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Upside Down

 This question came via email, and my heart goes out to these homeowners. Some details have been changed to protect their privacy. 

"Just read your educational article from last September.

I'm trying to understand just how many families like mine are feeling the domino effect from the this Predatory Mortgage disaster.

We did not get coaxed into a flexible loan. For that, I'm grateful my husband is a smart businessman!

 1.  He has been in the building trade for over 20 years.

2.  Houses are not selling, not even ours.

3.  He and his team, along with a few hundred in his company were downsized.

4.  Our home had just been on the market one month when the Mortgage disaster hit. 

5.  He took a job 3 hours away from our home. We need to be there. He comes home on weekends. He has been sleeping on the floor in the conference room to    save money as he can't afford a motel room nor studio. He's been doing that for 6 months!

6.  He had to take the only job he could find at a $30,000 a year loss.

7.  We have our home listed $10,000 less than what we paid. We need to walk away with enough $ to move.

8.  We worked very hard for almost ten years to acquire excellent/stellar credit.

9.  Now, we're getting behind in bills and so on.

10. Panic set in a long time ago. Now even our teen is looking for work and that is also impacted by the greed of bad mortgage companies.

11. We no longer go to restaurants, we gave no gifts nor celebrated our 22nd. wedding anniversary late last year. There will be no vacation this year. Our daily menu took a very drastic cut. This, we're sure will also have an effect on: restaurants, merchants, vacation spots and even grocery stores.

 We did everything right. Bought a home we could afford with a fixed loan. Worked hard to have good credit. Live modestly & simply.

No one seems to be addressing the damage that is happening to the population of middle America that works hard and still feels like victims even though we acted cautiously when buying our home. People who were lead into predatory lending schemes are not the only ones how are losing their homes to the delight of others who are buying multiple homes in foreclosures.

 If you have address this domino effect, I would love to read your views as you are an expert in your field."

 My answer:

I printed out your email, and have been thinking about it for the past week. First of all, I really feel for the situation you and your family are in. Your local economy is reeling from a cut back in the building trades, which is apparently very big in your area.  In my own experience as a REALTOR®, I can only compare this to the late 1970’s, early 1980’s—somewhat the same but different. I was a fairly new agent. Piper Aircraft (makes the Piper Cub Airplane) had been in business in Lock Haven, PA (9 miles west of where we live, and where my Mom’s real estate office was at the time) since the founding of the company. At that time, after a devastating flood in 1972 which wiped out their manufacturing plant, Piper decided to move the entire operation to Vero Beach , FLA. The ‘lucky’ people who got to keep their jobs put their houses on the market to sell, and moved to Vero Beach .  The ‘unlucky’ ones were left in Lock Haven and surrounding communities, living on unemployment and looking for something better. I have to tell you, in the long run, that community never really came back the way it had been. The Piper employees were very well paid, with great benefits. Subsequent employers drawn into the area have never matched the level of pay those employees received. But, back to housing (sorry, I’m rambling). This was late 1970’s, early 1980’s—Carter was President and Volcker was Chairman of the Federal Reserve. I have a standing joke I use with students in real estate classes, saying that there is a reason Carter got the Nobel Prize for Peace, not Economics. Interest rates were 18% and higher. The inventory of Piper houses took (sit down!) over 24 months to sell and most sold between 20% and 45% below appraised value at the time of the corporate transfers. I was working with my Mom then; she was one of the appraisers. None of those involved at the beginning ever thought it would last as long, or cut as deep, as it did.  Now, analyzing your situation, and I’m no expert in your life, but here are some general observations:

1) The building trade is suffering from the housing slowdown; not likely to recover soon. Good news: historically, housing is the ‘first in and first out’ of a recession.

2) You are right; houses aren’t selling. Ask your agent to do an absorption rate study and tell you what the current supply is for homes of your age, type and price range. If you get a blank stare, email me back with your agent’s contact information.  Absorption rate and supply are the biggest things driving value right now. Tell the agent to be blunt and find out what they think it would bring. Never mind if you owe more than that; we’ll get to that. In my experience, when prices are discounted severely enough, investors can and will jump in. For an investor, the good news is that interest rates are incredibly low.

3) Downsizing is an economic fact of life; I’m guessing you and your husband (like me and my husband) are Boomers. I’ll say something politically incorrect, but probably true: whoever downsized your husband can hire someone younger to work cheaper. That may lead to what I have in point 4.

