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groomingal

I think we're in a pickle thanks to our RA

groomingal
17 years ago

DH and I put an offer on a home, contingent upon selling our home, satisfactory HI, and satisfactory property disposition. We put down earnest money and were told if anything fell through it would be refunded.

The sellers and their agent have been less than cooperative from the beginning so we have been trying to move the process as quickly as possible. Within 1 week we put our offer and had the HI done. HI turned up serious issues that have an estimate of 25K to fix (this is on a 75K home.) We called our RA and let her know the inspection had turned up some serious problems and we would like to withdraw our offer. RA told us that was no problem just sign a withdrawl form.

After a week of her putting us off for her personal affairs we finally get to sign the form (we live 2 hours one way from her and have to commute to take care of business). She then informs us the sellers agent let her know that they would not refund the earnest money. I let her know it is in the contract and now she is saying that they have to be given the option to repair what the inspection turned up or they can reject the offer before they will be required to return our money and we are still binded to the house.

She showed us another home (before signing the withdrawl, but after our bad HI ) and we fell in love with the home, it is a nicer home and needs no work. She told us a contact was on the home and we were out of luck. We've come to find out there is no contract on the house only a rejected offer.

Any suggestions as what to do to get out of this pickle? We signed a withdrawl form and then she said that was disregarded because they had to be given the opportunity to fix everything or reject our offer. We love the other house and would love to put an offer, but don't want to get stuck in a bigger mess.

We're first time home buyers (first house bought from family) and this has been dissuading to say the least. Any advice is greatly appreciated!

Comments (51)

  • kec01
    17 years ago
    last modified: 9 years ago

    Follow what berniek suggested AND call your lawyer. One letter from the lawyer will bring this to an end.

    Find a new agent - someone who knows what they are doing!

  • minet
    17 years ago
    last modified: 9 years ago

    What does the contract actually say? In RE, usually all that counts is what's in writing.

    Read your contract and then call the broker. The agent doesn't sound sure of what's going on.

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  • rrah
    17 years ago
    last modified: 9 years ago

    One more piece of advice---Absolutely do not delay any further in this matter. Typically there is a deadline you must meet in order to void the contract based upon inspections. You probably do have to give the seller the opportunity to repair the major defects first though.

    I'm also wondering about the two hour drive. Doesn't this agent know how to use email or fax machines? I email and/or fax contracts, etc. to my clients all the time. They print it out, fax or email back to me.

  • sparksals
    17 years ago
    last modified: 9 years ago

    It sounds like your realtor isn't being honest with you. You need to make a call to the broker AND your lawyer PDQ.

  • theroselvr
    17 years ago
    last modified: 9 years ago

    In addition to what was said, I'd want to know how much money you put down and what repairs would need to be done. To me it sounds like you found a better house and "may" be using the HI to get out of the 1st one. As minet says; What does the contract actually say? In RE, usually all that counts is what's in writing. You may not be able to get out of this with the HI....

  • clemrick
    17 years ago
    last modified: 9 years ago

    You need legal advice, immediately. Real estate agents and brokers are not usually lawyers. They get paid when a deal closes, so it is in their interest to keep this deal going. You need a disinterested party who knows the law and can tell you what the contract requires. A good RE lawyer can also tell you if you are obligated to use your current agent on the next deal or if you can get someone who can work for you.

  • groomingal
    Original Author
    17 years ago
    last modified: 9 years ago

    minet- it says we are contingent based upon selling our home, a satisfactory property disclosure, and a satisfactory HI. Our RA put all of that on the offer and it was accepted after a few days of going back and forth with the seller and their agent.

    Roselvr- we put down $500 in earnest money, this was the amount they asked us to put down. The repairs that are needed are as follows: a new roof, new roof sheathing, new electrical throughout the home, fusebox updated to circuits, 6 new windows, garage has to be drywalled, 3 new entry doors, duct work needs to be cleaned and repaired, new ac unit, gutters put on home, and there is much much more.
    We most certainly are using the HI to get out of the contract, we were told that if it wasn't satisfactory we only lost the money we paid for the HI and our earnest money would be returned. We would much rather be out $350 for a HI than $75K for a money pit.
    We are going to be in contact with the broker that owns the company today and let her know what is going on and see if she can take care of the issue or if we need to contact a lawyer.
    Thanks for your advice everyone and i'll keep you posted!

  • theroselvr
    17 years ago
    last modified: 9 years ago

    Is the house priced accordingly to something that needs work? When you looked at the house and bid, did you take into consideration things like the garage not having sheetrock? That's not standard here, most are unfinished. What's the age of the house? Do you have a link?

