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Old 07-23-2009, 09:43 AM   #141
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FinanceDude - The good news is there is money on both sides of the family. If additional down payment gifts are required to make the deal fly, I'm pretty sure the parents will come through. The good thing about having Aunt Realtor around is she can impress on both families what an incredible deal the kids are getting. It doesn't sound as good coming from us.

Another good thing is both moms love the house. Tuesday night was husband's and husband's mom's first look at the house. Mom was blown away. It's a good thing when the moms are on the same page! It very interesting that we are selling the house to more than the people who are actually buying it. It seems all three families must be on the same page but when they are, it's a powerful thing.

I think I need to call the guy who moved us from Cinci to Orlando and then from Lakeland to corn country. He may be making another trip to FL soon!
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Old 07-23-2009, 09:44 AM   #142
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Bizlady - we could write the contract with the double contingency but we all know they cannot buy our house if they don't sell theirs. I think it's better to get creative about getting their house closed ASAP. I guess we probably need the written contract though in order for them to get their financing.

The odds of a significantly better offer coming along in the next 5 weeks are pretty slim but I want to leave it open to take the offer if it comes. I would not throw this couple aside for a few thousand dollars but if it we see something that is over $5k better, I would take the new deal if they couldn't match it.
Not sure how this would work- you would sign a contingent contract with them, but if you got a better offer prior to closing you could take it? From the buyer's perspective your house is still on the market- they would just have first option to submit a bid on it if and when they can sell their house-unless someone else beats them to the table... so it really isn't a deal, since it doesn't conclusively lock the house or the price in for them. Agree that you need to think outside the box and try to make this deal work if possible.

Maybe consider advancing and carrying the 3K grant funds as a short-term second mortgage- you are not talking about big bucks, worse case they default on it, you are stuck in second position- but still more money (and better mojo) than if you had sold to flaky couple 1.
And it would show a willingness on your part to make the deal happen.

BTW, after reading through this post I need to ask-are all the Realtors in your area related?
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Old 07-23-2009, 10:04 AM   #143
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Another good thing is both moms love the house. Tuesday night was husband's and husband's mom's first look at the house. Mom was blown away. It's a good thing when the moms are on the same page! It very interesting that we are selling the house to more than the people who are actually buying it. It seems all three families must be on the same page but when they are, it's a powerful thing.
It is kind of funny how 30-somethings still rely on their parents so much. If not for financial assistance, then for validation that their choice in housing is correct.
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Old 07-23-2009, 10:08 AM   #144
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The realtors are all related to the buyers. Aunt Realtor is the aunt of the second wife buyer. BIL Realtor is the BIL of the first wife buyer. Ultimately, it is my opinion they are ALL related for miles around! It's absolutely amazing how many people are born, live and die without moving 5 miles from their first home. There are some things I'm not going to miss (the hard right politics and racism) about this place but I will miss the very strong sense of community which I think comes from generations of families staying in one place.

I told Aunt Realtor we would happily front the $3,000 grant money for the buyers of our buyer's home if everything else about the deal was done. IMHO, that deal needs to close ASAP! When I had Aunt Realtor on the phone last night, I asked her to please get all the details on the grant buyers so we can expedite the closing, if possible.
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Old 07-23-2009, 10:14 AM   #145
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It is kind of funny how 30-somethings still rely on their parents so much. If not for financial assistance, then for validation that their choice in housing is correct.
The families around here are tight knit to say the least. It took about 3.5 years to break into the community because so many people never hang out with anyone other than family members (which can be a very wide circle). Basically, we are leaving just as we are becoming part of the community and this place is starting to feel like home. I never thought it would feel like home but it finally does.
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Old 07-23-2009, 10:48 AM   #146
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We come out about $3k to the good versus the all-cash offer of $232,000.
I'ld have taken the cash deal ... too many contingenies. Any one condition fails and the deal is dead on arrival with alot of wasted time.
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Old 07-23-2009, 10:49 AM   #147
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Very interesting developments...........
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Old 07-23-2009, 11:23 AM   #148
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I'ld have taken the cash deal ... too many contingenies. Any one condition fails and the deal is dead on arrival with alot of wasted time.
The all cash offer is still on the table and we are in no rush other than to avoid another OH winter. We have to pay to live somewhere. I know y'all are going to say I'm crazy but it matters to the neighborhood and to our very close rear neighbors (small back yard with no fence) who moves into this house. Couple #2 is a better fit and we owe it to the neighbors to try and make it work. These are very possibly "forever homes" for these people.

