Dallas-Fort Worth Real Estate Investor Club

Seller slow to sign contract

  • 05 Nov 2013 2:08 PM
    Quote
    Message # 1428389
    Michael Mixon
    Long story short, I've been working on this property for well over a month now.  The son who owns the property lives in Austin, and the mother is the person selling the house, receiving the proceeds etc.  The son has been very uncooperative, being to lazy to sign the contract that was mailed to him.  

    Now they finally are going to both be in town at the same time.  Problem is, when I drew up the contract the dates I put in were all assuming the contract would be signed weeks ago.  Assuming they get into town Friday, and sign their half of the contract I'll have less than 2 weeks to find a cash buyer.

    On top of all that, my title agent informed me that once we're ready for closing, she'll need the sons signature on all of that paper work, and my agent and I are both very skeptical of his level of responsibility.  I'm sure my agent is getting tired of dealing with this, as am I.  Should I just tell the home owner I'm no longer interested in pursuing their property?
  • 06 Nov 2013 7:56 AM
    Quote
    Reply # 1428889 on 1428389
    Deleted user
    Here are a few options for you:

    1) Redraw the contract with new dates.
    2) Redraw the contract with new dates and add a "This offer is only valid if completed before X".
    3) Flip it to someone else.
    4) Walk away from it.
    5) Have the title co or Realtor do all your hounding for you.
    6) Have son sign Power of Attorney.

    -Greg

    Greg Wilson
    The REI Mentor
  • 06 Nov 2013 5:13 PM
    Quote
    Reply # 1429371 on 1428389
    Michael Mixon
    I did consider going with option 1 2 or 6, but chose to walk away.  I had one of my local contacts look at the house.  I didn't want to do this because he's one the buyers on my list, and I don't have the contract signed, but I did it anyways because I was close to deciding to walk from the deal.  He advised after a 3 minute walk through, to drop the deal.  He said he as a buyer, wouldn't be interested in the property at any price, even to tear down the house and rebuild on the lot.  That was enough for me.  If this guy won't buy at a house for even $10,000 then it must be even worse than I originally thought.

    I'll consider it a great lesson learned on my first potential deal.  Luckily I learned the lesson with no earnest or option money put down.  I originally thought the home was salvageable, but now I know more what to look for.  Thank you for the answer though Greg.
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