  • akkw
    17 years ago
    last modified: 9 years ago

    As for the list of items that need to be fixed.... I thought (and have been told by most agents) that the sellers should only be expected to fix things that are a safety hazard that could not be identified before the buyers put the bid in on the house. A new roof, sheet rock in the garage, etc. would not qualify. Even the electric upgrading would be something that I would think you would have been aware of (and adjusted your offer price accordingly). The idea of a home inspection is not to get the house updated; it's to let the buyers know about safety issues that they otherwise would not have known about.

  • lorrainebecker
    17 years ago
    last modified: 9 years ago

    I would agree with everyone else and say call a lawyer, but you'll have to figure how much the lawyer will cost since you're only talking about a $500 deposit.

    Do you think those people are really planning on doing all those repairs? Maybe they're just bluffing because they want to keep the $500. Again, you should read your contract. Ours said the sellers had the right to do the repairs needed after the HI but there was a time limit. If they weren't willing to do the work in that time, they had to refund our deposit. You could bluff the sellers right back and they'd probably rather give you your money than have to do all that work.

  • lyfia
    17 years ago
    last modified: 9 years ago

    akkw - although I agree with you some to be honest a lot of people doesn't know how to tell if those items really are needed or not. I'd say only a few percent would know how to check the electrical and take that into account before hand. It is also hard to tell what is needed on a roof or ac vents etc. if you don't know what to look for. Hence the need for home inspectors.

    If the house is priced according to these items that are needed then I can understand the owners wanting to continue negotiations, however I also understand groomingal is a first time buyer and may not have understood these things and with an agent that sounds less than stellar it doesn't appear that the agent educated them on this either.

  • akkw
    17 years ago
    last modified: 9 years ago

    lyfia -- I agree that some first time home buyers may not realize this. And I am not speaking specifically to the OP in this post, just stating this in general.

    And I can agree about the electrical (except in an older home most people could tell if the electrical was old/original). As for how the house is priced... well, the house is priced, at this point under the contract, at whatever the buyers offered. Before the buyers make an offer, they should take into account the updating/maintenance needs that are visually apparent and factor that into their offer price. They should look at the roof and if it needs a new roof, they should take that into account in their offer price. If they want drywall in the garage (who has drywall in the garage?) then they should take that into account when they make an offer. Those aren't safety issues that need to be identified by a homeinspection. This is a used home. Any home inspection report will give details about the condition of the house but that doesn't mean the sellers should have to fix everything -- they should only have to fix the things that are true safety issues. A roof does not qualify, because any buyer should be able to look up, and/or ask how old the roof is, and therefore tell if a roof needs to be replaced or not, before they make an offer. It should not come as a surprise after reading a homeinspection report. (Or, if the buyers really can't tell, then yes, the agent should be pointing this stuff out).

    Sorry, but I just don't think the HI should be used as a price negotiating tool when buying a USED house. I know this is done routinely in many areas, but I think it is unethical.

  • silvercomet1
    17 years ago
    last modified: 9 years ago

    Read carefully what your contract says about how long you have to notify the seller that the inspection was unsatisfactory and your offer is withdrawn. Be very careful not to miss this deadline. I'd fax written notice to your broker, and I'd also fax it directly to the seller's broker and call to make sure it was received. Or even deliver it in person to the seller's realtor. Your realtor is either clueless or disingenuous, but if you miss the deadline for getting out of the contract the seller won't care if it happened because your realtor wasn't on top of things.

    I'd worry more about making sure your offer on this house is successfully withdrawn than I would about the earnest money at this point. A lawyer wouldn't be a bad idea at all.

  • berniek
    17 years ago
    last modified: 9 years ago

    In our contract, if the buyer does not like ANY items that were identified during the inspection, regardles of the sellers willingness to perform any repairs, the buyer can WALK AWAY unconditionally from the deal and get all earnest money back.

  • lyfia
    17 years ago
    last modified: 9 years ago

    akww - I agree that the Home inspector shouldn't be used as a price negotiating tool, but if you truly don't know about some of these issues then how can you anticipate them. A new roof and decking is a major thing, electrical as well, ac ducts and units etc. If those turn up in an inspection then yes I do think if the house wasn't priced for that they need to re-negotiate or let buyer back out.

    Now for no drywall in the garage that is something obvious and that should be taken into account if that is the standard in the area or not, but a lot of the other things are valid in this case.

    Even in an old house it can be very hard to tell what wiring it has. Most wiring is hidden so hard to see if it is knob and tube, aluminum or if it has been replaced or wired incorrectly, many replace part of the wiring and keep the old fuses (fuses aren't a bad thing). If you don't know anything about electrical I have no idea how you can even begin to see this. I also don't know any of the average buyer wanting to open an electrical box to see what goes to a switch or outlet as it should be. This could be a major liability to a seller if something were to happen.

