Selling my house part 2

[MJ]

As I mentioned in another thread I started, I am selling my house without a broker. Since this is 1st home that I bought and now am selling, I am new on the proper rules that one should follow. I started speaking to a few neighbors about my intention.
A neighbor brought over a buyer that met the price I was asking. He gave me a large deposit check which I haven't cashed yet. There was no written agreement. I was happy with the deal at that time. The following morning, a 2nd buyer knocked on my door and was interested in my house too. He voluntaired to up the price by $30k. I contacted the 1st buyer and he matched the increase. I then contacted the 2nd buyer he again up the price by $30k but said he would not go any further.

Who should get the sale, the 2nd buyer who was willing to increase the price or the 1st buyer who only matched the price?

 

[Jay_Gatsby]

This is a legal question more than anything else, particularly if the "losing" buyer decides to sue you. I would be extremely careful in how you tell the "losing" buyer, whomever that turns out to be.

 

[Michael Moore]

I've not sold a house, but if I am selling something and I tell someone they've got a deal, then they've got a deal even if someone comes along with more money later.

If you told the first party "I'll take this deposit, but you are the first person to look and if someone comes along with more money by this date, I'm not going to be held to selling it to you at this price" that's one thing.  If you told them "I'm taking your deposit and you've bought the house for XXX amount" it seems like that person just bought your house, subject to them coming up with the rest of the money in the agreed upon time frame.

cheers,
Michael

 

[Brat]

MJ, get a real estate lawyer ASAP and have that person sort this out.

 

[yelnad]

The Statute of Frauds (which I think is federal) dictates that real estate transactions can only occur in written form...says my Realtor husband. Even a verbal acceptance is just a prelude to a written contract. You can google for more information, but I would check with a real estate attorney to be sure.

 

[73ss454]

In my life once someone shakes my hand and we have a deal I expect both parties to live up to the agreement.

I would hate to take a 30K loss but a deal is a deal and a hand shake is an oath, to me at least.

Now if the first buyer is willing to take the higher price the house should be his.

 

[Jarhead*]

As I mentioned in another thread I started, I am selling my house without a broker. Since this is 1st home that I bought and now am selling, I am new on the proper rules that one should follow. I started speaking to a few neighbors about my intention.
A neighbor brought over a buyer that met the price I was asking. He gave me a large deposit check which I haven't cashed yet. There was no written agreement. I was happy with the deal at that time. The following morning, a 2nd buyer knocked on my door and was interested in my house too. He voluntaired to up the price by $30k. I  contacted the 1st buyer and he matched the increase. I then contacted the 2nd buyer he again up the price by $30k but said he would not go any further.

Who should get the sale, the 2nd buyer who was willing to increase the price or the 1st buyer who only matched the price?

The first buyer made a big mistake! He assumed you were a man of integrity, and didn't insist on a written contract after you both agreed on the price of the property.

The first buyer, regardless how this plays out, will get the biggest education!

 

[Cut-Throat]

As I mentioned in another thread I started, I am selling my house without a broker. Since this is 1st home that I bought and now am selling, I am new on the proper rules that one should follow. I started speaking to a few neighbors about my intention.
A neighbor brought over a buyer that met the price I was asking. He gave me a large deposit check which I haven't cashed yet. There was no written agreement. I was happy with the deal at that time. The following morning, a 2nd buyer knocked on my door and was interested in my house too. He voluntaired to up the price by $30k. I contacted the 1st buyer and he matched the increase. I then contacted the 2nd buyer he again up the price by $30k but said he would not go any further.

Who should get the sale, the 2nd buyer who was willing to increase the price or the 1st buyer who only matched the price?

The first buyer should get the house at the original price! - You had a verbal agreement and he wrote a check. I would not be able to look myself in the mirror if I charged him $30K more than the original agreement.

You made a deal man - You stick to it, even if it hurts you $30K. - You'll sleep better at night!

 

[yelnad]

Although I stated the law (or what I think it is), I would go with the original offer from the first guy. Did you do your homework before you set your "asking price"? Sometimes not using a Realtor doesn't really save you any money.

 

[frayne]

Who should get the sale, the 2nd buyer who was willing to increase the price or the 1st buyer who only matched the price?

The buyer that met the price you were asking, period.  Doesn't mean a thing that you didn't cash the check.  Do the right thing for God's sake.  

 

[MJ]

Ouch!

 

[Mr._johngalt]

The first buyer should get the house at the original price!  - You had a verbal agreement and he wrote a check. I would not be able to look myself in the mirror if I charged him $30K more than the original agreement.

You made a deal man - You stick to it, even if it hurts you $30K. - You'll sleep better at night!

Even though all real estate agreements MUST be in writing to be
enforced, I agree with C-T 100% on this. There was a time when
the most valuable thing a man possessed was his honor.

JG

 

[rapoole]

An agreement to sell real property is usually invalid if not in writing. I'm not offering legal advice, but the Statute of Frauds was created to protect naiive sellers from their ill-considered mistakes. Consult a real estate attorney if you turn away that first seller.

 

[Mr._johngalt]

The baby boomers have made honor a quaint little notion of a bygone era.  Honor has been replaced with a myriad of rules, regulations, statutes, laws, fines, penalties, etc.  Follow the rules.  That's why they are there.  If there's no written contract, there is no agreement.  This isn't 1940, when honor was important because there were fewer laws and regulations and a man's word was sacred.  Business in this country is now a free for all, within the confines of said rules and regulations, of course.

