House deal fell through over $500!

21 Replies

Hi. We are the buyers. We went to sign contracts with the lawyer and the sellers tried to pull a shady move. They wrote in the contract that they

will not credit us the $500 for property condition. They wrote that is was already reflected in the price. We never agreed to this with the seller. We did negotiate a little after inspections, but property disclosure credit never came up in discussion. So we told them forget it...we are backing out. It's not so much that we need the money, it's more out of principle. We've given the credit when we've sold homes. The final price is not much lower than their asking. Are we being greedy or are they!? They are willing to let the deal fall through over $500. We are serious cash buyers. Are our expectations way off base on this? Thanks for any input.

Even if the seller is acting shady and unethical, you have to ask yourself if it's a good enough deal even if you are paying an extra $500. Business is business. My gut instinct would be to walk out of principle as well, but then you need to look at the big picture and decide if $500 is worth losing the deal over.

thanks for your response, I appreciate it. Mixed with other drawbacks of the house, we are willing to walk away. We don't want to, but I don't appreciate people making decisions for us. I'm more surprised they are willing to do this after all this time of inspection, negotiating, etc. now they have to go through all of this with someone else. It boggles my mind. But thanks for saying you would do the same out of principle. 

Food for thought here... If 500 makes this a bad deal you are walking away from then it was not a deal to begin with. On the other hand I get the "it's principle" argument but I would still defer to the thought of 500 killing a deal, maybe it's just the area out here in California where I look at houses but 500 should never kill the deal on a purchase by itself.

You had the house under contract with 500.00 credit for the condition. 

Then you negotiated them down again after inspection.

Is it possible the seller thought that your renegotiated price after inspections is the price they agreed to to reflect "the conditions"  snd not a reduction,plus 500?

From the limited information provided here, I would be coming down on the side of the seller, if you renegotiate the price of the house for problems you found during inspections, unless that was clarified at some point. 

Do you have the changes in writing.

Sounds like this is just a misunderstanding, and they are doing this on principle as well?

So two people are willing to lose a deal on principle ...or over a misunderstanding 

(330) 432-6927

I wouldn't rip over a nickle to get to a dollar. If you're going to make $15K or more flipping the house I wouldn't pass it up because the seller is a butthead.

Is this possibly a case of buyers remorse?  Or do they have a better buyer?  If the $500 is in the contract have the money held in escrow pending a legal decision or threaten to persue legal action so they will have trouble selling to anyone else.

Stick with your principles. There will always be another deal.

In NY every seller has to either give $500 or fill out the property condition form. No one ever fills out the form, hence we the buyer expected the $500. But the seller took it upon themselves to say it's reflected in final price. Yes, they came down in price after inspection. However, the property disclosure is a seperate contingency that has to be dealt with. And they never said the final price reflects the credit. As far as I see it, regardless of what took place during negotiations, the buyer should get the credit at closing. Am I wrong?

500.00 ? Really? I know that I am more stubborn and prideful than most but cmon. 

You said "They were willing to let the deal fall through over 500.00." 

Sounds to me like you were as well! 

I once had a seller demand that I pay 4k they owed in back taxes or they wouldn't sign (this was at the closing table). 4 GRAND. I smiled paid it and still made $20,000.00 on the deal. Sure I was irritated. 

I'd rather feel like "I lost" and have 20k then win for $500.00

Ryan Dossey, Real Estate Agent in IN (#RB15001099)

there is no money in escrow. We learned of what they did when we went in to sign the contract with our lawyer. So we can walk away without all that trouble of getting our deposit back. 

How much is deal for?

Originally posted by @Erica M. :

Hi. We are the buyers. We went to sign contracts with the lawyer and the sellers tried to pull a shady move. They wrote in the contract that they

will not credit us the $500 for property condition. They wrote that is was already reflected in the price. We never agreed to this with the seller. We did negotiate a little after inspections, but property disclosure credit never came up in discussion. So we told them forget it...we are backing out. It's not so much that we need the money, it's more out of principle. We've given the credit when we've sold homes. The final price is not much lower than their asking. Are we being greedy or are they!? They are willing to let the deal fall through over $500. We are serious cash buyers. Are our expectations way off base on this? Thanks for any input.

 I'm really confused in your wording here.   There's a standard credit that is just given in your area?  That makes very little sense to me.  

