Selling home to an investor regret help!

[Michelle Harbeson]

Just noticed I could add more so I want to list now on the market with an agent. I feel take. Advantage of by investor. Appraisaer only listed crappy comps didn’t bother to check if neighbors home sold way over asking price. It was the same day the report was issued to the buyer. Investor says to bad or I’ll sue. Under contract I have a permit to get and duct work to finish. Could that be my loop hole? Thank you on California I’m a wreck! 

[Theresa Harris]

Unless they are trying to use the appraisal to renegotiate, you agreed to the terms and conditions of the offer.  If they are trying to renegotiate, you can say no.  In that case they either accept the terms of the original offer or they walk away.  

Your realtor should have helped you with this.  They should have pulled the comps before recommending a list price and again when you were negotiating with the buyer.

[Sean H.]

if it's a wholesaler, they may have had you sign an assignment. Maybe easier to break that contract. Speak to a real estate attorney. Or, call their bluff and see if they actually sue you. Maybe the profit you're set to gain is far greater than the loss in legal expenses. 

[Charlie MacPherson]

@Michelle Harbeson  There's not enough information here to say for sure, but on the surface, this sounds like another example of a wholesaler screwing a seller.  Screwing people is the wholesaler's stock in trade.  It's the only way they make money.

You need to find out if this is an unlicensed wholesaler.  If it is, you may be able to get out - but you'll need an attorney's advice.  If he's licensed, there may be other ways to kill the deal.

Wholesaling without a real estate license is illegal in almost every state.  The theory I'd bring to your attorney is that a contract formed for an illegal purpose is void at its inception.

The other thing you might try is using "fraud in the inducement".  That tort law says that if someone causes you to enter into a contract without both the intent and ability (money) to follow through to completion, they have committed fraud.  You could threaten to counter sue them for that - but again, your attorney's advice is critical.

Investors, whether wholesalers or not, need to get your house at a discount.  You will always do better by putting it on the open market. That means a real estate agent who is a fiduciary to you (the investor most certainly is not) and marketing through MLS, social media, PPC and whatever other channels they use.

I'd take a close look at the appraiser.  Was that person licensed?  Or was it the investor's buddy who is only working to drive the price down?

Whether comps sold above asking isn't a factor.  It's the amount they sold for that matters. 

Comps should be very close geographically - less than a mile but preferably within 1/4 mile.  They should also nearly identical in the number of beds, baths, sq ft of living area, garage, basement, acres, style, age, etc.  I have seen bad appraisals, but they're fairly rare.

Good luck!

[Michelle Harbeson]

Thanks everyone I did not have an agent he is an agent but acting alone. Can’t I say I’m canceling all work has not been finished and I decided not to do it?   My neighbors home sold for 435,000 asking was 414,000 appraisal didn’t mention sold price buyer said it was a recent close appraiser didn’t know it sold.  Records show close date was 12-18 appraisal was 12-16 finished on 12-18. 

[Wayne Brooks]

@Michelle Harbeson Your contract is binding.....”I changed my mind” doesn’t change that. If the buyer will actually pursue it legally is a different matter. 

[Charlie MacPherson]

@Michelle Harbeson There's still not enough information to be sure, but your last statement changes things.  So the buyer is a licensed real estate agent.  Did he disclose that prior to making an offer?  If he didn't, you might be able to get out based on that, but I'm not especially confident it would work.

Assuming he did, it sounds like he made an offer with repairs written in to the contract, and you accepted the contract.  You have not completed the work outlined in the contract.

If that's right, you're probably on the hook.  

Your "outs" would be defects in the contract.  Parties or property improperly named, mistake, seller failing to meet timelines, improper/missing signatures, etc.  Again, this needs to be run by your attorney.

Failing to do the repairs in the contract doesn't get you out.  It just means you're in breach of contract and you'll open yourself up to a lawsuit.