I don't think that they are using you. The seller's and their agent want the house sold. If yours is a stronger offer, and they are having disagreements, the deal could easily fall apart (buyers walk due to inspection contingency), and you would be next in line. It happens. You just have to wait. I hope it happens for you!

I wouldn't get your hopes up or get too invested in the idea because the current buyers could easily decide that they don't want to lose the house over the cost of a test. There might be other issues that have come along, another house they were considering -- even another one that had a deal fall through, their financial situation may have changed or been reconsidered -- so many factors that don't involve using you at all, but having put in a backup offer, you are one more pressure on a stressed deal.

The buyer seems to be the one in control here, an it will really depend on whether they want this house or not. If they would walk over a test fee, the house is not really right for them and I hope you get it. I doubt the seller can do any more at this point than say no to any repairs or other requests that were not in the contract.

When the offer was made a date would have been specified for all contingencies to be met before the P&S would be done. The seller can refuse to extend the P&S date. At that point, the offer becomes null and void and they can start negotiating with you.

Thanks! I'm trying really hard not to get my hopes up as I know it's a long shot. I can't imagine walking away from a house over the price of a well flow test!

I do think this may not be the right house for people who find the test cost prohibitive though. The house needs some immediate maintenance (exterior railings, a bad diy porch thing needs pulled off, a ceiling Sheetrock needs some repair, etc). For us it's way, way below budget so we can get those things taken care of immediately, but for someone who doesn't want to fork over for inspection costs it concerns me.

It's rough that it happened over the long weekend making it a longer wait on pins and needles!

Pixie, I'm not sure I understand the p&s talk. We are doing our sale of our home FSBO and the contract we signed with our buyers is a p&s. In a agent led transaction does that come later? I know the offer papers we signed with our agent for the house we want were way shorter and less detailed than what we signed with our buyers. What exactly do you mean?

Their original offer was accepted May 13, which would mean they're 11 days out. I know 10 days is normal for the inspection stuff, does that mean that technically the sellers could walk?

Here in Massachusetts you first make an offer on a house. Price and time frame is specified, You typically put in a few contingencies. Almost always house inspection. And maybe a few more. (For instance I'm looking at a house where I want to add a second story. So I will put in a contingency that I can get a structural engineer look at the foundation for a second story. This is above an beyond the inspector saying the foundation is sound and solid). Then a date is specified for to the Purchase and Sale agreement. Between offer and P&S, either buyer or seller can back out based on the contingencies.

The offer has set the price and the time frame. And it then gives you the opportunity to do your inspections. (for instance why would I pay a structural engineer to evaluate a house if there is no guarantee the seller is even considering selling to me). Once your inspections are done, you can reevaluate the offer if major issues come up. Then you sign your P&S. Once P&S is signed, there is pretty much no backing out. Typically the only outstanding issues after P&S are mortgage financing and appraisal. Those typically have a 30 day commitment requirement.

Things may be done different in other states.

Different terminology here in MS, but the same process. Offer becomes contract when all negotiations are concluded. Buyers have contingencies (insp, financing, etc) and a certain time frame for them. When all is good they sign a removal of contingency form, essentially clearing everyone to set a closing date. When our buyers removed their contingencies is when we found a rental house and began packing. Closed abt 3 weeks later.

So does anyone know the ins and outs of usda loans? The house is in need of some immediate finish work-- one bedroom ceiling has a fresh piece of Sheetrock just screwed up, not mudded, taped, or textured. There's no trim in another. There is an exterior staircase with no rail. There was a sort of glassed in entry added that was not at all finished on the inside. There were some random wires poking out in one spot. Things like that. Are these issues likely to cause problems or not for the other potential buyers? We would be getting a conventional loan.

A lender probably will require things be up to code, like a railing on the exterior stairs, or "random wires". And an appraisal will definitely be affected by unfinished work. So your appraisal will be lower.

I'm not worried about the appraisal and such on our end-- the house is well under budget for us and we are perfectly happy to make repairs.

I'm more just wondering how challenging it is to successfully get a usda loan on a house in this condition. I'm hoping it's challenging as that would mean we have a decent shot at getting it.

After an unsuccessful attempt to 'not get my hopes up' I've managed to move us all in, redo the kitchen, plant several flowering trees and watch them grow to maturity, and name my new cow Heloise....

