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Old 09-04-2013, 11:54 AM
 
Location: Virginia
629 posts, read 1,389,800 times
Reputation: 564

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I must be missing something..feel free to point it out. We received 2 offers today.

One: 15% below listing price with contingency to sell their house. It is not on the market yet. I would rather continue to try to sell my house than wait locked into a contract during high season while they try to sell theirs. What are they thinking?

Second: Rent to own. Rent for $1800/mo with $1500/mo credit toward purchase in 2 years. So basically they would be paying $300/mo rent. I sure as hell would love to have a $300/mo rent payment.

Neither of these are of ANY benefit to us as sellers. Why in the world would the buyers think we would go for it?
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Old 09-04-2013, 11:59 AM
 
7,672 posts, read 8,976,311 times
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Because they are hoping you will fall for it. You still have the low ball offer for it "as is" coming...
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Old 09-04-2013, 11:59 AM
 
Location: Bloomington IN
5,282 posts, read 6,638,972 times
Reputation: 12586
Hope springs eternal.

The second one, I would say thanks, but no thanks, and might add that they should stop watching late night infomercials on real estate.

The first one, I wouldn't just toss it. I would counter at a realistic price, and put in the counter that their home must be on the market within so many days. I would also use a kick-out clause as it's often called. If you get another offer, they have a limited amount of time to remove the sale contingency or lose the house. If you're listed in the MLS ask your agent about this and how it works in your area. Ask how it will show up in the MLS with a kick out clause. I always showed clients homes with this clause.
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Old 09-04-2013, 12:09 PM
 
Location: Virginia
629 posts, read 1,389,800 times
Reputation: 564
Quote:
Originally Posted by momtothree View Post
Because they are hoping you will fall for it. You still have the low ball offer for it "as is" coming...
Ha..already got that minus the "as is"...

Quote:
Originally Posted by rrah View Post
Hope springs eternal.

The second one, I would say thanks, but no thanks, and might add that they should stop watching late night infomercials on real estate.

Lol..we did. What was amazing was they put together a very articulate letter about themselves and how they would take care of the house blah blah... They really thought their offer was a possibility?!?!

The first one, I wouldn't just toss it. I would counter at a realistic price, and put in the counter that their home must be on the market within so many days. I would also use a kick-out clause as it's often called. If you get another offer, they have a limited amount of time to remove the sale contingency or lose the house. If you're listed in the MLS ask your agent about this and how it works in your area. Ask how it will show up in the MLS with a kick out clause. I always showed clients homes with this clause.
We have been there..done that..and been burned. We once took a house contingency and bam..no more showings for 3mo while we were under contract/continue to show. Their house didn't sell and we had wasted 3 mo basically off the market. I would rather sell mine with which I have control rather than wait on someone else to sell theirs. These next 2 mo are considered high time then it dies as the severely cold weather/snow moves in. Too risky!
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Old 09-04-2013, 12:12 PM
 
5,205 posts, read 5,796,395 times
Reputation: 13047
The rental thing....fuggeddaboudit.

The low ball/contingency......fuggedaboudit. There a million people out there (literally) who would buy a house if the could sell their existing property. Last year when I was selling I could write a contingency contract at least once per week. Some 'just needed to list it', some needed to "get the roof replaced, and then list it", and some "needed to list it, but unless they could sell it 20% above realistic market, they were going to be underwater" and wouldn't have the down payment money to buy my house!

There are pockets of strength out there, but much of the market is still in the doldrums. If taking a contingency hinders, in ANY WAY, your ability to sell your house to other buyers, Do Not Take The Contingency. Some people won't look at a house with a contingency, others (realtors) won't include them in their showings. You have nothing to gain; if the potential buyers list and sell their home, and your home is still on the market, they buy it. Avoids a LOT of angst for you.

I did take one. One! My realtor didn't disclose it in the listing (thankfully, but probably unethical/illegal), the seller was way above market on their listing price so it was never (and didn't) going to sell, and it didn't interfere with completing my sale when a real buyer finally showed up.

Good luck. Get used to it. Ignore it--it is not personal, just people trying anything they can to buy a home for free.
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Old 09-04-2013, 12:17 PM
 
7,672 posts, read 8,976,311 times
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Quote:
Originally Posted by ~Pajama mama~ View Post
Ha..already got that minus the "as is"...

