seller's remorse

Asked by bella, 04530 Mon Mar 1, 2010

just wondering......you get a house under contract, pay for the inspection, get an appraisal, the appraisal comes in too low as expected.....seller decides not to sell? so they get a free inspection and appraisal and you get stuck with the bill?

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8
D.L.Cote, , Boston, MA
Wed Feb 6, 2013
Appraisals are like you know what, everyone has one. When I research a property I just google the full address in the search bar and do your own homework. Zillow is all you need to research a property actually. Just compare apples to apples, sales prices within 6mo, similar area, lot size, square footage, beds/baths you get the idea. And never pay for an inspection until you have done a title search and gotten approved. The inspection is the last on the list, and frankly I use that as a 'gotcha' clause to lower the price at the last minute, if I choose.
0 votes
Nancy Carlet…, Agent, Bath, ME
Thu Jul 15, 2010
Hi Bella,
Unfortunately, in this region, that's kinda the deal. If you suspected the appraisal may be an issue, I would've recommended getting that taken care of first, then proceed with inspections, etc...
Best regards, Nancy
0 votes
Karen Parsons…, Agent, Laguna Beach, CA
Tue Mar 2, 2010
Hi Bella,

I'm not completely sure about your situation. 2 different scenarios are possible:

1) you got an appraisal which was lower than your original offer, asked the sellers to accept the new appraisal amount as the sales price and they refused. If this is the case, they have that right. They accepted a specific price and terms, if those change, then they have a right to back out.

2) your offer was based on the appraisal....in other words you wrote an offer and it was agreed to that you would pay whatever the appraisal comes in at. If this is the case, the sellers have a contract with you and it can be enforced.

Unfortunately, appraisal and inspections are buyer costs. Sometime buyers waive inspections and if you were offering cash, the appraisal would be optional as well....so the seller doesn't really benefit from these items, but if the offer price and appraisal value were off....at least you didn't buy an over priced home.

Karen
0 votes
Diana Downs, Agent, Bangor, ME
Tue Mar 2, 2010
Hi Bella,
I'm not sure why the seller got a free inspection and appraisal. Those are your property and you are not required to share. If the seller wanted copies you could have asked them to pay you for them.
I would strongly recommend that you work with a buyer's agent if you are not already. Someone who would be working in your best interests and can advise you. I'd be happy to answer any questions you have about that.
Diana Downs
ERA Dawson Bradford
417 Main St., Bangor, ME 04401
C - 207-735-6988 F - 207-941-9866
dianadowns@eradawson.com
http://DianaDowns.com
0 votes
John Juarez, Agent, Fremont, CA
Mon Mar 1, 2010
The sellers did not have remorse. They are unwilling to sell at the appraised price. If you want to pay the difference, I bet they will still sell to you at the originally agreed to price.

It is a shame when buyers get stuck with the cost of appraisal, inspections and whatever but are prevented from buying the house through no fault of their own. You have my sympathy.

On your next offer, try to make it a condition of the contract that the seller will reimburse for your costs if negotiations break down and the deal does not go through.
0 votes
Steven M Dyer, , 04841
Mon Mar 1, 2010
Hey Bella,

It is true that Sellers can have remorse. However, they entered into a contract to sell their home. If they subsequently choose to not follow through with the sale of the house, they should be liable for the expenses incurred by the buyer at least and may be able to be held to the sale of the home by Specific Performance. You should probably seek the advice of a strong real estate attorney. If you would like a referral to an attorney, please let me know. I would be more than happy to help you out!

Blessings!!
Steven M. Dyer, CRS
Keller Williams Realty
The MidCoast Group
207.975.9330
steve@TheMidCoastGroup.com
0 votes
Don Tepper, Agent, Burke, VA
Mon Mar 1, 2010
Unfortunately, yes. However, there are some silver linings in that cloud.

Anything found wrong in the inspection has to be disclosed to future buyers. So, let's say the inspector found some soft spots in the roof, a drainage problem on the side of the house, and some substandard wiring. The seller and the listing agent have to disclose that to any future buyers (or get those items fixed). So it may end up costing the seller a lot more--in either repairs or a lower price--than your inspection cost you.

There are also some implications regarding low appraisals--appraisals can stick with the property. And besides, if the appraisal was low, then what that really meant was that you would have overpaid. Let's say the appraisal came in $10,000 low, and the appraisal cost you $300. Bottom line: You just paid $300 and in the process saved yourself $10,000. All in all, not a bad set of numbers.

I understand your frustration. But, in the end, it sounds as if it's really a good outcome for you.

Hope that helps.
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Mon Mar 1, 2010
Hi Freetoe
Sorry for you circumstances...........
Buyers can have buyer's remorse............but sellers can have it, too.

However in your case..........Is it possible the seller couldn't afford to sell at the reduced price?

No matter what, it's a shame it cost you money to find out!

Better luck next time.........
Debbie Rose
Prudential NJ Properties
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