Painful lesson to all - if a seller agrees to your offer, drop whatever you are doing and get it in writing.
Friday July 17th we put an offer in our dream house. Saturday July 25th the developer accepted our offer (over a week of waiting!), his property manager called our realtor who called us. We set up an appointment to sign the paperwork Monday at 2:00.
Monday morning around 10:00, our realtor called us. Someone in the neighborhood had sold a house FSBO for 15K more than our offer (of course, his house was established - with a landscaped backyard, patio, custom tile inside and window treatments, all things our brand new house does not have).
The seller rejected our offer he had previously agreed to (which he can do legally) because he hopes to get more money for the house. In a way, I understand - the house originally listed for like 100K more than it is selling for now, with the depressing housing market I'm sure he's taking a beating.
Our first instinct was to just walk away from the guy. Although he is legally within his rights, who does business like that? He was also kind of sleazy towards our realtor. We went to the development initially because there was a smaller home in the MLS. After we got there, the property manager showed us the dream house(tm) and we decided to make an offer on that. Since that one is not listed in the MLS, the developer did not want to give our very sweet realtor (Toni) her fair commission. So, we already knew he was a bait and switch slimeball.
But, I loved the house. Now, Jason would have walked away immediately (he hates dealing with *******s) but he knows I love the house and he loves me, so there you go. Instead of a one page offer letter, we actually signed the entire contract on Monday, for a slightly higher price (and a written provision that Toni would be better taken care of). The property manager was very difficult to work with - she did not deviate from her "script" well and she and Toni butted heads constantly during the contract process.
Since I feel the guy jerked us around for 2 weeks, we wanted a provision in the contract that he must reply to us in writing by Friday or we would get our 5K good faith deposit back. The property manager had a conniption at this addition to the contract, practically hyperventilating that there could be NO CHANGES TO THE CONTRACT (but it's a contract - with spaces for provisions, I really didn't get her freakout).
The property manager keeps saying the developer is a jerk and is hard to work with and every house sale is a "battle." We made changes to the precious contract (including a small change that we would have 12 days instead of 5 to get a home inspection if we wanted one, since we considered it would be difficult to find a home inspector and get an appointment in 5 short days) and the property manager argued with Toni and Jason lost his temper at one point, so I'm worried we would lose the house just based on personality conflicts.
To add to my worry, the property manager kept saying she was afraid the house wouldn't appraise at our prior offer, she thought there was a chance it would appraise LOWER. It's a pretty house in a nice new development, but it's in an older part of Escondido with a lot of lower value homes all around it. So now, I have to worry if the guy ACCEPTS our offer and signs the contract, the house won't appraise for the new, higher price. The developer doesn't have to sell it at a lower appraised value, he could just stop the escrow proceedings and sit on the house until the market recovers. Then, we would have no house and no apartment.
I love the house, I want the house, but our apartment lease expires the middle of September and we need to get moving. This house timing was perfect, we would have closed escrow in early September. We don't have another 2 weeks to mess with this guy. I want to get the house and move on or know we dont have it, mourn a little and move on.
Thanks for reading my long saga, it felt pretty good to type it out. I'm going to go stare at my ring for awhile.
Over the weekend, we were happily planning to have the wedding at the new house, since we dont have any formal livign room/dining room furniture anyway, we have a nice big room for a small gathering. And, it would be extra impetus to get the backyard landscaped. Now that the house hopes are fading, we haven't really talked about a new plan. I knew we want something pretty small and on the cheap.
Glory - if you ever need to vent on houses, give me a PM (says the girl who went through 6 months and TWICE being almost homeless, saved only by her nice apartment manager who let her go month-to-month when it was basically against policy to do so, trying to get into this house). I'll give you a reminder that the Universe ends up putting us in the PERFECT house, even if we have to go through a lot of drama to get to it.
On one hand, it's great being a homebuyer right now. On the other hand, you have to put up with *really* cranky people who are stuck selling homes right now. We closed on our first home on 6/26 and it was a nightmare of a process. People don't want to part with homes for the prices they are worth right now.
And a word about appraisals- I don't think I've ever heard of an appraisal killing off a closing
We didn't get the house. The seller made us wait until nearly the last possible minute on Friday, then told us he doesn't want to sell the house at all (I guess he wants to sit on it until the market recovers and he can get more money for it). I did love the house, but I guess it's nice we don't have to do business with such a lunatic.
Congratulations on such a romantic weekend !! The ring is gorgeous and so special. Sorry about the house, I'm sure there is a better house out there for you.
Oh honey, I'm so sorry about the house. I know it is hard right now, but if the builder was being such an a**hat about the whole thing this early in the process you are better off somewhere else. You will find the right house for you, I know it. It also took us a while to find the right place, so I can completely understand your frustration.
My son proposed to his wife at La Jolla Cove...my daughter was proposed to on a cruise to Alaska.
My son and dil went through he** and back making offers on houses...a real mess...so many "oh, you got it" then finding out it was bought by investors.
They have a really nice house now, in a much better area...for far less than they would have had to pay...
I hope your experience turns out for the best too!
Jen~Congrats on the engagement! I don't know how I missed this thread. And keep looking--you'll find another house. Perhaps one in an even better location. Best of luck to you two.