And since I'm unemployed, I have lots of time to waste while searching for a new j*b!
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Old 07-23-2009, 11:26 AM   #149
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I'ld have taken the cash deal ... too many contingenies. Any one condition fails and the deal is dead on arrival with alot of wasted time.

More than likely the cash deal will be there if this one does fall through...
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Old 07-23-2009, 06:23 PM   #150
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What seems obvious to me is that a market price has been established for this property (2 offers followed by acceptance of 1 of the 2). Regardless of past appraisals, and however painful this is, a market price has been established.

So to risk loosing both offers over 3k does not seem wise in my opinion.

Compound this with a downward tend in the current market and a desire to leave before winter .... well, you see my point.
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Old 07-23-2009, 07:03 PM   #151
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Yes, the market has told us the price, at least for a sale to a local buyer. Sad, but true.

I'm not sure I understand your comment about losing both deals over $3k.

Second buyers cruised by the house tonight as did wife's father. Guess they are all making sure it's still here.
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Old 07-23-2009, 07:49 PM   #152
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What he means is that $3000 is not much to give up for certainty that the deal will happen.

I agree. I would grab the cash deal and make plans for Florida.

Ha
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Old 07-24-2009, 12:45 AM   #153
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Even though the winter seems like a distant future, in real estate season, it's not that far away. August is typically a very slow month, and after a small bump in September, the season is over. I would also grab the cash offer and leave.
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Old 07-24-2009, 09:09 AM   #154
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I'm not sure I understand your comment about losing both deals over $3k.
The cash buyer will not hang around. They're off looking at the vast crop of REOs and foreclosures ... eye balling the 7k fed tax credit (or is 8k?). Meanwhile your buyer needs a loan, grant and a home sale before closing.

My guess is your buyer needs 3 months - minimum - to pull off his end. I've waited as long as 5 months to close with these kinds of buyers. Lots bank switches or outright rejections ... it's not pretty.

3k doesn't seem worth it.
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Old 07-24-2009, 09:30 AM   #155
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The cash buyer will not hang around. They're off looking at the vast crop of REOs and foreclosures ... eye balling the 7k fed tax credit (or is 8k?). Meanwhile your buyer needs a loan, grant and a home sale before closing.

My guess is your buyer needs 3 months - minimum - to pull off his end. I've waited as long as 5 months to close with these kinds of buyers. Lots bank switches or outright rejections ... it's not pretty.

3k doesn't seem worth it.
My buyer does not need the Welcome Home grant and doesn't qualify for the $8k because they are selling a home, i.e. they are recent owners. The buyer of my buyer's house needs the grant. Their sale deal has been in progress for awhile and is due to close at the end of August. I'm looking to expedite the closing of their current home.

I will check with Aunt Realtor today to determine the state of the other deal. If it is very fuzzy, I will look at the all-cash offer again.
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Old 07-24-2009, 10:15 AM   #156
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More food for thought ... if you went back to the cash buyer in 3 or 4 months, I'll bet a shiny nickel the offer they make will be lower (~10k or more).
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Old 07-24-2009, 04:29 PM   #157
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Just signed the papers for a deal with the second couple at $240k. Aunt Realtor settled for 2%. Our costs will be realtor commission ($4,800), transfer taxes ($960), prorated property taxes ($1840), and about $150 in other fees. Proceeds will be about $232,250. Closing is scheduled for no later than August 31 with occupancy 30 days later. We are not paying any of their closing costs.

