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At What Point is Enough Enough?

By
Real Estate Broker/Owner with North Sky Realty LLC 6502410580

I have been trying to close a sale on a listing I have since April.  We have had an offer since then, and been working with a very difficult buyer and his agent.  My sellers have accepted a reduced price, which is common in any market.  They have given up the appliances they intended on keeping, in order to make the deal happen at no additional charge.  They have paid for a well and septic inspection as required by the county.  They even have agreed to pay the buyer up to 6% in closing costs.

Michael Delaware, RealtorWe uncovered a legal description issue where the driveway they were using had never been conveyed, so I worked it out with person who legally owned the parcel to sell it to them.  The sellers ultimately had to file a title insurance claim to settle this issue, but we navigated through all of this and continued to move forward.

Despite all our efforts, the buyers delayed submitting some of their required paperwork. The agent working for them was allowing them to do so.  They delayed the appraisal, and other required actions for their loan until the last minute. My sellers already granted one extension, because they want to sell their home. 

The appraisal came back a few thousand dollars less than the agreed upon price, and so the buyers agent came back requesting a price reduction. After much deliberation, by sellers agreed to meet them halfway.  Conceding another thousand dollars.

Of recent, because the home is a manufactured home it requires a structural inspection.  The house had been inspected by a previous firm several years ago, and passed.  The new inspection yielded the information that the straps for the home to the foundation were not properly installed, and therefore it failed.  My sellers paid $450 for all the materials and installed the straps, and the second inspection was ready to be lined up.

Apparently the buyer paid $400 for the inspection, and the inspector was requiring an additional re-inspect fee for a second trip of $175.  The buyers agent contacted me and informed me that the sellers needed to pay for this.  I informed my sellers, and they said 'enough is enough' and held firm. 

They are willing at this point to put the house back on the market, and seek other buyers.  I am still trying to navigate through all the parties to obtain an agreement to possibly salvage this, but at what point do you have to say 'Enough is enough' and move on?

One can say of course 'Well you have come so far!'  Most certainly there is truth to that. However, from the sellers perspective, they need the funds from the sale of their home to be able to purchase a new one, and with every turn this number is getting chiseled away at. 

So I find it hard not to agree with them on this viewpoint.  I certainly do not want to start all over with a new buyer, but there is a point where I have to ask myself, 'Is this buyer really serious about buying this house, or is it the agent causing all the problems?'  Is it time to say 'Enough is enough'?

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Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Michael, your Sellers have an exceptional Realtor!  What is the Buyer's Agent thinking?  Enough is enough!

Jul 18, 2012 12:06 AM
Kalene Bagwell
Realty Executives Of Kansas City - Blue Springs, MO
Realtor - Selling Blue Springs - Kansas City Metro

Hi Michael,  Depending on the type of loan, it may be the lender who is requiring the seller to pay the re inspect fee? I think I had that situation in the past couple of years. It also made my seller, who had jumped through several hoops already as well, ready to kick the buyer to the curb and start over. I think we moved on through it though becuase he didn't want to take the chance of having a worse buyer or lower offer than what we were working with.

If there's no chance of getting a better offer or improved appraised value, I would find out if the re inspect fee is a lender required seller paid closing cost. If it is, I would try to help the sellers move forward. If not, I would let the buyer's agent know this seller is on the brink of walking and the buyer's will lose more than the $175.00 if they have to start over and pay for another home inspection and appraisal. The buyer's should really consider paying this fee themselves.

Jul 18, 2012 12:10 AM
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

Good morning Michael - it sounds like the sellers have been negotiating in good faith and that the buyers aren't terribly cooperative. If all it would take to buy the home is an additional $175, it sounds like the buyers aren't terribly invested in this purchase.  Brava to Kalene's comment that they lose all of their inspection and appraisal invenstment if they won't pay this $175. 

Are negotiations going strangely lately? We've had deals taking weeks to get signed, and many have fallen apart at the last minute.  I'm of a mind to chalk it up to a changing market, but, man, things have been crazy lately.

Jul 18, 2012 01:07 AM