Need Some Encouragement...

5 Replies

It's been a rough week and it's only Monday. A deal that was going rather smoothly is now slowly falling apart and I'm a bit frustrated at how it has played out. I put under contract in late June a house that I plan on rehabbing and converting back to a duplex using a 203K loan. Found a great lender who has guided me through the process without any hiccups on their end. The seller on the other hand has been....how can I say this....I won't because it would require me using an expletive or two. We had to request an extension to close twice due to me having to switch lenders the first time and contractor delays the 2nd time. The second request for an extension is where the problems began. My agent sent the request on August 19th. We finally heard back from the seller's agent on August 28th via e-mail saying he agreed to it (we requested to close Sept. 30th) A week or so passes and my agent still hadn't received the signed amendment. She sends an e-mail to the his agent on Sept. 3rd asking what the eta is on the signed amendment as well as a couple other issues we were trying to get some conformation on. No reply back so she sends another e-mail on Sept. 6th. At this stage, the last thing my lender needs is to order the appraisal which he did the first week in September. Well now, the appraiser can't seem to contact the seller's agent. He's called to set up a time and isn't getting a response. My agent called, e-mailed and texted her several more times to no avail. My agent sent another text last Friday 9/17, to the seller's agent saying if she didn't contact her regarding the amendment, she'll have to get their broker involved (yes, they work for the same company). My agent finally hears from her later that evening and she claims that the seller had his attorney look over the contract and was told that he couldn't sign it as a trustee and it has to supposedly be re-done but in the meantime, he'd gotten a higher cash offer but she talked him into doing the right thing and sticking with my contract.

My agent followed up today to see when we'd receive the signed amendment. This was the seller's agent response:  

"I have no control over when he signs it. I simply cannot make him do anything. You must understand from the way this transaction has unfolded that he does not respond quickly. I have worked to try to hold this together for your buyer; he has a cash offer $5000 more at this time. If you want to cancel that contract, I'm sure he would be happy to."

It almost comes off as though they want me to meet the new offer price based on her stating "that contract" if I want to make the deal work otherwise, why doesn't the seller just say he won't sign the amendment and he accepting the cash offer and call it done? I've decided to meet with an attorney tomorrow to discuss if there are any options legally I have. I am not going to up my offer at this juncture. I had already made other concessions trying to make the deal work. 

This is my second transaction in the past six months that has unraveled so as you can imagine, it can be a little deflating but.....I'm not giving up. If this doesn't work out, then on to the next one. 

Thanks for reading and letting me vent.

Dena

.. your out of contract... if the seller won't sign extensions then there Is nothing you can do,  might be best to just move on to another deal.. there are PLENTY Of deals in KC to buy I was there last Friday sat and looked at tons of rehab deals.

never do a bunch of work on something that is not fully ratified.. I would not have ordered the appraisal or done inspections without the seller locked up.

This really sucks and I'm sorry your having such an awful time with this seller but this is a great opportunity to focus on filling up your pipeline. Find a few other properties that will work for you and make sure you have some contingencies to get out of any deals you aren't able to move forward on.

Promotion
Ashcroft Capital
A national multifamily investment firm
Three Reasons Investors May Prefer Real Estate
Read three reasons why investing in real estate private placements may provide several advantages.
Read More Here

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you