Inspection #1

We found a house. Last month. But it’s been an uphill battle.

It’s a foreclosed house. Little did I know what that entails. But I am learning.

I learned that when a bank owns a house they don’t know how to be a “seller.” They are not in the real estate business and it shows. And even though the bank uses a real estate agency that focuses on foreclosures it doesn’t mean that that agency is going to play by the Multiple Listing Service (MLS) rules that were drilled into me when I was a real estate agent.

I contacted my former Coldwell Banker Bain broker/mentor and asked him to be our agent. We put in our offer on a Wednesday morning, with a response requested by Thursday at 5:00pm. It wasn’t until TEN DAYS later that we learned they had gone with a “cash buyer” and we were knocked out of the competition. Hmpff!

But I kept watching the MLS listing and never saw it change from Active to Pending. I thought that was weird, however, considering my short-lived experience with the bank’s agent I wasn’t that surprised. So every day I watched it and then – out of the blue – our agent contacted us and told us the cash buyer backed out. Whoo-hoo!!! We were back in the game.

We had additional documents to sign (plus, we had to magically turn our earne$t money check into a cashier’s check) and those went back and forth until last Thursday when we were told the offer was accepted – even though TO THIS DAY we have not received a copy of the signed around Purchase and Sale Agreement which documents mutual acceptance! Nevertheless, I noticed last Thursday evening that the MLS listing had changed from Active to Pending Inspection so we presumed our deal was on the table. Whewww…

So we had our agent set up an inspection and we crossed our fingers.

The inspection was Wednesday afternoon. Mike and our agent met the inspector at the house and the plan was to have me meet them at the house to hear the “results” when the inspector was done. My heart sinks when I think about the next paragraph I am going to write.

First off, it appears that someone used a water pressure cleaner to “clean” the roof – multiple times – and they ended up damaging numerous shingles and actually causing enough damage to see the plywood under the shingles in places. Cost #1 – a new roof NOW.

Secondly, since the house was vacant the water had been turned off. So the inspector turned it on and heard a leak behind a wall in the bathroom. Cost #2 – tear out the wall, find the leak and fix it.

Third, the gas water heater is old and near the end of its lifespan. Cost #3 – a new water heater and quick before it quits working.

Fourth, someone somehow made a "new" laundry area in the kitchen, but the dryer they have cannot fit into the laundry area so that the laundry door can shut! And in order to open the dryer door you actually have to "unhook" the laundry door to give it enough room! Cost #4 - re-engineer the whole laundry area.

And I could go on and on with the other issues. But I won’t. The bank stipulated in the Purchase and Sales Agreement that they would not pay for any repairs and that the house was sold “as it.” So much for negotiating. (As an aside, our agent offered to go back to the other agent and request concessions, but we have our doubts that that would ever happen.)

The drive home with Mike was quiet. We both knew in our heart of hearts that we didn’t want to buy a “fixer” and sink extra money into it just to make it livable. When we got home the floodgates opened and we debated the issues until we came to a resolution.

Not this house. Nope. Too many issues.

So yesterday morning we talked to our agent and said we were ready to walk away from the deal. He posed some good questions for us to think about, but could not change our minds. We explained that we’d rather keep looking. And we will. And I have no doubt that we will find the perfect, little house for us – one day.

Now the question at hand is – how long will it take for that lame seller’s agent to return our earne$t money???