Selling a house

[malakito]

I didn't think about the extra $500 (5%)commision! I'll make a point of bringing it up. I should send you a check for $250 for that?

I get the feeling that my realtor wants a fast deal.

<snip>

......Thanks malakito!

You're welcome. If you're serious about the $250, PM me

I told you the realtor works for the sale, didn't I?

malakito.

 

[Dreamer]

I am so glad that we did not have to pay those housing prices!!! I don't know how any young couple could ever hope to buy a house there, unless the job salaries are substantially more.

Dreamer

 

[Danny]

You're welcome. If you're serious about the $250, PM me

I told you the realtor works for the sale, didn't I?

malakito.

Malakito!
You are so right. I have found that when it comes to money people can get really self-centered and greedy. Have you also found that to be true?
I have an idea and bear with me on this, what about the two of us co-sponsoring one of Dory's servers - if he felt like it he could name it the Malakito-DanTien. How much could a server cost - can't be much right? How about us floating a $250 figure to him - he bites - then we counter and get him to agree to $200?
Again, Thanks very much for your help.

DanTien

 

[Danny]

I am so glad that we did not have to pay those housing prices!!! I don't know how any young couple could ever hope to buy a house there, unless the job salaries are substantially more.

Dreamer

Me too. I remember having to get the down payment together for my first house in 1985 in Walnut Creek, Ca. $131,000. We had saved for years and lived in a really crappy apt in a really crappy area for 7 years to be able to put down $51,000 because my wages (wife was stay at home mommy) were barely enough to justify the 80,000 mortgage at 12.75%. Now, these folks bless em are putting down 20,000 and taking out 30 year mortgage for 395k.

 

[Danny]

I hope it wasn't anything I said that made Malakito leave. This was his last exchange before he said adeau. Maybe I should give him a call or send him $250 and ask him to come back.

You're welcome. If you're serious about the $250, PM me
I told you the realtor works for the sale, didn't I?
malakito.

Malakito!
You are so right. I have found that when it comes to money people can get really self-centered and greedy. Have you also found that to be true?
I have an idea and bear with me on this, what about the two of us co-sponsoring one of Dory's servers - if he felt like it he could name it the Malakito-DanTien. How much could a server cost - can't be much right? How about us floating a $250 figure to him - he bites - then we counter and get him to agree to $200?
Again, Thanks very much for your help.

DanTien

 

[cute fuzzy bunny]

I am so glad that we did not have to pay those housing prices!!! I don't know how any young couple could ever hope to buy a house there, unless the job salaries are substantially more.

Theres one upside to paying those prices, is selling a few years later at an even higher price.

I've made 250k in home appreciation over the last 10 years, and my current house is worth 150k more than I paid for it two years ago.

Not too shabby. Hard to repeat though.

 

[Patrick]

I have just received an offer for a house we're selling in Glendale, Ca.
Looks good, but not sure about some things.
Appreciate any help from more experienced sellers.
Was listed less than a week ago - wondering if should let some other offers come in.
Also, it is tenant occupied and the buyers haven't even had a look around yet.
The buyers have given my broker a letter from the mortgage outfit saying they are qualified for a 1st(80%) and a 2nd(20%) that would be more than the actual selling price.
They are financing 95% of the purchase.
They are offering $10,000 more than list, but they want $10,000 credit from us at closing.

The offer sheet has the following fees and cost responsibility - pretty much standard?:

Seller will pay for:
Wood destroying Pest inspection
Septic or private sewage system inspection
Natural hazard zone disclosure report
Smoke detector installation and/or water heater bracing
Compliance with any other minimum mandatory gov't retrofit standards, inspections and reports.

Buyer and seller will pay for their own escrow fee
Seller shall pay for owner's title insurance policy
Seller shall pay county, city HOA transfer tax or fee
Seller shall pay home warranty plan not to exceed $450

Thank you DanTien

Dan,

I'm not sure where you're at with the deal, but here are a few recommendations:

Put in the contract that the buyer will pay for the inspections up front and you will reimburse at the close.  That way if they back out of the deal, you haven't lost money on that and they are more likely to continue with the deal since they have cash invested.   

Give them a time limit to approve the inspections.  After the time is up, if they haven't notified you, they're stuck with the deal.

Set a limit on how much you'll pay for repairs.  That way you're not stuck if the inspector says you need $50,000 in foundation repairs due to termites, for example.

Since the offer is above the asking price, include language in the contract about what happens if the property doesn't appraise.  Will the price be lowered, the buyers come out-of-pocket for the balance, you split the difference 50/50, or go back to negotiations?

Good luck,

Patrick

 

[Danny]

Patrick - those are good points.
I'm trying to figure how much of a cap on any repairs. That can be used in a counter later in the process after the inspections right guys?
Thats an interesting approach on making them pay inspections - a concern is I will discourage them from the deal - they seem cash poor and plus we are thinking we could leave money at the table and still be happy cashing out. If they back out, the reports would still be in our hands for the next prospect.

Status right now: Mn Attorney is checking with Ca. attorney about whether to agree to arbitration clause in the offer. Buyers were supposed to soon get a look around.

Thank you
DanTien

 

[Patrick]

Patrick - those are good points.
I'm trying to figure how much of a cap on any repairs. That can be used in a counter later in the process after the inspections right guys?
Thats an interesting approach on making them pay inspections - a concern is I will discourage them from the deal - they seem cash poor and plus we are thinking we could leave money at the table and still be happy cashing out. If they back out, the reports would still be in our hands for the next prospect.

Status right now: Mn Attorney is checking with Ca. attorney about whether to agree to arbitration clause in the offer. Buyers were supposed to soon get a look around.
 
Thank you
DanTien 

Well, here it's standard practice for the buyer to pay for any inspections they want and the offer is "subject to" the inspections, meaning that the buyer can back out if something is discovered about the property that they don't like. Also, we counteroffer and sign the contract before the inspections are done. That way you (or the buyer) are not paying for inspections if you don't have a deal. We always specify the limit on repairs up front, before the contract is signed. I'm not familiar with the laws in your state, but I doubt you can go back and change the contract after the inspections are done. I try to stick to $500 for repairs.

 

[tryan]

They are offering $10,000 more than list, but they want $10,000 credit from us at closing.

Dan,

Just a heads up .... the last deal I did was just like this (10k back) and the sub-prime lender could only dream up ~7k worth of closing costs. 

This left ~3k in never-land ... lender/lawyer credited it to me because the buyer is not allowed "cash-back".  Almost screwed the deal as the buyer was unhappy paying 3k more for the house.  I refused to cut a check to the buyer because taxes and realtor fees were paid - by me - on the $$ regardless of who got it (just look at the HUD).

The lesson learned was to put to words "UP TO 10K credited for closing costs"  in the P&S;  this way there is no dispute about where the extra $$ goes (to you). 

Yes, capitol gains and realtors fees are paid on the extra.  Realtors love this stuff.

Have a good laugh all the way to the bank!

 

[Danny]

Thanks tryan - thats a good tip on the up to $10k close cost
After confering with my forum advisors - my realtor is going to think I'm a smart cookie.

 

[Brat]

As the OP I thought the gang would like to know what happened.

Brother's home sale funding today. He found a 5% broker who worked hard. He initially was very agressive on the price and held that for about a month, then droped the price 14% which started a bidding contest between two parties. Closed between the initial and low asking prices.

I wouldn't have had the nerve to drop the price as he did, but it closed on the very high end of what I thougt it was worth.