Just reread your posting. Sellers will probably not agree to his offer. It still puts you in a better position. Stick to your original offer. I think they will eventually take it.
At this point I am in a position to sign right now (with serious language about holdover tenant being out) and house is mine, or risk stalling and someone else finds out about the house or the other guy actually clears his inspections.
What is the asking price?
Cb, I would at the very least put some language about having $xx (serious money) in escrow until the bro is out - to be released as soon as it is verified he is out! (He could have a serious mental illness, and then it could turn out you are not in the position to evict him… Mess!) Of course, that would technically make your signed offer a counteroffer. Good luck.
CB. These owners feel,they have you over their barrel. Don’t let them think that.
“But they are in some kind of big hurry to get me to buy it quick right now.”
BECAUSE they think they can manipulate you!
DONT be in such a rush!!
If THEY are in a BIG hurry to get the $$ then THEY can get the brother OUT in a BIG HURRY!
I agree with MPM. There is something wrong here from the seller POV. They think you should,pay more, and not get compensated because the can’t or won’t move their freeloading brother out of a house that is for sale. They want top dollar…and think they can get it…for a house you know needs extensive work.
Is this house THAT special? Right now, it sounds to me like there are more risks than assets…risks being the structural issues, and retaining wall…and the tenant.
I know you want another project…and I love reading your threads. But the brother situation needs to be resolved before you move forward.
I really don’t think the sisters are a pair of evil manipulators. I think they are having to sell their mother’s house and only just now realizing that it has structural problems that significantly compromise the value. It can take time to come to terms with the fact that the house isn’t worth what you thought it was. The standard advice about selling houses is to paint everything with a fresh, neutral color and make it look neat. In this case, the house will either be gutted or demolished, but they didn’t know that until the last two weeks.
They are trying to be nice to their brother. They don’t want to have to be the bad guys who kick him out. Presumably, they are also dealing with the loss of their parent.
I believe the parent is in assisted living and they want to use the proceeds of the sale to finance that. Also the 10 day timeframe was for closing after the contract was signed, with the brother to be allowed to stay for 15 days beyond that. I think each counteroffer has a 24 hour timeframe for response.
I suggested the escrow earlier and still think it’s a valid idea for your next counter. If they really believe the brother will leave on time, they shouldn’t have an issue with that. If, otoh, they suspect he will become a squatter…
Being nice to their brother should include moving him out before the closing. Presumably they are gong to make some money on this sale. They could offer him two weeks at a residence inn…and not expect a buyer to have to evict their brother if he refuses to leave…which could happen.
If they have been in this house, they should understand that a simple,coat of paint isn’t going to solve all of the other issues.
They are counting on a buyer being desperate to buy this property.
Not saying CB is desperate…but that is what the current owners want.
@Marilyn’s escrow suggestion is the best bet. You don’t want to create a legal tenancy by doing a rentback or anything that even smells of a rent situation, because then getting him out could take months of court battles as you have to go through an eviction.
An escrow holdback with daily fines if he is there past the negotiated date, plus the right to access the property (both inside and out) during working hours, seems like the safest bet.
Maybe even add the right to move him out and move his stuff into storage for a few months after a certain date. Storage units are cheap.
Why should,the buyer have to pay for a storage unit for this brother?
the SELLER would pay for any storage unit.
But I think CB should NOT even take into acct the Brothers situation. No tenant should be allowed to stay in the house after escrow closes.
This is a real estate transaction, and any logistics re: moving the brother are NOT her problem to solve.
It’s a matter of expediency. Two months of a storage unit is a few hundred bucks.
Except the sellers to some extent are making it her problem because they want to let the brother stay there for a while. If CB wants the property badly enough, she has to do what it takes.
And what happens if the brother refuses to leave? This could happen. What are the eviction laws in CA? How much time…and money…would it take CB to get this guy out of the house?
Around here, it is very hard to evict a person…very hard…and it takes months. And it’s not free.
cb, here’s my two cents:
- I think you should sign and get the house. I think you've been very realistic in your due diligence and I think you have a good idea what the house's pitfalls and positives are.
- Before you sign, you need to get a lawyer involved to make sure that you have in the contract all the contingencies that might occur if the brother turns out to be trouble. I'm sure that we on this thread can't even imagine some of them, and a good real estate lawyer should be able to help you through that.
Don’t skimp on Step #2. It would be penny wise and pound foolish.
Agree that brother is HUGE issue and needs to be out well before escrow. If he’s not out, your holding and interest costs will be sky high and you and your workers can’t get started. Holdover tenants are bad news, as you already know.
My DH is a very experienced [ 40+ yrs] real estate broker here in Calif, who knows the laws well, and he would NEVER write up an offer for a buyer that includes a clause that extends the occupancy of the seller or any tenant BEYOND the close of escrow.
Did that ONCE.
BIG mistake that caused EVERYONE $$ and Grief.
Any reputable real estate layer will tell CC the same thing…
dont open that can of worms cb…
I vaguely recall, from when I sold my house, that CA law has recently changed on holdover tenants. I don’t know the details but I believe (but am not certain) that if a sales agreement allows the prior owner to stay in the house for more than a very brief period after the close (perhaps more than two or three days), a landlord-tenant relationship is formed between the new and former owners. That is something you’ll want to check into. The law changed about a year ago, I believe.
Yes CB wants the house, but that doesn’t mean she has to sign a questionable deal to get it. The sellers also want to sell the house, and if she holds her ground, she’ll get the deal she wants.
I think the sellers only dropped the price because they saw it as a way for CB to take care of the problem they have had all along, and that is to get the brother out. So if they really want to sell the house, they need to get him out.