Hello May Beth,
I see you have several issues contributing to a high level
of frustration. The discussion that follows contains many questions. I do not
expect, nor do I solicit any answers. They are exclusively for your benefit,
although you may consider using them as points of discussion with your REALTOR®.
First and foremost is your current contract with a decision
to be made whether to accept an amendment to the contract sale price or terminate
the original contract. If you consider the merits of the 5% reduction in sale
price, what will you, as seller, be giving up? Some questions to consider are:
1. How long has your house been on the market? You indicated
the initial term If your contract is with an investor, it has an attraction as
an investment property. If your goal was to sell the property to an
Owner/Occupant, there must be a reason this offer came from an investor, rather
than from a motivated Owner/Occupant buyer.
2. Have you had any other offers during the period of this
listing? If not, why not? The only factors involved are Location, Condition,
Marketing and Price. You cannot influence location. Condition and Price are
within your control, and your REALTOR® has the Marketing plan. If other houses
in your area and similar to yours have
been selling, what did they have that yours does not?
3. Have you reduced the price during the period of this
listing? If not, would the current contract and price reduction reflect the
market price of the property? The market price is that which a motivated buyer
is willing to pay and for which a motivated seller is willing to accept.
4. What is your motivation for selling the property? Is
there a sense of urgency to sell the property soon? Is it occupied or vacant?
What are your current holding costs?
5. If you terminate this contract, what can you and your
REALTOR® do to improve marketing and attract a motivated buyer?
6. If you accept this amendment for a lower price, will your
needs as Seller be satisfied?
These are all questions that you and your REALTOR® may have discussed
already, but if not, now would be an appropriate time.
The second issue involves the condition of the property. The
condition of the foundation is generally one of insurability and lender
approval. The condition might have satisfied those requirements when you bought
the property, but time and nature have a way of allowing subtle changes to take
place without detection by those living in the house. We have had a few years
of extreme drought, and since January this year, an excessive amount of
rainfall. It is not unreasonable to expect some foundation shifting.
Whether or not the Buyer used a professional for the
foundation inspection, if the Buyer felt strongly about repairs that might be
needed, the Buyer would have estimates for identification of all issues that could
contribute to foundation problems. These could include soil condition, possible
existing plumbing (water or sewer) leaks, landscape drainage, tree roots, and
many other things. The Buyer might also include any potential repairs needed
from leveling the foundation, which would include under-slab plumbing repairs
as you indicated. You certainly could have a structural engineer do an
inspection. Some foundation repair companies can address most foundation
issues, but unless the company has it's own structural engineer, you might not of
the contributing uses the services of
The third issue I see is the relationship with your
REALTOR®. Without knowing any details of the property, the REALTOR®, marketing
strategy, etc, if you have had reason to question performance and character of the
REALTOR®, you have the right to meet with the immediate supervisor and/or
Broker. Facts should be presented and you should expect to gain a satisfactory
resolution to your issues. If you do not feel satisfied with the resolution,
you have the right to file a complaint. However, before filing a complaint, I recommend
speaking with an attorney to guide you in this matter.
Lastly, you indicated an issue with the REALTOR®/Investor,
apparently one person who is the Buyer on the current contract. Whether this is
one person or two (a REALTOR® bringing the Buyer (investor) to the purchase of this
property), there may or may not be an ethical violation. If the REALTOR® is also
the Buyer (or part owner of the Buyer's business entity), then the REALTOR® is
only required to treat you honestly, not necessarily fairly. If the REALTOR®
has a representation agreement with the Buyer, then the REALTOR® is legally bound
to work in the Buyer's best interest, and must act as directed by the Buyer,
unless such action itself would be illegal. Neither the Buyer or the Buyer's
agent is obligated to disclose any information to you regarding the foundation
inspection or the company that conducted that inspection.
As a Seller myself, I sometimes overlook those things which
are not important to me, but are deal killers to Buyers. I recently sold a
property that had foundation issues. The issues were coincident with a 4"
sewer line leak that resulted in excavating through the slab to replace more
than 30' of 4" pipe, 2 branch lines and a closet connection. The plumbing
repairs alone were more than $20K. My insurance company sent in a structural
engineer, who did an extensive analysis and determined that the foundation was
performing within specifications, and was not related to the plumbing leak
(direct cause because of expansive clay soil and the effects of extreme drought).
A repair was not recommended. In spite of presenting the engineer's report, the
Buyer and Seller (me) agreed to a reduction of price. I did not lose money in
the deal.
Thanks,
Terry