4) With respect to where you are: can he find anything closer to home? If he has already taken a job for $30,000 less, is there a local job for a similar range? Can he freelance and start his own repair/fix up business—people keeping houses still need to repair them.

5) When you talk to your agent about what your house can realistically sell for, you need to decide if you can walk away with nothing, just to get out of it (and with all the press out there, most lenders are willing to work with you). None of us has a crystal ball, so we don’t know when this will turn. In an ideal situation, you’d still be able to come out with some money to start again; that may not be possible, given your situation.

6) What is your situation? Are you able to work? Speaking as someone who has been self-employed my entire life, being self employed is easiest when your spouse can work and get benefits at work. Currently, both my husband and I are in real estate –we pay our own health insurance, to the tune of about $1200 a month (down from $1400 when our youngest, who just graduated college, was still on the policy). Early in our marriage, he had a job with benefits which was wonderful at the time. Jobs that are ‘safe’, e.g. generally recession proof: government, anything to do with the aging, health care, child care, education, particularly public education.

7) Because you have worked so hard to obtain your credit, talk to all your creditors as soon as you can. See what you can work out. 

I did hear back from this consumer, and the last time she checked in, the activity on their home had been picking up. The truth of it is, folks, all real estate (like all politics) is local. Most of what influences the value of your home is completely beyond your control.  It is interest rates, unemployment, supply and demand, local economy--not whether or not you have 'staged' your home or if it has good feng shui.

Dear Guru: We are in a real jam. We have a mortgage on a house we own (rental property) that is about $10,000 more than the REALTOR® we have the house listed with thinks it is worth. We don't have the money to pay the difference out of pocket. We are hearing about mortgage relief and debt forgiveness, as well as short sales. Can you enlighten us?

Dear Jammed: First of all, you are in a bad way because the property is not your principal residence. Much of the legislation passed or proposed only gives relief to homeowners on their principal residence. For example, if you do a short sale with your lender--which is when your lender agrees to accept less from you as a payoff than what you actually owe--the forgiveness on an investment property will be counted as miscellaneous income to you. You'll receive a 1099 from the lender, and be expected to pay taxes on that 'income'. I have questions about your situation: Does the rent you are receiving cover the payment? If not, can you make up the difference yourselves? What is the rate and term on the mortgage? Can you refinance to get better terms? You have a complex problem. First of all, if there is any chance you will not be able to make those payments, you need to talk to your lender immediately. All the information I am reading says that most consumers wait too long to tell their lender that they can't make payments--and by then, it is too late for help. Good luck--you will need it!

Should I buy or not?

Question: All I'm reading in the papers and hearing on the news about the real estate market is bad news. We were going to buy a house this fall and now I'm afraid we'd be making a big mistake. What do you think?

Answer: In most parts of the country, I believe that the market has adjusted (or bottomed out) as much as it is going to. Also, in most markets, there is at least an eight month supply of houses listed--we spell this B-U-Y-E-R-S M-A-R-K-E-T. The other thing is that despite the bad press about real estate, interest rates remain low. Now is a great time to lock in both a great price and a great interest rate. Historically, real estate prices go up and down, but in the long run real estate values have increased. 

My agent says bad things about me.

This question came from a very unhappy seller. "Dear Guru: I just found out the things my agent has been saying about me and my house behind my back, and I'm really frosted!  He describes my house as 'small and messy' and further went on to say it was 'overpriced' and the buyer should 'make an offer--any offer'. I know all this because my friend called up and pretended to be a buyer. I'm so angry I can't see straight. What should I do?"

Answer: First of all, arrange a face to face meeting with your agent and the broker or manager of the office. Your house may be small (material fact); messy is not only more of an opinion, it is one which should have been offered to you privately, as a way for the two of you to figure out ways to better market your house. To describe it as 'overpriced' and to encourage the caller to make an offer--any offer--is completely outside the limits of the agent's fiduciary duties to you. Among other things, the agent owes you the duty of loyalty and confidentiality. Loyalty means putting your needs above all others, including his own. If your agent thought your house was that overpriced, he should have declined the listing. Once he took it, he has a duty to make a continuous and good faith effort to obtain a buyer for you at your price and terms. Unfortunately, this kind of thing goes on all the time in the real estate business. When you meet with the manager, tell him or her you want an agent who understands agency and fiduciary duties--or you want to be released from your contract.

Home Inspection Deal Killer or Not?

