Need some advice from the board...

N

Netperx

New member
I am in escrow on a property and when I agreed to the sale, I was told by the listing agent that there was less than one year left of mello roos and it was $70 a month. This was a big reason we decided to purchase this home.

After paying for the appraisal and inspection, I get the tax report and it is showing that I have to pay the MR until 2038 and its going to be $98. I calculated it out and its about $15k in additional taxes.

We contacted the listing agent, and he was relaying what he was told from the seller. Now I don't believe the seller this did intentionally, but his honest mistake is going to cost me a lot of money.

How would you go about this? What do you think is fair?
 
Well you can pull out for whatever reason as long as your contingencies aren't all signed off.  Not right that they told you one thing and it was false.  It's like advertising the house has solar but you come to find out it doesn't. 
 
You can split $15k in a great number of ways. I'm guessing this was never put in writing because the options multiply when you've got an authors hand behind the mixed message.

a) Listing Agent credit - $15k for misrepresentation. Please Listing Agent... you didn't ask or research tax data before listing the home....then you tell someone this???

b) Listing Agent credit $7,500, Price reduction $7,500. Can't really blame the seller as this information came from the Agent. Still, who hired the Agent?

c) Price reduction of $15,000. Yes, the seller will bear the brunt of this mistake, but perhaps they can re-negotiate the commission paid to the seller via their broker.

d) Yes, it's more money, but I like the house and don't want to rock the boat. Sometimes this is the best way forward.

The problem may persist if the next buyer wonders why the deal fell out, thus prompting a lower offer, or any number of possible outcomes.

Tough choices all around.

My .02c

SGIP
 
Netperx said:
I am in escrow on a property and when I agreed to the sale, I was told by the listing agent that there was less than one year left of mello roos and it was $70 a month. This was a big reason we decided to purchase this home.

After paying for the appraisal and inspection, I get the tax report and it is showing that I have to pay the MR until 2038 and its going to be $98. I calculated it out and its about $15k in additional taxes.

We contacted the listing agent, and he was relaying what he was told from the seller. Now I don't believe the seller this did intentionally, but his honest mistake is going to cost me a lot of money.

How would you go about this? What do you think is fair?
Click to expand...

Is there more than one bond?

Did he mean that after one of the bonds expires it will be $70 per month?....... maybe a language issue?
 
It was the sellers who told the listing agent the wrong information and the listing agent was using it as a selling point.

There are two MRs and there was no miscommunication. The listing agent has already apologized for the mistake on him and the sellers part.

The contingency's have not been signed off and I can walk away if it comes to that.
 
I cant afford it because I am not retired yet and still working  ;)

That's $98 more a month that could be going to my 529
 
eyephone said:
If you can afford 98 bucks a month...
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I say the listing agent and seller puts up 7k. Call it a day.  Just pull out and move to Legado.
 
For the few minutes we'll never get back in our lives, and the productivity lost by our employers due to us reading this ridiculous thread, you've cost everyone more than the $15k you're out. Delete this thread and stop the bleeding.

And yes, back out of buying the house as I'm sure interest rates and home prices will rise just enough during that time that will cost you $99/month more for a like home.
 
haiku said:
For the few minutes we'll never get back in our lives, and the productivity lost by our employers due to us reading this ridiculous thread, you've cost everyone more than the $15k you're out. Delete this thread and stop the bleeding.

And yes, back out of buying the house as I'm sure interest rates and home prices will rise just enough during that time that will cost you $99/month more for a like home.
Click to expand...

LOL.  Do you really think any of us readers wouldn't have found another way to be unproductive if this ridiculous thread didn't exist? I'm sure we'd all find refuge in the  "gladiacmx accepts apology from nosuchreality for baseless statements" ridiculous thread!
 
Haha. Got you good.


haiku said:
For the few minutes we'll never get back in our lives, and the productivity lost by our employers due to us reading this ridiculous thread, you've cost everyone more than the $15k you're out. Delete this thread and stop the bleeding.

And yes, back out of buying the house as I'm sure interest rates and home prices will rise just enough during that time that will cost you $99/month more for a like home.
Click to expand...
 
haiku said:
For the few minutes we'll never get back in our lives, and the productivity lost by our employers due to us reading this ridiculous thread, you've cost everyone more than the $15k you're out. Delete this thread and stop the bleeding.

And yes, back out of buying the house as I'm sure interest rates and home prices will rise just enough during that time that will cost you $99/month more for a like home.
Click to expand...

Is Haiku the seller?  lol
 
Netperx said:
It was the sellers who told the listing agent the wrong information and the listing agent was using it as a selling point.

There are two MRs and there was no miscommunication. The listing agent has already apologized for the mistake on him and the sellers part.

The contingency's have not been signed off and I can walk away if it comes to that.
Click to expand...

