All Forum Posts by: Brad Gibson

Sounds like their intention is to flip.  Based on your description, it also sounds like their "re-do" is really just make-ready ... 

You should be able to determine what they paid for the property from the tax assessors website or land registry - this will let you quickly figure out if it is worth pursuing ... $375K for $65K/yr revenue - with you carrying all expenses - is more of a "meh" than a "must have".

@Brad Gibson,

I don't make the rules, our duly elected government officials require legally (at least in my area) for an agent to have a fiduciary duty to their principals. Which requires the following : Obedience, Loyalty, Disclosure, Confidentiality, Accountability and Reasonable Care/Diligence. 

If a client goes to their agent and says "I signed this yesterday, but you just got handed a much higher offer, what can I do". The answer of "Sorry bub your stuck, nothing at all you can do, good working with you and have a great day" is the unethical part. Going after the agent is like going after the defense attorney because the drunk driver got off scott free. Sure I suppose you can try and place the blame there, go to the lawyers board and complain he worked in the best interest of his client at the expense of justice and fairness.

I'm not saying it's right/wrong/indifferent, I'm saying what it is. Going to the board and trying to bring up the agent is a complete waste of time. If someone wants to go after the owner, sure spend the time and energy to basically be asked what loss you experienced at that 24 hour period. 

If the seller waited until the inspection and when the buyer said "Just replace this one outlet or put up a railing or paint that board" and the seller says "Cancelled, your trying to change the contract". is that more ethical than cancelling it on day 1?

Depends on the reason and how much you have in it.

@Account Closed

Every state has a regulatory agency that ensures that the agents meet their duties. I am not sure what going to them over the agent is going to do. The listing agent is legally required to work in the best interest of his/her client. The odds of them getting in trouble because they didn't help their client secure a higher price are a whole lot better than them getting in trouble for securing a higher price at the expense of a buyer. If they had an offer that came in worth 20K more than what their client accepted and did nothing they are wrong and lazy. If they found a way to get their client in a better light they are doing what they are legally required to do. 

@Brad Gibson

A lot of the advise in this thread is way over the top assuming this is a lower dollar residential purchase.  In Texas and most places for that matter, suing for specific performance just doesn't make sense on a residential deal.  Courts are very very reluctant to force Joe Seller to sell a property.  A million dollar plus commercial deal maybe. 

Why would any investor want to get involved in a protracted lawsuit that ties up resources and time ?  Life is too short and there is ALWAYS another deal around the corner !  In 27+ years, I have never even considered doing this

In Texas,  you cannot keep a property from selling by refusing to sign the release of earnest money.  Worst case is the seller would need to use a different title company

@Jay Hinrichs Our small claims court Justices are elected officials and would be very reluctant to rule against property owners in their precincts in matters similar to this

@Brandon Battle Did I miss something?  What did the agent do wrong ? The agent can only advise and facilitate and cannot for a seller to do anything

Brad- I personally would have walked away.  Those of us who have done this for a long time know, it just ain't personal.  Never ever feel like you have to have that property as I said there is ALWAYS another deal right around the corner.  Make sure your numbers still work !!! 

 I also invest in a pretty hot market (KC) and live in a even hotter market (Bay Area). You can't go flexing the legal action card if you're going to pay that's what I was joking about. 

But... in theory, as I don't know your deal you could:
Tell the selling agent to eat some of the costs from his commission and give it to the seller (maybe even your agent too). Unlikely, but "could" happen.

I have no idea of the condition of the property, but is there something you can make them repair/replace that'd be "low" cost to them but have value to you? Again, since I don't know what your property is like I can't give you an example.

Are there already tenants in place? Instead of investing 10k cash, let them keep sec deposits and maybe rent till the next mo. So for example you close jan 10, let them keep all rent of for those 20 days. Maybe even let me keep another mo no idea what the rents are, but that's better than you plunking down 10k.

Find something that should be replaced, use that cost to offset the cost they are asking and settle for no repair/no increase.

Plus, time is on your side, if you were going to pay the 10k great, let them sweat it out. Move fwd and let the silence talk em down... a person is their own worst enemy.