  • theroselvr
    17 years ago
    last modified: 9 years ago

    I'd like to see the listing as I mentioned to get a feel for what else is out there in that price range. Where I live finding a $75k home is very cheap, even with $25k needed repairs....

    Hopefully the realtor knew they were 1st time buyers, so she could help them decide on a house. She may see things they didn't. From what the OP is saying, the realtor is a bit inexperienced, so I would lose her if I continued to look for a house.

    Years ago we looked in another county an hour + south of us. We found a nice piece of land with a tear down. Our agent said to get a test on the land because it had an oil tank; sellers wouldn't cooperate so we ditched it. If we ever looked down there again, we'd surely use that agent since she had a lot of knowledge about property down there and things we might not think of

  • akkw
    17 years ago
    last modified: 9 years ago

    OK, I give up. Where I'm from it's not done like this, but it's irrelevant to the OP's issue anyway.

    OP -- I would worry less about the $500 and just make sure you can legally extricate yourself from the contract you no longer want to be in. It depends on how your contract is worded. Here, the sellers typically get an opportunity to fix major problems found in the HI and if they are willing to do this within the time allottment, the buyers won't be able to get out of the contract.

  • housenewbie
    17 years ago
    last modified: 9 years ago

    In my area, the HI isn't just about safety issues. For example, our inspection found a major leak in the roof, around the chimney. (Fortunately for us, it was pouring that day and water was streaming into the attic.) That was #1 on our list for the seller to fix. If they had refused, I would not have been happy. It was clearly a defect in the house, used or otherwise.

    Hopefully the OP can deal w/ the agent's boss and get this straightened out. And then ditch this agent.

  • berniek
    17 years ago
    last modified: 9 years ago

    "Here, the sellers typically get an opportunity to fix major problems found in the HI and if they are willing to do this within the time allottment, the buyers won't be able to get out of the contract."
    Where is "here"?
    To what degree does a buyer have to accept a sellers willingness to repair, what if there is such major damage, that the buyer does not want to live with, like stractural? If the buyer wants repairs performed by certain professionals, and the seller wants to select their own, or do it themselves, what are the buyers options?
    A seller and buyer disagreement about the home inspection results has never forced a buyer to have to purchase a property as far as I know. Although losing some earnest money in some badly written contracts might be a possibility.

  • akkw
    17 years ago
    last modified: 9 years ago

    OK, enough, I already said I give up...

    "Here" is the midwest.

    I don't mean to come off sounding as an expert. No way am I an expert. I'm just speaking from my own experience as a person who has been in the position of buyer and seller four times each (all in the same geographic area) with a close family member who is a real estate attorney. The contracts we have had will allow the sellers to fix any issues that come up on the HI, or else allow funds for the buyer to do so. I don't know if the buyer can back out of a contract if there are major structural issues (maybe those are excluded). I've never run into that.

    I would consider the leaking chimney/roof to be a safety issue, by the way. Any water leaking into a house can lead to structural damage, and at the very least, toxic mold growth. I don't consider drywall in the garage to be a "major structural issue". I was referring to older, yet FUNCTIONING, aspects of a house, as things that I thought should not show up on a buyer's "fix" list. I seem to remember a thread here awhile back where people were telling unbelievable (to me) stories of how buyers were using the HI to re-negotiate prices because, for instance, they wanted a new furnace (even though the one they were getting with the house was functional, just old). Or new carpet. Or whatever.

    I am NOT saying the OP is doing this, by the way. Clearly I don't know about all the issues the HI coughed up, in this case. Maybe they're mostly safety issues. Who knows.

  • dreamgarden
    17 years ago
    last modified: 9 years ago

    I wouldn't want the seller to fix any problems. I'd want to hire my own contractors or take money off the price.

    A similar thing happened to us. Our agent got us in legal hot water. We made an offer contigent on inspection. The inspection failed. The agent didn't tell us we needed to put our refusal in writing. The seller sued us to force the sale. We had to hire a RE attorney. We also called the state licensing board and asked for their advice. They were very interested to know what the agent was doing. She ended up being fired by her broker.

    We got out of the contract, but lost the earnest deposit.

    Please do not purchase a house without an attorney unless you know what you are doing. The agent has a conflict of interest. Your attorney won't. Just make sure you hire one with a little experience. Sometimes you can find one by asking at your bank.

  • dgmarie
    17 years ago
    last modified: 9 years ago

    I thought EVERYONE used a real estate attorney. Now I'm seeing how bad an idea it is to NOT use one.

  • groomingal
    Original Author
    17 years ago
    last modified: 9 years ago

    Update is i'm getting the run around from everyone at the office. We have found a lawyer to help us, best part he is a friend of DH boss and offered to do it for free.

