very odd thing

[semtex]

My neighbor came over and offered to buy our house. I told him that we had no plan to move. He said he would like to pay some premium above the current market price.
I heard some rumor that my neighbor made some significant money last year.
My house market value is about 850K. the fee (realtor/gov/insurance) is around 55k. To have a slight better house in my neighborhood, in this hot market, it needs at least 10% premium, 85K. so the total is 990K.
Is this reasonable? The 990K could give him a shock. This 55K fee eats lot of meat. My net gain is 935K. Below this, I doubt we could have a better house.
We are neighbors about ten years. We get along well. Maybe I should just say no, but he was kind of eager to have my house.

 

[Sunset]

Maybe your neighbor does not think "We get along well" as much as you

If you sell, what are you going to do for somewhere to live

 

[braumeister]

If you wouldn't mind moving, and could find a place you would like to move to, then I would simply ask him to make you an offer. Then you could make a decision.

 

[ExFlyBoy5]

If you sell, what are you going to do for somewhere to live

This. We also considered selling our home since it has appreciated so much, however all the houses that are available are way, WAY too expensive and if it's been recently built, I question the build quality (YMMV). So, we have stayed put.

 

[PaunchyPirate]

I would keep your "desired" or "expected" price a secret from him. Then ask him what he is offering. If he truly wants it, he should have a number in mind. Politely tell him no if his number isn't enough to uproot you and get you into your own desirable new home.

 

[Car-Guy]

"If" I didn't mind dealing with an unplanned move, and "if" I had another spot picked out, then I'd ask ~1.2m in this case, or some other "I don't want to sell it price".... You never know. You can always come down a little, if you want.

 

[semtex]

Maybe your neighbor does not think "We get along well" as much as you

If you sell, what are you going to do for somewhere to live

I have to buy another house. that's tons of headaches. move stuff to storage, rent living a few months, search for new house, bid/move in. That's why I need 10% premium at least. Maybe 10% not enough?

 

[OldShooter]

If you want to sell, sell. But the fact that one potential buyer has contacted you is irrelevant to the decision and to the process. Scope out the market with or without an agent, calculate your net proceeds carefully, and decide whether the net is attractive to you. If you decide to sell and sign with an agent, exclude the neighbor in the listing agreement.

 

[ExFlyBoy5]

I have to buy another house. that's tons of headaches. move stuff to storage, rent living a few months, search for new house, bid/move in. That's why I need 10% premium at least. Maybe 10% not enough?

What's it worth to you? Price it accordingly. As an example...let's say the estimated value of a home is 500K. Cost to move (and where I don't TOUCH ANYTHING!): 25K. Time/expenses that are ancillary (to me, completely subjective): 25K. Premium to eager buyer: 30% value of home: 150K. So, total to "make me move"... about 700K.

 

[Sojourner]

Maybe I should just say no, but he was kind of eager to have my house.

Unless you had been thinking of selling your house already, then I don't see why a neighbor's out-of-the-blue enquiry should have any relevance to you. Selling your house, buying a new one, packing up and moving all your stuff... that's a major life undertaking. Not something that should be driven by a random neighbor's eagerness to buy your house.

If it were me, I would just say "No thanks, I'm not interested in selling or moving right now." Period.

 

[38Chevy454]

My neighbor came over and offered to buy our house. I told him that we had no plan to move. He said he would like to pay some premium above the current market price.
I heard some rumor that my neighbor made some significant money last year.
My house market value is about 850K. the fee (realtor/gov/insurance) is around 55k. To have a slight better house in my neighborhood, in this hot market, it needs at least 10% premium, 85K. so the total is 990K.
Is this reasonable? The 990K could give him a shock. This 55K fee eats lot of meat. My net gain is 935K. Below this, I doubt we could have a better house.
We are neighbors about ten years. We get along well. Maybe I should just say no, but he was kind of eager to have my house.

If you have the buyer lined up, you don't need the realtor and the realtor fees. You can just have your contract reviewed by your real estate attorney, and then pay the title company for their services, which you do anyway on top of the realtor fees.

It sounds like you do not want to move, so if neighbor really wants your place then it is up to him to give a price you can't refuse. Have you thought about moving to a different location at all? Might be a chance to think about this, but it's the neighbor's move to give a price if he is serious. Although you have to at least tell him you will consider what he offered.

 

[pacergal]

You told your neighbor you had no plans to move and he asked again, but sweetened the pot by offering a premium. A little rude and pushy in my opinion, however, if you want to move, ask him to give you an offer. Be ready to counter offer, and move if he meets it! You are in the drivers seat here.

We currently live in a highly desirable and explosively expensive area. Heck, the house across the street and one 2 houses down were sold within a month of each other and the second one was $$150,000 more, similar layout, age and updates! Crazy.
No offer would entice me to move at this time, and I get mail offers, text offers, random real estate folks even drive by and leave stuff on our door! :-/

 

[ikonomore]

So for an extra $85k you'd uproot everything and try to find another place to live?
That's just not worth it.

