We had to cancel our real estate contract...

[Reenie]

Not sure where to put this and just need to vent a little.

DH and I are buying our first property. I have been reading material on becoming a homeowner for almost a year. We have our financial house in order, and we are fully prepared with all of the responsiblity that comes with being homeowners. Although we could afford much more (and the bank would certainly loan us much more than we're asking for), we are being conservative with our home purchase because DH is in school and will go straight on to grad school after his degree (for a total of three more years in school, including the MBA) and I will be going to grad school beginning next fall (but the gov't is funding mine because I teach in a high-risk, low-income neighborhood). Anyway, so we are very specific about where we want to live and how much we want to spend, and we can definitely find things; no, they're not our dream homes for long, long term, but they are great starter places, and we plan to move in 5-7 years. I have been very carefully watching real estate in the area where we want to live (comparative market analysis, length of time on market, etc.) and we have seen many places.

We found a condo that we wanted and signed a contract on June 24, set for closing on July 22. But we had our home inspection, and we learned that there was one thing that needed to be fixed that would be very costly. We asked for a credit for it via our real estate attorney (we wanted to make sure that the problem would be fixed properly), and the seller said no. Not negotiating, just no. I would like to add that she has been a total beyotch during this whole process :mad: , but whatever, it's a business transaction. In addition, her daughter is the selling agent, so there is a lot going on there. We have been doing all of the bending (nothing we weren't comfortable with), and she has done none. Anyway, so in addition to that we learned that the condo association (and I use the term loosely here because there are only six units in the building) is in poor order both financially and managerially. We considered both of these factors (the association issues and the home defect), and since there was a clause in our contract about being able to nullify the contract legally due to home inspection issues (actually, there was one about financial order of the association, too), we decided that it was in our best interest to pull out. :( So we did. We will get our earnest money back, and the only fees we incurred were for the home inspection (a nice little deal because DH's dad is an inspector, so we only had to take him out to lunch) and for our real estate attorney's services. No big deal.

I know that this is for the best and I have faith that we will find the right thing. In addition, we do have some time; our apartment's lease doesn't end until October 1, so we're really okay, we had simply hoped to redo flooring and complete decorating before moving in. I just wanted to write this down to hash it out and vent a little. I'm disappointed, but overall, I'm relieved that we found out this information before we made a very expensive mistake, and I just hope and pray that we will find the right thing.

[ButterflyJen]

Ugh, Reenie, I'm sorry. Homebuying is such an emotional and draining process, isn't it? You find somewhere you love, you think it's all done after that, and then the paperwork piles up with inspections and addendums and everything. :(

I am sorry you had to pull out, but it sounds like you made a good decision overall. And just think of what's out there waiting for you now! :)

[DiscoDiva]

I'm also sorry you had to pull out, but I agree that it's probably the best thing. Good luck with your house hunting!

[Reenie]

Thank you, ButterflyJen and DiscoDiva, for your reassurances. :)

[southerner]

I had a very similar experience as you when we were househunting. I was very sad and discouraged when that happened to us. In fact, we stopped looking for a few months aftr that, it was that emotionally draining on me!! That experience just gave us a second wind and a new outlook when we resumed looking. Now we're in our house and I am sooooo glad we aren't in that first place.

Hang in there, it will all work out for the best, trust me!

[boilermaker]

I too have been in that position and know how depressing it is. You think you have all your ducks in a row and bam, something goes wrong. I know it is hard to see now, but I do believe that everything happens for a reason and that you will end up with a place that fits you better! Good luck as you continue looking.

[Reenie]

southerner and boilermaker, thank you for your responses. I wondered how common it was to cancel a contract, and I was feeling odd about it. But I know that it's the right thing, and I am even more sure this morning, after we had a chance to really sleep on our decision (not that we could have gone back anyway, ;) ). Our realtor took us to see two places this afternoon, one was okay, but not great, and the other was a definite NO! But that is the way it goes. When the right thing comes, we will be ready. :)

Thanks again for your support ladies.

[ktsb]

Just wanted to offer some support. Good for you to have had your bases covered. It amazed me in both the buying and selling of a couple of houses recently how seller's can demand that they don't have to fix their houses and still want full price. The bad thing is I think if they wait long enough like for a buyer who is desperate or has to take what they can get, they will get someone to buy the place as is.

Everything happens for a reason. I bet the perfect house for your situation is waiting for you!

Good Luck!

[daener]

Wow. I am so sorry to hear that you had to do that, but given the situation it was the smartest thing to do. You're living one of my biggest fears!! We are in the middle of the home-buying process and I have nightmares like your experience.

Don't worry. The right place will come along and it will be perfect - not require an expensive repair in order to make it livable. Plus, the association problem in and of itself sounds like it could have turned into a nightmare easily.

Good luck in your search!

[Reenie]

ktsb Thanks for the support! I know what you mean...if I were selling my house, I would have it in tip-top shape, or if something weren't in good shape, I'd definitely offer a credit or repair!

daener Thanks to you, too! You know, it sounds funny to say, and of course, I didn't want things to end this way, but it really isn't a nightmare (I was afraid it might be)... more than anything, I feel relieved!

