Option Pending on House too many times= waste of money (wood floors, new house) - Houston - Texas (TX) - City-Data Forum

VintageGirl · 06-01-2011, 10:46 AM

So there is a house that is on the market, I had initially put a contract on it when it first went on MLS early this year........we had an inspection done and we backed out because it had way too many issues...............

We were going to show the inspection report to the their realtor but she said no because then they would have to disclose the findings...........later I foundout that the homeowner called my inspector to ask questions regarding the inspection.......he said he did not release information since she did not pay for it............

The house has had option pending quite a few times and then ends up on the market active again, obviously people are paying their option time money and inspections and then backing out............I mean I feel bad for all these people because they are paying money to inspect a home that the homeowner obviously knows is not selling because it has issues..........yet collecting option money each time........I find this completely unethical.

ethanw · 06-01-2011, 10:52 AM

I don't think is unethical. I sold my house less than 2 years ago and some of the potential buyers inspection reports were just SIMPLY ridiculous. I believe is unethical for the inspectors to mislead the potential buyers

. Just pick the stuff that really matters, big ticket items and ignore the fluffy stuff. I told 2 of my potential buyers to take their business somewhere else and based on their inspector reports and demands they should be looking for a new house. And I sold my house in just 2 weeks.
But after all is their house and they can do whatever they want to do with it.

Quote:

Originally Posted by VintageGirl

So there is a house that is on the market, I had initially put a contract on it when it first went on MLS early this year........we had an inspection done and we backed out because it had way too many issues...............

We were going to show the inspection report to the their realtor but she said no because then they would have to disclose the findings...........later I foundout that the homeowner called my inspector to ask questions regarding the inspection.......he said he did not release information since she did not pay for it............

The house has had option pending quite a few times and then ends up on the market active again, obviously people are paying their option time money and inspections and then backing out............I mean I feel bad for all these people because they are paying money to inspect a home that the homeowner obviously knows is not selling because it has issues..........yet collecting option money each time........I find this completely unethical.

lhafer · 06-01-2011, 10:58 AM

I don't think it's unethical. But that said...since it's obviously happened several times, the owners need to just pay to get their own home inspection done and see what the issues are. Then they can decide what they need to fix to get the house sold.

VintageGirl · 06-01-2011, 11:40 AM

I agree they should have an inpsection done and fix the major problems.......the house needed a lot of work, but to the naked eye it looked like it was in very good condition.
I wish our state was the type that required a seller to have an inspection to disclose up front before marketing their home, that would help a lot!!
We took forever to find a home, we finally bought one and well it has its issues, but like ethanw said, we have to ignore the fluffy stuff..........

Seoid · 06-01-2011, 12:22 PM

Quote:

Originally Posted by lhafer

I don't think it's unethical. the owners need to just pay to get their own home inspection done and see what the issues are. Then they can decide what they need to fix to get the house sold.

Yep.

Our home is a recent build but we were not the first owners. Even those owners paid for their own inspection and fixed some things before putting it on the market to mitigate any issues like this. It seems like a logical step but I guess some people aren't willing to pay for it.

That being said, it does suck for the potential buyers.

cheryjohns · 06-01-2011, 01:08 PM

At this point, I blame the buyers' agents. I always look up the history on a home that buyers are considering. We can see when it goes into Option Pending and when it fell out. If I saw a house where that happened, I would call the listing agent. If that agent professes to know nothing, the next phone call goes to the buyer's agent that had the Option (it shows who it was on MLS).

Malvie · 06-01-2011, 02:08 PM

If you own a home, and the option falls through 3 or 4 times because of inspection....well, I'd want to know what was so wrong with my house.

I DO think the Realtor is being, if not unethical, a little on the shady side. They should at least tell the homeowners, "Look, you've had 3 options fall through because of inspection; you've got issues with the house."

The first house I optioned here had termites all across the back wall of the house (it was not brick). The heater was installed with no vent to the outside, so fumes were venting into the attic, and the wood decking above the heater was scorched. Scorched! The water heater was barely connected, and there was a big leak from a pipe in the ceiling of the dining room---to the point where the inspector and I probably could've gotten in big trouble, but---the ceiling was in imminent danger of collapse, there was 6 inches of standing water on sheetrock and you could see the cracks where it was about to go. The lady had a beautiful dining room suite and we moved it out of the dining room. (Her agent did thank us for that on her behalf).

The house looked great. I had a contractor come look at it (I really liked it). $30,000 worth of repairs, which naturally the owner was not willing to make.

So I passed. And they didn't get a copy of my inspection because they didn't ask.

notready · 06-01-2011, 07:29 PM

I think that if you back out of a deal because of inspection items that the seller will not repair, you are only doing them a favor by not providing the report that 'you paid for'. They can deny all knowledge of the issues, and chances are the next buyer will not know about them before making an offer and it will be higher than it would had they seen the report.

I have a hard time believing that the owner is motivated to just keep collecting option money, more likely to just find a sucker to buy the house.

hhheights77007 · 06-03-2011, 02:28 PM

I hear ya... I hate this too. The biggest let down is when you see what looks like the perfect place (in photos), then actually see it in person. I think 90% of the houses I look at were bought & renovated by HGTV DIY junkies who think anything and everythign can be fixed with a can of paint and a paintbrush.

Sure, the new hard wood floors look great... but it would be nice if they would have fixed the foundation first. You know, the stuff that actually matters!

It's such a waste of time for me and the realtor who took the time to show me the place.

crone · 06-03-2011, 02:38 PM

We almost bought a redo in Maplewood. Nobody had done anything to that house for years. After the inspection, we said no way. Rehabbers bought it and put in new everything. Looked great on the surface. Sold it in 1 week. I wonder if the buyers had to rewire, re plumb, etc. The yard was way higher than the garage foundation. It flooded every time it rained. One wall of the house was totally rotted out. Bet it all just got a coat of Kilz and paint.