Selling house, low-ball offer received, need advice - long

[Buckeye]

FinanceDude - Based on my last call to him to confirm we would (maybe) see a response on July 6th, it sounds like BIL is a busy real estate agent and the buyers are taking up his time and aren't making him any money. He is also geographically separated from them by about 100 miles and his brother just got married last weekend. I think the deal would be done by now if he was formally representing them.

Or I'm being played and he's stringing things out to get an even lower price pretending to be busy and a little frustrated with the buyers.

BIL agent is buyer wife's BIL (her sister's husband).

 

[FinanceDude]

FinanceDude - Based on my last call to him to confirm we would (maybe) see a response on July 6th, it sounds like BIL is a busy real estate agent and the buyers are taking up his time and aren't making him any money. He is also geographically separated from them by about 100 miles and his brother just got married last weekend. I think the deal would be done by now if he was formally representing them.

Or I'm being played and he's stringing things out to get an even lower price pretending to be busy and a little frustrated with the buyers.

BIL agent is buyer wife's BIL (here sister's husband).

Now I understand, it make more sense. I think agent BIL doesn't think that his SIL and the husband are real buyers so he's just trying to get your best offer and get it done ASAP........

Stand your ground for now, no more lowering of prices. I think you have more time on your hands than the buyers do.......

 

[Buckeye]

FinanceDude - I can tell by BIL's website and the high end neighborhood he lives in he is a pro. The fact he is probably not in control of the situation/buyers and is just being used as a conduit for messages to us may explain some of the craziness.

Standing ground for now.

 

[Buckeye]

Update on our home selling project.

Received a call back on 6/7, one day later than was promised. Buyer BIL realtor left a message apologizing for late call, said buyers did not have a counter-offer and reminded me they could close in a day. Pls call.

I returned BIL's call and said I assumed his message meant buyers are still on $232,000. The answer was "yes." BIL realtor (being very pleasant) says buyer's are in no rush. I reply we aren't in a rush either as we have to pay to live somewhere and this is a nice home to be "stuck" in for the time being. BIL says the buyers are still interested in the home but it's not exactly what they are looking for so they are content to wait. I'm assuming they would rather have a basement below rather than a basement up above. We'll keep each other in mind but we both understand there is no possibility of a deal at this time. The call ends on pleasant terms.

I discovered some interesting information at a 4th of July party on July 5th. One of the folks at the party (spouse of one of my replacements) works with a guy who got a very lowball offer from my buyers. Buyer wife's mom had said buyers made an offer that was not responded to and this was the house.

This seller has their house FSBO (small sign in yard, no web presence so no pictures to view) in the next nicest subdivision (big step down) which is about 3 miles from ours and 3 miles closer to buyer wife's town and parents. The house is a brick 2-story 4/2.5/2 with a finished basement. Friend said she thought house was listed at $289,000 or $10,000 above ours. They built the house so the only cost in the county records is the price of the land.

I drove by the house and our house is much nicer construction. The external appearance of our house makes our house look expensive due to size and quality of the windows, extra brick details, 2-story porch/portico, mature landscaping, 3 separate garages and the quality of surrounding houses. Also, although our lots are about the same square footage our lot feels much bigger. We are a corner lot and they are in a small cul-de-sac with a small front yard, houses on both sides, and a home relatively close across the cul-de-sac. We have 2 vacant lots with trees in front of us (2 deep) which adds to the feeling of openness. They have about the same square footage on first and second floor as our first floor but our 400 sq. ft. basement up above is competing with an 1100 square foot finished basement. Our home looks custom built and theirs looks like a nice brick house with some funky Hansel and Gretal trim up on the peak of the roof.

These sellers are going to be more motivated than us because they are living in the new home they built and are making 2 payments. Friend said sellers were planning to FSBO for about 6 months and then turn it over to a realtor...and realtor fees!