 

[semtex]

yes, the more I think about it, the more I feel the pain of moving.

 

[travelover]

yes, the more I think about it, the more I feel the pain of moving.

I think that the fact that your neighbor finds your house so appealing is a good indication you have a great house and should not move.

 

[semtex]

You told your neighbor you had no plans to move and he asked again, but sweetened the pot by offering a premium. A little rude and pushy in my opinion, however, if you want to move, ask him to give you an offer. Be ready to counter offer, and move if he meets it! You are in the drivers seat here.
-/

I missed one thing. after we said no. he explained that he was buying for his parents, both early 80s.
that made me seriously think about it.

 

[Act2]

Take the number you think it’s worth for you to move. Then add the amount that would bring you to the amount you would just not be able to turn down. Tell the neighbor you like your house and aren’t planning to move and wouldn’t even consider it unless someone offered ($ 2 M?), but that you can’t imagine anyone would. Use a very high number, one you don’t expect him to match but which you know you couldn’t turn down. And see where it goes.

 

[W2R]

This. We also considered selling our home since it has appreciated so much, however all the houses that are available are way, WAY too expensive and if it's been recently built, I question the build quality (YMMV). So, we have stayed put.

+1 I would never sell my home, but if I wanted to sell I wouldn't do it in this market. YMMV

 

[W2R]

I missed one thing. after we said no. he explained that he was buying for his parents, both early 80s.
that made me seriously think about it.

This is a business deal, not an act of charity. Ignore whatever stories he tells you about his parents. After he buys it, he might turn around and sell it for a profit, who knows?

 

[ivinsfan]

Is it just me that thinks the neighbor is an arrogant snob for even suggesting he should buy your house ...I find that creepy.

Tell him you find the whole thing to be in poor taste

Think the parents story is a load too.

 

[tulak]

I don’t think it’s creepy. Maybe you’re looking to sell (he doesn’t know) and decided to ask? If he’s being pushy, then that could get annoying, but maybe this is because he sensed that you might be open to selling?

I wouldn’t sell cheap or try to give him a reasonable deal. I’d also make it contingent on you buying a new home, in addition to getting a substantial amount over going prices (20%?). You’re potentially doing him a big favor if it’s for the parents.

Either way, it doesn’t hurt to ask him how much he’s willing to offer.

 

[ivinsfan]

I don’t think it’s creepy. Maybe you’re looking to sell (he doesn’t know) and decided to ask? If he’s being pushy, then that could get annoying, but maybe this is because he sensed that you might be open to selling?

I wouldn’t sell cheap or try to give him a reasonable deal. I’d also make it contingent on you buying a new home, in addition to getting a substantial amount over going prices (20%?). You’re potentially doing him a big favor if it’s for the parents.

Either way, it doesn’t hurt to ask him how much he’s willing to offer.

The OP doesn't want to move so why extend the conversation? He already said No once.

 

[tulak]

The OP doesn't want to move so why extend the conversation? He already said No once.

Everybody has a price. If neighbor offers 1.2mil and OP can buy a nice replacement home for 1 mil and pocket 200k, maybe he’d change his mind?

And if the neighbor is flush with cash, maybe paying an extra 200k is worth it if he has a place next door for his parents?

I didn’t get the impression that OP doesn’t want to sell. I got the impression that OP wouldn’t do this if there wasn’t a substantial financial gain. It doesn’t hurt to see the numbers and then make a decision. But I agree, if the OP doesn’t want to sell at any price, then just say no.

 

[ivinsfan]

Everybody has a price. If neighbor offers 1.2mil and OP can buy a nice replacement home for 1 mil and pocket 200k, maybe he’d change his mind?

And if the neighbor is flush with cash, maybe paying an extra 200k is worth it if he has a place next door for his parents?

I didn’t get the impression that OP doesn’t want to sell. I got the impression that OP wouldn’t do this if there wasn’t a substantial financial gain. It doesn’t hurt to see the numbers and then make a decision. But I agree, if the OP doesn’t want to sell at any price, then just say no.

...


The first post says "he was kind of eager to buy my house"...when the OP said no the neighbor then added, but it was for dear old Mom and Dad.


You're actually assuming it's for dear old Mom and Dad, well if that's true there should be several close neighbors he could ask instead of pestering this one.

 

[disneysteve]

If you decide to sell and sign with an agent, exclude the neighbor in the listing agreement.

This!


I'm in the process of selling my late cousin's house in Florida to a buyer who presented themselves before I signed with the realtor. As a result, I had them excluded from the listing agreement. Instead of the normal commission, I'm paying a flat $1,200 fee for the realtor to handle all of the technicalities, saving us over $24,000.