Question: "We have our home on the market and we have filled out a Seller's Disclosure, as required by law in PA. We had a contract on the house, which was subject to a home inspection. The buyer did not like the results of the home inspection and is not taking our house. Can we find out what is in that report? Can we dispute it? How can this home inspector kill our deal?"

Answer: Let me take the last question first. If your contract was written with a clause allowing the buyers to cancel the sale if the home inspection revealed something they did not like, yes, the home inspector can dispute the sale. Can you dispute it? As a layperson, I would never put my own expertise above that of a professional's--in this case, the home inspector's.  You could certainly have your own inspection done, but if your inspector and their inspector disagree, your agent will disclose both reports, to cover risk to you and to the agent. To present only a favorable inspection report to the next buyer, while suppressing a less favorable one, is asking to be sued.  Most contracts in Pennsylvania allow you to receive, without charge, a copy of the home inspection report. Once you receive it, however, you are now obligated to disclose all material facts--which is what the report it full of. If you don't receive a copy of the report, you don't know what is in it, and therefore, cannot answer any questions about what is in it. I often recommend to sellers that they get a pre-purchase home inspection of their own. This works well for several reasons. First of all, offense is better than defense. You show the report to the buyers, tell them that 1) you have priced the property with these imperfections in mind and 2) you have fixed x, y and z (presuming, of course, that you have).  You know what you are selling, which puts you in a stronger position. National relocation companies usually have a home inspection--as well as two appraisals done--before they market a home.  Both home inspections and seller disclosure forms are used by real estate professionals for a couple of reasons. Both practices reduce and shift risk. In the case of the Seller Disclosure, the agent is shifting risk from him to you, by saying (correctly) that you are the one making the disclosure. By involving a home inspector, you both shift risk from yourselves to the home inspector. Buyers want to know what they are buying; agents and sellers do not want to be sued post closing. Both practices reduce risk, in that the buyer is generally better informed about the material facts of the property. Material facts are not confidential under any circumstances. Anything you know about the property, whether on the disclosure form or not, that would reasonably affect the buyer's decision to purchase the property, should be disclosed. 

Keep or Sell?

Question: "What should we do--rent or keep our house? We have refinanced several times, and we owe about $XX,XXX on the property. We will be retiring in a few years, and we don't know if we can make the payments when we retire. We just can't seem to get ahead."

Answer: I asked these consumers several questions, and here is what happened to them. Their lender continually offered them opportunities to refinance 'at no cost to you' and they kept taking the lender up on those offers. There is always a cost; the lender simply kept adding the closing costs to the amount they were borrowing. The amount owed on the house is very close, if not more than, market value of their house. If they sell it today, they will be lucky to clear what is owed against it. Sadder yet, they have been in this house almost twenty years. Instead of facing retirement with a home owned 'free and clear', they are facing retirement with a heavy debt load. I urged them to obtain an amortization schedule from their lender, and begin making extra principal payments on the home so that they can build equity quickly. All mortgage payments are part interest and part principal. In the early stages of any mortgage, most of the payment is interest. By making additional principal payments, the borrowers can save hundreds, even thousands of dollars in interest. Understand that if you do this, you still need to make a regular payment the next month; paying ahead on the principal does not entitle you to skip a payment. What happened to these consumers is known as 'equity stripping' and it is part of the unsavory state of mortgage lending in the United States at this time.  Lenders urge consumers to refinance early and often in their mortgages. Each refinancing yields fees and interest to the lender, which is how they make their money. Consumers see refinancing their home mortgage as a quick way to pay off credit card debt, car loans, etc. But spreading out those payments over the life of a mortgage, and stripping the equity in your home, is not a plan for future financial security. It used to be a common goal for people to buy a home, and pay it off as quickly as they could. In the past ten to twenty years consumers have instead been encouraged to continuously refinance and go into more and more debt. When the real estate market was booming and prices were robust, owners were able to do this often. But the old expression about going too many times to the well, and eventually finding the well is dry, certainly applies here. Recent studies indicate less than 40% of Baby Boomers consider themselves to be financially ready to retire. Home ownership--free and clear home ownership--should be a part of everyone's financial plan.

