sesfw
Junior Associate
Today is the first day of the rest of my life
Joined: Dec 21, 2010 15:45:17 GMT -5
Posts: 6,268
|
Post by sesfw on Apr 30, 2011 18:47:01 GMT -5
'unless we keep doing the things they ask. '
Just say 'no' to any more fixes. I get the feeling that VA wants a 'new' home for an old home price.
In Calif many years ago we declined selling to a GI/VA buyer. When I sold our home 10 years ago I told the realtor that I would not sell on any govt financing unless the offer was high enough to cover all costs. The offer was FHA and was high enough to cover all costs. Also no fixes.
|
|
2kids10horses
Senior Member
Joined: Dec 20, 2010 20:15:09 GMT -5
Posts: 2,759
|
Post by 2kids10horses on Apr 30, 2011 21:07:48 GMT -5
not-so-happyscooter,
Just what all did the VA say to fix? The only thing I have heard of is the cabinet. And 75 bucks a month to keep the heat on is peanuts. You could have drained the pipes instead.
Again, let me put it so that you understand: If you get an offer while you have it listed with a real estate broker under an "Exclusive Listing Agreement" (or whatever it is called in your state), and you accept that offer, you owe the broker a commission. No matter what, UNLESS you had specificly excluded that party in your listing agreement with the broker. If you do not pay the broker and sell the house anyway, he can sue you for breach of contract. Because you have.
|
|
Deleted
Joined: May 3, 2024 2:48:59 GMT -5
Posts: 0
|
Post by Deleted on May 1, 2011 3:54:58 GMT -5
2 Kids,
I believe she means they would wait until their (listing) contract expires and then deal with the neighbor and/or family member. If that's the case then the onus will be on the agent to prove they were the procurring cause. Unless the agent or another agent actually showed these folks the house I think the listing agent would have a very difficult time proving that they were the procurring cause.
Why didn't these folks speak up before the house was listed? Because they are waitiing for a deal! The house has been on the market for a few months and they are hearing the OP's family complain about the hassle of selling the house. So now that there's an acceptable offer they know what the family will take. The neighbor/family member will come in with a low offer, say 15%-20% below the current deal because they will have subtracted out the commission and VA ccs. BTW it's a rare transaction that doesn't have some kind of issue which is why I think it makes the most sense to work with what's in your hand. I applaud the agent for saying "no more". That took some guts. Because there's no guarantee that there won't be issues with the neighbor or family member's deal.
Selling a house is often a PITA which is why good agents are very much worth the money you pay them. Add in all the emotional baggage dealing with a parent's death and your family members and I can see how difficult the situation is.
It's much, much easier to have a neutral executor/Trustee sell the house and distribute the proceeds after paying expenses than do what the OP's family did. They closed probate and the siblings took title to the house themselves and then put the house on the market.
|
|
2kids10horses
Senior Member
Joined: Dec 20, 2010 20:15:09 GMT -5
Posts: 2,759
|
Post by 2kids10horses on May 1, 2011 6:06:56 GMT -5
Bonnap:
I think I understand the basic situation:
The house was inherited. It was probably not in the best condition. None of the kids want to spend time/money to get the house into top condition.
They hired a Realtor to sell it.
A VA buyer makes an acceptable offer. The VA loan requirest the house to be fixed up, and has the buyer pay closing costs.
The Sellers don't like having to fix up the house. Or pay closing costs. (The Seller is also complaining that the Buyer is using a VA loan. This means the Buyer is either active Military or a Vet. Yes, they can get a zero or low down payment, but the Military uses the VA loan program as a recruiting tool, and our soldiers and vets should be able to use it if they need it.) The fact they were going to use a VA loan should have been attached to the offer. The Seller's agent should have informed the Sellers about the rules and costs associated with a VA loan. If the Sellers did like the rules and costs, they shouldn't have accepted the contract.
Meanwhile, they get cash offers from 1) other family, and 2) neighbors while the house is listed by their agent.