    I'm not sure how to include a listing of the home but here is some info on it, built in 1959, brick bottom with asbestos siding on top, 3bdrm 1.5 baths, and 1400 sq ft. (they tried saying it was 1800sq ft b/c of a loft addition above the garage but there is no heat source for the area. Comps in the area were between 70K and 79K, the upper end being the homes that were updated. When I said the garage needed drywall let me explain, there was a 2 car attatched garage, they took one door out and put in french doors and then hung the other garage door onto the fixture with nails. HInspector was not sure to call it a garage or a conversion, either way he said that they cannot have exposed wires and they have to be covered. As far as the electrical needing replaced it is because of a safety issue, HI recommended an electrician because of all of the issues he found, burned outlets, none of the outlets were grounded, bare wires, and the list goes on. The windows need replaced because they are the only window in a room and they don't open or close properly.
    We're not asking for these items to be fixed for any cosmetic reason but due to safety. The sellers are being difficult, house has been on market for about 4 months and they reduced the price from 85K. They feel they already reduced 10K and shouldn't go lower, never mind they were already overpriced.
    I have look over all of the paperwork and cannot find a time frame for anything other than we have 72 hours to come up with financing if another party wants to buy the home. It says we are contingent upon sale of our home, satisfactory HI, and satisfactory prop. disclosure. (It does not say which party should be satisfied). It says we gave a deposit of $500 to sellers agent and agree to buy the home for $75K.

    I should hear something later today and if not we will have the lawyer contact them in the morning. Thanks for your advice everyone!

  • theroselvr
    17 years ago
    last modified: 9 years ago

    Do you have an MLS #?

  • groomingal
    Original Author
    17 years ago
    last modified: 9 years ago

    mls# 826163

  • theroselvr
    17 years ago
    last modified: 9 years ago

    House link below - realtor.com

    Here is a link that might be useful: house

  • terrig_2007
    17 years ago
    last modified: 9 years ago

    We just let a buyer out of a contract and returned her $200 earnest money. She was a first-time homebuyer and the inspection apparently scared her off once she realized she wasn't going to get a new, perfect house for $80k! Our house has a basement water problem, which we fully disclosed and she knew about BEFORE her inspection. But then the inspector found a rusty vent on our water heater (which we've since replaced) and a couple minor electrical problems. Per our contract, we had to give the money back if the buyer was unsatisfied with the inspection report.

    On a related note, we have an accepted offer on a house we're buying. We had the inspection done there already and problems were found, the major ones of which we asked the sellers to fix and they have fixed or are in the process of fixing.

    Personally, I think you're expecting quite a bit out of your sellers. I don't know where you live, but in your price range ($75k), you're not going to get a perfect house. Plus, you really couldn't tell by looking at the house prior to the inspection that it needed a new roof?? A lot of things you listed are minor and things that can be repaired or replaced over time. For example, the house we're buying will eventually need a new water heater and AC unit...we will budget for that. No house is perfect...not even a brand new one.

  • theroselvr
    17 years ago
    last modified: 9 years ago

    Time for another water break, we're redoing our garden to sell the house...

    I just went back to the realtor.com listing, in big scrolling letters it says "A TRUE "HANDYMAN SPECIAL" NEED SOME ATTENTION" From realtor's web site description: BRING OFFER! GREAT location with a huge fenced in backyard! Needs some TLC, but a nice open floorplan. CHA 7 yrs. Stove & DW less than 1 yr. All plumbing under house is PVC. Garage work has been done to convert to den, needs finishing.

    Looking at the house photo, it's not something I would consider unless I was handy. I don't understand why they put the "den" to the right of the garage but what ever.

    I don't think the LA's ad is misleading, it's a fixer upper; I couldn't find anything else in the price range up to $100,000.

    IMO, it's not looking great for you unless your contract says otherwise.

  • cordovamom
    17 years ago
    last modified: 9 years ago

    The house is listed as a true handyman special needing attention -- to me this would have been a clear sign that there were expensive problems with the house.

  • feedingfrenzy
    17 years ago
    last modified: 9 years ago

    The listing says the house is 'A true 'handyman special' that needs attention." That should tell anyone that it needs more than a little work. It's not surprising the HI report turned up quite a list of repairs. I think you were being unrealistic to expect the house to be in better condition than it is considering that the listing is so upfront about its condition.

    Nevertheless, whether you can get out of the contract and whether you're entitled to the damage deposit depends on its exact wording. That's what your lawyer will look at.

    If you do make an offer on another house, it might be a good idea to involve someone more experienced in the transaction. It seems to me that this is a case of very naive buyers coupled with a not very competant or not very interested broker.