As we were signing the papers, we received a call from another local realtor asking for a showing Tuesday evening. Local realtor said his buyers had driven by the house several times and had checked out the website and are qualified to buy the house. He also commented there aren't many homes like ours available nor are there many local buyers available who can afford a house priced in this range. Duh! So where the heck have they been?! You snooze, we lose! They will come Tueday and possibly place a backup offer.

There is a contingency on the current offer that the buyers' house must close by our closing date of August 31st. If we wanted to play nasty when (if) another offer is received, we could force the contingency to be removed within 48 hours. Parents would then have to co-sign the mortgage or some other nonsense so we probably won't be taking that route. If we get another offer and something actually falls apart on the buyer's side we would act but if all is progressing well we won't force the removal of the contingency.

Another upside of having this couple in the neighborhood is they are friends of the 28-year old widow across the street and 3 houses down. The widow has 3 kids under 6. Her husband dropped over dead in January at the age of 28 of a heart attack.
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Old 07-25-2009, 08:59 AM   #158
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I think you did the right thing. Congrats to you and to your neighborhood.
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Old 07-25-2009, 10:01 AM   #159
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Another upside of having this couple in the neighborhood is they are friends of the 28-year old widow across the street and 3 houses down. The widow has 3 kids under 6. Her husband dropped over dead in January at the age of 28 of a heart attack.
Bringing that relationship to the table is important information. Community is much more valuable than the difference in the offers.
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Old 07-25-2009, 02:52 PM   #160
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Just signed the papers for a deal with the second couple at $240k. Aunt Realtor settled for 2%. Our costs will be realtor commission ($4,800), transfer taxes ($960), prorated property taxes ($1840), and about $150 in other fees. Proceeds will be about $232,250. Closing is scheduled for no later than August 31 with occupancy 30 days later. We are not paying any of their closing costs.

As we were signing the papers, we received a call from another local realtor asking for a showing Tuesday evening. Local realtor said his buyers had driven by the house several times and had checked out the website and are qualified to buy the house. He also commented there aren't many homes like ours available nor are there many local buyers available who can afford a house priced in this range. Duh! So where the heck have they been?! You snooze, we lose! They will come Tueday and possibly place a backup offer.


There is a contingency on the current offer that the buyers' house must close by our closing date of August 31st. If we wanted to play nasty when (if) another offer is received, we could force the contingency to be removed within 48 hours. Parents would then have to co-sign the mortgage or some other nonsense so we probably won't be taking that route. If we get another offer and something actually falls apart on the buyer's side we would act but if all is progressing well we won't force the removal of the contingency.

Another upside of having this couple in the neighborhood is they are friends of the 28-year old widow across the street and 3 houses down. The widow has 3 kids under 6. Her husband dropped over dead in January at the age of 28 of a heart attack.
Congrats on your sale and anticipated closure. I've been reading all the posts but have not commented as I had nothing to offer regarding the details. Just interesting reading. Also, my son was in the process of closing on his new home in Naples, Fl. He went through a nightmare with the mortgage company, probably because it was a VA loan. He closed yesterday and it was supposed to close 7-15. Always another paper to sign, made him buy flood insurance before he even closed, had to prove that the $4000 we gave him was a gift and that he did not get it as a loan. All that stuff is understandable but why does it take 10 extra days to come up with this stuff. Like, "oh yeah, we can't read the copy of your drivers license, please redo", "we need your signature on this document, we'll fax to you, sign it and fax back to us" (takes three days to resolve), and misc bullcrap like that. Here I thought mortgage companies were trying to help. Guess they got burned too many times.

Anyway, looks like you've made the deal and it's normal to have that contingent about the buyers having to close on the sale of their home before they close on your sale. If something were to happen on their sale, they wouldn't want to be forced to proceed with closing on your home. Just a safeguard. I've seen some strange things happen that put the brakes on a closing, like one of the sellers dies and the surviving lady decided she better stay where she is. Complications!

Once again, congrats and best wishes.
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