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  Desperate first time home buyer! Please help!
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Desperate first time home buyer! Please help! Sign In/Join 
posted
Here is the story: 1st day: first viewing. 2nd day: accepted the price asked by the seller, which was much higher than our estimate, since the seller´s agent kept pushing us by saying, if we did not accept that price, they were going to sell it to another buyer. 3rd day: had to sign without reading the contract, since the seller said, if we did not send in the signed contract by noon, they would sell it to the other buyer...so fully trusted our agent, we signed the contract blindly,which we later found out was "to be sold as is".4th day: handed in the check for earnest money. 5th day: had to get the preapproval for morgage...My husband and I are both new in America and never had any experience in buying a house before. We made the hasty decision to buy because we were getting tired of house-hunting after 2 months and just wanted to settle down as soon as possible. So far, we have got the home inspection, radon test, termite letter done. But now we kind of "woke up" and feel we were pushed to this sale by both the seller´s agent and our agent, who never provided any professional advice or tried to help us get a better deal. We think our offer is about 20,000 too much. And we will also have to pay all the closing costs of $8000+. Besides, the seller is not going to do some repairs since it is "as is"...Well, we live in a small town where the house market is like dead. Nobody seems to be buying in our price range. If we sell in a few years time, we may lose a lot of money. So we are really not sure whether we should back out. Or how could we negotiate the price with the seller? Any thoughts/advice would be greatly appreciated!

This message has been edited. Last edited by: Dawn2013,
 
Posts: 8 | Location: USA | Registered: Mar 27, 2014Reply With QuoteReport This Post
Picture of rker321
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Guess What!!!!!!!!! you need an attorney. and then after you speak to him find out whether you should persue any legal action or not. Sorry, but in any language or country you don't sign any papers unless you understand what you are signing.
 
Posts: 5014 | Location: 0 | Registered: May 31, 2007Reply With QuoteReport This Post
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Thanks! I know we made a mistake by signing without reading the contract and trusting the agent blindly. It was really very stupid. But what would be the point of speaking to an attorney? The situation now is we could back out without losing the earnest money anyway...The problem is just that we cannot decide whether we should stop buying this home or go ahead...And may we ask to seller to pay the closing costs now or it is too late to negotiate?
 
Posts: 8 | Location: USA | Registered: Mar 27, 2014Reply With QuoteReport This Post
Picture of Charming
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Dawn, sorry to say, but it sounds like you are to the point where you might be forced to buy the house. Your best hope at this point is that it does not appraise. That is your opportunity to back out without giving up your earnest money.

I must say - your writing is very good for a second language.

Go to your agent's broker - tell them what you wrote here and that you do not feel you were adequately represented in he negotiation. That if the appraisal does not come back at a suitable amount then you are filing a complaint with the local board and looking for a new buyer's agent.

Good luck and keep us posted.


Fun and Info
 
Posts: 3603 | Location: Coastal SC | Registered: Jan 10, 2006Reply With QuoteReport This Post
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Hi, thanks for your encouragement and advice! It seems you think we should back out if possible?

A lawyer friend also suggested we go to talk to the supervisor of our agent after we signed. But We did not bother to put any complaint in at that point because we did want to buy and did not want any conflict or trouble. Neither did we really have the time for it -- my husband has been very busy with work and I got a little baby to look after at home. But now we are getting more and more unhappy about the whole thing, feeling we are completely left at the mercy of the seller -- as our agent said, "you should be thankful that the seller agreed to do at least some of the repairs!"

Now, if we send the signal to the seller that we may back out, do you think he may then be willing to give some rebate or so? BTW, the seller is a relocate company. Thanks for your attention!
 
Posts: 8 | Location: USA | Registered: Mar 27, 2014Reply With QuoteReport This Post
Picture of Jewel
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Yes, as Charming advised, your best hope is that the house doesn't appraise for financing at the contracted price. If the appraised amount as determined by your mortgage lender is less than the purchase price, the seller either needs to match the appraised amount or you can walk away and get your deposit back in full.

If, by some horrific miracle, the appraised amount and your purchase offer amount match, you will be in violation of the contract if you walk away from the deal. You'll most certainly lose your earnest deposit and, if the seller has nothing but time on their hands, he could sue you for "specific performance" to force you to complete the purchase. In most markets, a jilted seller wouldn't bother pursuing a fleeing buyer, but in the market you described he could very well feel it's worth the effort.

Please let us know what happens!

This message has been edited. Last edited by: Jewel,
 
Posts: 8201 | Registered: Sep 18, 2002Reply With QuoteReport This Post
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Thank you! I heard banks nowadays tend to match the purchase offer when doing appraisal, so that the sale won´t fall through. So we may not have the chance to negotiate then..

Should I inform the seller now that we may not be able to get our loan closed since the downpayment (30%) is surprisingly high?
 
Posts: 8 | Location: USA | Registered: Mar 27, 2014Reply With QuoteReport This Post
Picture of Jewel
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It used to be that banks would bend over backwards so that the appraised amount matched the purchase amount, but not so much anymore (not since the housing bubble burst and so many homeowners went into foreclosure or short sales).

I don't know that you have anything to tell the seller until you actually receive word from the bank.

I did hear about a buyer who didn't qualify for their mortgage when the money intended for their downpayment couldn't be verified (the money wasn't in the bank accounts the buyer allowed the lender to check). Also, the buyer's income wasn't high enough for the lender to approve a mortgage amount equal to the purchase price. So, the mortgage loan was denied and the sale fell through........

