House buying update - not good news

[EweSheep]

Yep, SFW is right, you would end up paying more out of pocket.

 

[sfw2]

Unless they get a cash buyer, ANY purchase is going to be subject to an appraisal. While appraised value may vary some (a wise appraiser friend likes to remind me that "appraisal is an art, not a science"), nobody's going to want to pay more than the house is worth, especially if the electrical needs repairs. What kind of repairs are we talking about? If it's a code issue, your lender will probably require that it be taken care of prior to closing.

What kind of financing are you getting? If it's a VA or FHA loan, the lender will usually be pretty picky about the condition of the property.

Edited to add:

I'm not trying to be a buzzkill. I really want to give you decent advice!

 

[TwistedSerpent]

The sellers fancied themselves carpenters and electricians. Not a horrible job by all means but little shortcuts here and there. It is a VA loan so we just assumed it all was required to be taken care of before the loan went through, which kind of confused me when she said to not bring it up in the deal to them just now.

 

[Spookwriter]

NEVER NEVER NEVER pay more than the appraisal value!!!

You're upside down from the start. Losing battle.

What the asking price is, is not even revelant to the question.
What is the place worth to you? THAT is the offer to make.

Needs repairs? Deduct the fair market value of those repairs from
your offer. Don't forget labor, even if you plan on doing the repair
yourself.

Lessons to learn....the real estate agent is not your friend. Their sole
interest is getting you to buy or sell the home...that's how they make
money. Do not confuse that with friendship.

You're stepping into a buyers market...someone needs to sell the home
worse than you need to buy a home.

I would advise against meeting the offer....NEVER GO UPSIDE DOWN in
any deal.

 

[PineappleMama]

Well, if you're asking you may as well ask for the full $6200 off the price (appraisal + needed repairs) ... at the very least they should be willing to do the repairs because some companies won't insure a home that isn't up to code, especially electrically (fire hazard)... no insurance no sale... least in some states.

It won't hurt anything to ask, and like others said right now it's darned near impossible to qualify for a loan. They should be thanking their stars that a qualified buyer is even exists, n'mind willing to buy their home. It is a buyer's (if they can get a loan) market right now.

Around here there are tons and tons of homes for sale... and have been for ages... one has switched realtors like five times and still nothing... then they put up the For Lease sign... some at least get it leased, but many can't even do that. And this is in Texas, one of the last to be hit by the recession... I know it's worse in other states.

 

[Whispering Winds]

Another option if its a RD loan, is to have the money incorporated into the loan and have it done. It won't matter if they do put it back on the market, someone is going to have to fix that stuff and the buyer(s) aren't going to want to be the ones to do it. If your agent can't go to them (is this a dual agent deal, by the way? Is she representing you as the buyer and the seller also?) and tell them this, or go to their agent and explain someone is going to have to fix it, then she isn't representing you right. RD is strict about their inspections, will give you XX amount of time to get it done after close and then come back and make sure its done right. If you wanted the sellers to pay part of your closing, then I am assuming you did not get 100% financing. Maybe you could swing the closing costs and ask them to knock the $5000 off for the repairs as a last resort? Your agent should be trying to help you figure out a way, and talk to your loan officer as well. They are on your side and might be able to help you with the agent as well. Good luck.

 

[Whispering Winds]

Quote:
When did she say to bring it up? They had to have disclosures on it . . . .they surely were honest and said they knew there was electrical issues . . .VA loans are so picky now a lot of loan officers won't even do them. The RD loan is so much better, and 100%. I didn't see it was a VA loan before I put my other remarks in down below.

 

[TwistedSerpent]

Thanks for all the advise guys, it really helps a lot.

I legally cant make any desisions on the place, my bf is gone for days at a time but I will definatly talk to him about what all of you said when I can.

Any opinions on our realtors way of handling this? Is her worry and panic valid or is this a common happening with the purchase of any place? I know every seller is different, but in general house often does something like this break the deal?

 

[TwistedSerpent]

We did look into an RD loan, I believe they said they couldnt do it because it is a mobile home. I'd have to ask exactly why but we did try and were told they wouldnt, and it wouldnt of been that much better then the VA loan for this place. We did offer to cover closing costs, instead they wanted us to pay the extra $4000 to them and they take care of it. No not a dual agent.

It was a battle to find someone who will actually lend to us but we did, and most insurance companies will refuse mobiles too but we found one too.

She said not to bring up the issues with them when we were talking about what to do with the low appraisal, that it would be best to deal with it ourselves or else its really going to turn them away from this deal. Its kind of feeling like shes going to do all she can to get us to do all we can to make them happy and the deal go through.

 

[TwistedSerpent]

Quick update, my boyfriend is great I knew there was a reason I chose to live with him.

He called the realtor, she did her panic thing when telling him about it, his first words to her about it was "Thats great!" He told her to offer them $5,000 less. Oddly enough the appraiser did not even include the electrical and paint so that is a total non issue right now, better for both us and the seller. They dont have to deal with repairing things and we can deal with things when we get the time to since its nothing major or dangerous - its not on the appraisal so the lenders wont even see it.

He too agrees that $5,000 is nothing in this deal and no matter how much he wants the place hes not stupid and wont pay more then its worth. If they accept that gives us extra money to get the things fixed plus some.