What do they do? Do they ask their agent to prepare "back up offers" with the offers that have come in? No, they decide not to fix up the house, make the VA buyer go away, wait until the agents listing has expired then take the lower cash offer.
The right thing to do:
Tell the listing agent that Sellers have received cash offers, from sellers' spere of influence, not necessarily from his efforts. Ask him/her to take a reduced commission if one of these offers closes.
Use the presence of backup offer to apply pressure to VA to require less in fix up, or raise purchase price to 1) mitigate cost of repair, 2) mitigate added closing costs.
|
|
happyscooter
Senior Member
Joined: Jan 5, 2011 9:04:06 GMT -5
Posts: 2,416
|
Post by happyscooter on May 1, 2011 7:09:59 GMT -5
Debt, I guess I am impatient. I am not looking for money and I am sure that is what everyone is thinking, I just want my inheritance. Not true. Haven't we all heard of people, who as soon as the deceased person is in the ground (vulgar I know), they want their money. Happened in my family with my grandmother.
Personally, I can't believe the insurance company is continuing to insure the property. From everything I have understood over the years, insurance companies will not insure vacant property. I would hate for something to happen to it after all these years of my parents hard work. My parents did plan well. Even told us what to do with the house, who she wanted to own it. The person originally turned it down, I am not so crass as to ask why.
Yes, there are 3 of us. I am doing the majority of disposing of everything and it was that way from the beginning. When I tried to say, let's speed this up, I was confronted with tears. How hard is it to get rid of Tupperware? I did not think it was fair to drop it all on the sibling who was the executor so I kept doing my part. As I said previously, I am emotionally, mentally and physically exhausted.
|
|
zibazinski
Community Leader
Joined: Dec 24, 2010 16:12:50 GMT -5
Posts: 47,866
|
Post by zibazinski on May 1, 2011 7:15:53 GMT -5
I know what you mean about others being emotionally involved. I watched my family fall apart because 4 sisters couldn't agree on anything and even though one was in charge, she couldn't stay strong against the others. Should have never been put in that position, imho.
|
|
happyscooter
Senior Member
Joined: Jan 5, 2011 9:04:06 GMT -5
Posts: 2,416
|
Post by happyscooter on May 1, 2011 7:16:39 GMT -5
2kids, the $75 a month was the power bill and insurance. The propane heat was an additional bill. A/C is now on so the electric will be higher. The cabinet was what we thought was the biggie. Turned out not to be. Something else was. About $400 in repairs and 2 days of work. Not much I am sure some would say. And in the grant scheme of things, you're right. But what if they come back again and say 'fix the roof'. Cha-ching. 'Fix the bedroom ceiling'. Cha-ching. 'Change out the toilet'. Cha-ching. Dang if we keep going like this, I'm going to move in.
|
|
Deleted
Joined: May 3, 2024 2:48:59 GMT -5
Posts: 0
|
Post by Deleted on May 1, 2011 7:55:22 GMT -5
This message has been deleted.
|
|
2kids10horses
Senior Member
Joined: Dec 20, 2010 20:15:09 GMT -5
Posts: 2,759
|
Post by 2kids10horses on May 1, 2011 8:25:33 GMT -5
scooter,
Anyone trying to sell real estate in THIS MARKET has to either have a property in EXCELLENT condition, or a VERY LOW PRICE to get anyone interested.
You have to have power on to allow people to see it. It's a cost of doing business.
If the roof leaks, it should be fixed. If the toilet leaks, it should be fixed. OR LOWER THE PRICE so that the new owner can fix it.
Let me tell you something: You should be thanking your lucky stars you have someone willing to buy it! There are thousands of homes that are sitting, rotting away, because they are foreclosures, or houses where the homeowners are upside down, and they can't sell.
How much is this house selling for? If it is a $20,000 house, yes, $400 is a lot. If it is a $200,000 house, it's not.
And, yes, you are correct you are lucky the insurance company is continuing coverage. They may cancel at any time. Another reason to get on with the sale.
