Storytime - Also worst-case scenario if we don't send EMD?

[Corinne Ulloa]

Apologies in advance for being so long winded. We are hoping that someone can advise us of the worst case scenario if we decide not to move forward, amongst a couple of other questions along the way.

Here's the deal...Mistake 1) The husband and I signed a ratified contract without reading what we signed, we just hit "next" each time prompted in Docusign. Mistake 2) We put full trust into our agent getting it right and having our best interest at mind.

The property, located in the rural part of Virginia on the Shenandoah River, was listed at 225k. We were interested in it's potential as an STR because of it's proximity to the river and to our home to enable us to self manage. We consulted with our agent and she encouraged a full price offer, and since we wanted some cash kicked back to us, we initially offered 230k with 5k in concessions, at the advice of my agent (since accordingto her, every contract she'd written in the last 4 years had no contingencies) it was not contingent upon inspection, financing or (later after I actually read what I'd signed), appraisal.

We quickly found ourselves in competition with another buyer (and supposedly a third) and we're countered by the seller at 239k. To which we countered at 235k with 5k in concessions. The seller agreed, but wanted 10k in EMD (we were originally at 3k). I let my agent know that we'd only feel comfortable with that is we could add back in the inspection contingency. She replied that it would be a change to the contract and that we couldn't do that. Not having an inspection with 10k on the line was a deal breaker for us so we waived the seller to move on to the next buyer.

The following morning, I received a text that the other buyer got "cold feet" and backed out. I let my agent know that we may have interest again if they'd allow for a contingency for inspection. She stated that the seller wasn't agreeing to that so our only option was to "sneak an inspection" and she supplied us with her inspector, so we agreed. The Inspection went OK and after a day to think on it, we decided to go back in where we left off (235k with 5k in concessions, 10k EMD). Call to agents and all other knowledgeable professionals: Just curious, would it not have been contractually possible or just in bad taste to have reduced our offer at this time?

The seller came back and accepted our offer. Fast forward to today, as I am scrutinizing my loan disclosure, I thought that I had caught a mistake because it said 239k with 5k in seller concessions. This prompted me to go back to check our ratified contract, which also said 239k, so I immediately called my agent. When I asked her why the contract would say 239k, she said that it was because it's what we agreed to. To which I replied, "No I did not, EVER"! She refused to admit guilt and it was feeling an awful lot like gaslighting. Her defense was that she'd done 50+ contracts this year and she has never made a mistake. It wasn't until our second call (5-10 mins after the first) that she gave a weak apology and she conceded that raising our offer from 235k to 239k would have been a bone-head and nonsensical move when we were the only buyer with interest at the time and struggling to accept his terms of 10k in EMD. Why would we agree to that?

I am feeling like this is a sign from the universe not to move forward. It's aking my BRRRR-STR not very brrrrable lol! Every other party taking part in this transaction will get what they expect out of the deal plus a lil' sumthin'. The seller has to be the happiest guy alive scratching his head about why we would have jumped back in the deal at 239k instead of 235k, when there weren't other offers on the table. He's one lucky SOB! While the hubby and I are holding the sh*t end of the stick.

We have until Friday to send the EMD. If the husband and I decide that we'd rather not close on the deal, what type of penalties might we face? Worst case scenario? To the agents reading, this is probably and impossible question to answer because, as with all things in real estate, it must depend on the market, but how would you have handled things differently? Also, feel free to tell me if am I overreacting and focusing on the wrong things.

Thanks in advance!