Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 02-01-2016, 06:39 PM   #61
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,889
Quote:
Originally Posted by MichaelB View Post
Time for an update. Two weeks ago the realtor called and said the market was moving and we had to list immediately. The house was ready, I gave the go ahead. In a week we had 3 offers, and now after the second week we have a contract signed, inspection done and price adjustments agreed. The net sales price, after credits, is at the top of the range all the realtors gave when interviewed 4 months ago.
Great, thanks for the update. I'm a few months away from tackling this myself, so I'm all ears. How do you decide "price adjustments"? It kind of seems like a "buckets" sort of price negotiation, but I guess it is all part of the game.
__________________

__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-02-2016, 07:47 AM   #62
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,460
Quote:
Originally Posted by travelover View Post
Great, thanks for the update. I'm a few months away from tackling this myself, so I'm all ears. How do you decide "price adjustments"? It kind of seems like a "buckets" sort of price negotiation, but I guess it is all part of the game.
After accepting a bid and signing the sales contract the buyer hires a home inspector to make sure everything is is "good working order". The inspection is done and a written report is submitted to the buyer, who then can ask for the defects to be repaired or the repair cost credited.

In our case, which seems typical, the inspection items fall into 3 categories: regulatory defect repairs, other repairs, and everything else. Regulatory repairs are things like radon level mitigation, GFI outlets and smoke detectors, which must comply with certain standards. These must be remedied by law or the house cannot be sold. Other repairs are things like a broken water faucet or defective sump pump, where it is reasonable to expect the seller to make good, either repair or credit the cost to do so. This is subject to negotiation.

The third is things like "some aluminum wiring in the panel" or "no outside railing on the stairs". Not a defect, no compelling need to remedy. Some people get greedy and these become an issue, other just ignore.
__________________

__________________
MichaelB is offline   Reply With Quote
Old 02-02-2016, 08:23 AM   #63
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,889
Quote:
Originally Posted by MichaelB View Post
After accepting a bid and signing the sales contract the buyer hires a home inspector to make sure everything is is "good working order". The inspection is done and a written report is submitted to the buyer, who then can ask for the defects to be repaired or the repair cost credited. .......
Thanks - interesting. How do you keep someone from submitting a winning bid, but then nickel and diming you to a lower ultimate cost? Some things seems like they are subjective (your third category) , i.e. the roof is not new, but then it doesn't leak either. Does it need to be replaced? Is this where you tell them to accept it or pound sand?
__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 02-02-2016, 08:35 AM   #64
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,892
Quote:
Originally Posted by MichaelB View Post
In our case, which seems typical, the inspection items fall into 3 categories: regulatory defect repairs, other repairs, and everything else. Regulatory repairs are things like radon level mitigation, GFI outlets and smoke detectors, which must comply with certain standards. These must be remedied by law or the house cannot be sold.
Yes, I think that is interesting and that is how it is done here, too. Regulatory repairs are something that I did not know about prior to purchasing my present home. Due to problems first revealed by my plumbing inspections, the sellers were required by law to replace ALL the plumbing under the slab with brand new plumbing. What a windfall for me, and what a blow to them since the issues were previously unknown. This was a regulatory repair which cost them (and saved me) more than $25,000.

I also had a few other minor things repaired that weren't regulatory repairs, so those would be considered other repairs and were negotiable.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Old 02-02-2016, 10:05 AM   #65
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,460
In this case the buyer's inspection missed a big item which I knew about; the oven doesn't work. In our negotiation I pointed this out and upped the credit accordingly.

Quote:
Originally Posted by W2R View Post
Yes, I think that is interesting and that is how it is done here, too. Regulatory repairs are something that I did not know about prior to purchasing my present home. Due to problems first revealed by my plumbing inspections, the sellers were required by law to replace ALL the plumbing under the slab with brand new plumbing. What a windfall for me, and what a blow to them since the issues were previously unknown. This was a regulatory repair which cost them (and saved me) more than $25,000.

