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Buying & Selling Real Estate

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Monica Abeyta
  • Glendora, CA
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Seller Counter Offer Red Flags?

Monica Abeyta
  • Glendora, CA
Posted Apr 4 2019, 17:13

Hi BP!

My husband and I put an offer on a house this week that we absolutely loved. The sellers came back with a multiple counter offer with some terms that didn't sit well with us. What do you guys think of these terms? My realtor expressed he felt he could get around some of the terms and they weren't red flags to him, but as first time homebuyers it seemed like they took it a little too far. Here are the details.

House 599k. We offered 608k. 5bd 3 bath house with attached apartment above the garage, pool and spa. House has paid off leased Solar. Seller Agent had told us in the open house that Attached apartment was unpermitted. They also had another addition that was permitted for the master. Also, that they already got an appraisal on the house but didn't disclose that info. I hid the names of people and companies in this offer.

Counter offer is as follows:

Buyer to submit Highest and Best Offer, Buyer to waive appraisal contingency (this concerned us, since they did an appraisal already. Our perspective is that they know our offer is more than what the appraisal came out to be.)

- Property is sold "AS IS" with no guarantee of repairs

- Escrow to be with **** Escrow – 

- Title to be *****

- Buyer to remove all inspection contingencies within 10 days of acceptance

- Buyer must cross qualify with certain person at certain mortgage company within 3 days. (We didn't like having to give our info to yet another mortgage lender.)

- If through no fault of the seller escrow is delayed more than 3 calendar days (grace period) & Seller and Buyer agree to extend the closing, a flat fee of $1000 shall be paid by the buyer to the seller for consideration of an extension not to exceed 7 calendar days.

- Item 7a2 Termite to be removed from contract

- Buyer is aware that the apartment above garage is not permitted

- Seller paid Home Warranty not to exceed $500 (Our agent originally put in $685 for an upgraded policy since we saw the pool equipment leaking. To us only offering a $185 less policy was nickel and diming. But we are new to the market so we don't know.)

Can anyone give me any insight on this counter? Do you see Red Flags or are we just being overly cautious since this is our first home?

Also what do you think about the Seller Agent? His company offers to buy your house if it doesn't sell in a certain period of time. To us it seems like this could be a conflict of interest if the seller agent decides they really want the house. Thoughts?

Thanks BP for any light you can shed in this situation.

-Monica

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