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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
Last edited by bizcuit; 01-12-2019 at 02:12 PM..
Reason: more info
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
For offer 2, your con is that it's a financed offer. If the offeror has their financing secured why do you care? The concern belongs to the lender not you. If YOU were offering financing, that's different.
For offer 2, your con is that it's a financed offer. If the offeror has their financing secured why do you care? The concern belongs to the lender not you. If YOU were offering financing, that's different.
True, I just meant as it relates to the cash offer really. Offer #1 is all cash, but contingent. Offer #2 is financed, but not contingent.
Both depend on the actions of others to make them work, and that's the part that keeps us up at night, right?
The home sale contingency sounds really good. It's almost sold, you can probably get a link to look at the home yourself, at least online... and evaluate whether it's a good bet to close easily or not... Either with this buyer, or with another IF it falls through. Good house, strong market, a contingency is not a BAD bet at all.
Offer number two is also a really good offer (so is 3). You mention the inspection contingency with this one... is there not one with the other offer? If there's not one with the other offer... that might cinch things up for offer 1. Don't take 2's word for what is minor on inspection repairs. It's an attractive thing to say, but with inspections, it's ALL fair game once you are under contract. They can ask for the moon. You can turn them down, but they can ask... no matter what they say now.
Does your agent have an opinion on the offers, the agents or the lenders involved? Did both financed offers have approval letters? Are they from lenders who are known and trusted by your agent to get things done on time? Has your agent called the lenders? The lenders can't disclose a LOT of personals to a seller's agent, but with a lender I know and trust, I can get a sense of how strong the buyer is.
A good solid approval from a lender I know and an opposing agent who is good to work with can make a lot of difference in the whole transaction getting to close, and on time, and might count for a lot. Ask your agent if they've worked with any of the players before, for good or ill.
Both depend on the actions of others to make them work, and that's the part that keeps us up at night, right?
The home sale contingency sounds really good. It's almost sold, you can probably get a link to look at the home yourself, at least online... and evaluate whether it's a good bet to close easily or not... Either with this buyer, or with another IF it falls through. Good house, strong market, a contingency is not a BAD bet at all.
Offer number two is also a really good offer (so is 3). You mention the inspection contingency with this one... is there not one with the other offer? If there's not one with the other offer... that might cinch things up for offer 1. Don't take 2's word for what is minor on inspection repairs. It's an attractive thing to say, but with inspections, it's ALL fair game once you are under contract. They can ask for the moon. You can turn them down, but they can ask... no matter what they say now.
Does your agent have an opinion on the offers, the agents or the lenders involved? Did both financed offers have approval letters? Are they from lenders who are known and trusted by your agent to get things done on time? Has your agent called the lenders? The lenders can't disclose a LOT of personals to a seller's agent, but with a lender I know and trust, I can get a sense of how strong the buyer is.
A good solid approval from a lender I know and an opposing agent who is good to work with can make a lot of difference in the whole transaction getting to close, and on time, and might count for a lot. Ask your agent if they've worked with any of the players before, for good or ill.
Really good points, thank you very much. I think my realtor likes offer #1. The home sale contingency has been making me nervous. He also wants to do both closings on the same day, which seems overly ambitious to me, especially when he would need the cash from one closing to cover the purchase at the other. But I'm probably also overthinking everything too.
Really good points, thank you very much. I think my realtor likes offer #1. The home sale contingency has been making me nervous. He also wants to do both closings on the same day, which seems overly ambitious to me, especially when he would need the cash from one closing to cover the purchase at the other. But I'm probably also overthinking everything too.
Is the other sale in the same county? If so, same day closings are very doable, use the same escrow company, the money can move from his transaction to yours seamlessly.
Even if they have to move money from one to the other, that only takes moments these days.
Really good points, thank you very much. I think my realtor likes offer #1. The home sale contingency has been making me nervous. He also wants to do both closings on the same day, which seems overly ambitious to me, especially when he would need the cash from one closing to cover the purchase at the other. But I'm probably also overthinking everything too.
Really good points, thank you very much. I think my realtor likes offer #1. The home sale contingency has been making me nervous. He also wants to do both closings on the same day, which seems overly ambitious to me, especially when he would need the cash from one closing to cover the purchase at the other. But I'm probably also overthinking everything too.
I'm with your agent.
#1. No question. Cash. And just about ready to close on their current sale.
Should be a quick sale, and if not, you would seem to be able to get a new crop of offers pretty quickly.
#2?
They already said the place is worth $225,000 to them. Why settle for a penny less? I would suggest my client ignore the offer or counter at $222,500.
But, of course, we don't do escalator clauses in NC.
Hmm. this is a tough one. Normally I'd say go with the cash offer. The issue is you take a risk if their sale falls through. The second looks appealing because they agreeing not to be too picky about the inspection. They are getting financing so that could be a risk if it falls through. Lastly, the third option is also another good option because they know about the complex and the townhomes. The thing is they are offering less. They are getting financing too so that can fall through as well.
I still like the idea of the cash offer. Their sale could fall through but so could the financing for the other two. Their sale seems pretty solid since inspection and appraisal are done and they have a closing date. Let's say their sale fell through. Depending on the market in your area, they maybe able to find another buyer quickly. It may delay your close but you would still be getting cash. Another thing is if something comes up on inspection, the bank may require you to fix it before they will finance their buyer. A cash buyer can overlook it. It's a tough choice but go with your gut feeling Whatever decision you make, you can always take back up offers. Sounds like the market where you are is hot.
Is the other sale in the same county? If so, same day closings are very doable, use the same escrow company, the money can move from his transaction to yours seamlessly.
Even if they have to move money from one to the other, that only takes moments these days.
Not the same county. Not even the same state -- my place is in New Hampshire, the buyer's property is in MA. But they are technically only a few towns apart.
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Whatever decision you make, you can always take back up offers. Sounds like the market where you are is hot. 