Overpriced Listing

A consumer called in with this sad tale: "My husband and I listed our property for sale about five months ago.  The agent who listed it said it was worth $XXX,XXX.  That agent left the real estate business. The broker assigned a new agent to take over our listing. That agent came and looked at our house, and then did a CMA. She says our house is only worth $XXX,XXX (which is about $50,000 less than we have it listed for.) The second agent asked if the first agent had done a CMA, or given us any information to support our asking price. We said no, because she hadn't. We are pretty stunned to find out our house is worth $50,000 less than we thought it was. We will probably just withdraw our listing from the market. Here's my question: How come all agents don't do what the second agent did? We wasted our time thinking we could get more for our house. Now we understand why we had hardly any showings, and no offers. We are frustrated and disappointed." 

Answer: I understand your frustration and disappointment. The first agent definitely fell down on the job.  It may not have been intentional, but it was certainly careless. An agent has the responsibility, as a licensee, to exercise reasonable professional skill and care. This means not 'shooting from the hip' when taking a listing, but taking the time to do a CMA (Comparative Market Analysis) on the property to ensure that it is listed appropriately. When you are ready to sell again, I hope you call the second agent, who seems to understand this. 

Sellers' Disclosure--or not?

A consumer called with this question: I went to see a property listed with an agent. I have looked at other properties before, and I have always been given a Seller's Disclosure form.  For this property, the agent said she had "pulled" the seller's disclosure because the sellers had substantially reduced the price. When I pressed her, she said that the sellers had not lived in the house for about 3 months and therefore did not need to provide one. Is she correct or is she nuts?

Answer: You are a Pennsylvania consumer, so this is state-specific.  In Pennsylvania, there are some exceptions to the seller's disclosure regulation, but reducing the price and/or moving out for three months are not among them.  Sellers of residential real estate in Pennsylvania who are not exempt from the statute (and that is a group of people who typically cannot make a disclosure--for example, executors, trustees, receivers in bankruptcy, etc.) must make a written disclosure.  There is no "I don't wanna" clause" in the statute. Neither the agent nor the sellers have the ability to change an existing law in Pennsylvania. So yes, she is nuts--or at least, ill informed. The full text of the Seller's Disclosure Statute is available on the PAR website, www.parealtor.org. The sellers may certainly state that they are selling the house "as is"; this does not prohibit you, as a consumer, from stipulating that you are buying the home subject to certain inspections. The sellers could (in theory) prohibit you from making inspections, but I can't imagine a larger "red flag" to a buyer than a seller who will not let you do inspections. If your agent uses the PAR Standard Agreement of Sale, and you want inspections, stipulate "Option 1", which allows you to rescind the contract if the results of the inspection are not satisfactory to you. Sellers disclosure is not mandatory in all states;  and other states have different statutes; so again, this is a Pennsylvania specific answer. 

Bad Credit or Bad Lender?

 A consumer asked this question: We are looking at buying a house, and we do have some credit problems in our past. However, we also have co-signers (one set of our parents) who have great credit (over 700). We went to Lender "X" who quoted us what seemed to be high closing costs. The house purchase price is in the mid $80,000's, and the estimated closing costs he gave us were about $7200.  Isn't this high?

Answer: After you contacted me, you gave me a copy of the lender's estimated costs. They were extremely high!  This particular lender wanted to charge you over $3500 in lender fees alone. This included almost $1700 in a mortgage broker fee, $800 plus in an underwriter fee, and $300 for a second mortgage lender fee.  After we talked, you shopped around, including visiting a reliable local lender I recommended. Your proposed costs with the local lender will be under $2500.  I think it is safe to say that your first lender would fall into the category of a predatory lender. This is why it is so important to shop for loans, and ask local REALTORS® which lenders are reliable. 

Why Can't I Use Lots of Agents?

A consumer asked this question: We've looked at several houses with several different agents.  We have been working with one agent, more or less, since we started looking, but we haven't signed any paperwork making that agent our "exclusive" agent.  Usually, we look at them with the listing agent, try to find out as much information as we can, and then, if we are interested, we go back through with our agent. The last house we looked at we called the listing agent, as we have done in the past.  This time, the listing agent asked if we were working with another agent.  We said not really, but she kept pressing and finally we told her what we do. She told us to call that agent and go through the listing --that first of all she would not interfere with another agent's business and second of all, she prefers to only represent one side in a transaction. What was her problem? We hated to inconvenience our agent for a first showing.

