All Forum Posts by: Dustin Allen

@Patrick McBrian

Write your offer contingent on them delivering the property vacant. Your Realtor should be communicating with the listing agent to find out what sort of timeframe they need to complete the eviction process. Don’t close until you verify the property is vacant.  CA purchase agreement gives you the right to do a property verification walkthrough in the last 5 days before closing. If on your walkthrough, you find it’s still occupied, don’t allow Title to close the transaction.

If the sellers insist on you making this your problem for the price they are offering, you need to talk to your lender and attorney to fully understand what happens if they end up staying more than 60 days past closing.

Another option is to offer to pay cash for keys or even credit the seller an amount for them to do that before closing. We have seen some astronomical numbers paid to get tenants to leave in CA but you never know how much it will be until you try.

@Julie Harris

Every area is going to have their own “traditions”. This is only what happens in general and not a hard and fast rule. Your contract should stipulate who pays what and with almost everything in the contract, should be negotiable.

One person may offer to pay all of the closing costs and offer a price under list price. The next person might offer to pay more on the purchase price with the seller paying all closing costs. Both of these offers could net the seller the same amount while having a different effect on the buyers cash needed to close if using financing.

Get creative and look at what’s in it for the seller when you’re putting your offer together. There are many creative ways to make an offer attractive depending on your goals and/or cash on hand.

@Jonathan Beaumont

All commissions are negotiable. If it seems high to you, negotiate a lower commission or find an agent who can provide excellent service at a lower commission.

@Antonio Bodley

Earnest money deposits should not be negotiated with agents. That should be between the buyer and seller through the agents.

There are customary amounts in most markets and the buyer should be able to offer whatever they want. In CA we typically see 3% for primary residences as that is all that is at risk if a buyer defaults on a primary residence purchase. Investment properties get a little more creative and buyers might offer a large deposit and good terms with a slightly lower price if it’s cash.

Get creative and see what they will accept.

@Jack B.

People have been “waiting” for all of time. 

Why wouldn’t you keep looking for good deals? Buying a good deal at a lower price means you can refinance if/when rates ever come down.  Waiting until rates come down means you’ll likely pay more and you don’t get a redo on the purchase price.

Of course, a bad deal is a bad deal and rates are killing a lot of them right now but we’re still seeing good ones occasionally even with the higher rates.

@Doraine Warner

Offer to buy them a premium two year home warranty that covers the furnace and a lot of other items in the unit. That’s a fairly cheap solution and they could end up getting more than just the furnace out of it if things go really bad.

@Gary B.

You are looking at walking away from that 3% deposit if you signed the liquidated damages clause which is paragraph 29 of the CA - RPA. Unless your seller is a For Sale By Owner (FSBO), the listing agent almost certainly insisted on liquidated damages paragraph being signed. There are almost no consequences when this isn't signed.

Talk to your agent and read your contract and they should be able to make it crystal clear what the result will be of you walking away now.

@Kay March

The buyer can ask for more time to resolve the issue or at least get more information. The seller doesn’t have to comply but it is likely in their interest to do so. If they force the buyer out, they will just have to deal with the issue before selling to another buyer or go through all of this with the next buyer. 

Always remember until you ask, the answer is no.

@Tom Voigt

It sounds like you’ve done well with the property in a better neighborhood. Sell the problem property and 1031 that money into a better neighborhood. It will cost more and may have a lower cash flow potential with the current rates but you’re paying to have less headaches.

@Chris Roberts

Start with an offer in writing with contingencies to allow you to inspect the property. When you get your walkthrough, you can decide if you need to close the deal, renegotiate the price, or walk away.