I'll have to admit Dave makes a good argument. I'll stick with my first
position though. Call me old-fashioned.

JG

 

[yelnad]

MJ - how far away are you moving?

 

[Cut-Throat]

The baby boomers have made honor a quaint little notion of a bygone era. Honor has been replaced with a myriad of rules, regulations, statutes, laws, fines, penalties, etc. Follow the rules. That's why they are there. If there's no written contract, there is no agreement. This isn't 1940, when honor was important because there were fewer laws and regulations and a man's word was sacred. Business in this country is now a free for all, within the confines of said rules and regulations, of course.

Spoken like a man that has never kept his word!

- When you are at the end of your life friend, honor is all you'll have!

 

[Mr._johngalt]

The baby boomers made it so they don't have to worry about such trivial issues (and can feel good at the end of their lives).  Personally, I think the system sucks (if you haven't been able to tell by my previous posts) and I would have loved to have lived in the time where honor and a man's word meant something.  I didn't make these rules, I was born into them.  One can't be held to a higher standard and expect to compete... that's simply a fools game.   

Hey C-T, in spite of my fondness for the "good old days", this guy
is makin' some sense. Could be because he's an accountant I
suppose (the old "Accountant to Accountant Respect" Rule) ?
Anyway, I'm staying the course (keep your word) even though I see
his point.

JG

 

[REWahoo]

- When you are at the end of your life friend, honor is all you'll have!

C-T, your statement reminded me of a recent news article. Here's a real man of honor...

Daughters killed to save ‘honor’
Alleged adultery by family member enraged Pakistani

MULTAN, Pakistan — Nazir Ahmed appeared calm and unrepentant as he recounted how he slit the throats of his three young daughters and their 25-year old stepsister to salvage his family’s “honor.”

...“We are poor people, and we have nothing else to protect but our honor,” he said.

http://www.kansascity.com/mld/kansascity/news/world/13504438.htm

 

[Dawg52]

Hey C-T, in spite of my fondness for the "good old days", this guy
is makin' some sense.  Could be because he's an accountant I
suppose (the old "Accountant to Accountant Respect" Rule) ?
Anyway, I'm staying the course (keep your word) even though I see
his point.

JG

Well I'm a bean counter too but I don't buy it. You accept a check, the deal is done. Yeah, there are loop holes in life but that doesn't make it right.

 

[Mr._johngalt]

C-T, your statement reminded me of a recent news article.  Here's a real man of honor...

Daughters killed to save ‘honor’
Alleged adultery by family member enraged Pakistani

MULTAN, Pakistan — Nazir Ahmed appeared calm and unrepentant as he recounted how he slit the throats of his three young daughters and their 25-year old stepsister to salvage his family’s “honor.”

...“We are poor people, and we have nothing else to protect but our honor,” he said.

http://www.kansascity.com/mld/kansascity/news/world/13504438.htm

This is getting too rough for me.

Elvis has left the building.................

 

[HFWR]

No jabs here...

I vote #1 gets the house, since he made a deposit.

 

[frayne]

Quick question to original poster, did you shake hands with the first buyer who gave you a check ?

 

[Cut-Throat]

The baby boomers made it so they don't have to worry about such trivial issues (and can feel good at the end of their lives). Personally, I think the system sucks (if you haven't been able to tell by my previous posts) and I would have loved to have lived in the time where honor and a man's word meant something. I didn't make these rules, I was born into them. One can't be held to a higher standard and expect to compete... that's simply a fools game.

You're really amusing that you think the Baby Boomers created all the rules that only YOU have to live with!

I have never created any rules either and have been forced to live with more rules than you sonny! - I still keep my word and compete at a disadvantage. I think the accountant at Enron (that is currently in the slammer) lives by the same rules as yourself.

 

[cute fuzzy bunny]

Different opinion?

How about what is reasonable and customary, and who is looking to suffer the most from a change to the deal.

In most states...all of them i'm aware of...a real estate purchase and sale contract signed by both parties is required before a deal is a deal. I can think of a number of times I met a buyer or seller, talked to them directly and sent or received an offer or check, got verbal confirmation and then a better deal came in.

Once a P&S is signed, it usually outlined who gets what if the deal is broken. Usually the seller gets to keep all or part of the deposit if the buyer bails. The buyer usually has to go to mediation or sue if they seller backs out. Most people dont bother with the latter and when they do, its usually a waste of everyones time.

So a check and a handshake constituting 'reasonable and customary" conclusion of a real estate transaction? Not in my experience.

As far as damage...the guy who wrote a check probably didnt run off and sell his house and pack up his belongings in anticipation of moving in the next day. He's probably out the cost of a check and a little disappointment. The OP could be out 30k. A little disparity.

About the only arguable and so far not described portion is how the verbal piece of the 'deal' played out, and how badly the OP will feel about it. If I told someone "its a done deal, we'll do the paperwork tomorrow but the house is yours, nice doing business with you"...thats one thing. If he took the check and said "lets sit down and do the paperwork tomorrow, i'll cash your check when thats in place"...thats another thing.

In any case, the original buyer has the discretion to make the deal providing he comes up to the level the market appears to be willing to pay. His decision to not do that, providing he wasnt told "its yours for sure, done deal, end of story", forfeits his claim.

 

[73ss454]

()


To me it doesn't make any difference.

MJ said he made a deal and that's that, yea legaly he could walk away. But what's right is right.