First time home buyer - need some help from real estate experts

[Jo Ly]

Ladies,

Let me preface this by apologizing for the length of this post but I have to rant.

My boyfriend and I have been house hunting for about a month, and we have already had a couple of upsets and are taking a less emotional approach to house hunting. We have the mind set of if it's meant to be, it's meant to be. We are looking for a fixer upper in Toronto, and have found a few, but the sellers all seem to be crazy!

The first house we found was a dump - the guy who owns, bought it 12 years ago and that was probably the last time the place was ever cleaned, BUT, it was downtown and in our price range. We went to put in an offer and he sold it for $60K over our cap - and let me tell you, it was definitely not worth that much!!! So that's fine, moved on to hunt some more.

Second house we found, older place, needed some work - which we want because we do not want to pay for someone else's style or renovations and want to do it ourselves, so we put in an offer at the asking price, conditional upon house inspection. Well, the house inspection came back and the house would never be able to get insured because of the state of it, so we went back to the selling agent and asked them to lower the price - no go, okay fine - they think it's worth that much, all the power to them if they can get it. Do I not go on mls and see that they lowered the price not even a week later?!?!? WTH So, I'm not too thrilled at this point, and when I spoke to our agent I told him that if that house is completely out of the question if the selling agent ever comes back and asks us to reconsider.

The third house we see, again, needs some work, but seems to be structurally sound - electrical is good, plumbing is good, foundation is solid, floors just need to be refinished, etc. It has been on the market for 60 days which is extremely long for Toronto, has had 40 potential buyers through and not 1 offer, NOT 1! We put in an offer for the asking price and the seller wanted to sleep on it - no problem that's fair. We get a call over the week end from our agent who tells us that the seller feels since we are willing to offer the asking price, she wants and additional $30,000.00 - WTH?!?!? :censor: Our agent was telling us that the seller has been a nightmare with the selling agent and the selling agent is so fed up with this lunatic and the seller feels that the agent isn't working and that's why it's not selling. So when the seller finally does get an offer in line with the asking price, the seller feels that they can jack the price up 30 grand?!?!?

We are a little floored right now at this situation, and we do want this house and are taking a step back right now because we are both a little fired up about this.

Has anyone else had this happen before? I'm so :censor: frazzled right now and need some words of wisdom from home owners and real estate experts.

 

[Swanky]

yeah. . . NO!

NO WAY IN HELL would DH and I EVER pay over list price for a home that's not in a bidding war! LOL!
What a cuckoo! I'd give her 24 hours and start dropping the price. I'm not kidding.
Today is list price - which BTW, we'd NEVER pay either, tomorrow is $8k less, Wed is $12k les. . . .

 

[Pursegrrl]

Unbelievable! I'm no expert but that is ridiculous. I know it is so frustrating, but I think you and your BF need to hold on tight to that "if it's meant to be it's meant to be." Better to move on before you get too deep in any of these messes with the sellers. If they are jacking around prices it is just covering up for other things, IMO.

I've only bought one place and right after I made a deal with the seller...WHAMMO an assessment came up in the association and I had to fork out another 7k after all the downpayment, inspection, etc. I knew it was too good to be true. An expensive lesson for sure.

I would have your agent check into the legality of all that price changing - doesn't seem legit IMO.

Good luck and keep us posted!!

 

[Swanky]

oh yeah, there's ALL kinds of other fees coming. . . DON'T pay more an penny more than you need to.
Inspections, closing costs, utilities. . . .

 

[Jo Ly]

Oh my god, this has been hands down one of the biggest eye opening experiences ever.

We have rough quotes on closing costs, etc. and have some slush money set aside for anything that may come up - but I'm sure unless I win the lottery it won't be enough - LOL

Pursegrrrl - good point on the legalilty of changing a selling price, I was thinking along the same lines too, I'll get right on that...

 

[Kimm992]

I'm in Real Estate in Toronto and I can tell you that it's not normal practice for a seller to increase their asking price right after an offer. It sounds to me like this seller does not really want to sell. I would move on if I were you....sellers like this are a headache!! As far legal stuff....it is perfectly legal for a seller to change their price unless a firm deal has been made.