But OK...  Yeah... You fling around words like "they were willing to let the deal fall through over $500".  But you are too.  I don't think there's anything shady going on.  It sounds like they have no idea about this standard credit, in which case it sounds like an education issue for them and the lawyer that's being used.

I do think you're standing on a principle that is just costing you money.  It's not a choice I would have made, but then, that's why there are different strokes for different folks.

around 150,000. We're not talking millions here. I understand everyone's advice that I shouldn't whine about $500, but still. 

Originally posted by @Linda Weygant :
Originally posted by @Erica M.:

Hi. We are the buyers. We went to sign contracts with the lawyer and the sellers tried to pull a shady move. They wrote in the contract that they

will not credit us the $500 for property condition. They wrote that is was already reflected in the price. We never agreed to this with the seller. We did negotiate a little after inspections, but property disclosure credit never came up in discussion. So we told them forget it...we are backing out. It's not so much that we need the money, it's more out of principle. We've given the credit when we've sold homes. The final price is not much lower than their asking. Are we being greedy or are they!? They are willing to let the deal fall through over $500. We are serious cash buyers. Are our expectations way off base on this? Thanks for any input.

 I'm really confused in your wording here.  You talk about a property condition credit like it's a standard thing.  You say that you give "the credit", but I have no clue what you're talking about.  In your area, is there a standard credit that is just given automatically if a house is under a certain standard of condition?

If this wasn't specifically discussed and negotiated on, then yeah - I think you're being kind of a tool.  It sounds like you expected a standard $500 on top of whatever else was negotiated.  You fling around words like "they are willing to let the deal fall through over $500" like it's some kind of terrible thing.  But you're guilty of the same thing.  In fact, I'd say moreso.

You're sticking to a principle that makes absolutely no sense to me.  It sounds like you have this standard credit that you think you're entitled to that was not specifically negotiated while the seller is claiming that their price was already low enough to account for the condition of the house.

Stick to your principle all day long.  Somebody else will come along and make the multi-thousand dollar profit you would have made while you are safe and secure knowing you saved yourself $500.  

Good job!

the tone isn't necessary, but thanks so much for the insight

Originally posted by @Erica M. :

around 150,000. We're not talking millions here. I understand everyone's advice that I shouldn't whine about $500, but still. 

 There's no "but still" about it.  This is a $150K deal, possibly more if you're spending money to rehab the house, but YOU are willing to walk away because of a comparatively measly $500.  Honestly, the idea of an investor doing that boggles my mind.

This isn't even a matter of pride to me.  If you're spending that much, I have to assume you stand to make $20-$40K after the sale the house, or make it in equity after repairs.  The thought of losing out on such a profit because of a principal call over a $500 misunderstanding doesn't make any sense.

Take a deep breath.  Take a walk.  Then take the doggone deal.

Good luck.

Originally posted by @Randy E. :
Originally posted by @Erica M.:

around 150,000. We're not talking millions here. I understand everyone's advice that I shouldn't whine about $500, but still. 

 There's no "but still" about it.  This is a $150K deal, possibly more if you're spending money to rehab the house, but YOU are willing to walk away because of a comparatively measly $500.  Honestly, the idea of an investor doing that boggles my mind.

This isn't even a matter of pride to me.  If you're spending that much, I have to assume you stand to make $20-$40K after the sale the house, or make it in equity after repairs.  The thought of losing out on such a profit because of a principal call over a $500 misunderstanding doesn't make any sense.

Take a deep breath.  Take a walk.  Then take the doggone deal.

Good luck.

 Lol Randy, thanks

Money is a necessity, but my pride is priceless. 

I have, and will, again, if need be, walk away over principal. 

There will be other deals.

I mean... If you really want to pass on this deal... Feel free to PM me the address! :) 

I hope this one thread doesn't scare you away from this site. It's an awesome resource. I tell anyone knew to a forum to expect some "tough love" when they start out.

Ryan Dossey, Real Estate Agent in IN (#RB15001099)

I would not concentrate on the $500.00 no matter what if I knew I was making a good profit on the deal. You decided to lose allot more than $500.00 by walking away on the deal. Allot of times we get stubborn and spoil ourselves and end up losing allot more. This will certainly not be your only deal and those are certainly not going to be the last people you ever deal with. I would just take it with a grain of salt and pay or lose the $500.00. Your deal could not have been dependent of only that particular $500.00. If it was then you were making a very lousy deal in the first place. 

You decided to fight over a nickel and lost a dollar. That is how I see it. 

thanks everyone for your input :)

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