I'm selling a home and it's currently under contract with a buyer. We agreed that we would take $14000 off the asking price because the buyer is offering cash and the house will be sold as is. My agent sent me an addendum from the buyer's agent that the buyer is no longer doing cash and is going with a conventional loan. I didn't mind because as long as the sale still follows through then it's not a problem, however, now the buyers agent is requesting for the roof to be replaced. I feel that since we are already going a considerably lower amount under our initial asking price, and that it's no longer a cash deal, and that we already agreed to the house as 'as is' that we are being somewhat taken advantage of. What would you do in this situation? Would you walk away or continue the sale? Any advice is welcome. I don't mind getting the roof fixed for another future buyer if needed, however I would prefer to up the asking price to the original amount we established.
What would you do in this situation?
byu/Turbulent_Repeat4683 inRealEstate
Posted by Turbulent_Repeat4683
33 Comments
Easy.
You say “no, we had a deal at this price as is.”
Alternatively, you say “we’ll do the roof and now the price is amount agreed + roof cost.”
If you aren’t in a hurry to sell and / or don’t want to put up with their bullshit, don’t.
You respond exactly as you did in the last sentence.
To lower the price or give a concession you would have to sign amendment. Don’t. Say no. Then the current terms stay in place.
In fact, you don’t have to agree to them using a loan. They can get one on their own, but your contract says cash. So no appraisal contingency, terms remain cash.
Sounds like you’re already going to have to fix the roof.
Minus that from your asking price then ask yourself how confident you are to receive an offer at listed price thereafter.
Market dictates all of that, depending on the roof cost, seems like you could be at the same point with a new buyer offering lower than listing combined with the repair anyways.
It all depends on the market and how much the repair is. If this has been sitting for a while I personally would find a compromise. Counter offer a roof repair but increase in price, but maybe not the full 14k.
If it hasn’t been sitting and it’s a good market, fix the roof and move on.
My concern is the goal posts will keep changing. I’d talk to your agent. How is your market? Is this the best buyer you can get? This type of buyer will probably continue to ask for concessions and more fixes. How much more can you give? How long can you be on the market if this deal falls through? Are you overpriced? Will you have to put on a new roof for a conventional buyer?
Say no to the roof. When I bought a home recently, I asked for a few things, some they said yes to others they said no. Still bought the house.
The cash buyers sometimes tend to do this, they want to “throw their weight around” – a quote from a cash buyer that used to post on here – and no is a complete sentence.
Does your contract with the buyer specify that financing is all-cash and appraisal is waived?
With the shift to a loan, will the buyers now want an appraisal contingency?
It’s appropriate to say “we gave a $14,000 discount for cash financing so we won’t be paying for a roof at the discounted price.”
A full loan approval from the underwriter is as good as cash – but more money.
Say no if your local market is strong. Agree to the original terms as-is.
The minute they changed from cash to a loan. You need to cancel or renegotiate the sale price. Unless you didn’t read the offer and the have that option to change cash to loan.
Buyer is not performing so you can always just keep earnest money and put house back on market asap
If you keep moving forward charge a fee for each day past original closing date.
Edit to remove part after re read post
You respond with: no.
The house sale with this buyer was agreed at x price, all cash, and as-is.
The end.
If the buyer wants to pay a higher price for an as-is house with a now fixed or replaced roof? Well, ok. You can maybe talk about that. But I wouldn’t agree to their current request.
You can’t get a conventional loan in an as is. They are purposefully slow walking you. Back out
Yeah. No moving the goal posts. If they need financing that I’d fine but their release the earnest money to you today
They close as-is or you can hire a contractor to replace the roof and they pay the contactor before work begins.
…Or they get a different house. Their choice but this should be the only choice.
Just say no or counter offer
You can just say no. You already lowered the price due to a cash offer. You can tell them you’ll do the roof, but they’ll pay the original price adding the $14k back on since it is no longer a cash sell.
Say no. Why is this hard?
You walk from this as it is no longer the original deal. Be polite and tell them that since it now falls outside of the agreement, the agreement is void. Price is now the original stated price and you will entertain quotes on the roof.
Yes. Tell them no. They may still proceed
Find out if their lender is demanding the roof. If not the price goes bacl up to asking or you walk away. If so, youll do the roof, prior to closing, and add the cost to the sales price.
Kinda echoing some other posts, depending upon the strength of your market, you may want to tell them that the original asking price reflects the current condition of your property, including the roof.
(I am a long-time broker, however for commercial real estate only but I face both of these issues not infrequently, “cash buyers” changing to financing and buyers trying to deduct capital items from the asking price, the latter of which I respond that our price reflects the current condition. We can repair/replace but the asking price will be increased.)
In my State, a change in financing is a change in the originally negotiated terms. This opens up an opportunity to renegotiate the contract. If you cannot come to terms, the buyer would be in breach of the contract if they back out. But, refer to the post by u/[PaymentMedical9802](https://www.reddit.com/user/PaymentMedical9802/) when evaluating your options.
Reject, the offer. Start over.
Amend the contract to asking plus roof cost, and increase earnest money by the cost of the roof. Review the terms of the contract to ensure that you’re comfortable with the circumstances where you get that earnest money.
You stated you’re under contract. Hopefully there was enough earnest money deposited to make the buyer want to honor that. Having to deal with people who don’t honor contracts is annoying and should be as painful as possible to the party breaking the contract.
You don’t have to accept their counter
Just Say No.
Roof replacement is not cheap. If you go through with it and you have time, put it back on the market.
Is it a situation where they can’t get insurance because the roof is too old? We had to walk away from a house because it had a 30 year old roof and we couldn’t find anyone to give us homeowners insurance and the sellers couldn’t afford to replace it before the sale.
I would have your agent reply that the original offer still stands and if the buyer wants a new roof, the price for that will be cost +10%.
No is a complete sentence.
These low life’s will do this.
By making the offer, the house gets taken off the market. Then at the eleventh hour they start making these demands. The know full well that it will cost you if you refuse. Maybe even souring the deal you’re making for your next home.
These a holes are professionals. I would cancel the deal just out of spite. But then it’s not my money.
Good luck.