A need to buy
October 13, 2010 5:40 AM Subscribe
Help me find a way to purchase this home in MA -- another buyer has filed an intent to purchase, but has not signed the Purchase and sales agreement. home inspection has been completed. Seller is willing to sell to me, the dual real estate agent says no.
Just found out that a neighbor is in the process of selling his home. A buyer has signed an intent to purchase and an inspector had just finished. Seller is interested in my offer, but was unclear about the process nor if this is a possibility. Seller says that he heard through the agent that there were a few potential buyers, but other than signing an exclusive agent form and having had an inspector come by, did not know where he is at in the process, nor what his rights are as a seller.
Agent is dual- represents both the seller and the buyer.
My understanding is that unless the Sales agreement has been signed, there is a room for the seller to back out. But the seller has just been told by his agent that the 'ball has started rolling prior to us having seen the their place' so that he must keep on going. Agent is on a fixed commission -- seller pays same amount regardless of who buys.
I have a need for an additional housing and it must be this seller's home, or I need to put my own place on market, so I have a strong incentive. Help?
Just found out that a neighbor is in the process of selling his home. A buyer has signed an intent to purchase and an inspector had just finished. Seller is interested in my offer, but was unclear about the process nor if this is a possibility. Seller says that he heard through the agent that there were a few potential buyers, but other than signing an exclusive agent form and having had an inspector come by, did not know where he is at in the process, nor what his rights are as a seller.
Agent is dual- represents both the seller and the buyer.
My understanding is that unless the Sales agreement has been signed, there is a room for the seller to back out. But the seller has just been told by his agent that the 'ball has started rolling prior to us having seen the their place' so that he must keep on going. Agent is on a fixed commission -- seller pays same amount regardless of who buys.
I have a need for an additional housing and it must be this seller's home, or I need to put my own place on market, so I have a strong incentive. Help?
Your needs don't have any bearing on what's possible
I agree. I also think that you should consult with a real estate attorney as to what your options are.
But, really, what you need has no bearing on this situation.
posted by dfriedman at 6:05 AM on October 13, 2010 [1 favorite]
I agree. I also think that you should consult with a real estate attorney as to what your options are.
But, really, what you need has no bearing on this situation.
posted by dfriedman at 6:05 AM on October 13, 2010 [1 favorite]
Approach the other buyer and offer to pay them a large amount of money --- say 10% of the value of the home --- to back out of the purchase. Then move ahead and purchase it yourself.
To avoid problems, I'd discuss this with the realtor and the seller before going ahead with the offer. IANAL, and I have no idea if there are potential legal entanglements of doing this, but if you're above board with the seller and the realtor I'd think it would be okay.
posted by alms at 6:36 AM on October 13, 2010
To avoid problems, I'd discuss this with the realtor and the seller before going ahead with the offer. IANAL, and I have no idea if there are potential legal entanglements of doing this, but if you're above board with the seller and the realtor I'd think it would be okay.
posted by alms at 6:36 AM on October 13, 2010
I'd guess that the agent isn't interested in bollixing a more or less confirmed sale, since he's getting a fixed fee and has no incentive to get his client a better deal. I think if you made an offer significantly above the current one, your neighbor would be more forceful in asserting himself.
posted by electroboy at 7:05 AM on October 13, 2010
posted by electroboy at 7:05 AM on October 13, 2010
Response by poster: Thanks, one suggestion of offering 10% to the buyer. I would like to ask others as well --if you're a buyer for a less than 400k place, what amount would you find appetizing?
I am also curious if anyone with real estate knowledge can confirm that the agent isn't wrong -- I have worked with this agent as a buyer and have felt mislead, and the sellers seemed unclear if this was indeed legally bound so much as the agent trying to save face to her buyer client.
posted by MD06 at 7:07 AM on October 13, 2010
I am also curious if anyone with real estate knowledge can confirm that the agent isn't wrong -- I have worked with this agent as a buyer and have felt mislead, and the sellers seemed unclear if this was indeed legally bound so much as the agent trying to save face to her buyer client.
posted by MD06 at 7:07 AM on October 13, 2010
I wouldn't be surprised if the agent is getting money from both ends and that's why they want the deal to go through as it currently is. If you come in they're only getting money from the seller.
posted by theichibun at 7:20 AM on October 13, 2010
posted by theichibun at 7:20 AM on October 13, 2010
Can you find yourself a buyer's agent and discuss it with them?
posted by galadriel at 7:30 AM on October 13, 2010
posted by galadriel at 7:30 AM on October 13, 2010
On just the facts here I don't think this is answerable definitively. If I were Buyer, I'd talk to Seller and with their full support I'd get a real estate attorney to represent Buyer to straighten this out.
If I were Seller, I'd ask Agent to point out to me which section of the contract and/or which applicable laws support her interpretation. I'd want to do that as Seller anyway, regardless of whether or not I wanted to sell to OP, but that's just my own personal approach.
posted by mrs. taters at 7:32 AM on October 13, 2010
If I were Seller, I'd ask Agent to point out to me which section of the contract and/or which applicable laws support her interpretation. I'd want to do that as Seller anyway, regardless of whether or not I wanted to sell to OP, but that's just my own personal approach.
posted by mrs. taters at 7:32 AM on October 13, 2010
jon1270 writes "Your needs don't have any bearing on what's possible,"
Not strictly true as more things become possible with money and MD06 should be willing to spend at least the commission cost of selling their home. That's several thousand dollars worth of incentive they can use.
