Frustrated

**CluelessBuyer** · 09-11-2009, 03:40 PM

Hello!
Pre-Approved first time buyer, first time poster here...

We recently made an offer (under the FHA program) for a home but we came to find out that this particular home recently fell out of escrow because the home was recently appraised by FHA and the price was below the offerred price. Thus, the loan cannot be approved.

We then offerred the FHA appraised value of the house accordingly. We received a counter offer of $3,000.00 above the FHA appraised value. Our lender, and 4 other lenders I called, told me that they cannot give me a FHA loan above the appraised value. The seller knows this but yet countered us with $3,000.00 over value.

My realtor mentioned accepting the counter anyway knowing our lender will not accept it, thus we will be taking the chance that maybe the seller will give in. This means I would have to go through the motion of paying the broker the $500 fee for an appraisal to come again and appraise the property. In short, I stand a very good chance of wasting the $500 because I know my lender will not approve the loan.

What other legal option do I have, if I actually have one?

Further, can I fire my realtor at any time as long as I am not in escrow (I can explain this further, if you're interested, as to wy I am asking this)?

Thank you.

**AdamAgent** · 09-11-2009, 06:02 PM

Where are you located?

I have a strategy in mind that would most likely get him to agree to your original offer but it's complicated.

If you feel as though your agent isn't looking out for your best interests then I suggest you find a new one. I'm sure I or someone else here can refer you to an agent in your area.

**CluelessBuyer** · 09-11-2009, 11:56 PM

I went ahead and signed the counter. The worst thing that can happen is I lose money for the appraisal cost. Best case scenario, a deal can be made somehow.

I initially thought of asking my realtor if he would back off on the commission and give him the $3,000 at the end, but decided against it since I don't really want to do anything illegal. We really are just trying to buy a home and we like this one very much.

We have everything properly lined up, loan approval, funds, employment, credit, etc..so I am frustrated why can't we simply buy a home we like. It feels like we've been chasing ghosts the past few months.

As for my realtor, if this falls through, it'll be our last one.

**AdamAgent** · 09-12-2009, 09:39 AM

Here's an idea, try getting the seller to finance that last 3k for you (if you don't have it) in exchange for a monthly payment you can afford.

It sounds like you're tired of the process and I certainly understand.

**dansullivan** · 09-16-2009, 08:10 PM

This may come a bit too late, but regarding your question about firing your agent, if you signed a Buyer Agency Agreement you would have to teminate the agent in accordance with the terms of that agreement. If you did not sign such an agreement then you can do it at any time prior to signing the counter offer. Be sure to put it in writing.

If you try to do it after signing the counter offer then the agent would have a claim for the commission. Remember, it is always best to walk away from a bad deal, if possible.

Hope this helps.

**Nick Brian** · 09-17-2009, 06:27 PM

Originally Posted by dansullivan

This may come a bit too late, but regarding your question about firing your agent, if you signed a Buyer Agency Agreement you would have to teminate the agent in accordance with the terms of that agreement. If you did not sign such an agreement then you can do it at any time prior to signing the counter offer. Be sure to put it in writing.

If you try to do it after signing the counter offer then the agent would have a claim for the commission. Remember, it is always best to walk away from a bad deal, if possible.

Hope this helps.

I completely agree with you. Bad deals create interconnected mishaps and demotivate right decision in the future. Hope both sides are clarified by the agent about BAA. Thanks Sullivan.

**ohioreoexperts.com** · 09-23-2009, 11:32 AM

You don't actually have a legal option here. You can pay the difference of the $3000 or sign a contract knowing that you'll most likely not be fullfililng it and risk losing not only your appraisal fee but possibly your earnest money for failure to perform.

From what I can gather, I do not think your seller is a financial institution. However, if it is you are running the risk of losing your earnest money if they have provisions in their addendum stating that the contract is not contingent upon the property meeting an FHA appraisal. Be careful.