I’m a first time home buyer who has real estate agent representation. I have been pre-approved for a $300,000 home and I’m putting 20% down ($60K).
The first house I viewed I liked though it was missing a few key features I was looking for. I requested a second viewing but decided against making an offer because I wasn’t comfortable doing so after viewing just one property. Two weeks later and 6 viewing later, the property went under contract. I expressed disappointment to my agent that it slipped away and he told me that he’ll let the Seller agent know that we should be first to know if the deal were to fall apart. This property is being listed for sale by a traditional real estate agency that charges a 6% commission. 12 viewings later, I viewed a property that had most of what I was looking for. It was recently reduce from $315K to $295K so within my preapproval price range. My agent thinks their $299K asking price is $15K higher than its appraisal value. He values the property at $284K. It is being listed for sale by a rreal estate agency which offers a la cart services to sellers for a flat fee (non-commission). My contract with my Buyer’s agent has his 3% commission being paid from the Seller’s agent 6% commission (50/50 split). That’s common here. My agent expressed dislike for this Flat Fee agency because they provide an ala cart services to their sellers who can contract for minimum service resulting in poor representation, but I suspect he also dislikes the fact that if I were to close on this property his commission payout is limited to a share of a $6000 flat fee ($3,000) which is 30% lower than the 3% ($8,700) he would earn had the property listed by a commission based agency. I wanted to make an offer on this $295K property. My agent recommended an offer of $285,000 with $7,500 back from Seller for coving closing costs so the seller nets $276,500. They countered with $290,000. He advised I counter with $288,000 with $7,500 in closing costs. We did, and the next day the Seller agent said they accepted our offer. Time to celebrate right? Not so fast. The next day my agent receives this email from the seller agent:
Unfortunately we have hit a snag. Seller can only view the contract on her iPhone and didn't see/read the buyers request for the sellers to contribute $7,500.00 towards the buyers closing costs. This is unacceptable to the sellers. If the buyer needs these funds they can be added to the purchase price. Sorry for this last minute delay /hurdle. Unfortunately, due to Holly only being able to view the contract documents on her iPhone it skipped her attention during the first read of the contract. Please let me know if you have any questions. Best regards, Seller Agent
So we hit a “Snag, ” that the Seller agent decided against signing the purchase agreement having overlooked $7,500 in closing costs because they were reading our offers on an iphone? that $7,500 has been presented since our first offer. We've been back a fourth a few times with counters. Every offer and counter offer was conducted directly through my agent on a online purchase agreement document sharing system, and my agent had me read and approve via my signature ever update to our offer in an online purchase agreement document.
This whose situation is a little strange.
And coincidently, today I received notification from Zillow.com the property I first viewed and expressed interest in switched from Pending back to Active so I expect my agent to be calling me soon to let me know if I want to make an offer on it.
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