did a purchase agreement, made offer and realtor is back with counter offer?

Question

Made offer of $50 thousand on house, so I can get bank loan.
House listed for $49,900. In purchase agreement< I ask for closing cost plus if inspection shows need repairs. Seller will cover cost. Got a counter offer that if inspection doesn't pass. Seller is out and that seller will pay closing cost,. However. The asking price would change to $52,900.
Is the seller giving me a red flag on the repairs. My realtor says Go For It. It will only increase the payment by 6 to $12 a month over 30 years.
The closing cost are going to be around $2,600 with Interest rate at 6%. I feel like the realtor is working against me. Help!!

Answer 1

If you signed a buyer broker agreement they have to work on your behalf. This sounds more like an issue of trust. I suggest you get the local people to do the job you hired them to do. And by the way the broker or manager is a part of the deal with the agent so it is not out of line to ask for them to speak to you about the offer as well! You might feel better if the agent simply gave you a net sheet which explains how everything plays out. There will be a change in some of the numbers. This again is typical to ask for so don't be shy! By the way this seems like the seller alreadys knows what repairs have to be made be sure to ask for a copy of the "sellers disclosure" and see what they think might be wrong with it! Good luck. I'm sure we all hope that you get the home! With only what we see here it may still be a deal if you can afford the difference? What does your agent say it will appraise for after repairs? The seller is only raising the price to be able to pay the closing costs and they have calculated that this is what your side of the closing costs will be. (hence the need for you to see the net sheet to -prove it out-I'm a bottom line kind of person too!)

Answer 2

1. Closing cost will vary and it sounds like the seller wants to make sure he will be able to cover them without dropping the sale price. That will be up to you if you can live with it. The home must still appraise for at least that amount (more would be better)

2. By your wording it sounds like the contract you submitted would REQUIRE the seller to repair anything the inspector found. If I were a seller I would not sign that either. Even if I am not aware of any problems if the inspector found a $10,000 problem by the contract I would be required to fix it, even if I didn't have the money. Make sure the contract includes a Right To Inspect And Cancel clause. This will allow you to have an inspection done and walk away or renegotiate based on the outcome of the inspection.

If you are not using a Buyers Agent it is likely he is not working in your best interest, however it is illegal for him to knowing cheat or deceive you.

Answer 3

Is the realtor a "dual agent"? Working for both you and seller? Did this once and will never do it again.

Anyway, this is where you are at. Seller is not willing to sell the house for one cent less than the $49,900 and you end up with the closing costs.

Also, it is obvious that if it doens't pass inspection, the seller will wait for the next offer.

So, is the house worth $49,900 PLUS the $2,600 closing costs to you? Can you/are you getting home warranty?

You just need to decide if the house is worth $52,900 or not.

Without comparables of recently sold house, we can't tell you if this is a good deal or not.

Good luck to you.

Answer 4

The seller is not giving you a red flag. Your offer was contingent upon a blank check after the inspection meaning you could have demanded any repair on earth after it was inspected. You are right to be suspicious of your Realtor! He does not sound like he is looking out for anyone but him/her self. Let the counter-offer die, get another Realtor and write a new offer contingent of an inspection but don't mention repairs (repairs can be negotiated after a contract is agreed upon) with seller paying closing costs of a specific amount. From the sound of it you are considering a foreclosure home and they most go "AS IS" anyway.

Answer 5

it simply means your agent is a dope.....

49,900
2,600
53,500???
they are only budging $600 on the house. ask your realtor to give you the 6-12 dollars for thirty years.....that comes out to $2160- 4320 of your money...

as for the house repairs all i gather from it is "if there are repairs" the seller will not pay them and the offer is not valid... be sure that is how it goes...

counter back, $51,000 closing costs and contingent on a home inspection that reveals repairs will opt you out of the deal, if seller will not fix.....

deal is if there are major repairs no one will buy the house and the price will come down or the seller will fix the problems...

if there are no problems with the house, do you really like it,,, and is losing it worth $600 ... but at least counter back first.....if no deal then decide.....

i am not an agent nor do i pretend to know all the ins and outs of real estate.....


but i think you are possibly correct with your agent.... tell him how you feel... if he feels he is right and his experience is correct he will support his position instead of waffleing

Answer 6

If your agent is the listing agent he is working for the seller. Forget the closing costs, the important thing here is the inspection. You have a red flag flag here. You need the inspection and what it may reveal.
Of course, only some agents would say go for it. Most have very high ethics and the decision is yours. Speak with your solicitor before you go further.

The agent only makes money if he sells the property and the deal closes. Even then, the profit is shared with the listing agent and with the listing broker. .

Answer 7

There is the possibilty the seller knows something needs fixing, and their hoping youll grab it at 52,900 and skip the inspection.

In this situation, I would counter with your original offer, make the offer contigent on an inspection and also that the seller pays closing cost. Then when you get an inspection, if something is a red flag, it would void the offer. Then you can decide to write a new offer with any repairs you want done, or reduce the offer and fix them house yourself.

Answer 8

It always amazes me that people on this forum can tell buyers exactly what numbers to counter! We don't know the market you're in, what the house is actually worth, or how long it's been on the market, if there are other offers, etc.

EVERY real estate deal is different. Some houses are a steal at 50% of the list price. Others are a steal at 25% above list price - I don't have the foggiest idea where this one falls in that range. Make sure you have a Realtor whose intentions and ability you trust. Then rely on his advice.

Answer 9

no the realtor is trying to make a deal, the problem here is the house must appraise for 52,900 of you have no deal in order for u get to get the closing cost assist. it is normal for the buyer to pay for inspections and then if there is a problem for the fix to be a negoitable item between buyer and seller, so if the seller doesnt want to fix it you are out the inspection costs. the problem for the seller is now they must disclose to any prospective buyer the problems the house has. so it is a double edge sword for the seller. you may find that is leverage and negotiate the repairs with the seller, ie you pay half they pay half, etc. sounds like your seller wants 50000 clear for the house so it is normal to raise the price. just curious where and what kind of house are u buying for 50g's that is cheap, and u cant expect much for that amount. inspectors are going to find things wrong, its their job and thats what they get paid for, if its minor dont sweat it, foundation, roof, electrical, and plumbing are the big issues, but dont make a sticking point of windows outlets etc. if you want the property remember it is a used house and there will be items you want to fix or address. gl

Answer 10

The realtor is working for both sides He makes a commission off the seller and the buyer.