I just sent the agent an email, detailing what options we have available based on the contractor's estimate, etc. Those were:
1. Seller makes all repairs prior to closing. These not only include all the items in the contractor's estimate, but also those things that were left out and we thought were major, including a new gutter system. If the Seller agrees, we also request proof the repairs were completed by a professional prior to closing.
2. We buy the property "as is" and make all the repairs ourself. I told her if the Seller agrees to this option, we would definitely have to renegotiate on the list purchase price.
3. Neither party makes the repairs. The contract is voided, we get our deposit back, and both parties walk away.
An earlier email from the agent's assistant said the Seller was willing to make the repairs, but this conflicts with his earlier statement about having no money left for repairs, so I'm not sure which face is correct. I specifically put the clause about having proof the repairs were completed by a professional prior to closing as I didn't want the Seller to contract out some of the work that he couldn't do himself, and do the remaining stuff himself. If he's going to do the repairs, I'm going to make sure they are done correctly.
At this point, I'm not really sure which option he'll pursue.
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6 comments:
I am interested to hear how this goes. Looking forward to your next post.
Thanks. Me too. My wife is totally against this property, but I'd like to see how little I can get it for. Even with the repairs, I can still cash flow a few $100's. My immediate worries are (1) I haven't heard from the lender in weeks even though I've given him several updates, and (2) not sure about insurance coverage. It's atypical, so it may be harder to find a carrier.
BTW, I added your link to my list and checked out ur site. Keep up the good work, especially with the large family you have.
In my experience, if a lender stops responding for that long, they've bailed on doing your loan. You may want to make sure they're still with you! If not, now's the time to find another lender. If you wait until the last minute, you'll cause yourself more stress than is necessary.
Hey Trisha - You're probably right. Last correspondence I had with the guy, he said he sent my "package" to corporate for them to start the ball rolling. That was Oct 10th. I sent him two emails since then, but no response. I'm not too worried at this point because I have enough reserves to buy all cash if need be (i.e., no lender). Also, based on recent events with the agent & contractor, I'll either bail on this particular property or have the price reduced considerably. The jury is still out on that as well.
Hard to believe I started in on this property this past SPRING - things are moving at a snail's pace.
Steve, Sounds like your having a wild ride with this one; repairs, funding, poor communication. Assuming that all else goes right, does your contract release your earnest money if your funding falls through?
I had a client (I'm a Realtor) offer to put way too much money down in earnest. Thank God he didn't because the sellers have all but fallen off the face of the earth and he's got little to no chance of getting his cash back in a timely fashion.
I hope the best for you!
rymoore - Yes, I have a financing contingency as well as several other ones. Can never be too cautious with these things.
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