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First-Time Home Buyer

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Sara Smith
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Feel like my agent is representing the seller not me as a buyer

Sara Smith
Posted May 15 2023, 09:32

Hello BiggerPockets, I needed to just let this out and ask for an advise. I am a first home buyer. I am under Due Dilligence currently on a renovated townhome. My realtor suggested I should offer 10k on top of appraisal and give $1000 option money cash which I did and just paid the option money and earnest money. According to my realtor, the listing agent said that the seller didn't want to go with a VA loan and had multiple offer so i followed what my realtor suggested. Now im feeling like i am overpaying for what its worth.

-First question : my realtor said option money cannot be refunded if I terminate the contract. Is that true? 

I feel like my agent is representing the seller and giving me this vibe that he/she doesn't want to negotiate the price. I say that because inspection came back with some minor issues like caulking, minor cracks, old water heater at 8years, 20 years old roof. So i wanted to get a quote on the cost of repairs since I will be buying this property and 11k on top of appraisal.

My realtor keeps saying everything is brand new, there are no immediate issues with water heater, roof, and etc. by the way water pressure is weak too. My realtor really sounded like a seller’s agent. Told me i can finance the roof later and home warranty will cover if i need anything fixed. 
i’m thinking if i am paying 11k over the appraisal why would i want to spend a single penny in the next 5years when I already know future risk and ask seller to contribute the cost. 
There were multiple conversations between my realtor that I just felt like I am alone in the process and no one is interested in truly helping me buying good secure home. I really needed to just rant and let my emotion out because my anxiety is going over the roof. If anyone has similar experiences and advice I would love to hear it. 

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Justin Hammerle
  • Realtor
  • Providence, RI
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Justin Hammerle
  • Realtor
  • Providence, RI
Replied May 15 2023, 10:47

-option/deposit money can become non-refundable after a certain period has passed in the P&S agreement, I would double check to terms of your P&S.

Do you have a signed exclusive buyer rep agreement?  If so, your realtor has a fiduciary duty to you, if they are not adhering to that and just trying to get the deal closed I would reach out to their broker and raise your concerns.  In no case should you be forced through a real estate transaction that you are not comfortable with. 

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Russell Brazil
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  • Washington, D.C.
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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
ModeratorReplied May 15 2023, 10:54

The question is ultimately...do you want to buy the house. You are using a loan a lot of sellers do not want to take. There are multiple offers. So guess what the seller is going to do when you make a bunch of requests on the inspection...theyre going to take your list and inspection report, send it to the agents of those other buyers who are kicking themselves they didnt bid higher the first time around, and say do you want the house after this buyer opts out of the contract.

The fact is your agent can not change market conditions or the realities of the market. They can only help you navigate the market. 

So back to the question. Do you want the house? If yes, then buy it. If no, then dont buy it. It really is that simple. No need to get anxious, just break it down to those 2 simple answers and choose one.

In states that use option money, Texas, North Carolina...it is not refundable.

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Ben Firstenberg
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Ben Firstenberg
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Replied May 15 2023, 10:58

If you're still in DD, your earnest money CAN be refunded if you terminate. 

10k on top of appraisal is a little unusual, even in this market. Unless this deal was REALLY competitive or a REALLY strong deal (like next to the belt line for example). I agree about not wanting to pay for stuff if you're going above appraisal like that. Getting a quote for repairs is perfectly reasonable to do during DD. 

Candidly, it sounds to me like this agent is just trying to push the deal through and get it closed. Which is not generally a good way to operate. 

I'd start asking them a lot of "Why" questions. Why 10k over appraisal? Why $1000 option money? Why do you say the stuff is brand new when it's not? Try to get to the bottom of why they're saying all of this. 

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Matt Devincenzo
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  • Clairemont, CA
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Matt Devincenzo
  • Investor
  • Clairemont, CA
Replied May 15 2023, 11:10

Did you offer $10K over appraisal, or over list price? Those are different, and I'm guessing it was over list not appraisal since that would happen after accepting a contract. I point that out as you're unsure of what it is that you're offering so therefor you don't know why you are doing so. To @Russell Brazil point your agent seems to know what they are trying to do to strengthen the offer because you're coming in with a weaker position due to your financing. So maybe you need to call the agent and say "hey I don't understand some of what we're offering and why, could we discuss some of your suggestions and how that helps my offer? I'm hoping you can give me a bit of an education to help me have confidence it the decisions we're making because this is my first time doing this." 

If I was the seller I'd tell you 'no' to all of those items as they are all serviceable. The roof I may do IF you could show that it is end of service life, but newer architectural shingles can last 30 years, so a 20 y/o roof doesn't necessarily need a replacement just because it is 'older'...actually the only one I might do because its easy and low cost is the caulking, but even that would just be a token gesture.

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Sara Smith
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Sara Smith
Replied May 15 2023, 11:21

The 10k is over appraisal so that leaves with no wiggle room as a buyer. I went over 10k on listing price as well. So either the listing price or 10k over appraisal not exceeding the listing price was my offer. The inspection came back and did state roof may need repair/ replacement. So I wanted the general contractors to come in and give me a quote. Another thing that my realtor did was realtor did not ask me if I wanted to be present when the general contractors were coming. I had to tell her that I wanted to be there. I left alot of details out but initially I felt pressured into following my realtor’s advise but now I feel like my realtor just wants to close and want the highest commission possible. 

