Expert: Jim Root - 11/15/2007

Question
Jim-  Thank you for being available to answer questions.  My wife and I are in uncharted territory here, as we are first-time home (condo) buyers.  About two weeks ago, we found a condo that we loved.  We had to have it, and still do.  The asking price on the condo was 205,000, and we offered 195,000 w/ the seller picking up 3% towards the closing costs.  They countered at 199,000, then we countered at 197,000 and they accepted.  Throughout all of the negotiation, the closing costs were not brought up.  We had the home inspection 3 days after they accepted the offer.  However, on the day after the official attorney review period was supposed to end, our attorney received a letter from their attorney stating that they disapproved of the contract.  Apparently, and this is according to their attorney's letter, they did not understand that they were responsible for picking up the closing costs when they signed the contract.  They have now offered $1500 towards the closing costs, which is only about 25% of what the original contract detailed. My question to you is: How should we treat these new negotiations.  My attorney and my agent both say that since they changed their minds so quickly from not wanting to pay any closing costs to stating that they would pay $1500, that shows that they do not want this deal to die, and they are urging us to be patient and wait for them to come to us.  However, my wife and I love this house.  We do not want to lose it because of a few thousand dollars, but we also don't feel like we should be put through the ringer just because their agent is not smart enough to know how to explain the whole closing costs issue to them.  How would treat these negotiations?

Answer
   REVISED ANSWER--SUPERCEDES PREVIOUS RESPONSE (JR)

Matt--Your question puts me in  a very difficult--perhaps even impossible--position!You've received a legal opinion from a licensed Attorney & realty advice from a licensed Agent, both feeling that the Sellers "don't want the deal to die," and recommending that you "wait for them to come to" you! I must assume that both of these Pros are knowledgeable,experienced capable people who you have felt comfortable with up to now!

Never an Attorney myself, and no longer a State-licensed Realtor, Appraiser, Mortgage Banker or Federal Government Housing Official,it would be inappropriate of me to even imply that you should do anything other than that which your legal Counsel and Buyer's Agent advises! ( It might be considered "Practicing _______ without a License!)

As for how I "would treat these negotiations?" I would definitely favorably consider the advise I'd received from Lawyer & Realtor-- but would want to discuss with them the possibility of(after a short "wait" for the Sellers to "come to" you)approaching the Sellers & their Agent (who wasn't "smart enough to know how to explain the whole closing cost issue to" his/her Client) with the idea of the Seller's Attorney AND Agent BOTH waiving fees in an amount sufficient to offset the difference between the $1500 now offered & the 3% they initially agreed to! AFTER ALL, IT WAS THEIR RESPONSIBILITY--NOT YOURS OR YOUR ATTORNEY OR AGENTS--TO ENSURE THAT THE SELLERS UNDERSTOOD THEIR CONTRACTUAL OBLIGATIONS BEFORE SIGNING THE CONTRACT IN THE FIRST PLACE--THEY MAY BE WILLING TO "PAY FOR THEIR MISTAKES" IN ORDER TO CLOSE THE TRANSACTION!

Again, this is NOT my LEGAL ADVICE nor is it a transactional RECOMMENDATION; it is simply "how I (were I the Buyer here)"would treat these negotiations!"

So...Please check with your Attorney & Agent before you take any further action on this matter. I really hope you can work things out, as it sounds like you & the Wife are truly "in love" with this Condo. Good Luck, Matt--JIM