  • groomingal
    Original Author
    17 years ago
    last modified: 9 years ago

    I wished I would have seen this website first, on realtracs it doesn't say anything about being a true handyman special. Nobody told us anything other than the pvc update. That is the only thing we were told and it turned out to be false. It also says that is has been completely updated with pvc, it hasn't the HI said it has partially been redone. The new dishwasher leaks when you run it. The sellers were told to have the gas turned on to test the CHA and agreed and then they "forgot" but "swear" it works. The garage "conversion" is a disaster part of it is a laundry room (this is in front of the remaining garage door) and it is open in front of the french doors, our RA didn't know what was going on with it either (big shock), which if she used the same website you guys showed me she would have known too. Obviously if I could look at the roof and tell you it needed a new one I wouldn't be this far in a mess. Where we plan on moving $75K can build you a home, which we would do if we weren't on a strict time frame.

  • akkw
    17 years ago
    last modified: 9 years ago

    terrig 2007, I totally agree with you. I wonder if it's a geographic thing (I was born and raised in a small town near the Quad Cities -- maybe even the same one where you are!)

  • theroselvr
    17 years ago
    last modified: 9 years ago

    I'm sorry you're having such a bad experience, especially with your 1st home. Do yourself a favor and find another realtor..

    Try to get the $500 back, although don't count on it, maybe just wash your hands of the whole thing if you can. For someone handy, it may turn out to be a great deal.

    Can you rent something while you build?

  • groomingal
    Original Author
    17 years ago
    last modified: 9 years ago

    Wahoo! I finally got to speak with the broker that runs the office, turns out our RA is in the hospital. He called the SA and let us know we signed a withdrawl form and the cost exceeded a $500 limit that was set and the SA would return us the money by friday and we are out of contract.

    We would love to build but not able to rent due to 3 furkids, we thought of purchasing the property and a used mobile home to live in while the home is being built and then sell the mobile home to get it off the property. We have had horrible luck so far in trying to move, about a year ago we were going to move and the RA tried selling us a house without any plumbing or septic. We thought we were doing better this time, wrong again. We're somewhat afraid to build, so much more is involved and we don't have the best of luck, obviously :)
    We have decided to use the RA that is selling our home, he has been more than helpful and offered to go down and look at the homes for us (2hr drive) We hope this will make a smoother transition from selling to buying, with the same person handling everything. He has been doing this for about 10 years and now has his own real estate team and everyone is super.
    Once again I would like to thank all of you for your help, I wished I would have come here before putting on a contract. Thank you for the website (realtor.com) that is great!
    Thanks everyone!

  • logic
    17 years ago
    last modified: 9 years ago


    dgmarie: "I thought EVERYONE used a real estate attorney. Now I'm seeing how bad an idea it is to NOT use one."

    EXACTLY.

    That said, I think everyone really needs to keep in mind that groomingal is a first time home buyer....who elected to work with professionals...one of whom misled her. In addition, since she IS a first time home buyer, I find it peculiar at best that anyone would chastise her for not knowing about the various deficiencies before making an offer. Groomingal was led to believe her interests were protected; clearly they were not. Groomingal is therefore NOT the problem here...the problem is a deceptive seller...and an agent who is either so inexperienced she should not have been unleashed on the poor unsuspecting home buyer or highly unethicalÂ..or both. In addition, the problem is also the broker who has allowed the agents behavior to continue unchecked.

    Add to this that clearly the sellers are practicing to deceive as well as they have failed to fully disclose some major issues. They have also failed to have the gas turned on as promised.

    A few more points...an attached garage that is missing the appropriate drywall IS a safety hazard in terms of fire...which is why code requires drywall of a certain thickness (aka fire-rated) as well as certain types of doors, to slow the progression of a fire into the attached living spaceÂ.as garages by nature contain combustibles in terms of gas powered cars, lawn equipment, etcÂ

    Groomingal, if that town or city has a building code department, I am sure that they would be very interested in this house...as it seems as if it's an accident waiting to happen. Perhaps letting the seller know that if they don't play fair, they will have the code official to deal with will provide the motivation they need to do what is right. In addition, if the town does regulate renovations, there is no way that this garage conversion can be legal....that said, they can't possilbe have any final approvals. IMO, that is a can of worms that they would prefer NOT to open.

    A home inspection, by national standards as well as most if not all state regs is not just about safety concerns...it is about identifying deficiencies and/or defects. Your stateÂs HI regs are in accordance with the above; that said, your agent is woefully derelict in her duty in having you sign such an amorphous contractÂ.as she should be well aware of the nature of a home inspection, and your right to walk depending upon the findings.

    Regardless as to whether she led you into this mess by accidentÂ..or on purposeÂthis should not be your problem.

    Hopefully, the attorney will be able to get you out of this messÂ.and the bonus is that you are now much wiserÂ.and will therefore hopefully engage the services of a good real estate attorney when you decide to make an offer on the next house.