Around here no one gets an inspection unless they have an accepted offer. Accepted offers are binding on both parties so unless you can get both the buyer and the seller to back out the deal will go through. alms has a good idea. I'd approach the Realtor with deal and I'd offer the Realtor a commission for brokering the deal. A few thousand to the seller and buyer (plus buy their inspection report) and five hundred to the Realtor would probably go a long way if their isn't something uniquely perfect about the subject property and you aren't in a tight housing market.
posted by Mitheral at 7:41 AM on October 13, 2010
Not strictly true as more things become possible with money and MD06 should be willing to spend at least the commission cost of selling their home. That's several thousand dollars worth of incentive they can use.
Around here no one gets an inspection unless they have an accepted offer. Accepted offers are binding on both parties so unless you can get both the buyer and the seller to back out the deal will go through. alms has a good idea. I'd approach the Realtor with deal and I'd offer the Realtor a commission for brokering the deal. A few thousand to the seller and buyer (plus buy their inspection report) and five hundred to the Realtor would probably go a long way if their isn't something uniquely perfect about the subject property and you aren't in a tight housing market.
posted by Mitheral at 7:41 AM on October 13, 2010
Response by poster: Mitheral -- would you clarify 'around here'? Ma?
posted by MD06 at 7:51 AM on October 13, 2010
posted by MD06 at 7:51 AM on October 13, 2010
Actually, your needs do have a bearing on what is possible. You need to decide whether your needs can withstand the extra six months to a year that will be needed to close in the event this goes to litigation. IANAL, IANYL, but in most states, real estate must be sold by way of a written contract. The mere act of saying, "I want to buy your house." is not sufficient to constitute an enforceable contract. As has been stated here, you need a real estate attorney to advise you. Additionally, you need to decide how long (and at what additional expense) you want to wait to get this house. I would not start flinging offers around to, in essence, buy out the position of a "buyer" who has not yet committed to the purchase in writing. On the other hand, I might be interested in that house too. How much are you offering me? Oh, and my second cousin might want it too. See the problem?
posted by Old Geezer at 7:52 AM on October 13, 2010
posted by Old Geezer at 7:52 AM on October 13, 2010
Not strictly true
To clarify, the OP's needs do not have any bearing on what the seller agreed to in his contract with the agent, and therefore do not have any bearing on what it's possible for the seller to do for the OP. Obviously some money could be sprinkled around to convince the agent and competing buyer to change their minds.
posted by jon1270 at 7:55 AM on October 13, 2010
To clarify, the OP's needs do not have any bearing on what the seller agreed to in his contract with the agent, and therefore do not have any bearing on what it's possible for the seller to do for the OP. Obviously some money could be sprinkled around to convince the agent and competing buyer to change their minds.
posted by jon1270 at 7:55 AM on October 13, 2010
I am not a lawyer, nor a real estate agent but I have gone through the process of buying and selling a home in Massachusetts very very recently. Take this with a heaping of YMMV.
My understanding is that in your case an offer has been accepted, an inspection has been done, but the Purchase and Sale agreement has not been signed or finalized. I believe that after the purchase and sale agreement is signed, there's nothing you can really do unless the buyer's financing falls through or lighting strikes the house and it burns down.
As it stands now, though, the seller cannot back out of the sale without a release from the buyer. The buyer at this point has skin in the game, probably $1000 deposit and the cost of the inspection (plus lead tests radon tests, etc). Usually, the buyer can back out if the inspection shows something they can't accept and the seller won't make accommodations for.
If you want this house, you need to find out who the buyer is and convince them to back out, convince the seller to let them have their deposit back & get it all in writing. The good news is that offers usually expire after a few days (weeks?) so if you can get all parties to agree, no one is going to come back at your closing with the old offer and tell you that you can't buy the house.
It can be done, but if any party decides to act like a jerk, it could fall apart.
posted by Jugwine at 8:59 AM on October 13, 2010
My understanding is that in your case an offer has been accepted, an inspection has been done, but the Purchase and Sale agreement has not been signed or finalized. I believe that after the purchase and sale agreement is signed, there's nothing you can really do unless the buyer's financing falls through or lighting strikes the house and it burns down.
As it stands now, though, the seller cannot back out of the sale without a release from the buyer. The buyer at this point has skin in the game, probably $1000 deposit and the cost of the inspection (plus lead tests radon tests, etc). Usually, the buyer can back out if the inspection shows something they can't accept and the seller won't make accommodations for.
If you want this house, you need to find out who the buyer is and convince them to back out, convince the seller to let them have their deposit back & get it all in writing. The good news is that offers usually expire after a few days (weeks?) so if you can get all parties to agree, no one is going to come back at your closing with the old offer and tell you that you can't buy the house.
It can be done, but if any party decides to act like a jerk, it could fall apart.
posted by Jugwine at 8:59 AM on October 13, 2010
Boston Globe Real Estate Blog:
http://www.boston.com/realestate/news/blogs/renow/
Search thru there and see if anything helps.
posted by andreap at 3:26 PM on October 14, 2010
http://www.boston.com/realestate/news/blogs/renow/
Search thru there and see if anything helps.
posted by andreap at 3:26 PM on October 14, 2010
This thread is closed to new comments.
Your needs don't have any bearing on what's possible, so I think you need to set that aside and focus on figuring out what's possible. You should probably start by obtaining a copy of the contract between the seller and the agent, and reading it to find out exactly what restrictions the seller has accepted.
posted by jon1270 at 5:58 AM on October 13, 2010 [2 favorites]