Okay, the buyers have asked me to make a major repair found by an inspector, I said no, 2 weeks ago and they (Realtor &Buyers) haven't

Asked by Victoria, 19525 Thu Dec 10, 2009

responded to me or my realtor? If they go with a different mortgage company to see if they will accept "as is", wont they need another commitment date?

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Jennifer Day…, Agent, Phoenixville, PA
Thu Dec 10, 2009
BEST ANSWER
Victoria,

There are a few missing pieces in your question. First it seems that you are stating that the mortgage company is requiring the work to be completed. I want to clarify for you. It probably isn't the mortgage company per say but the type of mortgage they are utilizing. If they are utilizing FHA or VA then changing mortgage companies will not change the fact that the repair has to be completed. When a borrower is utilizing this type of financing a case number is assigned to the house and the appraisal and the case number follows the house. So unless they are changing to conventional financing then this required repair situation is not going to change. It is extremely rare that a conventional mortgage will require any type of repair to a home so I have to assume they are indeed utilizing FHA or VA.

This then means that it doesn't matter if they responded in time or not because they will not obtain the mortgage without the repair being completed if it is required by the mortgage company therefore they will have an out under the mortgage contingency which I assume they have. If they can't get the mortgage then they can't purchase the home and you will end up returning their deposit on the house. (Again if a mortgage contingency is part of the Agreement of Sale and if the Mortgage Company truly is requiring this repair.)

It seems strange that the buyer's agent has not responded to your agent however I suspect it can be for the reason above. Perhaps they are waiting to get closer to the closing date in order to make it more difficult for you to walk away from the sale. (Although this is just one reason and not necessarily THE reason.). I agree with those below you need to IMMEDIATELY have your Realtor contact their Realtor and find out what the current situation is! If they are using conventional and the repair is not being required by the mortgage company and you are past the reply to inspection date then they are in the deal and accepting the property. It does not matter if you put into writing that you were not going to complete the repair. The agreement states under an Option 1 and Option 2 that if you do not come to a written agreement between the buyers and sellers within a certain time frame then the buyer is accepting the property as is. Therefore in this situation whether you responded verbally or in writing does not matter as if the time period has passed and the buyers did not put into writing a termination of the agreement then they are accepting the property without the repair (except under the mortgage contingency as I explained above).

I do get the impression that you do not have a Realtor as a good Realtor would have let you know where things are standing EVEN if the other party is not responding. If you are not represented and you have attempted to contact the Buyer's agent with no response you need to immediately contact the Broker of Record at the buyer's agent's Real Estate Company and explain the situation to be sure you are getting correct information. Good luck with the sale.

Jennifer Daywalt, Realtor
Re/Max Results Realty - Collegeville
Top Agent 2004 2005, 2006, 2007, 2008
Author of "Ask The Realtor" Column in The Saturday Edition of The Phoenix Newspaper
Licensed since 2001 in PA
610-489-7355 Main Office
610-999-7693 Direct Line
Sellinghomesjenn@aol.com
0 votes
Jennifer Day…, Agent, Phoenixville, PA
Fri Dec 11, 2009
Thank you Jeff, I really appreciate that!

Jennifer Daywalt, Realtor
Re/Max Results Realty - Collegeville
Top Agent 2004 2005, 2006, 2007, 2008
Author of "Ask The Realtor" Column in The Saturday Edition of The Phoenix Newspaper
Licensed since 2001 in PA
610-489-7355 Main Office
610-999-7693 Direct Line
Sellinghomesjenn@aol.com
0 votes
Jeff K, Home Buyer, Bristol, PA
Fri Dec 11, 2009
Jennifer,

Very impressive answer. You really know what you're about! I'll be looking forward to your future responses!

Jeff
0 votes
Renee Porsia, Agent, Newtown, PA
Fri Dec 11, 2009
Victoria,

Do you have your own Realtor?

Renee Porsia
Associate Broker
RE/MAX ACTION
(215) 669-0589 Direct
(215) 358-1100 Office Ask for Renee
http://www.reneeporsia.com PHILADELPHIA'S NUMBER ONE SOURCE FOR EVERYTHING REAL ESTATE
0 votes
Dan Chase, Home Buyer, Texas City, TX
Thu Dec 10, 2009
It sounds like the buyer heard you say the house is overpriced and agreed with you.

Whenever you say to someone I will not meet your terms; meet mine instead be prepared for them to just walk away with both of you being unhappy.