    Last but not least, helpful hint: bear in mind that replacing a roof on a ranch home is always more costly since there is usually twice the amount of roof than that on the same square footage of a home that is a two story.

  • lyfia
    17 years ago
    last modified: 9 years ago

    groomingal - glad to hear it all is working out for you.

    May I suggest that you spend some time in trying to educate yourself for finding at least some of the visible problems when you look at potential houses. Maybe make a post on the appropriate forum here (several different topics) and ask for example "how do I recognize a roof needs replacing" etc.

    I think you've probably learned a few things from this inspection and the last house you tried to buy. Do some searches on the internet too to see what you can add.

    Also many appliances such as water heaters and ac units have dates of manufacturing on them. This should help give you an idea as to the age of a system too. This doesn't mean they will break soon, just that you need to account that you may have to replace them in the near future. As long as they are operational when you buy that is what matters. Do a search to find the average lifespan of different systems and take these things into account when you budget and offer on a house.

    Remember though you are buying a used house so things will not be new or even required to be new. Just functional and not broke or as discussed above a safety issue.

    My AC that I replaced two summers ago was 30 years old (in TX so lots of use), but functional when we bought the house 7 years ago so hence not a second thought given to it other than I need to budget so I can replace if needed. It lasted another 5 years.

    I have another unit that is from 1984 and so far still works just fine (hope I'm not jinxing myself), however I've saved so I can replace when the time comes. My utility bills aren't high enough to warrant a replacement yet.

    Just wanted to give the last examples to illustrate that because it is old doesn't mean it doesn't work. Inspectors often mention that it is old and may need replacing soon, but nobody can predict how soon that is.

  • feedingfrenzy
    17 years ago
    last modified: 9 years ago

    Glad it worked out for you, gg. I'm sure a good agent will find you something much better. Good luck!

  • talley_sue_nyc
    17 years ago
    last modified: 9 years ago

    also ask your HI, "is this absolutely necessary, or is it simply a very good idea?"

    I'm thinking specifically of the "convert fuses to circuit breakers" requirement.

    When we bought our apt, it had fuses. Our HI said, "really, you should have circuit breakers. You don't *need* to mess with it, but breakers would be better. Someday, you should do it, and if you ever do much electrical, then really, budget for it." And I don't think our outlets were all grounded, either--they were "grandfathered" in.

    Of course, burned outlets, etc., are a different story. And, they're indicators of a much bigger mess.


    Cleaning ducts might fall in this category--they need to be cleaned someday. Repairs are a different matter, I think.

    But I do think it's important to remember when looking at an HI's report, that ofte there are things on it that are mostly for "someday" or "when you need to maintain it."

  • brickeyee
    17 years ago
    last modified: 9 years ago

    "...he said that they cannot have exposed wires and they have to be covered."

    Not exactly.
    NM cable only requires protection if subject to damage.

    The fact that the walls are not finished is just that, an unfinished project.
    There probably is no permit pulled, since finishing the walls would be required to close out the permit.

    You made an offer knowing full well the walls had not been finished.
    No relief there.

    All the comments about knob & tube wiring are incorrect.
    K&T is still listed in the NEC and existing installations are grandfathered.
    It is a code compliant method if it was in compliance when installed.
    That is how almost all codes work.
    Existing work is grandfathered. Work is only required to meet the code in effect when the work is performed.
    There have been a very few exceptions, and these often have been handled outside the codes themselves.
    Many jurisdictions have laws requiring GFCI devices in specific locations (kitchen counters, bathrooms, exterior receptacles) when a property is sold.

    You signed a lousy contract if the sellers had an option to make any and all repairs.
    The contract I use simply says 'acceptable report', and then defines time limits if the buyer wishes to try and negotiate.

    HIs are not a reason to get another shot at the seller.

  • theroselvr
    17 years ago
    last modified: 9 years ago

    Logic I think everyone really needs to keep in mind that groomingal is a first time home buyer....who elected to work with professionals...one of whom misled her. In addition, since she IS a first time home buyer, I find it peculiar at best that anyone would chastise her for not knowing about the various deficiencies before making an offer.

    Logic, no one knew 1s off that she was a 1st time buyer nor much info on what was going on. People try to use the HI to get out of a contract all the time. I myself, selling a used house was nervous that something like this coul happen to me, but my house is not a handyman special, which we did not know until seeing the listing. I was going back and forth wondering if she was inexperienced or using it to get the other house she liked. It worked out in the end.

