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unless the listing agent of your parents home is also representing the buyer, then suggest to your parents that they follow the advice of the listing agent.
Different agents and brokers.
The agents have been working verbally this morning.
My parents ok'd the two options in my original post presented as an either or with the kickout clause and being able to delay their move by a week after closing in the option with buyers house under contract contingency.
Buyers accepted the lower price no contingency.
Its a wrap for now, parents are happy and they are signing papers now.
The whole reason they are selling is to get out from under the increasing difficulty of keeping up with this home and yard.
The timing also works perfectly with moving them into the in-law suite being built onto my sisters house without having them come stay in my house and store the furniture and stuff they are keeping.
Also, works having a leisurely pace at which to sell/donate the stuff they are not keeping or to keep furniture which will be donated or moved with them until the last minute in case the deal falls through and they want to move and enough stuff to stage the house. They don't want to be showing an empty house and running back and forth to clean or air out.
The showing process, is difficult for most people. For two 80 somethings its brutal both physically and emotionally.
So the contract is actually $225K, no contingency.
Correct. An offer they were happy with until they got to the buyers must have a contract on my house to close part.
One thing I failed to mention before is even though their original listing price was in line with the smattering of sold comps available, it took those people 4-8 months to sell.
This middle segment of the market is taking the longest to recover here and it is an exceedingly slow dollar by dollar recovery it seems. There's also a lot of new construction at this price point some of it very close to my parents.
Also, due to the large retiree population, any day you can wake up and find you are competing with an estate sale where the kids are listing way under market a house just like yours.
Ironically, this is the price my husband and I suggested they start with. We actually considered buying it from them to turn into a rental and that's the price we thought it was worth even if all we updated was the flooring and paint/wallpaper. That would have saved them the realtor fee of course, but we decided it was more hassle than it was worth to us.
Small town with slowish market. Not a lot of inventory, not a lot of buyers.
Houses has been on the market for about 6 weeks. A lot of showings, feedback....great house but no offers.
Original listing 239,000. Last week price dropped to 238,000 with a 5,000 allowance to be used for updates or closing costs.
Its a 1985 house, well cared for, clean, etc. Custom built by one of the best local builders and has great bones. Also, has most of its original finishes and all carpeted. Original kitchen with oak and corian, original baths. Guessing it would take $50,000-60,000 to update depending how much you did yourself and how extravagant you were with the kitchen. Its in a gorgeous and desireable neighborhood.
Original list price 239,000. Last week price dropped to 238,000 with a 5,000 allowance to be used for updates or closing costs.
More showings and today an offer, with a bunch of contingencies.
Offer was 230,000 with 5,000 allowance.
Contingencies, normal inspection stuff, 3,000 deposit, 5 days to apply for a mortgage, get the mortage at a rate up to 4.5%.
Most of that seems ok, but here's the kicker, they have a house to sell.
The explanation between realtors was that they don't have to sell it to buy this one. Presumably that means they can get the mortgage while they still own their home(they have a preapproval letter up to 270,000). But, they want to have a contract in hand on their house before they close.
The closing date is reasonable and workable but it never happens if they don't have a contract on their house.
About the buyers for what its worth, young retiree couple with state and county jobs, one high level and one unknown level, but backsup that they are probably financially stable with pensions from long time careers. Natives who want to get out of where they are on the opposite side of town. They are basically trading one similar price house give or take 20-30,000 dollars. Albeit theirs is smaller, only 4 years old and in an over 55 community with a high HOA vs a regular suburban community and larger house/lot.
They also made a point of saying they were friends with the people across the street, but I suspect more like friendly acquaintances or social connections.
Broker suggested counter with two offers: 234,450, 5000 closing/update allowance and allow the contingency of contract on their house. OR 230,000 5,000 closing/update allowance no contingency that they have a contract on their house to close.
Is that normal to counter with 2 options? Seems even more confusion added to the mix.
My thoughts are counter with 234,450 5,000 allowance and extend the closing date 2 more weeks but no contingency that they have a contract in order to close. Agree to the deposit and the financing.
There offer just seems to cover them 6 different ways to Sunday on whatever it is they are trying to do.
I presume they are trying to minimize the time they carry two houses or to cobble together the allowance and profit from their home to pay for all or most of the updates they probably want to do before they move in.
Any thoughts or recommendations are appreciated.
Having some experience I would never entertain an offer contingent on the sale of another propertyl
Your agent is the one who has to sort this out for you and give professional advice.
Having some experience I would never entertain an offer contingent on the sale of another propertyl
Your agent is the one who has to sort this out for you and give professional advice.
Good luck!!!!
Thanks, but see above. They have signed a contract without a contingency.
Put a kickoUT clause in there, where if you get another acceptable offer they have to remove the contingency and deposit additional earnest money or terminate the contract.
Well FWIW we had such a contingency and we ended up with the house. Sellers weren't desperate but the adage of "a bird in the hand is better than two in the bush" can still apply. You have to keep in mind what type of market that you are in. Our home was under contract for over asking in less than two days while theirs sat. There's no shame in stating that you are using the proceeds of your first house to "level up" to your next house. Our offer was strong though because our house was already on the market with a solid contract. The seller protected themselves with a kickout clause and a leaseback. IMO, to blow off a valid offer just because it has a contingency based on the sale of a property is short changing yourself unless you have five offers and you can freely pick.
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