Got to love living in a small town surrounded by small towns! It's amazing to get all this information without having a realtor. I don't know how anyone can cheat on their spouse around here and not get caught.

There's one more development with another potential buyer but I'll save that for another message as this one is getting very long.

 

[LOL!]

Just remember that info flows both ways.

When we were house shopping, on the street where the house we were interested in was located, we would just stop people who were walking their dogs or playing with their kids out front and ask questions about the house that was for-sale and the people living there. Everyone freely answered questions and we gleaned useful information that way.

 

[LOL!]

BIL agent is buyer wife's BIL (her sister's husband).

Not good. I imagine there is no contract between you and this agent. Without such a contract (don't you have to pay him at least $1?), he is not working for you at all and he is not a fiduciary for you. Anything you tell him, goes directly to the buyers.

We used a buyer's agent when we bought our house, but even then I did not tell her much about our income, strategy, etc. We did tell her to find homes with specific characteristics, so that we didn't waste time looking at home we were never going to bid on. Also, I had her get me information ... specific information about the sellers, their real estate agent, their relocation package, how much rent they were paying in their new location while waiting for their house to sell, etc.

 

[Buckeye]

LOL - I definitely agree with your statement about the 2-way transfer of info. I understand anything I tell anyone, friend or foe, can possibility be accessed by a buyer. It's also a good way spread information I want out there.

Buyer wife's BIL is just their mouthpiece. Coincidentally, he is a realtor. I asked him if I needed to factor in a 3% commission for him and he replied he was just helping out his wife's sister and her husband and did not want a commission.

He is definitely not working for me.

 

[FinanceDude]

LOL - I definitely agree with your statement about the 2-way transfer of info. I understand anything I tell anyone, friend or foe, can possibility be accessed by a buyer. It's also a good way spread information I want out there.

Buyer wife's BIL is just their mouthpiece. Coincidentally, he is a realtor. I asked him if I needed to factor in a 3% commission for him and he replied he was just helping out his wife's sister and her husband and did not want a commission.

He is definitely not working for me.

Do you have your OWN realtor? Because, that's what I think you need for this one?

One of my best friends is a very successful realtor. When i sell my house, he's the one I would call, and not because I feel obligated to my "buddy". It's because I have seen him in action, and the guy's a pro. To me that's worth NOT saving on a commission. Realtors have the one thing everybody needs: BUYERS. These days are not the FSBO days of yesteryear..........

I would ignore the lowball offer and move on. The buyer's RE agent has nothing invested in this deal so he's not going to coach his SIL and brother to do the correct thing......

 

[Buckeye]

The realtor I would choose to use is the one we used to buy and sell in Orlando. She is a pro. Actually, she was a rocket scientist. Such an animal does not exist in my town. It's sad to say but it's probably best we are representing ourselves.

 

[Buckeye]

We headed to FL for a visit the day after my last day of work in OH. I was supposed to fly home 7/16 but I extended until 7/19 because I had a job interview (interviewed with 4 managers over 2 days) with a company in St. Pete. I submitted a resume via their website Tuesday night and I had an email requesting a phone screen interview on Wednesday morning.

If an offer comes through, we may end up taking the looooooowball, all-cash offer. The new employer does not pay real estate costs but they will pay moving costs which I can count as sale proceeds since we would have paid those costs ourselves.

I confirmed with the BIL realtor the offer from the "kids" was still on the table. They had placed an offer on another home but nothing came of it. We'll be taking some of the appliances (washer, dryer, 2 fridges) and the brand new curtains if we accept the lowball.

I was counting on receiving only unemployment for the next few months (year?) so anything the new company pays me will be more than I expected to be making. Lower you expectations and you won't be disappointed! The job and the amount of vacation will be more important than the salary anyway. There aren't any positions currently open but they may make one for me or call me when one pops open. I told them I was in no great hurry and it would be fine if it took a few months for something to open up.