  • saphire
    17 years ago
    last modified: 9 years ago

    I think it may be local custom. In my area what she signed is a binder rather than a true contract. A binder in my area is jokingly referred to as non binding. If the buyer is unhappey with anything in the inspection, they can walk and get their 500 back. After all inspection stuff is resolved that is when you sign a real contract. Since inspections happen quickly, if you are unhappy, why should you have to stay int he deal. Even if it turns out that seeing all the needed work is too much for you

    In fact I went into a house recently that looked like it may have some prior leakage, when I commented it to the SA her response was, that what HIs were for. I am not a first time buyer, I live in an old house. Yet I still could not tell if the roof 30 feet above me was in good shape or not. Whether the flashing that was loose was cosmetic, minor repair or major problem. I have an original slate roof. No one can tell just by looking what kind of shape it is in

    Same with the electrical. As for the furnace, we had the original furnace for the first 8 years and only replaced it as part of a remodel and for energy efficiency (and yes our bills are lower). Yet the HI said it was old and would need to be replaced. However it still worked so it was not immediate. A week after the closing it broke. I had no clue so I called the gas company who came out, replaced some part for about 10! I could not believe I had gotten off so cheap (they no longer fix things for free). If it had happened on the day of the inspection, who knows

    As for the OP, why would you think of buying a house in poor shape for 70 or 75 if you can get a done house for 79k? I would imagine new kitchens still cost the same as they do here

  • groomingal
    Original Author
    17 years ago
    last modified: 9 years ago

    roselvr- I stated in the Op that we were first time home buyers (our current home we purchased from family, easy transaction). This is the first time we have had to go search for a home and go through everything. We also did not get the other home it had a contract put on it yesterday. Regardless, we didn't drop one because we found a better one. We found out the HI turned up so many problems and were told we were out of the contact so we started looking for houses again.

    Saphire- we can also find a better house for around that price, but we loved the location and thought the majority of the work was cosmetic. We would love to build but we need to move within about 6 weeks so we are out of luck with that option right now. Plus we have had bad enough luck trying to find something already built let alone deal with contractors right now.

    Thanks again everyone for the advice, we really appreciate it!

  • akkw
    17 years ago
    last modified: 9 years ago

    groomingal -- hang in there, you WILL find the right house! The entire house buying experience can be a major headache and things can get so complicated (as you've already found out) but you are learning a lot from this process. Even those of us who have been through it many times before continue to learn new things (as evidenced by some things I learned from this thread in particular and this forum in general). Good luck with your house hunting :)

  • terrig_2007
    17 years ago
    last modified: 9 years ago

    Logic: Before buying my first house three years ago (which I have since sold), I KNEW what a bad roof and a good roof looked like because I educated myself. I think the problem that a lot of first time home buyers experience is that they expect their realtor to educate them, when really it is the buyer's responsibility to become knowledgeable about the local market and what a solid house looks like and what a fixer-upper looks like. There are TONS of books and online resources for first time buyers. There are classes first time buyers can take. And then there's just getting out and seeing as many houses as you can in your price range before putting in an offer on one. It's always easy to blame everyone else for your own mistakes. Educate yourself!!

  • dreamgarden
    17 years ago
    last modified: 9 years ago

    groomingal-glad your going to get your $500.00 back.

    Before you hire another agent (if you do), you might ask your attorney if he can recommend one he has worked with. If he has attended many closings, he will know the good ones from the bad. You will get good advice in this forum, but it really does pay to educate yourself. Also, don't tell your agent anything about your personal life. This will be passed along to the seller. You don't want them to know what will motivate you to pay a higher price.

    We are currently looking for a house. We use sites such as Realtor.com, RealtyOneLiving.com, ForSaleByOwner.com, Homes.com, www.traderonline.com and Craigslist.org just to name a few. We check the Sunday paper and read local newspapers to get a feel for what is popular in different areas. A visit to the local Sheriff plus a look at familywatchdog.us for a sex offender check tell us what the crime rate is and what types are more prevalent than others. The offender check is important for resale value. We almost made an offer on a house where the next door neighbor was on the offender list for both molestation and burglary. Not the kind of neighbor you want to keep an eye on your house when you go on vacation.

    We pick up the weekly home guides, attend open houses and drive around areas we are interested in. If we see a house we like, we try to chat up the neighbors as well as look up the property on the County auditor/recorder site to glean what information we can before approaching the SA/owner. If there are issues regarding a well, we check with the health/building department. We NEVER take a RE agents word for anything.
    We have found county departments to be both helpful, as well as a wealth of information. They will tell you what permits are on file for the house, what future development plans are in the works (new bridge?), any hazardous sites in your area or who ratted on who for a violation. You will also get a feel for how easy they will be to work with when you need a permit to put on an addition, etc.

