Article Score0

pretend your selling a house for someone and im a buyer
is this realistic if i ask for this

as buyer, i choose escrow and the title company

i want a apprasial clause so if the apprasial is below the asking price i dont have to buy it

right to inspection and my approval, if theres too many repairs needed, i dont have to buy anything

i want 30 business days to complete my inspection, get financing, and check comps ect…

i have the right to assign the contract or nominate a trust for title

seller pays for title search and insurance policy

seller will pay up to 6% for closgin cost, if closing cost is 3%, it will only be 3% and not higher

buyer will offer more than the asking price, and get cash back at closing, and have a third party submit an invoice

my offer is contingent on approval of contractor bids for repairs

and on attorneys approval

buyer ask for small “repair credit” for paint, new carpet ect..

closing will be on or about an agreed date

5 Thoughts on seller agents question?
  1. Reply
    July 20, 2011 at 5:45 am

    Some of it is common and sensible, and other parts would trigger a counteroffer in my market. Here, the seller generally chooses title and escrow. Probably would not be enough to trigger a counteroffer though. You’d get countered to shorten your thirty business days for inspection. You’re asking the seller to ‘stay off the market’ too long. No need for that time period. 14 days is more than sufficient, including weekends. Depending on the value of your initial offer, the seller might consider the 6% closing fee allowance. If you lowball the offer, you would get that countered out in a flash. Not sure what you’re asking for in having a third party submit an invoice, but if it’s to inflate and simply walk with cash, I would strongly advised a seller to counter it out. (That’s lender fraud). The remainder of the items sound negotiable.

  2. Reply
    July 20, 2011 at 6:27 am

    Normally the seller chooses the Escrow and Title Company but if the seller does not object, may allow you to choose.

    The appraisal and inspection clause is included in the purchase contract unless modified.

    Inspection will reveal any damage or repairs needed, you can back out if too many repairs needed, accept the house “as is”, ask the seller to make repairs, or ask the seller to give you a credit so you can make the repairs yourself.

    Getting cash back at the end of the transaction is illegal (in California). If third party will create an invoice, then check will be drawn to that third party, not you. Invoice must be for valid purposes otherwise, this is fraud.

    As far as assigning the contract, the seller will be accepting your purchase contract based on your terms and qualifications and therefore would not likely allow you to assign the contract to someone else.

    Most of your questions can be negotiated in your purchase offer such as choosing the Escrow company, Title Company, who will pay for what, contingency clauses, and when escrow will close. These items are in your purchsae contract and I suggest you have your Realtor prepare and review your purchase offer because once accepted, becomes a legally binding contract. Remember, the seller’s agent represents the seller. The agent can also represent you, but in most cases, if you will be using a buyer’s agent, his commission will be paid by the seller so why not take advantage and have yourself professionally represented and your interests protected.

    Good luck on your purchase offer, but be prepared for a Counter Offer.

  3. Reply
    Michael Iarrobino
    July 20, 2011 at 6:52 am

    Here in New Hampshire it is generally the buyer that chooses the title company, or actually the buyer’s lender. The lender may let the buyer choose, but it will have to be a company they approve of. (for states that don’t have title companies, they use attorneys).

    Be careful of “cash back at closing” arrangements. If it is hidden from the lender than chances are it could be mortgage fraud. As long as it is on the HUD-1 and not deceptive it is probably OK.

    Typically in NH the listing agency holds the escrow, but that can be different if the buyer and seller both agree. Any costs that are typically paid for by one party can usually be paid by the other if both parties agree. However, it is usually just easier to have the seller contribute or pay a certain amount of buyer’s closing costs instead of asking for specific items.

    30 days for mortgage commitment is reasonable. For home inspection 30 days is probably far more than one needs, unless the property is not ready for inspection sooner (for example new contraction or renovations not yet complete).

  4. Reply
    July 20, 2011 at 7:12 am

    As a buyer you can ask a seller to do anything; whether they choose to do it or not is the question.

    A buyer of real estate absolutely has the right to choose which title or escrow company to close their transaction.
    I know custom in some areas allow the seller to dictate but the HUD website referenced above quotes the federal statute related to title companies.

    With most Fannie Mae loans a seller can pay up to 3% of a buyer’s closing costs on a 95% loan to value, up to 6% on a 90% or higher LTV.

    The buyer getting cash back at closing could be an issue depending on what your third part submitted an invoice for and how much.

    30 business days for inspections, etc., sounds a bit long in my opinion.

    I would have to know a lot more about the transaction and your reasons to answer more completely.

  5. Reply
    July 20, 2011 at 7:53 am

    You are asking for alot here.

    In my area, seller generally selects title company.

    If the appraisal is too low, you won’t get financed for it.

    Too many repairs? That is too vague for me. You get to decide how many is too many? Not acceptable.

    30 days is OK. You should have your financing in place already and checked your comparables in advance. You can have 30 days from the date you enter contract to closing table.

    No, you cannot assign the contract. You may nominate a trust.

    My seller pays for title search and title insurance, fine.

    Most lenders won’t allow the seller to contribute more than 3% of closing costs. You must indicate in the contract what amount this will not exceed.

    Buyer will not get my seller involved in any cash back at closing.

    Approval of bids is OK. Attorney approvals OK.

    Repair credit for paint and carpet? Specify amount.

    Close on set date, OK.

    You are asking for alot here, and I would suggest my seller reject your offer. No counter.

    Leave a reply

    Register New Account
    Reset Password