Offer made

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Submitted by recordsclerk on January 4, 2008 - 3:37pm

Does anyone know if you can withdraw an offer. It hasn't been accepted yet and still within the first 48hrs? I know if there's a counter then the offer is voided. There is also a loan contingency, but is there another way to get out of contract.
Thanks for any info.

Submitted by Coronita on January 4, 2008 - 3:55pm.

I thought you usually have 17days before any and all contingencies are removed, unless you explicitly waived that, which I don't understand why anyone in this market would. Previous owner of my current place and an initial offer that was withdrawn after 16 days.

selfportrait

----- Sour grapes for everyone!

Submitted by svelte on January 4, 2008 - 3:59pm.

There are two common ways. First, most offers have a clause stating the offer is only valid for a set amount of time - 48 hrs is common. If they accept your offer within those 48 hrs, see "Second" below. If they do not accept the offer within those 48 hrs or if they counter-offer in those 48 hrs, then you're out - no sale!

Second, the buyer can pretty much back out of the sale without penalty for a period of time, typically 17 days which is also written into the offer, since the buyer must accept the results of the home inspection to complete the sale. The 17 days gives the buyer time to complete this inspection and review it. If there anything at all that you don't like in the inspection report, you can back out. This inspection report is one of the contingencies FLU mentions - another is getting financing and a third is getting an adequate appraisal, usually.

Look at the paperwork you filled out with your realtor to see what these two timeframes and applicable contingencies are in your case.

Submitted by SD Realtor on January 4, 2008 - 4:17pm.

Recordsclerk

Have your agent simply call the other agent and withdraw the offer. Don't get to stressed out. You will have the normal contingencies as well that give you a chance to back out.

It is not a big problem.

SD Realtor

Submitted by recordsclerk on January 4, 2008 - 4:43pm.

Thanks for everyones comments. I'm working with a relative as my broker and he likes to go by the book. This deal was a bank repo, so I wasn't sure if I had any way out other then loan contingency. I knew I could get out of the deal, but I just wanted to find a way out without stressing out my broker/relative.
The funny thing is I made an offer 20K above list and just found out that there were 8 offers (including a cash offer @ list) and I didn't get the property. There wasn't even a counter. This is the 4th house in a row that I've have been out bidded. This last house had about 90% of what we were looking for so my wife changed her mind. There is still a lot of demand for nice properties at the right price. These homes were about 30-45% off peak pricing. When these homes close/record, these will be the new comp killers for their neighborhoods.

Submitted by SD Realtor on January 4, 2008 - 5:08pm.

With an REO it is even better because you will be asked to sign all of the liability release waivers as a condition of acceptance so your refusal to sign those would get you out of any deal as well.

I am seeing the same sort of activity with REO's that you are seeing as well. It is hard to imagine this demand will continue but... it is frustrating trying to be a bargain hunter and still maintain a strict discipline. Keep being patient.

SD Realtor

Submitted by Jumby on January 4, 2008 - 6:18pm.

Since you didn't get it, please share....redfin link please?

Submitted by recordsclerk on January 4, 2008 - 10:05pm.

I'm not sure if the link works.
The MLS# 081000181
Address:
2951 WINDING FENCE WAY, Chula Vista, CA 91914**

http://www.ziprealty.com/buy_a_home/logg...

It's a little smaller then what we are looking for and we don't like the ranch style, we like the Spanish. There are more pictures on zillow from a prior listing. The original sale price for this home was in the high 900k (I think 984K) and I believe that's before they did all the hardscape and pool. We are very picky buyers and are looking for the right home with the right lot. I know at this point in the market we will see some more downward pressure on prices and I'm willing to lose some equity since we are planing on staying for a long time. It's also expensive to renovate larger homes if you don't like the existing options. You could spend 200K easy in renovations including hardscape. So I don't mind losing 100k or so in equity if we find the right house with the right options. Also this view is one of the best in Chula Vista (Chula Juana as some of you call it). For those of you that don't know, this area of Chula Visa is called Rolling Hills. Rolling Hills if one of the only areas in Chula Vista that doesn't have Mello Roos, so there is a premium for this area.

Submitted by patientrenter on January 4, 2008 - 10:15pm.

recordsclerk, if you feel comfortable sharing, can you tell us how much of your own money did you plan to use towards the purchase price? And what was your offer amount?

I am just curious what downpayments people are actually using these days.

Patient renter in OC

Submitted by svelte on January 5, 2008 - 9:04am.

patientrenter his previous comment said he offered 20K above list, and he may not want to tell you how much of a downpayment he was offering - I don't know that I'd tell you.

As you would expect, downpayments are all over the board - JtR over at bubbleinfo.com has done some analysis on current down payment sizes in his posts over the last month or two...you might want to take a look.

Submitted by recordsclerk on January 5, 2008 - 4:41pm.

No down payment loan are hard to come buy today. It's hard to find second loans without high fico scores. Almost everyone bidding on properties like these have a minimun of 20% down. The bank wanted a pre-qual through their preferred lender. He actually mentioned that all the pre-quals up to that time had 20% or more. I also mentioned that there was a cash buyer. My take on it is I think the bank went back to the cash buyer and asked him to match highest bid. There have been a lot of pendings coming back on the market and I'm not sure why, but my guess would be that the buyer couldn't perform. Stated loans are still available, but the lenders will go over the loans with a fine tooth comb. As far as me personnally 20% down is what we were going to do on this property. I'm a move up buyer and owe very little on my current residence SFR(less then 100k). If we purchase a home in the 600K range I would put down enough so we would only need to borrow 417K.

Submitted by Jumby on January 5, 2008 - 5:30pm.

link didn't work...how much did it sell for?

how many sq ft?

Submitted by recordsclerk on January 5, 2008 - 5:53pm.

Try this link to Zillow.com.

http://www.zillow.com/HomeDetails.htm?zp...

The asking price was 705K. I'm not sure what the final sales price is. We will have to wait until it gets recorded.

Submitted by Reality on January 5, 2008 - 6:25pm.

"So I don't mind losing 100k or so in equity if we find the right house with the right options."

So you are willing to give the seller a gift of 100k for convenience (not having to look harder for "the right house with the right options" AT THE RIGHT PRICE)?

Since you are giving money away for the sake of convenience, I'll run errands for you for a mere 25k.

Submitted by Jumby on January 5, 2008 - 6:37pm.

recordsclerk is pretty astute...if that's why he wants to do then so be it...and we don't know for sure if he will lose 100k...he is getting outbid for all the properties he is going for

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