    A few links that might be useful:
    Best real estate Web sites
    money.cnn.com/2006/05/12/real_estate/reguide_moneymag_addresses_0606/index.htm

    ask.metafilter.com/21871/House-buying-tips

    The neighbors you may not know about-Newsday.com
    www.newsday.com/news/local/longisland/ny-lisex1023,0,232400.story

    One more suggestion: Since you need to move quickly and are having a hard time finding a pet friendly rental. You might think about placing an ad in Craigslist. Lots of sellers are renting until the market improves. Maybe you can find an FSBO who would be willing to do a land contract. Never hurts to ask.

  • berniek
    17 years ago
    last modified: 9 years ago

    groomingal, I'm glad you followed my advice and are getting your earnest money back.
    Many posters here, from all over the country will give you good advice, pertinent to their location, however, take it with a grain of salt.
    Most do not realise, that mediation/arbitration is the first step in resolving real estate contract disputes in most of the US, before other legal options can be explored.
    My advice, make sure you have an experienced agent, who came highly recommended by someone you trust.

  • logic
    17 years ago
    last modified: 9 years ago

    terrig2007: "....it is the buyer's responsibility to become knowledgeable about the local market and what a solid house looks like and what a fixer-upper looks like....It's always easy to blame everyone else for your own mistakes. Educate yourself!"

    I agree that education is one's best ally.....which is also the reason why I try to educate people on utilizing a good RE attorney in buying or selling, as opposed to relying upon a RA to protect one's interests...which are generally not in tandem with that of the RA....to say the least.

    That said, a thorough HI inspection often turns up problems that even an "educated" buyer would not have realized; if so, groomingal would have still been in the same pickle.

    groomingal, glad to hear that you can put this behind you, lesson learned...wishing you far better luck next time around...and allow your new and third RE to help you find the right house...then hire a good RE ATTORNEY to draw up the contract.

  • marys1000
    17 years ago
    last modified: 9 years ago

    Terriq quote:

    Before buying my first house three years ago (which I have since sold), I KNEW what a bad roof and a good roof looked like because I educated myself. I think the problem that a lot of first time home buyers experience is that they expect their realtor to educate them, when really it is the buyer's responsibility to become knowledgeable about the local market and what a solid house looks like and what a fixer-upper looks like.

    (1) You can't tell a roof's condition by looking at it. They can look like crap if there are a lot of trees and be ok. They can be ready to leak and still look ok. Your average person and even your average realtor should not be relied on to determine the condition of a roof. For one you have to get on the roof to tell and that's a liability issue.
    (2) Just what exactly DOES a buyer's RA agent do besides let you into the house?
    a. Know local area inside and out. Often lacking.
    b. Ask questions the buyer hasn't thought of - like we should have someone check the roof. What's the water table here like if there's a well.
    c. Help with negotiating.
    c. File paperwork, advise on deadlines and deadlines, loans, and paperwork, in a timely manner! - if they fail at that part which the OP's did then they didn't do the bulk of their job.
    If that's not their job then all they do is let you in houses.

  • terrig_2007
    16 years ago
    last modified: 9 years ago

    Marys1000...

    1. Granted, it's hard to tell if a roof leaks without going onto the roof. But if there is a puddle of water on the upper floor of the house, there's a good chance the roof (or windows) leak. You also can certainly tell from looking at a roof if the shingles are curled, discolored, have holes in them, are peeled off, etc.
    2. Agreed that a realtor does all this that you listed. Where did I state that all a realtor is good for is letting you into the house? I've bought and sold every house I've owned using a realtor. I am a HUGE supporter of realtors! That said, it is still the buyer's job to educate him/herself on the house buying process...it can't hurt and usually it helps! The more armed you are with info going into the home buying process, the better.

  • marys1000
    16 years ago
    last modified: 9 years ago

    Terrig - I did not mean to imply that you said that all a buyer's realtor do is let you into houses - I think that most of the time not you :O
    So far the one I'm working with just emails me the MLS, then if she's like all the others which she seems to be she'll want to make me carsick driving me all around as if i can't do that myself either. Then she'll show me 15 homes and want me to buy one. After that I become "difficult".
    Mostly she's been involved in trying to reduce my expectations. They are probably out of line! LOL! However I also think that she just doesn't want me to rent while I look for the elusive dream home. I've always found my own place - they can't get what I'm looking for, I've got a list but I also have changing compromises, not their fault but I'm sooooo tired of them and everyone thinking they are supposed to and its the bulk of their job when I think the bulk of their job lies elsehwere.
    Meanwhile she hasn't been keen on digging for zoning information, telling me that there is a significant tax difference between the 3 possible counties I could end up in. hasn't mentioned to be careful about what I'm looking at because there might be flood insurance - all info I'm finding myself. She did tell me termites were big in the area (I'm relocating) and that septic laws had changed. I guess that's something.