I think you've got a good crack at it. My daughter both BOUGHT and SOLD her first home in that manner...back then, it was called a Farmer's Home Loan. There were SEVERAL items that needed to be changed and this was a home less than six years old when bought, and ten years old when sold. She never even considered selling that way when she sold her next home, because of the pickiness which caused her to fork out money for repairs for her buyer. The strange part was that one of the things required when she SOLD was that she had to install an outside vent for the range hood which had been like that when she obtained HER same loan. Hard-wired smoke detectors also had to be installed, even though when she BOUGHT, the battery-operated kind had been in place.

Are there any contingencies that let a seller back out of a contract in case a better buyer shows up? None in my opinion, provided the buyers fulfill their requirements (e.g. financing, backing off of asking for repairs after inspection, etc.).
Once a contract is accepted, it seems that buyers have the upper hand. They can walk away if they don't like the inspection report, don't like the HOA documents, etc.

I'm keeping my fingers crossed that the buyers in your case are not just playing hard ball but may actually walk away from the deal.

Nosoccermom--I agree, I don't think the sellers can back out. I think our only hope is that the buyers cannot get the government loan due to the condition of the house. Hopefully we'll hear tomrorow. It's not fun having it drag on.

Are there any contingencies that let a seller back out of a contract in case a better buyer shows up?

Usually they are based on timing of things in the process ... if buyer wants inspection, has to be in __ days, financing has __ days to be arranged, etc.

The seller may choose to ignore missed deadlines, but that doesn't establish any right to draw out the process ... they can continue to accept "backup" offers and if a deadline is missed,, go with a backup if they want.

and the usda loan requires that they have a well flow test done (have no idea how much these cost) and the buyers wanted the sellers to pay for the test. The sellers were not willing to do that.

If your choice of finance company requires something other companies don't, it's unreasonable to expect the seller to pay for it.

Lazy-- that's interesting. I hadn't paid much attention to this angle of the process because it's never been an issue for us. I wish I could find out more about where in the process these buyers are in terms of deadlines and such.

And I definitely agree that it's not a great move to make a fuss and try to get the seller to pay for tests required by a loan that you as a buyer chose. I don't know, however, if they're fussy enough to walk if they don't get their way.

I hope so :).

A seller can refuse to fix things that come up with an inspection, thereby allowing a buyer out of the contract. The same can happen if the buyer's loan requires the seller to pay to have something done to the home in order to get their financing. I'm thinking NO WELL-FLOW TEST (at a cost to the sellers) NO LOAN

So, we just heard from our agent! The sellers' agent told him that she spoke with the other buyer's agent. It looks very promising that they will withdraw!

I'm still doing my best to hold this loosely as it's not a sure thing yet, but it's very encouraging!

I hope you get it!!! Sending good thoughts. It's pretty hard for the seller to argue with a full price offer when the first "buyer" difficult.

Thanks! They countered just to add that if our current deal to sell our house falls through we'll add a bump clause, but other than that we're signed. The agent says she expects us to move to 'first position' in a day or so.

Too exciting!

Congratulations. I'll be thinking hopeful thoughts for you and Heloise ;')

"A seller can refuse to fix things that come up with an inspection, thereby allowing a buyer out of the contract."

If the first buyers don't go through with the deal, make sure you look at the disclosure to see why.

Dream-- the word is they have absolutely no money. They wanted the seller to pay for tests that were required for their loan, and when the seller refused things went south since they just don't have cash to pay for it themselves.

Due to this I don't feel bad helping to 'kick them off' anyway, since honestly if you don't even have cash to pay for some inspection tests you really aren't in the position to be homeowners. I have a feeling not getting this house will likely save them from a foreclosure.

I am so excited for you! I can't wait to keep following this whole story - it's unbelievable!!! :)

Wow, how exciting!
Apparently that well test is only between 150 and 300 bucks, so it sounds like they are either totally broke or are looking for a way out. Just to make sure that you get the full scoop, I'd get an inspection and look it over very carefully.

Nosoccermom-- I agree. We plan on getting the standard inspection as well as a flow test and portability test done on the well. According to all the agents involved the previous inspection had no issues in it and it really is just that the buyers are absolutely broke. Of course, however, we want to be assured that that's the case.

*potability :p

It sounds like you have everything well under control.