Also....60 days is really not a long period of time for a house to be on the market in Toronto right now....just for future reference.

Sometimes it's a real challenge finding something you like in your price range....but don't let this stuff discourage you. Try and stay laid back about it and keep looking...you will find something!!!

Good luck!!

 

[Jo Ly]

I'm in Real Estate in Toronto and I can tell you that it's not normal practice for a seller to increase their asking price right after an offer. It sounds to me like this seller does not really want to sell. I would move on if I were you....sellers like this are a headache!! As far legal stuff....it is perfectly legal for a seller to change their price unless a firm deal has been made.

Also....60 days is really not a long period of time for a house to be on the market in Toronto right now....just for future reference.

Sometimes it's a real challenge finding something you like in your price range....but don't let this stuff discourage you. Try and stay laid back about it and keep looking...you will find something!!!

Good luck!!

Kimmm - our agent told us (and he's a friend of my BF's from university) that the average time on the market is 15 days!

I'll PM you.

 

[glily]

I have personally been involved in well over 1000+ closings as an attorney for either the bank, the buyer or the seller in NY. I would recommend two things. One, make sure you have a reputable BUYERS agent. Do you know your agent well? Does he have a lot of experience? If this is your first time buying, you should have an agent that has been around a while. Second, same goes for your mortgage banker/broker and you should meet with him/her BEFORE you make an offer and know exactly what you can and can't afford. Do they use attorneys for closings in Toronto? If so, that is another source for you through-out the entire buying/closing process.

Also, I agree with Kimm - this seller sounds like they don't really want to sell and/or is a wacko. There is another house out there for you.

Good luck!

 

[Jo Ly]

I have personally been involved in well over 1000+ closings as an attorney for either the bank, the buyer or the seller in NY. I would recommend two things. One, make sure you have a reputable BUYERS agent. Do you know your agent well? Does he have a lot of experience? If this is your first time buying, you should have an agent that has been around a while. Second, same goes for your mortgage banker/broker and you should meet with him/her BEFORE you make an offer and know exactly what you can and can't afford. Do they use attorneys for closings in Toronto? If so, that is another source for you through-out the entire buying/closing process.

Also, I agree with Kimm - this seller sounds like they don't really want to sell and/or is a wacko. There is another house out there for you.

Good luck!

Our agent (buying agent) is experienced and a close personal friend of my BF's. He was selling real estate in Long Island and saw the real estate boom in Toronto and moved back home. We have spoken with the mortgage broker and have put ourselves in a a position and have determined what our cap is and will NOT be going over that amount regardless of what we are approved for - how can I buy bags with an insane mortgage?!?!? lol - had to lighten this up a little.. I do have an attorney as well, and oddly enough it's the mother of a PF member on here, I have known her for a couple of years now and has given us a check list of things to ask and do, which we are doing or have already done.

It sounds like the seller doesn't want to sell, but the seller HAS to sell and thinks the property is under valued and that's why they aren't being reasonable about the price. When we put the offer in, it was a single seller (female) and she has 4 children and can't afford the property, which is why we wanted to be fair and offer asking price. I'm still trying to wrap my head around how giving a seller their asking price isn't good enough... unbelieveable...

I agree with you ladies, that seller is a complete wacko - but that house.... argh, we really like that house

If it's not meant to be, then it isn't.....

 

[Gina]

Don't go for it. If they are really desperate to sell, you can offer a low price and stay firm, and they might go with it. The longer the house stays on the market, the longer they have to keep paying taxes on it. The worst that can happen is the person says no! And if someone gives you so much trouble, it's probably not worth it. Just keep looking and looking! I would recommend seeing at least ten places!

 

[gillianna]

I thought if a seller listed a house for a certain price (asking price) and you the buyer put in a contract for the selling price that it meets the terms of the listing contract. The sellers real estate broker is entitiled to their commission for bring in a asking price offer..... I never heard of a seller raising the price when they get a full price offer for the listing price. Is this legal to do? It sounds like a frustating mess. We have usually bought buy owner and only had one person say another person wanted the house when we were ready to sign the contract-they wanted us to up our price so I said let the other people get the house and it took the lady one year to sell the house. There were no other buyers...... Is there any way legally you can get the contract enforced--what does the real estate manager of the office say? Perhaps some other houses will come along that are better. If it is meant to be it will all work out. I thing buying real estate is one of the most stressful things in the world.

