda

Ron & Brenda Cunningham
West USA Realty
602-980-3133
Ron 602-499-0694

*** Recognized in the Phoenix Business Journal as "One of the Top 50 Realtors in the Valley"

Search the Official, Active, FlexMLS IDX for homes for FREE through our website:
http://www.CunninghamHomesAZ.com
0 votes Thank Flag Link Mon Jul 16, 2012
Seller responded on binsr and lowed price in lieu of any repairs. I was then told that there was a back up cash offer if this falls thru after I said reduction was small compared to repairs.
0 votes Thank Flag Link Mon Jul 16, 2012
Well at this point you can reply back with a new price, but every time a modification is made to the contract and the ‘ball is placed in the other parties court’ the contract can be canceled by that party. So if you go back you will be chancing it. You will have to decide just how much you want the home and is it worth new price.
Also, when you agree to a dual agency (which is what you are in now with hiring the listing agent to represent you on a home he/she is also selling), you always have to remember that the listing agents fiduciary responsibility is first and foremost to the client who hired them first. Even though one would argue that might not be the case, always think of it as a 49/51 split rather than a 50/50 split. Many of these transactions do go smooth, but it can easily result in a sticky situation for all parties involved.
Flag Mon Jul 16, 2012
Are these improvements or repairs? Is this a short sale? Did you sign and As-Is Addendum? What is the potential cost of these improvements? Did you review the SPDS before ordering the inspection? Did you submit these improvements on a BINSR after the inspection? If you did use a BINSR then the seller has a place to respond to your request. The seller can: 1. Agree to correct the dis-approved items, 2. Be unwilling to correct the dis-approved items, or 3. Respond to your request in writing. All this is done on the BINSR. There really shouldn’t be a counter offer at this point.
Regarding backups, if done correct the backup offers/buyers should have been notified in writing that their offer was not chosen, which could be shown to you, but they don’t have to.
0 votes Thank Flag Link Mon Jul 16, 2012
Lets talk this one step at a time:
If the repairs are not done; do you NOT want the house?
Are the repairs reasonable and real, or they nit-picking?
Is the deal good enough that you could accept the house and do the repairs yourself?
What difference does it make to your deal, whether there is a Back-Up deal or not?
And, NO, there is no Back-Up CONTRACT: there can only be one CONTRACT at a time.

Only YOU can answer this.

Good luck and may God bless
0 votes Thank Flag Link Mon Jul 16, 2012
Is the agent representing both parties on this sale?
0 votes Thank Flag Link Mon Jul 16, 2012
It is quite likely that there are additional cash back up offers since the pace of the market is very busy with low home values, low inventory, and an influx of buyers in the market. If you don't accept the seller's counter offer, it is possible that you could lose the home. The seller may have drafted this counter offer knowing that there were other buyers in line and they felt they could 'risk' losing your offer since there were others waiting if the transaction didn't finalize with you.
0 votes Thank Flag Link Mon Jul 16, 2012
Unfortunately, the Seller is not required to make any repairs. & I would bet they do have a back up buyer, why would the agent push you aside if there wasn't another buyer?

They do not have to prove any offers, just don't have to accept your terms.
0 votes Thank Flag Link Mon Jul 16, 2012
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