Friday, December 17, 2010

Three townhome offers

Three Townhome Offers

On November 4th, I toured 3 townhomes and made offers on each.

#1 was a short sale that had a contingent offer on it. I put in a back up offer.

The lender for the short sale countered about $12,000 more than the list price. I'm getting leery of even looking at short sale listings any more. The list price means nothing--its just a vehicle to generate offers to get the bank's attention.

#2 was a bank owned. I wrote an offer and submitted it to the listing agent. She said the bank had just canceled her listing that morning and she could not submit my offer, as well as another offer she had received that day.

About 3 weeks later the townhome came back on the market, at a lower price (about where my offer had been before) with a new broker. I submitted the same offer I had written before to the new broker.

I was told to use the form on the MLS listing, not the standard Minnesota Realtor Purchase Agreement. Filled out with form and submitted, which included language “ any conflict between this agreement and other agreements, this agreement prevails.”

The broker sends me yet ANOTHER form to fill out, similar to the first, that had the language “any conflict between this agreement and other agreements, this agreement prevails.” Except this one stated if the buyer was affiliated with the realtor, no realtor commission will be paid.

Excuse me! I'm doing all the work of the realtor, why shouldn't I be compensated? Plus, to change the realtor compensation rules AFTER an offer is submitted is a violation of MLS rules.

After she did some checking, the broker said to skip the new form.

I was informed there was another offer. I raised my price, but didn't get the deal. I see its now marked “pending” with no contingencies. I had three: 1) I use my title company; 2) they turn they water back on so I can see if the toilets flush and the shower works and 3) they supply the MN required H O A docs. Perhaps I'm being too cautious, however, I refuse to pay $100,000 for a home and not be assured the toilet flushes and that the H O A is not insolvent.

#3 was also a multiple offer situation. Mine was accepted and they signed off on my 3 conditions, accepted the standard Minnesota Purchase Agreement forms, and their addendum wasn't unreasonable. Basically, it was “how many ways can you say 'as is'. Plus provisions for property tax appeal.

So, moving forward to closing. Title work found the title to be in the name of “The Bank of New York successor to JP Morgan Trustee for the Certificate Holders of....Bear Stearns....Pass-Through Certificate...”

Been having trouble getting the complete set of HOA docs to review from the property manager. Doc I just received lists the owner as “EMC Mortgage Corp.”

Now you see why I insist on my own title company.

The HOA docs reveal $2,182 in unpaid fees by the seller. And the financial statements show loses and negative equity. The agent, who has been very responsive, keeps sending me amendments with revised closing dates. I keep refusing to sign until I have all my issues addressed for the HOA. Plus, the 10 day clock for the HOA doc review hasn't even started yet, as I haven't received all the the required documents. Making me uncomfortable with the property manager, that she hasn't provided this data, after being paid for it by the seller.

Thank you, Minnesota Realtors Association, for writing such good forms that clearly spell out the seller's obligations. And I'm so glad I didn't wimp and only use the bank's purchase forms.

I would like to close, but I have no sense of urgency as to when. I need to feel comfortable about the HOA, and I'm not there yet.

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