Real Estate Deal Fell Through - DFT! Bummer for all involved!
by Dan Wolf
on Monday, November 12th, 2012 at 10:37am.
Yuck! Ugh and Bummer! We had a transaction fall through today; Realtors in Alaska call that a "DFT" or "Deal Fell Through." Everyone, seller and agents, are very disappointed.
Here is what happened in this situation. The seller had done a real nice remodel and update of the house. In fact, they had a designer come through the house to make suggestions and make sure the house really sparkled. The home was staged and the floor-plan flowed nicely. The kitchen is remarkable with a new design, brand new cabinets, slab granite counter tops and new stainless steel appliances. No wonder the buyer liked the house! Of course, the seller completed the State required "Seller's Property Disclosure" in which they would note any problems they knew about in the house. The buyer would receive a copy of this disclosure when they expressed an interest in the property.
After an offer to purchase is agreed upon, the buyer has the right to get their own home inspection. At the offer, both parties agree on the sale details such as the price and when the closing was to occur. That means the seller starts thinking about where they are moving and what they are doing with their personal property. It's natural to put plans in motion once you get an offer on your home.
In this case, the inspection couldn't occur for 8 days after the offer was agreed upon because the particular inspector was booked up. Neither the seller or agents expected the home inspector to find any problems with the home, or at least any problems that couldn't be fixed, so they agree to wait until the inspector the buyer requested could get to the house.
Here's the bummer part, the inspector found evidence of water under the house in the crawlspace. There was an old sump pump that worked, however the inspector thought it should be modified and dug deeper. There were several wood joists that had been wet at some time. It's clear there are problems that need to be fixed and obvious the seller didn't know this was happening. Upon receiving the inspection, what is most standard is the buyer would ask the seller to make recommended repairs based upon the inspectors revelation of needed repairs. In this particular case, however, the buyer was sufficiently concerned that they elected to terminate the agreement, and not request the repair be made.
The buyer will go on to find a new house, the inspector will do another home inspection and the seller has to terminate any plans they put in motion and begin making the repairs from this inspection. The selling agent will need to find the buyer a new house and the listing agent will have to begin marketing the home again. This time, the seller will have to disclose the home inspection as well as any repairs.
I'm scratching my head to find a moral in this story. I guess it's good the buyers did an inspection. Possibly, the seller should have done a "pre-inspection" before listing the home to find potential items ahead of time. I guess sometimes stuff just happens and everyone has to deal with it; it's not a right or wrong, it just is the way it is!