Selling out of state house - need help with MATH.lol.. (appraisal, agent)

[nitynity]

Ok.. My house is in the market in Denver, CO. I moved to Dallas last month and been looking for houses to purchase here. Currently I pay 2 rent of around 3k (mortgage + apt rent). I got an offer on the house for 315k and asking price is 325k. It's a whole sale buyer who buys and rents it out. So no closing cost, appraisal etc. involved, paid in full cash. House is been in the market since mid Jan. If I take the offer, I immediately lose 10k but save the mortgage payment which could be used against my apt rent, but I will pay another $550 on storage until I find a house. So pretty much the mortgage savings($1800) are evened out by the apt rent + storage cost. But I save $1200 since I pay only 1 rent now. If the house stays in market for another 3 months (for say), I might lose $3600 ($1200 x 3). Still that's a lose of $6400 compared to asking price assuming I get an offer. Is my math right here. I am going nuts. Should I take the offer or not? I just reduced the price 2 days ago, it was way over priced to begin with(Realtor's master brain), now its reasonable.

A nearby house was sold for $321k, but it was 3 bed room, ours is 4 but has a slightly bigger backyard than ours(which is a big issue, our yard is so tiny - .15 acres) Should I wait for more offers or take this one? What if I don't get any offer for asking price?

[TR95]

Originally Posted by nitynity

Ok.. My house is in the market in Denver, CO. I moved to Dallas last month and been looking for houses to purchase here. Currently I pay 2 rent of around 3k (mortgage + apt rent). I got an offer on the house for 315k and asking price is 325k. It's a whole sale buyer who buys and rents it out. So no closing cost, appraisal etc. involved, paid in full cash. House is been in the market since mid Jan. If I take the offer, I immediately lose 10k but save the mortgage payment which could be used against my apt rent, but I will pay another $550 on storage until I find a house. So pretty much the mortgage savings($1800) are evened out by the apt rent + storage cost. But I save $1200 since I pay only 1 rent now. If the house stays in market for another 3 months (for say), I might lose $3600 ($1200 x 3). Still that's a lose of $6400 compared to asking price assuming I get an offer. Is my math right here. I am going nuts. Should I take the offer or not? I just reduced the price 2 days ago, it was way over priced to begin with(Realtor's master brain), now its reasonable.

A nearby house was sold for $321k, but it was 3 bed room, ours is 4 but has a slightly bigger backyard than ours(which is a big issue, our yard is so tiny - .15 acres) Should I wait for more offers or take this one? What if I don't get any offer for asking price?

Have you thought about the cost savings on not having to pay commission to the buyer's agent which could be 2.5% of $315k, which amounts to $7,900 saved by selling to this wholesaler buyer. Also, not closing costs, appraisal, title, etc. You could also go another 9 months with no offer. I have no idea what the real estate market is like in Denver, but $10k off list is not that bad. You also don't mention what you paid for the house as maybe psychologically you don't want to lose money. Just some thoughts.

[TX75007]

How long is the current offer good for?

How many visits are you getting to your home currently?

Is your current offer asking for any repairs or upgrades as a condition of the sale?

What are the total closing costs?

What property taxes and insurance do you pay on a monthly basis?

If you are not out any closing costs and the current offer does not stipulate any conditions, then I think you should take it.

[jennifw]

I wouldn't say you are losing $10k off of the top. Figure out what you owe on your mortgage and figure out if you will still make money. I would also factor in any costs to maintain the home while it is on the market in Colorado - yard maintenance, water, electricity, etc. plus the fact that you don't know when you would get another offer. If all of that makes sense financially, I would sell it and be done.

Good luck.

[nitynity]

Originally Posted by TR95

Have you thought about the cost savings on not having to pay commission to the buyer's agent which could be 2.5% of $315k, which amounts to $7,900 saved by selling to this wholesaler buyer. Also, not closing costs, appraisal, title, etc. You could also go another 9 months with no offer. I have no idea what the real estate market is like in Denver, but $10k off list is not that bad. You also don't mention what you paid for the house as maybe psychologically you don't want to lose money. Just some thoughts.