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Replied May 15 2023, 11:22
Quote from @Sara Smith:

Hello BiggerPockets, I needed to just let this out and ask for an advise. I am a first home buyer. I am under Due Dilligence currently on a renovated townhome. My realtor suggested I should offer 10k on top of appraisal and give $1000 option money cash which I did and just paid the option money and earnest money. According to my realtor, the listing agent said that the seller didn't want to go with a VA loan and had multiple offer so i followed what my realtor suggested. Now im feeling like i am overpaying for what its worth.

-First question : my realtor said option money cannot be refunded if I terminate the contract. Is that true? 

I feel like my agent is representing the seller and giving me this vibe that he/she doesn't want to negotiate the price. I say that because inspection came back with some minor issues like caulking, minor cracks, old water heater at 8years, 20 years old roof. So i wanted to get a quote on the cost of repairs since I will be buying this property and 11k on top of appraisal.

My realtor keeps saying everything is brand new, there are no immediate issues with water heater, roof, and etc. by the way water pressure is weak too. My realtor really sounded like a seller’s agent. Told me i can finance the roof later and home warranty will cover if i need anything fixed. 
i’m thinking if i am paying 11k over the appraisal why would i want to spend a single penny in the next 5years when I already know future risk and ask seller to contribute the cost. 
There were multiple conversations between my realtor that I just felt like I am alone in the process and no one is interested in truly helping me buying good secure home. I really needed to just rant and let my emotion out because my anxiety is going over the roof. If anyone has similar experiences and advice I would love to hear it. 


 99.92% agents in Bay Area California is acting this way, they don't even want to work with you if you do not waive all contingencies. 

In few markets like here, all buyer agent and seller agent is actually working for the seller benefit. That's given. 

However if  GA realtor is working on similar pattern, that just means your city/state is becoming hot market as well/very competitive.

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Caroline Gerardo
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Caroline Gerardo
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Replied May 15 2023, 11:38

Do you have the cash if the house doesn't appraise to make up the difference?

Do you plan to stay there eight to ten years to wait out over paying if market dips this year?

Roof replacement anywhere from $12000- $50000 depending on roof type, size, materials and when you schedule

A concrete or quality tile roof can last 40 years, just needs gutters cleaned, leaves removed, adjustments of like $500 a year

A shake one maybe 20-30 

Composition 20 -25 

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Michael Dumler
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  • Atlanta, GA
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Michael Dumler
  • Real Estate Agent
  • Atlanta, GA
Replied May 15 2023, 13:08

@Sara Smith, I didn't read others' responses so forgive me if I missed something. All and all there is a lot in here that needs to be clarified. Are you $10k over the list price or have you received an appraisal report identifying the value of the home? Your real estate agent should have gone over and reviewed comparable properties with you justifying the intended purchase price. Did you waive your appraisal contingency? What is the duration of your due diligence period? In the state of Georgia, if you are still within your option period then you can terminate for any reason without putting your earnest money at risk. Needless to say, the Atlanta market is still experiencing a strong SELLER's market. Even if the roof is 20 years old, if it's functioning adequately, there's going to be a lot of pushback from the seller if you ask for concessions. With current market conditions, many sellers can get away with selling their property at market value even if the systems and appliances are well past their life expectancy. This ultimately comes down to how motivated you are to acquire the property. That being said, your real estate agent should still negotiate on your behalf but understand there's most likely not a whole lot of room for concessions. 

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Edward Dean
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Edward Dean
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Replied May 15 2023, 15:14

I am a realtor in CA so maybe the rules are different where you are but if you are in your due diligence period you should have the ability to continue getting quotes on items that may need repair. If I think the roof is nearing its end of life I would probably want to know what that expected cost is going to be to fix it whether I'm getting that from the seller or I'm going to begin planning to cover it myself down the road. That being said, you may need to pay to have the vendors come out, sometimes they are free other times they will charge you to give an estimate, provide an inspection report, etc. And just because you get a bid it doesn't mean the seller will have any obligation to cover any of the findings or pay for the person that came out, but it does at least give you more information.

In a hot seller's market you probably aren't going to get much for items that are old but still functional, ie, if the water heater works, the roof isn't actively leaking, then yes a lot of seller's won't chip in for that. Same for minor aesthetic fixes, especially if you were aware of them going in or could have easily seen it prior to writing an offer. BUT, I don't see why you cannot ask for a credit for legitimate issues (safety issues, broken items that were not obvious or visible when you initially walked the property, items not functioning the way that it should). You have a 100% chance of not getting any concessions if you do not put in a repair request but at least some chance if you do. Especially if your real estate agent can make the case that every buyer will care about these issues. Talk with your real estate agent to see if there is any harm that they can see in putting in a request. Most cases, the worst that will happen is the sellers says no and you're not in any worse of a position as you are right now, but they may say yes to at least a few things. 

And if they say no, then like other posters have mentioned, you can always walk away. There will always be another home to write on (though if it is a really hot market there then the equivalent home may quickly become more expensive than the one you have in contract right now).

One final question, since this is a townhome, have you checked with the HOA to see if the roof is going to be your responsibility? Some HOAs cover the roof.

Best of luck with it.

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Theresa Harris
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Theresa Harris
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Replied May 15 2023, 16:10

If you aren't comfortable with the offer, then get out now.  Ask your agent why they are saying what they are.  If the roof is 20 years old, then everything is not new.