If I (as a buyer) thought a house was worth say $200k and an inspection showed it needed $15k worth of repairs I would not buy it for $200k. Now I know that at $200k it will cost me $215k and that is to much. I might offer $185k nah, I would offer even less for the inconvenience factor involved. If I have to go through the pain and aggravation of serious repairs I expect to be paid for that problem. Do you think your buyers are any different?
0 votes
Sean Dawes, , Philadelphia, PA
Thu Dec 10, 2009
Without seeing the agreement, it seems to me the contract is voided as you responded and they are just not answering you. So they either can "take it or leave it" as you stood your ground on the repairs.

If you want the deal to continue and the property wont be able to get financing due to this major repair, suggest they explore a 203 renovation loan. Dont know the details on the sales price and estimate of repairs but this might help.



Sean Dawes
0 votes
Renee Porsia, Agent, Newtown, PA
Thu Dec 10, 2009
Victoria,

Something doesn't sound right. You need to meet with your Realtor ASAP or their Broker.

There was a date that the buyer needed to tell you that they would either accept or reject your response and if they were going to continue on with the sale or cancel the contract. If they asked you two weeks ago and you said no and I'm hoping all of this was in writing, then the ball was back in the buyer's court and had only a few days to decide if they wanted to get out of the deal. It also says that if they don't reply to you, they agree to accept the home as is. Not exactly in those words but that's the gist of it.

If they named a mortgage company in the contract, then that is the company they need to use and if they want to change it, an Addendum needs to be made and everyone needs to agree to it. If they couldn't get the mortgage with the original mortgage company by the date given on the contract, you can get out of the deal.

You should be meeting with your Realtor. Time is of the essence in an Agreement of Sale and it sounds to me like the dates are not being adhered to.

Also, it is your right to speak with an attorney and have them review all of your documents if you feel like you need legal advice.

Renee Porsia
Associate Broker
RE/MAX ACTION
(215) 669-0589 Direct
(215) 358-1100 Office Ask for Renee
http://www.reneeporsia.com PHILADELPHIA'S NUMBER ONE SOURCE FOR ALL THINGS REAL ESTATE
0 votes
Jeff K, Home Buyer, Bristol, PA
Thu Dec 10, 2009
Hi Victoria,

How "major" was this repair? Some repairs are made to sound like a big deal by an inspector when they really aren't much of an issue (or are cheap). Inspectors "have to" find stuff - if only to justify their fees and cover their butts.

I agree with Sharon by the way. I assume that you are under contract in PA, since the buyers had an inspection performed. So, when you said no and they didn't respond at all afterwards ... that likely means they are going through with it. Generally in PA, there is a X # of days post-contract or post-inspection - where the buyer is allowed to attempt to re-negotiate based on findings in the inspection.

Check your contract and talk with your agent - this stuff is in black and white. If the date is in there (and it should be) and it has not yet expired - then for goodness sake do NOT bring up the topic with the other side. That would be showing your hand. They asked, and you answered. They neglected to do anything further and are likely be be now past the time that they can do anything. I'd just sit tight.

If they are so foolish as to be waiting until the settlement table to bring this up again, then they are being provided very poor advice. My last seller asked me to split an $800 bill at closing - it was this stupid thing that was required by the appraiser (don't ask). Guess what I told them ... but with a smile.

Don't worry too much about the commitment date - things happen, between idiots that the mortgage company, and idiot appraisers - that frequently cause delays. If the closing is a week later than agreed-to, that's not really all that uncommon.
0 votes
Dan Rich, , Doylestown, PA
Thu Dec 10, 2009
Victoria,

You need to discuss options with your Realtor. If you have just responded no verbally and the applicable time periods for a clean commitment have elapsed you are accepting the committment and current situation "as is" unless you put it in writing. Whatever it is the buyers intend to do is not really relevant as they won't get the money from the current mortgage company unless the repair is done assuming the lender intends to verify the repair. If they try a new loan, yes they will need a new commitment and new appraisal and whether you change the old commitment date to a new one or push back the settlement date per contract is up to you and whether a new lender can realistically meet your existing settlement date.
Web Reference:  http://www.dan-rich.com
0 votes
James Gordon…, Agent, Hamilton, OH
Thu Dec 10, 2009
Victoria you may already have your answer. They asked, you said no. Check with your agent they may be preparing for a release from contract.
Web Reference:  http://www.Find1Home.com
0 votes
Sharon Sapp, Agent, Reading, PA
Thu Dec 10, 2009
That can mean a number of things, including the buyers deciding whether they want to do the repairs themselves. In your agreement of sale, there should be a date where the inspection result negotiations are to have occured by. Talk to your realtor to determine what your options are.
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