The repair issues you are experiencing are very common with houses where elderly people lived in their advanced age. They simly stopped doing repairs. It's called "deferred maintenance". Well, the time has come it can't be deferred any longer.
Suck it up, repair whatever it needs, get it sold, be happy scooter again.
Edited to add: And it's not VA's fault. Any wise homebuyer would have a property inspected and ask for repairs if faults were found. Even your cash buyers. WOULDN'T YOU?
|
|
sesfw
Junior Associate
Today is the first day of the rest of my life
Joined: Dec 21, 2010 15:45:17 GMT -5
Posts: 6,268
|
Post by sesfw on May 1, 2011 13:57:04 GMT -5
I've seen too many times where the buyers want more and more things done to a home before closing. There comes a time when you need to say 'enough', and either close or move on.
I've also seen very bad inspectors. They nit-pick the paint job and don't see or report the major plumbing problem.
|
|
Mardi Gras Audrey
Senior Member
So well rounded, I'm pointless...
Joined: Dec 25, 2010 18:49:31 GMT -5
Posts: 2,082
|
Post by Mardi Gras Audrey on May 1, 2011 15:10:05 GMT -5
i am surprised that the VA is requiring little stuff that doesn't matter to be fixed. I bought a 20 year old home using a VA loan a few years ago. It had messed up screens, toilets that worked but had water flow problems due to hard water/sedimentation, and other issues. The VA didn't say anything about that stuff and it was up to me as the buyer to ask or not ask (I asked for ductwork to be repaired and some roof issues, everything else I could handle on my own). I sold said home to an FHA buyer last year and the FHA didn't give me any problems (The buyers wanted stuff done that wasn't going to happen like a new roof (one that was there was 13 years old), a new & bigger water heater (was 6 years old), a new heater and A/C unit (Heater was 25 years old and AC was 13) and bringing all electrical up to current code (Electrical was okay and met the building code when it was done)). We are going through the home buying process right now with a VA loan (We are the buyers) and have encountered very few homes that the VA won't approve (The ones we have encountered have had issues like NO HEAT). I asked our agent about the VA conditions the other day and she said that the VA requires stuff be in operable order, but not great order so if it will function, it is good to go....
Best of luck in the home selling... I know real estate is a pain in the rear, especially right now...
|
|
tskeeter
Junior Associate
Joined: Mar 20, 2011 19:37:45 GMT -5
Posts: 6,831
|
Post by tskeeter on May 1, 2011 16:15:20 GMT -5
Scooter, this sounds like the deal from hell. At this point, I'm not convinced you are bound by any contract. If you want to end the silliness, I think you should talk to a real estate attorney ASAP.
As out contract law professor explained it, every time a party to a contract adds something to or changes something in the contract, there really isn't a binding contract any more. The entire contract is open to negotiation because the terms of the contract are being changed. The person to whom the counter offer is being made can either accept or reject the counter offer without legal consequences. So, if your buyer came back and said the VA is requiring that you do A, B, and C before they will fund the mortgage, you have the option of saying no, I'm not going to do what the VA is requiring. Then the buyer is unable to obtain financing, and you can go on and sell the home to another buyer. If your buyer indicates a desire to search for something other than VA financing, I'd put a short time limit on their efforts, or they string this process out for several months. The spring time is prime home selling season, after about June 1, most folks are done shopping for a new home and are working on getting moved and settled in a new location before school starts. If you don't want to bother further with the VA, now is the time to cut this buyer off and move on to the next buyer.
I suspect that one of the challenges of dealing with a VA loan is that every time the VA performs an inspection, there is a high probability that they will send a different inspector than the one who did the last inspection. Since inspections are largely opinions, each inspector has a different opinion, so each time the home is inspected, new issues are raised. This causes the seller to chase their tail, trying to resolve a constantly changing list of repairs that the VA is requiring. Not the buyer's fault. Just inherent in the way the buyer is getting financing.
|
|