Special offer
Praful Thakkar, Metro Boston Homes For Sale (LAER Realty Partners)

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Rainmaker
1,511,483
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Walk away unless they want the house, in which case pony up the money.  There is no legal solution, you can't force the seller to reduce his price and the agreement sounds like it was never in writing.

Jul 10, 2018 10:58 PM
Rainer
87,920
Jeff Perlis Prime Properties
Prime Properties - Lake Arrowhead, CA
Experience Your Own Transformation!

looks for me like 1 or 2. 

4. can be to reorder the appraisal inspection with a different lender( unless FHA).

I do not see any legal issues per CA regulations. Both principals mutually agreed on the price and I assume the buyer knew that there can be a chance of a lower appraisal results. 

Jul 10, 2018 10:44 PM
Rainmaker
1,065,071
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

If I was the buyer, I would hold sellers feet to the fire. Sign the agreement split the difference or keep your damn overpriced house. So 1.

If I were YOU darling, I would be out showing my client his replacement property. NOW

Unless the buyer is ravenous for the house and willing to suck down his equity, in which case that would be an ill-advised 2.

Silly seller's driving with his manhood, may get run over by a truck and squished. He'll miss it. And you.

Jul 11, 2018 05:12 AM
Rainmaker
1,027,602
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

It's pretty simple.  The buyer can walk away and find another house, if they wish to start over with finding a new house, inspection, appraisal, etc.  Or they can agree to the price.

Sometimes just the act of sending over the release to the seller is an "oh, #$%^" moment for the seller, who realizes they have to start over and find a new buyer. 

It's nothing more than a game of chicken...and he who blinks first is out of the game.  If the buyer doesn't care about losing the house, then hold tight and force the seller to blink. 

Jul 11, 2018 06:12 AM
Rainmaker
613,494
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

It does not matter who did what or why...

Nope, an attorney is not needed either.

Buyer just needs to make a decision. 

Hopefully buyer will walk and seller will get a lower offer and have to pay closing cost on top of another short appraisal.

Eve

Jul 11, 2018 06:46 AM
Ambassador
2,476,440
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

It depends on how low the appraisal is, whether the buyer can afford to pay the difference, how bad the buyer wants the house, how bad the seller wants to sell, whether there is any chance to readdress the appraisal or get another one, etc.

What will probably happen is both parties will stamp their feet, due to the "principle" and the seller will put his house back on the market, and the buyer will go off and find something else.

If there was a formal agreement, it must be adhered to. If there was a handshake, it should be adhered to. 

 

Jul 11, 2018 02:53 AM
Rainmaker
717,769
Richard Bazinet /MBA, CRS, ABR
West USA Realty - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

That's for the buyer to decide. Analyze the situation, provide advice and what you must do is follow the instructions of the buyer.

Jul 11, 2018 06:23 AM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

"SellIer refuses to sign the addendum.."   It is still the sellers house and they can choose whether to sell and under what conditions.

What should the buyer do?  How much do they want the house?

Jul 11, 2018 05:12 AM
Rainmaker
5,140,989
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

There is no legal agreement until an amendment is signed. Buyer can walk if they want, I assume under terms of the contract if property doesn't appraise. I don't know what legal solution there might be for the buyer unless the seller signed the amendment already. I can't say what I would do as a buyer's agent as I don't know enough about the history of this transaction or home values in this neighborhood. Did you have enough information to challenge the appraisal or request another one?

Jul 11, 2018 03:43 AM
Rainmaker
5,283,641
Wayne Martin
Wayne M Martin - Oswego, IL
Real Estate Broker - Retired

1 or 2 are possibilities. 3 is not, if the revised agreement is not in writing. Supose you could change lenders and get a new appraisal if conventional financing.

Jul 11, 2018 05:51 AM
Rainmaker
857,182
Brenda Mayette
Miranda Real Estate Group, Inc. - Glenville, NY
Getting results w/ knowledge & know-how!

I vote 1.  

And I can't agree enough with Candice A. Donofrio 

Jul 11, 2018 05:35 AM
Rainmaker
3,416,088
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Their choices are to pay all the difference, dispute the appraisal or walk away

Jul 11, 2018 05:20 AM
Rainmaker
4,938,965
Richard Weeks
Dallas, TX
REALTOR®, Broker

Abide by the terms and conditions of the contract.  If they have a right to terminate and that is their desire they should proceed.

Jul 11, 2018 04:35 AM
Rainmaker
918,158
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

1 or 2. Depends on how bad they want the house, how much the difference is, and how much cash they have on hand.

Jul 11, 2018 04:23 AM
Rainmaker
253,759
Jerry Thomas-Construction Loans
Cranbrook Loans - Farmington Hills, MI
Construction Loans in MI, OH, PA, VA, GA and FL.

If it's an FHA offer, #4. Remind the seller that this will be the appraised value for anyone and everyone that wants to buy with an FHA loan for the next 4-6 months. If it's a VA offer, #2 and be thankful someone took your VA offer in this market. If it's a conventional offer, tough call. Buyer has to make a hard choice between #1 and #2. I don't see how #3 is an option.

Jul 11, 2018 04:07 AM
Rainer
92,082
Jon K. Judd
Keller Williams Realty - Central Delaware - Dover, DE
GRI, e-PRO, SFR, Delaware Homes

This is up to the buyer.  I'd say probably 1 or 2.  In Delaware, if the home doesn't meet appraisal, the buyer has the option to walk.  In this case if the buyer really wants the home and had the ability to make up the difference of the lower appraisal it would be their option.