I also had a few other minor things repaired that weren't regulatory repairs, so those would be considered other repairs and were negotiable.
You are very fortunate this was discovered during the inspection. This is a real dream house.
Quote:
Originally Posted by travelover View Post
Thanks - interesting. How do you keep someone from submitting a winning bid, but then nickel and diming you to a lower ultimate cost? Some things seems like they are subjective (your third category) , i.e. the roof is not new, but then it doesn't leak either. Does it need to be replaced? Is this where you tell them to accept it or pound sand?
Nickle and diming can be a problem. That's what our buyer did when we sold in NY in '03. Even though the sales contract stated 'as is" and there were no regulatory issues, the buyer made repeated visits to inspect and then submit petty requests for compensation, including during the closing. They even called us directly to argue some requests. A buyers agent we used told us that the ugly side of some folks takes over during this process.

An old roof is not a leaking roof. The buyer was fully informed of the roof age when the offer was made. Same with a stair with no railing (our case). We didn't tell them to walk, just limited our discussion of repair and credit to defects and real items. As sellers we have the option to do the repair, credit is when we choose just to pay for it.
__________________
MichaelB is offline   Reply With Quote
Old 02-02-2016, 05:14 PM   #66
Recycles dryer sheets
 
Join Date: May 2011
Location: Maple Valley
Posts: 466
In the Seattle area, anytime. Houses are flying off the market here for more than the asking price. If you list a house in the winter, most people who are looking at this time are serious buyers.
__________________
kimcdougc is offline   Reply With Quote
Old 02-02-2016, 05:24 PM   #67
gone traveling
 
Join Date: Jun 2015
Location: seattle/dahlonega
Posts: 77
now
__________________
hurricane harry is offline   Reply With Quote
Old 02-02-2016, 08:43 PM   #68
Thinks s/he gets paid by the post
Katsmeow's Avatar
 
Join Date: Jul 2009
Posts: 3,399
Quote:
Originally Posted by travelover View Post
Thanks - interesting. How do you keep someone from submitting a winning bid, but then nickel and diming you to a lower ultimate cost? Some things seems like they are subjective (your third category) , i.e. the roof is not new, but then it doesn't leak either. Does it need to be replaced? Is this where you tell them to accept it or pound sand?
I'm in a different state, but here people can and do ask after inspections either for repairs are dollar credits. As both a buyer and seller I prefer the dollar credit in any event. As a seller, I would rather credit the buyer money and then they can get (after closing) whatever repairs they want and I don't have to worry about them not liking the repairs I make. As a buyer, I would rather get a credit and do the repairs myself and not worry about the seller doing a poor job.

As far as amount, typically the buyer usually makes the first offer on repairs (or whatever else they want), then the seller comes back with a counter offer which might be a different amount and then the seller signs off or comes back with another offer.
__________________
Katsmeow is offline   Reply With Quote
Old 02-02-2016, 11:02 PM   #69
Thinks s/he gets paid by the post
38Chevy454's Avatar
 
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 1,584
Travelover, if the buyers are unreasonable, you as buyer can just tell them to get lost (or some other less nice words) and the purchase contract is cancelled. As seller you do not have to just bend over to their every demand. Sure you want to sell your place, but it does not mean you have no ability to fight back. Of course it can also mean having to find another buyer.
__________________
After Monday & Tuesday even the calendar says, W-T-F...

Semi-Retired 7/1/16: working part-time (60%) for now [4/24/16 changed to 80%]
Retired Aug 2, 2017; age 53
38Chevy454 is offline   Reply With Quote
Old 03-07-2016, 03:36 PM   #70
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,460
Just to close this, the house listed in late Jan, had a contract a week later, and closed last week.
__________________

__________________
MichaelB is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Equities: time to sell or time to buy? MichaelB FIRE and Money 14 11-04-2014 03:29 PM
Best Time / Worst Time to rollover 401(k) Looking4Ward FIRE and Money 19 09-22-2014 12:38 PM
Best Florida Beach spots this time of year? skyvue Travel Information 69 12-08-2010 12:24 PM
Best ER Method Ever - Get a Free Dream House, and Get Paid to Live There 30FIRE FIRE and Money 28 08-29-2009 01:49 AM

 

 
All times are GMT -6. The time now is 11:45 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.