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I put my townhouse - condo on the market on Wednesday night. As of this afternoon, I have three good offers. I have committed to pick an offer today and am not sure which way to go. All offers have their pluses and minuses.
House summary:
* Asking price: 214.9K. Townhouses in this specific community have been going for 210-229, depending on features, upgrades and improvements
* Advantages of mine: End unit. Upgraded kitchen (including gas stove, new appliances, quartz countertops, new faucets, sink, mother-of-pearl backsplash), new flooring throughout the first floor (slate-look porcelain tile in the kitchen, 1/2 bath and hallway, white oak hardwood in the living room and dining area), new light fixtures throughout the first floor, custom Hunter Douglas window treatments in the kitchen and dining area. New furnace and HVAC and wireless thermostat. Walk-out basement, but the basement in not finished (only some units here have basements, fewer still have walk-out basements). Renovated half bath on the first floor, new faucets in the bathroom on the 2nd floor. Otherwise, neutral paint throughout the house.
ETA: There is only one other unit here that is currently on the market. Inside unit without the improvements of mine in the (IMO) non-preferred layout. Has a finished basement, however, but it is not a walk-out basement. Their asking is 222.5K (I guess that's where everyone is getting that figure).
Offer #1: Originally offered the asking price (214.5K), and then upped it to 219K. And then today upped it again to 222.5K.
- Pros: All cash. Obviously very motivated.
- Cons: Contingency on his house sale going through -- house is in contract, past the inspection and appraisal phases and scheduled to close on 2/13.
Offer #2: Offered 217K with an escalation clause to bid 1K over any "bona fide" offer up to 222.5K
- Pros: Wants an inspection for his info, but will not ask for minor repairs or credits.
- Cons: Financed offer, only putting 10% down.
Offer #3: Offered asking price (214.5K) with an escalation clause of 2K over any "bona fide" offer up to 220K.
- Pros: Putting 33% down. It is from someone who already lives in the complex, so will understand/already accepts any quirks, has access to/has accepted condo docs, budget and whatnot.
- Cons: lower offer, but 2K one way or another is not going to change my life.
By typing all this out, it looks like offers 1 & 2 are the contenders, but I am not sure which to choose. I go back & forth between the two.
This is not my first home sale, but my first bidding war. It's kind of exciting, but a bit overwhelming too. Any advice would be welcome!
TIA
i would counter #2 and #3 with 230k, then see what they say. if neither bite, then go with #1, if one does, tell #1 about it and see what they say.
OP, can you explain why the one buyer only putting 10% down was a con for you? You were going to get every single penny owed you.
less wiggle room if runs into a problem with bank appraisal, and odds are slightly better someone putting down alot more money will be able to secure a mortgage.
in general people putting down the minimum are slightly more of a risk to get denied.
less wiggle room if runs into a problem with bank appraisal, and odds are slightly better someone putting down alot more money will be able to secure a mortgage.
in general people putting down the minimum are slightly more of a risk to get denied.
No.
1. Buyers will come to the table with a pre-approval letter regardless of the amount of down payment. A person putting down 5% will have the same letter from the lender as someone putting down 20%.
2. As far as the appraisal, didn't the seller price the house appropriately from the beginning? Why worry about the appraisal unless the seller is trying to be shady?
less wiggle room if runs into a problem with bank appraisal, and odds are slightly better someone putting down alot more money will be able to secure a mortgage.
in general people putting down the minimum are slightly more of a risk to get denied.
Exactly this. It's not how it would affect me at closing (it won't). It's just additional risk of something going wrong with the buyer getting his financing. It just has a higher chance of falling apart. It probably would work out, but it is closer to the bone. Not an automatic deal breaker for me, but something I consider when evaluating a loan, especially in this case where I had some good choices. Someone putting 33% down is more likely to be in a very strong position.
1. Buyers will come to the table with a pre-approval letter regardless of the amount of down payment. A person putting down 5% will have the same letter from the lender as someone putting down 20%.
2. As far as the appraisal, didn't the seller price the house appropriately from the beginning? Why worry about the appraisal unless the seller is trying to be shady?
Pre-approval letter is not a finalized loan. And, yes, I priced my house appropriately. Actually underpriced some. All explained in my first post.
I actually was able to buy this home in the first place because a pre-approved buyer's financing fell through at the last minute.
i would counter #2 and #3 with 230k, then see what they say.
Just grist for the mill.... You can't counter them both. They both could sign, then what?
You ~can~ ask for highest and best from all... but that's what they already tried to give with the escalation clauses. Sometimes the highest offer isn't the best offer. It depends.
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