Thanks for the response TR95. For some reason they have buyer agent (Re Max Alliance) who is from the same company as my Realtor (Re Max Masters). Could be a mutual agreement between them who knows.
Also, my mistake, they want me to pay half the closing cost. which will bring it down to around $310k. Appraisal is not covered by seller anyways. I paid only $280k, but after the commission I make only around $290k. I am looking for some down payment money.

[TurtleCreek80]

Take the money & run. Your house has already been on the market for 3+ months during the prime selling season. If you just took a price reduction and don't have any offers other than the investor, it's not going to get any better. You have a stale listing which is pretty much the kiss of death in real estate.

Another perspective: even if someone offers you full price, they can still come up with $10-15k of repair demands or ask for closing costs or a price reduction if the appraisal doesn't come in at your asking price / and you'd net out the same price. We made a full price offer on our house but after inspection the sellers had to do about $10k of HVAC work before we agreed to move forward.

[Discovery1]

Originally Posted by nitynity

Ok.. My house is in the market in Denver, CO. I moved to Dallas last month and been looking for houses to purchase here. Currently I pay 2 rent of around 3k (mortgage + apt rent). I got an offer on the house for 315k and asking price is 325k. It's a whole sale buyer who buys and rents it out. So no closing cost, appraisal etc. involved, paid in full cash. House is been in the market since mid Jan. If I take the offer, I immediately lose 10k but save the mortgage payment which could be used against my apt rent, but I will pay another $550 on storage until I find a house. So pretty much the mortgage savings($1800) are evened out by the apt rent + storage cost. But I save $1200 since I pay only 1 rent now. If the house stays in market for another 3 months (for say), I might lose $3600 ($1200 x 3). Still that's a lose of $6400 compared to asking price assuming I get an offer. Is my math right here. I am going nuts. Should I take the offer or not? I just reduced the price 2 days ago, it was way over priced to begin with(Realtor's master brain), now its reasonable.

A nearby house was sold for $321k, but it was 3 bed room, ours is 4 but has a slightly bigger backyard than ours(which is a big issue, our yard is so tiny - .15 acres) Should I wait for more offers or take this one? What if I don't get any offer for asking price?

There's time/situation that you don't want to nickel and dime so you can focus what ahead of you and in your case it is Dallas right now. I would sell it now and move on.

[nitynity]

Originally Posted by TurtleCreek80

Take the money & run. Your house has already been on the market for 3+ months during the prime selling season. If you just took a price reduction and don't have any offers other than the investor, it's not going to get any better. You have a stale listing which is pretty much the kiss of death in real estate.

Another perspective: even if someone offers you full price, they can still come up with $10-15k of repair demands or ask for closing costs or a price reduction if the appraisal doesn't come in at your asking price / and you'd net out the same price. We made a full price offer on our house but after inspection the sellers had to do about $10k of HVAC work before we agreed to move forward.

Thanks TurtleCreek80. As far as I know, there are no major repairs needed for the house. House been in the market for 3+ because it was way overpriced, we started at 348k when the closest neighborhood house price was 321k. Not sure where the Realtor got that number from, he got me there, i was thinking around 325k as well. Now I don't think its worth paying him the commission since he didn't add any value to the sale at all. I thought about going 'For Sale By Owner' for $325k, but was attracted by his 348k offer. Now the asking price came down to 325k. And he gets 11k commission - for what? I have a contract signed through him until May 31. Should I get rid of him after that and sell it on my own since now I know the market price and his expertise didn't help at all either. In addition I have to call him every time and inquire about the status, time for price reduction etc. he never initiates any of this conversation or give advice. is this normal?

Also, according to my bank USAA, the Estimated Market Value for my home is 339k.

[veuvegirl]

Take the offer. You have no idea when another new will come along and how much it would be for. $10k is not a lot to be apart.

[Restrain]

Take the money and run. You are continuing to dump money into the home. Also, the EMV from USAA is based on gross data from Zillow, etc. Not reliable. The fact is, you had it on the market, you had to lower the asking price, and you finally have someone stepping up to make an offer. Say Thanks.