Answer: Well, shame on you--and shame on your agent for allowing you to do what you have been doing.  By previewing listings with the listing agent, you are acting as if you might buy the house from that agent, when in fact, if you like it, you intend to use another agent. So, you are robbing the listing agent of her time, which is the most valuable commodity an agent has. Second of all, for goodness sake, if you like your agent--sign something! And let that agent represent you! If your agent knows you are first looking at the homes with listing agents and hasn't tried to stop you--shame on that agent! She or he should know how valuable an agent's time is--and should not encourage you to use someone's time when you don't intend to buy from them. The last listing agent also made a great point, which you are missing--she prefers to represent only one side in a transaction. That means that because she is the listing agent, she is representing the sellers. You can (in most states) have an agent represent you and you alone as buyers. An agent working on your behalf can first of all, show you a property and point out things that you might miss. She can offer advice about an offering price on the property. He can negotiate on your behalf. Finally, any agent who really wants to work with you would not want you looking at homes with every other agent in town--he or she would like to represent you exclusively, and work on your behalf.

Why does that agency keep advertising stuff that is sold?

A disgruntled consumer called in with this irate question: What gives with you real estate agents? I just picked up a Real Estate Journal (Ad magazine published locally) and half the stuff in it is sold!  I had an agent check it out--some of it was marked as "Pending" in the MLS back in December.  And then, I went to the XYZ Company website--what a joke that is! Half the stuff on there is not only sold, it was sold two years ago.  This is bait and switch!

Answer: It is hard for me to determine why another Realtor® is advertising property which is pending, without knowing more details.  Sometimes, a house is sale pending, but is "subject to" inspections, appraisals, possibly even the sale of the buyer's own home.  In that case, the owner may instruct his agent to continue to market his house.  The Code of Ethics, SOP 3-6, requires Realtors® to disclose to other brokers seeking cooperation, the existence of accepted offers, including those with unresolved contingencies. I understand that this is frustrating, as you expect advertised homes to be wholly available.  With  respect to the website, I'm baffled.  Survey after survey of my industry indicates that buyers go to Realtor® websites seeking information about property for sale.  To clutter up a website with old, sold properties is counterintuitive to what buyers want. Vote with your pocketbook--find a Realtor® whose advertising and website suit you--and do business with that person!

How Do I Go About Becoming a Realtor®?

A consumer emailed me with this question:  "How do you go about becoming a Realtor®? I have looked at some of the websites, but I am still confused. And do I pick a broker now, or later? And how should I do that?"

Answer: First of all, let's distinguish between a real estate licensee and a Realtor®.  To sell real estate in Pennsylvania, you must be over 18 years old, take and pass two pre-licensing classes, and take and pass a licensing examination. The real estate courses can be taken by an approved college, university, or private real estate school, or online.  The Pennsylvania Realtors® Institute now offers pre-licensing courses online. Go to www.parealtor.org and check it out.  Your real estate salesperson's license is then issued to you by the Real Estate Commission, which is one of the commissions under the Bureau of Professional and Occupational Affairs. To become a Realtor®, you must join the local, state and national Association of Realtors®.  You do not have to be a Realtor® to sell real estate, but in order to become a Realtor®, you must be actively engaged in some aspect of the real estate business--selling, appraising, managing, etc. The benefits of being a Realtor® are tremendous.  We are a large trade organization (over 1 million members nationwide) and we offer our members education, legislation assistance, standard forms, training, information and resources (to mention just a few things). Realtors® are obligated to follow the Code of Ethics, in addition to any licensing laws and regulations in the state where they practice.  So, after taking your courses and passing your test, I would highly recommend that you affiliate with a broker who is a Realtor®.  To select a broker, here is what I would consider: What market are you familiar with? It is probably the community in which you live. Which real estate companies are active in your market? What is their professional reputation? I would ask friends, family and co-workers about experiences they have had, positive and negative, with real estate agents.  Then, I would interview any and all brokers who have companies that interest me.  Ask about training, mentoring, support staff and their approach to new agents. Some companies, believe it or not, still adhere to the old rule: "Here's your desk, here's your phone, good luck, you're on your own!"  Look for a company which provides training, and if at all possible, mentoring with an experienced agent.  Talk to agents who work there and see how they like the company. You will want to investigate commission split, which is your share of the commissions you earn.  In traditional real estate companies, the listing agent gets a portion of the commission and the selling agent gets a portion of the commission.  The company retains a portion to cover their costs. In 100% companies, the agent keeps all of the commission--but then pays a "desk fee" to cover his or her share of the costs.  Given my choice, as a new agent, between a high commission split and no training, and a lower commission split with training, I'd take the training any day.  That's not a surprise, coming from an educator, but consider this: roughly 60% of the people who get into real estate quit within 3 years.  The number one reason for leaving is that they are not making money.  Take a job with training, and the money will follow.  Many companies also adjust commission splits when agents reach a certain level of productivity. However you get your license--live classroom, on-line learning, and no matter where you land as an agent--Good luck!