If contingencies remain, you can walk away from the deal for any or no reason at all. Honestly depends how much you want the home. If it really meets your needs and you're getting a good deal (not overpaying), then maybe just let it go. If if bothers you on principle or something just doesn't smell right, cancel the deal and find another option.It all depends on the price-point and neighborhood as far as what other options you have regarding inventory. If inventory is tight at the price-point and neighborhood you're looking at, and it make sense for you, maybe just go through with it and brown-bag it for lunch from now on 8)
 
First you need a new calculator. At $98/month for 21 more years, it's more than $15k.

To be fair, hopefully you're not asking for the entire amount because the entire amount today is worth more than receiving it over 21 years. Also, you have to factor in that you may not live there 21 years. So considering whatever that amounts to, which should be significantly less than the entire amount...is that really worth stopping you?

this situation does not appear to be about principle since you said you don't believe it was intentional...so:

1) Don't buy the house because sweating $98 sounds like a tight budget and you're over purchasing
2) buy the house because you most likely won't live there 21 years. Stressing about $98, seems like you're not making as much as you will/can be one day, so doesn't sound like this is your final dream home.
3) You have/can easily afford the money, but $98 is still money. If that's the case, your frugal behind has already realized greater monthly savings in all other aspects of your life to exceed $98/month.  So live a little with this. 

PS: I'm the seller. I know...my agent was wrong about the MR's. And...my agent told you the slanted floors were a design feature. I swear that part's true. In Irvine, that matches most buyers eyes and they love it  ;D. Don't let the inspector tell you otherwise.

 
BruinDoc said:
Netperx said:
It was the sellers who told the listing agent the wrong information and the listing agent was using it as a selling point.

There are two MRs and there was no miscommunication. The listing agent has already apologized for the mistake on him and the sellers part.

The contingency's have not been signed off and I can walk away if it comes to that.
Click to expand...

If contingencies remain, you can walk away from the deal for any or no reason at all. Honestly depends how much you want the home. If it really meets your needs and you're getting a good deal (not overpaying), then maybe just let it go. If if bothers you on principle or something just doesn't smell right, cancel the deal and find another option.It all depends on the price-point and neighborhood as far as what other options you have regarding inventory. If inventory is tight at the price-point and neighborhood you're looking at, and it make sense for you, maybe just go through with it and brown-bag it for lunch from now on 8)
Click to expand...

+1, especially if you are still within the 17-day contingency period.  Who is representing you?  The listing agent or do you have your own buyer's agent? 
 
Soylent Green Is People said:
You can split $15k in a great number of ways. I'm guessing this was never put in writing because the options multiply when you've got an authors hand behind the mixed message.

a) Listing Agent credit - $15k for misrepresentation. Please Listing Agent... you didn't ask or research tax data before listing the home....then you tell someone this???

b) Listing Agent credit $7,500, Price reduction $7,500. Can't really blame the seller as this information came from the Agent. Still, who hired the Agent?

c) Price reduction of $15,000. Yes, the seller will bear the brunt of this mistake, but perhaps they can re-negotiate the commission paid to the seller via their broker.

d) Yes, it's more money, but I like the house and don't want to rock the boat. Sometimes this is the best way forward.

The problem may persist if the next buyer wonders why the deal fell out, thus prompting a lower offer, or any number of possible outcomes.

Tough choices all around.

My .02c

SGIP
Click to expand...
Buyers agent could also kick back a portion of the commission as they took the listing agents advice at face value vs. validating before passing the message. I agree, nothing would be enforceable, but you would think, if you complain about it, potentially the agents would eat a good chunk of the difference (probably not the full amount, especially given that the $15K you are calculating is on an undiscounted basis and when you present value it to today's dollars, you are talking about less money (not to mention the presumed tax benefits, etc...all things for you to consider as an individual as to whether you want to back out or if you like the house so much that it is still worth paying the mella).

One other thing to remember, even if the mella was expiring in a year, it can always get extended. 
 
USCtrojan I have my own agent. I should back out of this and buy your listing  ;D

USCTrojanCPA said:
BruinDoc said:
Netperx said:
It was the sellers who told the listing agent the wrong information and the listing agent was using it as a selling point.

There are two MRs and there was no miscommunication. The listing agent has already apologized for the mistake on him and the sellers part.

The contingency's have not been signed off and I can walk away if it comes to that.
Click to expand...

If contingencies remain, you can walk away from the deal for any or no reason at all. Honestly depends how much you want the home. If it really meets your needs and you're getting a good deal (not overpaying), then maybe just let it go. If if bothers you on principle or something just doesn't smell right, cancel the deal and find another option.It all depends on the price-point and neighborhood as far as what other options you have regarding inventory. If inventory is tight at the price-point and neighborhood you're looking at, and it make sense for you, maybe just go through with it and brown-bag it for lunch from now on 8)
Click to expand...

+1, especially if you are still within the 17-day contingency period.  Who is representing you?  The listing agent or do you have your own buyer's agent?
Click to expand...
 
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