All Forum Posts by: Kyle Houlahan

I'm currently in the process of purchasing a property for myself. I began working with an agent a few weeks ago, but I found this property on my own. He has helped verify that the property was priced under market value by doing a quick CMA for me and he has introduced me to a colleague of his that is going to handle all of the renovations I intend to make to the property if I purchase it.

We currently have an offer out to the seller, but it is quite a bit lower than asking price and I'm expecting them to counter. I'm scheduled to take the real estate exam in about 10 days and already have a broker lined up for when I pass the exam.

My question is, if the seller counters our offer, should I continue to pursue this property through the agent I'm currently working with? Or should I wait another week or so and purchase the property as my own agent? I would stand to make around $12k commission from the purchase of the property. My concerns are that being this would be my very first property I've overseen as the buying agent, I would need guidance throughout the process. Also, I do feel some obligation to compensate the agent I've been working with since he's spent some of his time looking a this property with me, as well as introducing me to a few key people I will utilize in the future. 

Has anyone been in a similar situation and can offer some advice?

@Caleb Heimsoth Hey Caleb, thanks for your input. This was a live-in flip, but I have intentions of flipping properties in the future, which is why my profile shows rehab/flipper. I have a career in finance, so real estate is just a side focus for now. I don't own a business and have zero intentions of investing in any more properties in that area. My reputation to me matters, but I don't think my reputation is at stake here at all. Nor am I concerned about a lawsuit. The intentions of this thread was solely to get a few peoples opinions on the matter so that I could understand the situation better. However, it turns out that people's opinions on the subject are vastly different and there is no clear cut rule to follow here, so I have decided to sit this one out and let my agent's broker handle it the best she sees fit. If this means going to mediation and covering some of the expenses, then I will accept that. If it means we do nothing and the buyer goes through his home warranty to take care of the repair, I'm okay with that as well.

@JD Martin you're right, I'm not going to dish out $1700 to the buyer just because someone on the internet told me to. I have yet to see a single lawyer comment on this post with an actual legal viewpoint. There are numerous reasons why I haven't made an attempt to remedy the issue by paying for it yet, one of which is because my agents broker specifically told me do not do anything at this time.

Legally, the buyer cannot sue me before attempting to resolve the issue in mediation (per the sales contract), so it will never come to a lawsuit. Worst case, we will meet, defend our viewpoints, and then agree upon a resolution. However, by the time a mediation was arranged and attended, the issue would have been resolved by the home warranty.

Also, the buyer's agent could be partially liable as they advised their client to close, knowing that there was an issue with the A/C. It could also be argued that the inspector should have tested the unit for any leaks and notified the buyer. 

@JD Martin In what way did I not fully disclose all information that I had? I informed the buyer immediately after I had the unit inspected and I relayed all the information that I had at that time. In no way did I do anything deceiving or fraudulent. 

@Sam Shueh Yelp is for business reviews. I do not own a business or any kind of entity that these people can leave a bad review for. This was a primary residence that I sold.

@Michael Slockers Thank you for sharing your story. Very similar situation indeed. One important thing that I don't think a lot of people on this thread are understanding is that I did not sell this property to the buyer as a business or as a "flip". I don't own a real estate business and this is the first house I've ever owned. I'm not some business man trying to get over on someone and save a buck. 

@David Song Hey David, sorry if it was unclear but I have not communicated with the buyer directly. All correspondence has been through the buyer's agent and my own agent.

@Joe Splitrock thanks for the advice Joe. 

@Jerry Jenkins Thanks Jerry. My agent's broker has advised me to do nothing for the time being and she has informed my agent to have the buyer's agent contact her directly for any further communication on the matter. So for now, I'm just on the sidelines waiting to see how it plays out.

@Joe Splitrock I would have no issue in paying the owners home warranty deductible as a good faith gesture. However, paying $1,700 for a compressor that still functions properly is another story. I agree that I do not have the knowledge to determine if a compressor is bad or not, which is why I suggested the buyer to get another opinion. 

@Nancy P. I certainly will.

@Justin Fox how would I notice it leaking if the A/C is blowing cold the entire time? What indicates that a unit has a leak if the A/C is working properly and it passed inspection with no issues. I don't understand why you're indicating that I was aware of an issue prior to the technician informing me.

As I said before, if I were going to repair the A/C unit then i would have requested that the buyer and I renegotiate either the agreed upon sales price or the contribution towards closing. It would have resulted in the same end result either way. I pay for it and he pays more for the property, or he takes care of it and pays less. My agent informed his agent of all the details that we were aware of and she asked if we were going to have the refrigerant added and we said no and they said okay and proceeded to close the next day. By doing this, he assumed responsibility for fixing the A/C unit.