[mrspugglesworth]

The same thing JUST happened to FH and I, but after we cancelled our contract, we found the perfect house the very next weekend! We are so glad we cancelled our contract on the first house, and it just shows that it all happens for a reason. I know you will find a better place that you just love! :D

[eli1126]

Just wanted to reassure you that you did the right thing! Hopefully, karma will come back to haunt them :) When we bought our current home the roof needed to be replaced and we got the cost lowered for that, if they aren't willing to accommodate you then you don't want to buy their headache! Good Luck!

Beth

[Reenie]

mrspugglesworth Ooh, congrats! I am trying to be patient, but the truth is that I have been stalking the real estate market these last couple of days. :p Thanks for the support.

eli1126 Thank you, too, for the support. Good for you on getting a lower price on your house for the roof replacement, too! :)

[brenda]

I also wanted to offer some support. Almost the exact same thing happened to a friend of mine, and now she is thrilled that the first place was a thinlky disguised rat- trap because she and her FH love the place they bought afterwards.

This was definitely a good thing for you - you'll love the place you end up buying.

[Reenie]

Thanks brenda for your reassurance! :)

The only update is that Thursday night our real estate agent called and said that the selling agent was refusing to release our earnest money! :mad: :eek: I was SOOOOO mad, and I called Eric at work to tell him, and after I hung up, I read every detail of the contract. I misunderstood a clause of the contract and thought that we were not entitled to our money back, so when Eric came home from work, we discussed the situation, and I told him what I read and we agreed that we thought that we wouldn't get our money back, so we should get over it, and if we did get it back, then we would be thrilled. I knew that our realtor put a call out to our real estate attorney, too, so on Friday morning I received a message from the lawyer saying that the selling agent was trying to use intimidation tactics and that we are entitled to our earnest money on the grounds of not one, but two clauses in the contract, and today, we got a copy of the most recent letter that she sent on our behalf to the sellers' attorney. Whew. I was super-pissed (sorry :o ) for a couple of hours, but in the long run, it just wasn't worth all of the negativity, and I am glad I didn't really continue to be mad about it into the evening, because it would have been wasted anyway (I did, however, have a dream that I was in a fistfight with the selling agent :rolleyes: ).

Thanks again ladies! :)

[southerner]

So, how's house hunting going for you??

[Marie]

(((Great Big Sympathy Hugs)))

Perhaps my story will make you feel better...

So at the end of August 2003 my husband accepted a position in Chicago (what we consider our home) so we put our out of state loft up for sale, moved here and started house hunting. Found the perfect place in 5 days, put a contingent contract down.

Our house didn't sell. For TWENTY THREE MONTHS.

We've gone through FIVE contracts on different houses that were "perfect" and lost them all because our stupid place wouldn't sell.

Well, it sold, 3 weeks ago. We went out this weekend and found what is truly the perfect house, put a contract on it and the inspection is tomorrow. We like it much more than any of the other places we previously wanted. I hope it goes through and everything is ok. But you know what? Even if it isn't there are other homes out there.

Just hang in there - the right house is sitting out there waiting for you!

[Reenie]

Marie, thank you. You are too sweet. I am glad that you finally have the right thing! See how it works out? ;)

southerner, as a matter of fact, we found a place THE VERY NEXT WEEK! Wow! I couldn't believe it. It's the right side of this duplex
http://www.mlsni.com/photos/property/305/05169305.jpg
We plan on taking down our front and screen doors and replacing them with doors identical to our neighbors' (in the same duplex). It is lovely- for only $7K more, we are getting a basement, a yard (and the back yards are fenced separately, so our neighbors have their own area and we have ours), an attic, a garage, and STAIRS )to the upstairs bedrooms) etc. It already has hardwood floors that are in good condition (we were going to put them into the condo), and there is no assessment fee, so guess what? It's actually LESS per month than that damn condo anyway! We are so thrilled. We had our inspection, our other contract is officially cancelled and we got all of our money back, and we are set to close on September 7. Just doing a lot of waiting around now and holding our breaths because we would be crushed if somehow this didn't work out! :) Thanks for asking! :)

[southerner]

YEAH!!!! Congrats!!!!

Guess that means I'll be seeing you around the Home forums more :)

[Marie]

Yay! See, everything happens for a reason!

[off2skl]

Just wanted to offer some support. Good for you to have had your bases covered. It amazed me in both the buying and selling of a couple of houses recently how seller's can demand that they don't have to fix their houses and still want full price. The bad thing is I think if they wait long enough like for a buyer who is desperate or has to take what they can get, they will get someone to buy the place as is.

Everything happens for a reason. I bet the perfect house for your situation is waiting for you!

Good Luck!


That seems to be the case here in Phoenix. I cannot tell you what @#$@# I have seen for around $200,000! I'm sorry, if I'm paying that much money I should not have to redo flooring, finish add ons, etc. And then the few nice places we see fly of the market. We've lost out on two separate offers already and it's getting extremely frustrating.

[boilermaker]

Yeah! Glad to hear everything worked out!

[Reenie]

Thanks, ladies! We are really super excited- I've been looking at decorating ideas online quite a bit! :)