Negotiating Help Needed - Posted by ChuckP

Posted by Jim IL on April 22, 2000 at 18:50:02:

You already have the home tied up right?
Then record that memo NOW!
This seller already agreed to sell on the terms in that contract.
So, record that memo, and then have your attny write a letter to him telling him when to show up for the closing and where.
IF he refuses, then you still have the memo recorded, and he cannot sell to anyone else without dealing with YOU first.

Good luck,
Jim IL

Negotiating Help Needed - Posted by ChuckP

Posted by ChuckP on April 22, 2000 at 17:35:37:

I am having problems closing on one property that I currently have under contract.

The numbers:

3/2 single story with garage. About 80K is owed while comps have the prop at 120K. The property needs about 5-6K in repairs. I am offering to take the house subject to the existing loan and give the seller 3K. He now wants more $$$ saying prop values have gone up 20% in the past few months.

I pointed out, as did the house inspector, that their are a number of physical defects that MUST be taken care of such as the wood ants before ANY conventional sell can occur. I am offering him 3K “as is” or he must treat the house, replace all rotten wood on the outside, and certain appliances must convey and I will go 5K.

I am considering recording a memorandum of agreement to sell since he is sitting on the fence and may back out. Any further suggestions?


Re: Negotiating Help Needed - Posted by Eduardo (OR)

Posted by Eduardo (OR) on April 23, 2000 at 17:02:06:


Just a thought for next time. Have the house inspector, when he writes up his report, put a repair estimate (dollar amount) next to each item requiring work. You will be surprised how much this can add up to. Then when negotiating, you can adjust his amount if you want to (because his figures are for you hiring someone at union wages for each repair–you may decide to do it yourself or skip certain items). By the way, always make sure the house inspector is selected by you and working for you. --Eduardo

Re: Negotiating Help Needed - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on April 23, 2000 at 07:05:15:

I am not clear here. It sounds like you are still negotiating here. You mention “under contract”. Is your contract accepted?
Did the seller accept your proposal by signing it (with no contingencies)? If he has signed your offer with no changes pending then you do have a contract, BUT… if there are changes not yet agreed to, or if the seller did not sign the offer there is no contract. My point is thid: be sure you have a contract and not just a conversation. Also it would not be prudent to record anything against the property if you do not have a “rock solid” contract, since you are attemptint to purchace at about 70% of FMV…ED

What does the contract say? - Posted by Thom

Posted by Thom on April 22, 2000 at 20:25:58:

If you’re lowering you price because of an inspection, then you have no contract. What was your orginal offer?