 

Jul 11, 2018 02:22 AM
Rainmaker
519,474
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

If we had a verbal agreement I would ask, "what changed?"  I would be very dissatisfied with the other agent, who also may be frustrated with their client. 

It's the buyer's option, but chances are the buyer would be so sour on the experience, they would rather walk away than proceed with someone who is untrustworthy.  A seller who does this shoots themselves in the foot. 

Jul 10, 2018 10:45 PM
Rainmaker
5,001,176
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

walk away

 

Jul 11, 2018 09:11 PM
Rainmaker
3,988,013
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Walk away. I don't buy houses for my buyer clients.

Jul 11, 2018 06:13 PM
Rainmaker
5,583,328
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

go find another house....

Jul 11, 2018 04:45 PM
Ambassador
6,465,091
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

In a multiple offer situation in a hot market I would have required proof of funds in excess of the asking price from your buyer before accepting the offer.

If they dont have the money to pay these high prices then they should be looking at lower priced homes.

Jul 11, 2018 04:40 PM
Ambassador
3,357,289
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Would have been better if the seller just said no deal than to say yes and not honor it.

The buyer decides what they want to do. 

Jul 11, 2018 12:02 PM
Ambassador
2,685,060
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Challenge the appraisal.

If that fails, walk.  

Jul 11, 2018 10:47 AM
Rainmaker
2,206,348
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

These boots were made for walkin 

Jul 11, 2018 10:10 AM
Rainmaker
1,598,502
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

The buyer and his/her agent should have the appraisal reviewed, share "better" comps or some information that would not be readily available to the appraiser.

Jul 11, 2018 09:57 AM
Rainmaker
2,071,130
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL

2. Come up with the additional difference. Will be #1 if they want this Home.

Option 1 if they could find similar or better. 

Jul 11, 2018 09:56 AM
Rainmaker
7,914,177
Roy Kelley
Retired - Gaithersburg, MD

Follow the terms of the contract.

Jul 11, 2018 09:08 AM
Rainmaker
769,929
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

The agreed upon price is the right price.  The buyer has the right to cancel if they want to do so (unless this contingency was removed in the contract) and if it is not in writing it doesn't exist to it comes down to whether the buyer wants the home and can afford to pay the difference in cash.  Personally, if I were the buyer, I'd pay the difference since it only lowers the mortgage amount.

Jul 11, 2018 09:06 AM
Rainmaker
1,852,231
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Seller is just mad & maybe needs a few days to cool off. Nothing worse than a hot head acting stupid. He either sells to this guy or he doesn't. I'd tell the buyer to give 5 days to the seller to sit on it & come to his senses. Then if they don't - get another house.

Jul 11, 2018 07:58 AM
Ambassador
5,077,840
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Given the situation and actions thus facr one has to wonder what would follow. Unless the buyer REALLY wants the house it's time to move along

Jul 11, 2018 07:53 AM
Rainmaker
1,344,694
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

If nothing is in writing, there is no "agreement"

Options 1, 2,  and 4 are open.

Option 3 is not viable.

Jul 11, 2018 07:14 AM
Rainmaker
5,773,781
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Move on.

Jul 11, 2018 06:21 AM
Rainmaker
2,792,626
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Use math on the wings of reason...Money in hand versus the pursuit of money are two different dynamics. Winning is not getting everything you want but instead....getting a win. How much of a win is where the risk is...

Jul 11, 2018 05:29 AM
Rainmaker
1,713,076
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Walk away

Jul 10, 2018 11:12 PM
Rainmaker
1,629,851
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

I agree with Jeff. 

Jul 10, 2018 10:53 PM
Rainmaker
5,895,152
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

It is up to the buyer and how badly they want the home.

Jul 14, 2018 05:37 AM
Ambassador
5,294,680
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

I recently had this very thing happen. I 'accidentally let it slip' to the LA that my buyers were coming back into town to take a look at the neighbor's house the following day. 

Miraculously, the sellers agreed to meet the appraiser's price!

Jul 11, 2018 10:53 AM
Rainmaker
1,732,427
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

No choice but move on unless the buyer is willing to pay the price. Due to the Statute of Frauds, unless in writing and agreed to by the parties to the contract, the buyer has no traction.

Jul 11, 2018 10:13 AM
Rainmaker
401,356
Jill Murty, Realtor - Orange County, CA
Movoto - Laguna Niguel, CA

Dealing with a seller who doesn't honor their word and throws tantrums. What a delight.

An agent should always discuss the possible scenarios and options regarding appraisal well before the appraisal. Verbal agreements are interesting and mean nothing.

The buyer can and probably should walk away. If they choose to stay, they should prepare themselves for another tantrum if they request any repairs.  The seller is trying to make the buyer their bitch. Will the buyer allow it or will they push back or exit the contract?

A person's negotiating position is only as strong as their willingness to walk away.

Jul 11, 2018 10:01 AM
Rainmaker
1,245,570
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Our area form states transaction is NOT subject to a mortgage. Most check that box to win the heart of sellers or to lose an opportunity. 80% checks that box. 

Jul 11, 2018 09:26 AM
Rainmaker
904,723
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Depends on how much they want the house.

Jul 11, 2018 09:19 AM
Rainmaker
4,800,132
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good time to speak to an attorney.

Jul 11, 2018 06:29 AM
Rainmaker
4,434,177
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

1 or 2. Curious . Did he offer above list price? Did buyer agent do comps for him ?

Jul 11, 2018 05:56 AM