..... Do see a real estate attorney for advise......Smile
 
Posts: 8201 | Registered: Sep 18, 2002Reply With QuoteReport This Post
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I see. Thank you for the information! Then we may just wait for the appraisal...
 
Posts: 8 | Location: USA | Registered: Mar 27, 2014Reply With QuoteReport This Post
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Hello! We went to the manager of our agent in the end and complained about not being adequately represented in the whole thing, since we were really desperate and did not know where to get help otherwise. I wish we had stopped working with this agent at the very early stage instead of putting up with things until it would not work any more...We do feel totally justified in putting that complaint in and were 100% honest with the manager. But now I am worried about possible retaliation from our agent in case he would lose his job through this... I know I sound paranoid and maybe even silly. But could anybody tell me what could happen to an realtor in case of a complaint from the client? We do not want him to lose his job although he may really deserve it.... All we wanted was to get somebody else who is competent to represent our ineterst in the last round of negotiation with the seller, which is very important to us and we could not trust our current agent any more. And if he can learn a lesson out of it, it would be even better. But we do not want any trouble! I hope what I am saying makes sense to you guys...Thank you!
 
Posts: 8 | Location: USA | Registered: Mar 27, 2014Reply With QuoteReport This Post
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First it sounds as if there was an inspection contingency in the contract...your agent should have written a repair notice and negotiated to have the seller take care of them. "As Is" does not mean you can't ask for repairs. The next question is what are your timeline dates?

Who was "your" agent working for? Were they a buyers agency, seller's agent, transaction coordinator? How they worked makes a difference in their responsibility.

I am not a lawyer and don't know where you are but in my area the contract typically limits damages to the seller to the amount of earnest money. The attorney who did our con-ed had never heard of a judge forcing a buyer to buy a house but he did know of a case in which the seller was forced to sell under specific performance.

You need to review your situation with a real estate attorney.
 
Posts: 521 | Location: mi, usa | Registered: Apr 10, 2003Reply With QuoteReport This Post
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quote:
Originally posted by Lakelark:
First it sounds as if there was an inspection contingency in the contract...your agent should have written a repair notice and negotiated to have the seller take care of them. "As Is" does not mean you can't ask for repairs. The next question is what are your timeline dates?

Who was "your" agent working for? Were they a buyers agency, seller's agent, transaction coordinator? How they worked makes a difference in their responsibility.

I am not a lawyer and don't know where you are but in my area the contract typically limits damages to the seller to the amount of earnest money. The attorney who did our con-ed had never heard of a judge forcing a buyer to buy a house but he did know of a case in which the seller was forced to sell under specific performance.

You need to review your situation with a real estate attorney.

Thanks, Lakelark! Our agent told us not to ask the seller to repair everything since he was already being very "generous" by having offered to do some of them...

The situation now is: due to our morgage contingency we are able to pull out. But we want to negotiate with the seller for a price reduction. Since we cannot trust our agent any more, who is supposed to work for us, but did not represent us at all in the negotiation, so we talked to the agent´s manager today to get somebody competent to finsih up. The manager is going to sort this issue out. Now my question is what could be the consequences for the agent. We do not want any conflict with him.We are new in this country and have no idea how things work here...
 
Posts: 8 | Location: USA | Registered: Mar 27, 2014Reply With QuoteReport This Post
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It all depends on the what the Broker chooses to do and if you choose to file a complaint with the the state and with the Board.

There should be no conflict. Since the relationship between you and the agent is broken, just politely insist that either the broker handle anything else that comes up or they assign you a different agent.
 
Posts: 521 | Location: mi, usa | Registered: Apr 10, 2003Reply With QuoteReport This Post
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quote:
Originally posted by Lakelark:
It all depends on the what the Broker chooses to do and if you choose to file a complaint with the the state and with the Board.

There should be no conflict. Since the relationship between you and the agent is broken, just politely insist that either the broker handle anything else that comes up or they assign you a different agent.


Actually I meant "trouble" afterwards, like retaliation for losing his job...
paranoid huh? Frown((
Anyway, is it common in the States for people to complain about their real estate agents as far as you know? ThanksSmile
 
Posts: 8 | Location: USA | Registered: Mar 27, 2014Reply With QuoteReport This Post
Picture of Charming
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Hi Dawn, I'm glad you went to your agent's broker. BTW - what did s/he say? The first response should have been to ask you if you would rather work with another agent and assigned someone to work with you.

Do not worry about the agent. It is a life lesson for him and he most likely will not lose his job. As an agent, my take if he was not competently representing your interests, he should not have that responsibility!!!

Go back to the broker and tell him you are not comfortable with that agent and can he assign someone else to work with you.

People either love or disparage their agent. Wink

This message has been edited. Last edited by: Charming,


Fun and Info
 
Posts: 3603 | Location: Coastal SC | Registered: Jan 10, 2006Reply With QuoteReport This Post
Picture of rker321
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I believe that all Real Estate agents work at a Broker's office and are not salaried but on commission. The worse that could happen is that they have to change agencies. Unless you go forward with a complaint to the board. I believe.
 
Posts: 5014 | Location: 0 | Registered: May 31, 2007Reply With QuoteReport This Post
Picture of real estate lady
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Whoa.... so you are going forward STILL without understanding the contract ???


Hello?!
 
Posts: 9290 | Registered: Aug 14, 2007Reply With QuoteReport This Post
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