Oh no, they hadn't got low low low low. It's still a-comin... (great now I have that song stuck in my head!)
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Old 09-04-2013, 12:28 PM
 
Location: Lexington, SC
4,281 posts, read 10,023,202 times
Reputation: 3695
Quote:
Originally Posted by ~Pajama mama~ View Post
I must be missing something..feel free to point it out. We received 2 offers today.

One: 15% below listing price with contingency to sell their house. It is not on the market yet. I would rather continue to try to sell my house than wait locked into a contract during high season while they try to sell theirs. What are they thinking?

Second: Rent to own. Rent for $1800/mo with $1500/mo credit toward purchase in 2 years. So basically they would be paying $300/mo rent. I sure as hell would love to have a $300/mo rent payment.

Neither of these are of ANY benefit to us as sellers. Why in the world would the buyers think we would go for it?
While I would not call them bottom feeders, they are shall we say "not a clean deal" buyers. I would avoid them.
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Old 09-04-2013, 12:33 PM
 
Location: Danbury CT covering all of Fairfield County
2,146 posts, read 5,627,596 times
Reputation: 919
I would recommend that you will only attempt to work with the buyers with the home sale contigency when their house is listed,have an accepted offer than their home has passed the building inspection stage.

$300 for rent for a whole in any part of the country is low. Find out what your home could potenially rent for and add $100-$150 a month extra that would go toward the purchase in 3 years, if you are willing to wait. If they decide in 3 years they don't want to buy the home, you get to keep the additional money that you used as a premium to hold the house for them.
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Old 09-04-2013, 12:34 PM
 
Location: Virginia
629 posts, read 1,389,800 times
Reputation: 564
Quote:
Originally Posted by Ted Bear View Post
The rental thing....fuggeddaboudit.

The low ball/contingency......fuggedaboudit. There a million people out there (literally) who would buy a house if the could sell their existing property. Last year when I was selling I could write a contingency contract at least once per week. Some 'just needed to list it', some needed to "get the roof replaced, and then list it", and some "needed to list it, but unless they could sell it 20% above realistic market, they were going to be underwater" and wouldn't have the down payment money to buy my house!

There are pockets of strength out there, but much of the market is still in the doldrums. If taking a contingency hinders, in ANY WAY, your ability to sell your house to other buyers, Do Not Take The Contingency. Some people won't look at a house with a contingency, others (realtors) won't include them in their showings. You have nothing to gain; if the potential buyers list and sell their home, and your home is still on the market, they buy it. Avoids a LOT of angst for you.

I did take one. One! My realtor didn't disclose it in the listing (thankfully, but probably unethical/illegal), the seller was way above market on their listing price so it was never (and didn't) going to sell, and it didn't interfere with completing my sale when a real buyer finally showed up.

Good luck. Get used to it. Ignore it--it is not personal, just people trying anything they can to buy a home for free.
I agree with you 100%. I know when we were looking at different points in our life we wouldn't look at those under contract w/contingency. We often came into town house hunting over a weekend and didn't have the time to fool with a house that we may not could buy.

The buyers today had an addendum that they would list their house within 1 wk at $135k. My realtor said it is overpriced. No thanks..we will pass.
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Old 09-04-2013, 12:38 PM
 
Location: Virginia
629 posts, read 1,389,800 times
Reputation: 564
Quote:
Originally Posted by accufitgolf View Post
While I would not call them bottom feeders, they are shall we say "not a clean deal" buyers. I would avoid them.
I kinda like the bottom feeder tag We have declined both generous offers.

Quote:
Originally Posted by jdhall1 View Post
I would recommend that you will only attempt to work with the buyers with the home sale contigency when their house is listed,have an accepted offer than their home has passed the building inspection stage.

$300 for rent for a whole in any part of the country is low. Find out what your home could potenially rent for and add $100-$150 a month extra that would go toward the purchase in 3 years, if you are willing to wait. If they decide in 3 years they don't want to buy the home, you get to keep the additional money that you used as a premium to hold the house for them.
Well it's it's a 5 bedroom 4 bath home in a upscale neighborhood with our house renting for about $2k/mo. So their offer is beyond ludicrous. If it had been anywhere reasonable we would be willing to wait 2 years and do a rent to own.
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