We signed a purchase agreement for our Michigan home but our house appraised for less than the purchase

Asked by Cheryl, Michigan Sun Mar 9, 2008

amount and the buyer was denied financing. Our buyer then verbally countered and applied for a mortgage of his terms. Our agent verbally presented the offer but never sent it to us in writing. Finally after two weeks, the buyer's agent whited-out the previous agreement terms and wrote in new terms, but we have not signed it. We have been trying to get out of this situation, but our agent will not take our rejection to the buyer's agent. What can we do?

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6
Deborah Lamp…, Agent, Chesterfield, MI
Tue Apr 26, 2011
Cheryl,
If you want your home sold, work out an agreement that is acceptable to you and the buyer based on the comps as well as the appraisal. If the buyers are renegotiating a deal, a written contract must be in place, not the previous one that you all agree to and signed. No white outs are acceptable. If you want to reject the offer and get out of that situation, write rejected on it with your initials and it's done. If your agent is not working on your behalf, call your agent's broker and they should direct you to another agent that will.
0 votes
Pam Bava, Agent, Rochester, MI
Mon Mar 10, 2008
I agree with Gary's comments. If you really want to move, work out your differences, agree on terms and get the house sold. In this buyers market just getting an offer is wonderful. You might not get another for a long time.
I am a licensed agent in both Michigan and Florida.
Web Reference:  http://www.rddrealty.com
0 votes
smith3gary, Agent, White Lake, MI
Mon Mar 10, 2008
Cheryl, Just to ask, how long was your home on the market before receiving this offer? Many homes in southeastern Michigan have and are continuing to decline in value. Do you believe that the next buyers appraiser will determine your home is worth more? Were there unsimilar homes in the appraisal?

I suggest sitting down with your agent, and as others have expressed the broker/owner and get this straightened out to your satisfaction. Please review your listing contract, most have specific clauses near the begining as to what the agent and broker must do.

I wish you luck, please let us know how this ends.
Web Reference:  http://www.mi-living.com
0 votes
Missy Caulk, Agent, Saline, MI
Mon Mar 10, 2008
Of there are no initials by the whited out new terrms you do not have a valid offer. Call the Broker of the your agent, if he is doesn't handle it, call an attorney and give show him contract, not signed by you. When you verbally countered did you say yes. Why would the buyers agent do this? Even if you said yes, and had 2nd thoughts but did not sign it you should be able to get out of it as all contracts in real estate must be in writing.
Web Reference:  http://missycaulk.com
0 votes
Keith Sorem, Agent, Glendale, CA
Sun Mar 9, 2008
An oral offer is worth the paper it's written on...worthless.
Any time you deal with anything of value, the rule is put it in writing.
When a property appraises less than the purchase price, usually that means either the seller lowers the price, the buyer antes up more down payment, or a meeting in the middle.

I would be inclined to work with the buyer....maybe discuss with your Realtor's broker. I am concerned about some othe comments you made, particularly the fact your agent orally presented an offer. "Verbally" could mean written, emailed, spoken...it means with VERBS. Oral means spoken written means...IN WRITING
0 votes
Maureen Fran…, Agent, Birmingham, MI
Sun Mar 9, 2008
A real estate contract in Michigan needs to be in writing. If you don't have a contract in writing you don't have an agreement. You are most likely out, though I would suggest you speak with your agent's managing broker if your agent is not delivering your rejection. A real estate attorney could be your next step after the broker.
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