This is all pretty crazy because I got hired into my last position while on vacation in OH while living in FL. It now appears I may get hired to my new position while on vacation in FL while living in OH.

 

[KB]

It sounds like things may be falling into place. I hope it all works out for you.

 

[Buckeye]

Latest in the home selling saga......

We received another offer from another local couple. Their house is under contract and scheduled to close at the end of August. It seems the only families on the move are young ones (both couples who made offers are in their early 30's) and unfortunately they aren't in their high earning years. Even if they wanted to pay more for our house, they really can't afford it. Purchasing a house of this size and quality would not normally be in their sights but these are not normal times. Since we are working from a small pool of buyers in our rural area, we are seeing the handwriting on the wall that it's either a local buyer now at a low price or waiting for that elusive high-earner transferee! We are opting for local now.

Wife and mom came to see the house on Sunday and wife and husband and MIL came to see the house on Tuesday. Wife and mom had seen the house in April but husband and wife had not yet sold their house. We are currently listed at $259,500. There was no way they could afford that but I told them not to be afraid to make an offer which they did Tuesday night. Wife's aunt is a realtor about 25 miles away and she is handling the negotiations. So far we have done everything over the phone.

Aunt Realtor started at $220,000 (why not?) and she was taking her 3% commission. I said there was no way to make a deal for anything less than the low $240's. Yes, I know I just told her I would take $240k but we had already run the numbers. She called back with $240k with us paying $3k in closing costs. We called back with $243k, we'll pay 3k in closing costs, she will reduce her fee to 2% and we are taking some of the appliances (garage fridge, washer and dryer) and most of the new curtains (blinds will still be covering the windows). She called back to say buyers will be talking to the bank and will be back to us by Friday. We come out about $3k to the good versus the all-cash offer of $232,000. We also make the neighbors and neighborhood happy by not selling to the boastful all-cash family who is not from our town. We actually had people say "please don't sell your house to them!"

Aunt Realtor also mentioned the written offer would be contingent on buyers' home selling which I told her I would not accept. Apparently, the buyers of my buyers' house are waiting for a Welcome Home grant of $3,000 (available to OH homebuyers) to show up to do the closing. I told Aunt Realtor we can make that happen now and set it up so they pay us when the grant comes in.

We'll see what the bank (or CU) has to say on Friday. I know the couple is pushing the limit on their approval and unfortunately rates have gone up a little. The $3000 will be used in part to buy down the interest rate. The parents may need to do some digging in their pockets to make this all work!

 

[bizlady]

Had to chuckle at the 30 something comment.

My daughter and husband are late 20's, sold and closed on their first home and have been trying to buy something in your price range in the Mpls market. Virtually all homes are forecloasures or short sells. They sat on a short sell for months, only to have one of the divorcing owners file bankruptcy which stopped the whole sale.

Plenty of property, but appraisals coming in below estimates due to foreclosures. Now they are trying to build and have the same concern, can they build and get an appraisal for the value of the mortgage. Healthy downpayment and preapproved for more than they want to spend.

Anyway, your market may be similar. If you cannot get them to do your deal, I suggest you consider taking their offer contingent on their close, WITH a contingency that if you get another acceptable offer, they have 18 hours to decide to take or leave the house.

 

[Buckeye]

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.

 

[FinanceDude]

Well, I guess its up to the bank. It appears that this couple, though well-meaning, not only are in no position to make 2 payments but are stretching to buy your home.

Not the best buyers, but maybe it will work out. Sounds like they like and want the house. I WOULD put a contingency on the offer that states if you get a better offer from a buyer, they have 24 hours to remove theirs. Best of luck.........

 

[Buckeye]

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!

 

[Westernskies]

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?

 

[FUEGO]

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.

 

[Buckeye]

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.

 

[Buckeye]

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.

 

[tryan]

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.

 

[FinanceDude]

Very interesting developments...........

 

[Buckeye]

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!

 

[Texas Proud]

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...

 

[tryan]

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.