Who establishes value?

A consumer asks this question: Who does that appraiser think he is, anyway--God? I had my house for sale, on my own, no agent,  and many buyers looked at it. It is a very desirable home in a country setting and very well maintained.  I had some offers and finally accepted one.  The  buyer and I were both pleased with the price. Then, the buyer had to get a loan (of course) and the lender sent an appraiser out.  What a jerk!  He came in almost $7000 below the price we had agreed on.  I thought that value was determined by the market--after all, the buyer and I both agreed that the price was fair.  Now the buyer is backing out and I'm stuck trying to sell my house--again!"

Answer: Well, the appraiser could be wrong, the appraiser could be right, you could be wrong, you could be right, and you could be right and the appraiser just can't prove it. How's that for a complicated answer?  Let's start with the job description the appraiser has.  First of all, his client is the lender, not you, and not the buyer.  Second of all, the appraiser is almost certainly preparing a FNMA (Fannie Mae) appraisal report.  This requires him to comply not only with USPAP (Uniform Standards of Professional Appraisal Practice) but with Supplemental Standards provided by FNMA. The Supplemental Standards will require the appraiser to use comparable sales as similar as possible to your home, located as close as possible to your home, which have sold as recently as possible.  Appraisers do not create market value; they report market value.  In other words, the appraiser can only use the data available to him. If you sold your home for a price higher than the comparables in the market indicate it should have sold for, the appraiser is stuck trying to explain to his client, the lender, why your house is worth more than other comparable homes. That being said, sometimes markets move quickly, with prices appreciating overnight.  When that happens, appraisers must take care to be on top of the appreciation occurring in the market, and make the appropriate adjustments. The fact that you and the buyer agreed on the  price may or may not be significant.  Here's why: if your buyer had looked and looked at houses similar to yours and not found one as nice as yours, and as good a value (in his eyes) as yours, that would be a compelling argument that your house is worth what you agreed on. On the other hand, if your buyer had limited knowledge about the local market and values, and agreed to pay your asking price, it would not be a compelling argument that your house is worth what you agreed on.  Finally, the  lender's position is very simple and clear-cut: they simply do not want to have a mortgage on a house for more than it is worth. If they would ever need to foreclose, they need to know that they are protected. I can't tell whether the appraisal was fair, or not, because I haven't seen your home, nor have I appraised it. When you decided to sell your home, did you obtain professional assistance regarding pricing it--in other words, did you get an appraisal, talk to agents, possibly get a CMA? At the end of the day, market value is determined by comparable sales--and those real estate professionals can give you that information. Good luck!

A Day Late and a Dollar Short?

A consumer asks this question: We have been looking at houses for about two months.  It seems we are always "too late, it's sold". The last time, we actually got inside and made an offer.  Our offer was turned down.  We found out later what the house sold for, and we would have paid that price. Why weren't we given a chance to come up to that price? This was not fair!

Answer:  The reality is that life, and real estate, are not fair. As a matter of fact, the word 'fair' disappeared from the REALTOR® Code of Ethics quite a while ago.  Honesty is still in the Code of Ethics, but REALTORS® must follow the lawful instructions of their clients. It would appear that the client (the seller) did not instruct their agent to give you a chance to match another offer.  Because I don't have a lot of information, there are things I can only speculate about. Here is some general information that may help. When presented with multiple offers, sellers will often only respond to one, or will take one.  From the seller's point of view, they want the most money, with the least hassle, and they want it on their terms--settlement and possession when they want to give it, personal property included to be what they wanted to leave, etc. I do not know if your offer required financing, inspections, or if your settlement date was not the date they wanted. For whatever reason, the sellers chose to either take another offer as written, or to counter to another offer they liked. Neither their agent nor your agent can make them do otherwise. Free advice: If you are not already working with an agent on an exclusive basis, you may want to hire a buyer's agent, preferably an agent with the ABR ("Accredited Buyer Representative") designation, to represent you. An agent working on your behalf can accomplish a lot. In many cases, your agent can be present when your offer is presented, and tell the sellers that you really would like to buy the house, and (if you give permission for the agent to say so) that you would entertain a counter offer from the seller. Good luck!