I am finally thinking of buying a house

[4Q Basket Case]

Be careful, my friend. There are lots of red flags waving.

 

[seebell]

Thanks for keeping us updated. Real interesting!

 

[2003TIDE]

Glad things are finally moving on the realtor front. Still confused to why the seller is the hold up on appraisal. That has been something the buyer takes care of on every transaction I’ve done.

Make sure to be direct next time “if x,y, and a don’t happen we are walking” etc. Also don’t think of the inspection as lost money. It did it's job. Also, surveys are handy to have/ask for when buying if there is stuff that looks to be on the property line. Will save you headache later.

The good news is it seems you know some things to look out for now. I don't think a lot of buyers walk around looking for water marks on the ceiling, etc before making an offer. For the wiring, you can go buy a $10 tester at HD and catch all those outlet issues you mentioned before you get an inspector involved. You really want them to check for Cooper grounded wiring with no aluminum wiring and the condition of the breaker box. The receptacles are the easy part. One thing on a house this age not listed is the main line to sewer. If it is still the cast iron one originally installed, I’ll almost guarantee you will have to replace at some point due to it being rusted out and getting clogged. That’s prob about a $5k job.

One final note, I'd communicate a little better with your realtor and let them know what you will and won't fix on a house. Like I personally don't want to deal with major plumbing, electrical (rewire or new box), hvac, or roof.

 

[2003TIDE]

Oh one more of my lessons learned. If it is a reno and they put in new HVaC or regular sale and HVaC is newish, make sure #1the seller registered the warranty and #2 the seller goes through the process of transferring the warranty. None of that is automatic. At least not with Carrier. Never had a realtor say a word about it, but had to learn the hard way paying for repairs that should have been covered.

 

[DzynKingRTR]

Of course at the 11th hour, they were granted 2 more days for the appraisal. This is getting ridiculous. The reason the appraisal has taken so long was the appraiser had questions for the seller and could not get them to answer a phone or email. Open Door sucks so bad if they are the seller. It is very hard to get a human being on the phone.

 

[dayhiker]

I'd be tempted to eat the earnest money and walk.

 

[DzynKingRTR]

I'd be tempted to eat the earnest money and walk.

I am at this point this is just ridiculous.

 

[BhamToTexas]

Also don’t think of the inspection as lost money. It did it's job.

Totally agree with this. Money well spent.

 

[4Q Basket Case]

Be careful, my friend. There are lots of red flags waving.

Of course at the 11th hour, they were granted 2 more days for the appraisal. This is getting ridiculous. The reason the appraisal has taken so long was the appraiser had questions for the seller and could not get them to answer a phone or email. Open Door sucks so bad if they are the seller. It is very hard to get a human being on the phone.

I'd be tempted to eat the earnest money and walk.

I am at this point this is just ridiculous.

It is ridiculous. If the seller is acting this way, there's a reason. And there's no scenario where that reason works in your favor.

The $400 on the inspection was money well-spent. I don't know what you put down as earnest money, but it likely pales in comparison to fixing hidden problems.

Plus, based on what you've posted, I'm not sure you'd have to eat the earnest money. I'm not a lawyer. I have, however, slept with one for over 30 years and dealt with so many for so long in my banking career that some of the logic has rubbed off over time. Might be time to consult one.

Years ago, I ran into some nastiness in a home purchase. I stopped payment on the EM check, and laid out the facts and the timeline to the seller and the agent. Essentially said, "You want your earnest money? Come and get it." Followed up with saying that I thought the Realtors' ethics board would find their conduct, "interesting." All that got both the seller's and the agent's attention real fast.

Real estate agents are used to bullying buyers, especially first-time buyers. So it wasn't something she was used to dealing with, and got me a lot of leverage from that point forward.

Every case is different. But you could check with your lawyer to see if any of that might be applicable in your specific circumstances.

 

[2003TIDE]

Georgia Real Estate Commission & Appraisers Board

The Georgia Real Estate Commission & Appraisers Board ensures that real estate licensees and appraisers are professionally qualified and promotes a fair and honest market environment for those involved in real estate transactions throughout the state.

georgia.gov

Code of Ethics » Georgia Association of REALTORS®

Boards and Associations of REALTORS® are responsible for enforcing the REALTORS® Code of Ethics. If you have a problem with a real estate professional, open, constructive discussion often resolves questions or differences.

garealtor.com

 

[Bamaro]

I'd be tempted to eat the earnest money and walk.

AKA, 'sunk cost' and as such becomes a moot point .

What is a Sunk Cost?
A sunk cost is a cost that an entity has incurred, and which it can no longer recover. Sunk costs should not be considered when making the decision to continue investing in an ongoing project, since these costs cannot be recovered. Instead, only relevant costs should be considered. However, many managers continue investing in projects because of the sheer size of the amounts already invested in prior periods. They do not want to "lose the investment" by curtailing a project that is proving to not be profitable, so they continue pouring more cash into it. Rationally, they should consider earlier investments to be sunk costs, and therefore exclude them from consideration when deciding whether to continue with further investments.

Sunk cost definition — AccountingTools

 

[DzynKingRTR]

The appraisal came back and it is 3k over my initial bid. The appraiser is insisting on the roof leak being addressed on the sellers dime. They also want a range installed before closing. Plus there is a sink not connected and it will be done. If the seller does not address these issues, I am free and clear to back out and still get my earnest money back.

 

[dayhiker]

I'm shocked that an appraiser can make those demands.

 

[DzynKingRTR]

I'm shocked that an appraiser can make those demands.

The bank will not approve the loan without that being addressed.

 

[92tide]

glad you have an out if needed. this sounds like a complete p.i.t.a.

 

[4Q Basket Case]

I'm shocked that an appraiser can make those demands.

The appraiser probably can’t. What they can do is state that the appraisal is predicated on all that stuff getting done. If it’s not done, appraisal isn’t valid.

 

[Padreruf]

The appraisal came back and it is 3k over my initial bid. The appraiser is insisting on the roof leak being addressed on the sellers dime. They also want a range installed before closing. Plus there is a sink not connected and it will be done. If the seller does not address these issues, I am free and clear to back out and still get my earnest money back.

Good for you...and for the appraiser. Sounds like the realtor had a chat with the appraiser and handled the situation. I hope you find a good house if they don't fix this one...

 

[seebell]

Plus, based on what you've posted, I'm not sure you'd have to eat the earnest money. I'm not a lawyer. I have, however, slept with one for over 30 years and dealt with so many for so long in my banking career that some of the logic has rubbed off over time. Might be time to consult one.
/QUOTE]

 

[crimsonaudio]

glad you have an out if needed. this sounds like a complete p.i.t.a.

So. Much. This.

My fear is you end up buying this house only to find a host of other issues. Inspections can only catch so much.

When we bought our current home (brand new, put a contract on it while it was still under construction) it passed all inspections, etc. Only after living here a few weeks did we notice a toilet upstairs was cycling all the time. I check it out and was shocked to find the plumber had piped it to the hot line, not the cold, so the water refilling the tank was ~160°. The contractor sent the plumber out and they cut into our new bathroom wall, re-plumbed it properly, then sent drywall and paint out to repair the wall.

Houses are pretty complex (as you well know) - this one seems like a nightmare waiting to happen.

And I'm an optimist...

 

[4Q Basket Case]

So. Much. This.
….Inspections can only catch so much.
…..Houses are pretty complex (as you well know) - this one seems like a nightmare waiting to happen.

And I'm an optimist...

Amen to that. Sometimes the best action is to walk, even if it costs some earnest money. And given the circumstances, I’m not at all sure that would be the case here.