Expert: Karyn Foley - 1/29/2007

Question
Hello Karen,

I have a question.  I am trying to sell my house by myself and have recieved a contract on the house.  It is an older farmhouse that I had renovated throughout the years.  During the home inspection, the buyer came up with three (3) items of deficiency, although minor.  After some haggling, I reluctantly offered to fix the deficiencies.  The next day the buyer's agent sent me an unsigned contract rescission.  When I called the agent, he claimed that the perspective owners just felt a little leary in purchasing such an old house and that more repairs may be imminent. What recourse do I have??  I feel strung along in that they made the offer a month ago in which I have shown them the house numerous times.  Any hel you could provide would be greatly appreciated.

Answer
Dear Allan:  I am so sorry you have had this glitch during your selling period.  Unfortunately, these things do happen, especially with older properties.  However, you should be grateful that it happened at the beginning of the transaction, rather than later on.  I am extremely upset about the unprofessional manner of the buyer's agent, as everything with regard to real estate must be in writing.  How the agent could have handed you anything so important that was not signed by the proper party or parties is not appropriate, and probably not official.  Insist that this be in writing!  This would be for your protection also, so that the old buyers cannot interfere with your next deal.  You do have a home inspection, that you will give to your next buyer, in writing, allowing the buyer to know up front what are some of the deficiencies, although the next inspector for the next buyer may indeed come up with a few new items.  Perhaps you would consider repairing them now, so that you will not encounter the same problem again.  If not, at least the new buyer will be made aware, and may not even request repairs if he is planning on remodeling.  A month seems a long period for an inspection contingency, but I do not know the customary time allowances in each and every area.  Next time, limit all inspection contingencies to two weeks.  If you are running skittish, you can consider doing a pre-sale home inspection of your own, alerting you to what may be wrong.  This, of course, must be presented to the new buyer, too.  Also, it does not preclude the new buyer for obtaining his own inspection.  Had you hired an agent to represent you, this may not have happened in the same manner.  Usually your own representative would have had a better handle on it and not allowed the carelessness that took place.  If you continue selling it on your own, consider a time period contingency allowing for only three weeks loan approval.  You should, perhaps, hire a lawyer (if not an agent) so that you will be comfortable having provided all disclosure documents and do all of the things for which the seller is accountable.  Today's market is not as it was a year ago.  No longer do sellers rule; it is more evenhanded.  It may be difficult to represent yourself.  A buyer will automatically deduct a commission from an offer, so you may not be saving any money in the long run.  Give it another shot, if you will, and if that does not work I strongly suggest getting good representation.  Good luck in moving forward, and let me know if there are any other questions I can answer, or be of further help.
KARYN FOLEY