 

[twiggers]

I had the EXACT same thing happen when I was buying.
1st house we put in offer for asking price and got outbid (we still regret it to this day)
2nd house we put in offer for asking price. Gave them 24 hours to respond. Selling agent says they want to sit on it for another day because they are expecting more offers. We were beyond angry. we withdrew our offer and reported the selling agent to the real estate board.
Then finally we found our house.
It was beyond stressful (still is because our old house is still on the market and we're paying 2 mortgages)...but I say hang in there. It wasn't meant to be. You'll find the right thing!!!

 

[Shelley]

I thought if a seller listed a house for a certain price (asking price) and you the buyer put in a contract for the selling price that it meets the terms of the listing contract. The sellers real estate broker is entitiled to their commission for bring in a asking price offer..... I never heard of a seller raising the price when they get a full price offer for the listing price. Is this legal to do? It sounds like a frustating mess. We have usually bought buy owner and only had one person say another person wanted the house when we were ready to sign the contract-they wanted us to up our price so I said let the other people get the house and it took the lady one year to sell the house. There were no other buyers...... Is there any way legally you can get the contract enforced--what does the real estate manager of the office say? Perhaps some other houses will come along that are better. If it is meant to be it will all work out. I thing buying real estate is one of the most stressful things in the world.

There is no contract until both parties sign the purchase agreement, a meeting of the minds. Secondly, as sad and frustrating as it is a seller may do or NOT do whatever he/she wishes. Real Estate laws vary state to state, and so on, but in that case in the state of AZ, the seller's agent would be entitled to the commission, because he procurred a ready, willing, & able buyer (as per the lising agreement).

Buying a house can be frustrating. I agree w/ the previous posts, your best asset in getting the house you want is an experienced, knowledgable agent, sounds like you have that. Markets vary so much, I have no idea what the conditions are in Toronto, but here almost no one is paying asking price anymore, I know because I'm a listing agent & none of my properties are getting full price, but we're still selling

What's meant to be will be, you'll find the home for you, sometimes you just have to be a little patient in finding your new home. Good luck to you!!!!

 

[alvie223]

What I say is tell your agent that you are willing to pay the asking price, you did not make a low ball offer, you met their price. And also communicate to the agent who has been showing you the homes, that this home you are willing to buy but on your terms not the sellers.

 

[pseub]

I thought if a seller listed a house for a certain price (asking price) and you the buyer put in a contract for the selling price that it meets the terms of the listing contract. The sellers real estate broker is entitiled to their commission for bring in a asking price offer..... I never heard of a seller raising the price when they get a full price offer for the listing price. Is this legal to do? It sounds like a frustating mess. We have usually bought buy owner and only had one person say another person wanted the house when we were ready to sign the contract-they wanted us to up our price so I said let the other people get the house and it took the lady one year to sell the house. There were no other buyers...... Is there any way legally you can get the contract enforced--what does the real estate manager of the office say? Perhaps some other houses will come along that are better. If it is meant to be it will all work out. I thing buying real estate is one of the most stressful things in the world.

I don't know about other states or in Canada, but in CA, if a buyer receives an offer at list price from a qualified buyer, I think they're obligated to pay the agent commission, whether they actually decide to accept the offer or not.

We went through some similar problems when buying our home back in the late 90's. The second house we made an offer on, we walked through, made an offer at list price, and the seller decided 10 minutes later they'd rather rent than sell and pulled it off the market! The buyers of the house we finally bought (and love and are still living in) tried several times to back out of the sale after we had a signed contract. We'd been seriously trying to buy a house for almost two years at that point...we said NO WAY and made them sell and close per our original agreement (we'd even given them a 90 day escrow). You deal with some crazy/flaky people during this process...just trust that you'll end up with the house that's meant to be.