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Old 04-26-2008, 07:57 PM
 
Location: Kauai
649 posts, read 3,324,099 times
Reputation: 471

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OK, we made a few lame attempts to sell our house FSBO, and lo and behold, we got an offer. Pretty much what we wanted for the house, price-wise. Nice people, no agents, we like this, so far so good. Cash deal, no financing, even better, right? Woo hoo. Only contingency is 10-day building inspection, and we're assured that they're just covering their you-know-whats, they are not looking for a reason to break the deal. Only for really major, latent stuff. They know the house isn't perfect (and I'm really glad I was totally upfront about all the little flaws).

We can't be out of the house until mid-July, they knew this. They're OK with it. But they would like to close "sooner rather than later", within a month or so, and do a post-possession agreement for us to lease the house back until we're ready to go. They know we're going far away, we have our one-way tickets purchased and are rapidly clearing out and packing up. We have a new job, new school and new house to go to.

So it seems like not much risk to them. We've lived here for 14 years, anything we were going to "do" to the house we've already done, and we're not going to holdover.

And it seems like not much risk to us. At closing, we are out from under our mortgage (with our rent paid from proceeds for the 1.5 months we'll be here), homeowners' insurance (but we'll need renters'), and taxes, and they will bear the risk of loss to the property. We have a contract right to possession, they can't kick us out.

Yet I keep wondering (and I'm going to ask them tomorrow), WHY would they want to do this? The only thing they mentioned (briefly when making their verbal offer - we're getting together tomorrow to sign a contract) is "security". Could they really be afraid that we will change our minds? Isn't the signed contract enough security for them in that regard? As I see it, we will benefit more from the early closing, as it seems like much more of a risk to US that THEY will decide to walk; after all, we're moving, and really need to sell this house. They can always go buy another one!

Does anyone else out there see any significant downside to this, for us, as opposed to waiting until we're ready to leave in July and closing then, simultaneously with transferring possession? Am I missing something here? Or is it just my natural skepticism, thinking that if they want this so much, it must be bad for us?
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Old 04-26-2008, 10:24 PM
 
Location: Montana
2,203 posts, read 8,835,943 times
Reputation: 1127
First of all, Sweetbeet, make sure they do put their money where their mouth is and present you with a signed contract along with an earnest money deposit. I have some friends that were trying to sell FSBO, and more than once they were sure they had their house sold, but the contract never showed up.

Secondly, it could be that they don't want you to change your mind, as you mentioned. Perhaps your house is actually a "steal of a deal" and they want to get it in their name before you realize what a bargain they got. . . .

Or it could just be that everything is just fine, and it just works out better for their financial planning to close early and let you rent back.

Will you have an attorney looking over the contract before you sign and handling the rest of the details through closing?
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Old 04-26-2008, 10:59 PM
 
Location: Southwest Pa
1,440 posts, read 4,075,815 times
Reputation: 1694
Have your trusted attorney look things over and make sure all the "t's" are crossed and all the "I's" dotted. It would help if they had experience in RE, not all do. Other than that, anything we say here wouldn't really answer your questions in a way that would seriously help you. Good luck!
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Old 04-27-2008, 01:14 AM
 
Location: New Mexico
631 posts, read 2,318,679 times
Reputation: 330
Quote:
Originally Posted by Gretchen B View Post
First of all, Sweetbeet, make sure they do put their money where their mouth is and present you with a signed contract along with an earnest money deposit. I have some friends that were trying to sell FSBO, and more than once they were sure they had their house sold, but the contract never showed up.

Secondly, it could be that they don't want you to change your mind, as you mentioned. Perhaps your house is actually a "steal of a deal" and they want to get it in their name before you realize what a bargain they got. . . .

Or it could just be that everything is just fine, and it just works out better for their financial planning to close early and let you rent back.

Will you have an attorney looking over the contract before you sign and handling the rest of the details through closing?
I agree with Gretchen. As a real estate broker, I have found there are many NON agent, lay persons so much more experieced than a broker in the real estate world. It sounds like what she said, you're the steal of a deal and they know it and don't want to lose it. Want to wrap it up before you know it, or it's just perfect for them and they don't want to lose it.

I just signed a contract for a deal myself. The owner wants to close in 2 weeks as he needs the cash and NOW. But he has needs to stay there 30 days after he gets my money to have money to move. I agreed. It's a steal, I want it, so I agreed and he knows it.
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Old 04-27-2008, 05:44 AM
 
172 posts, read 543,775 times
Reputation: 72
I wanted to rent back for a few months actually. The buyer wanted to close april 30 but our new home won't be completed until august. We actually proposed such a deal - but the buyer could nto do it with his own situation. Now we are going to temporary housing.
I think this is a great scenario for you. They my also like it because they could be profiting if your "rent" to them is more than their mortgage payment. Also, they may have a mortgage rate now that they won't be able to get in July. Sounds like they could just be nice people throwing you a bone. BUT - make sure you draw up some kind of agreement on paper outlining security deposits, the condition the house should be in when you leave etc. Include any damage that already exists in the house so they can't claim you did it during your rental time.
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Old 04-27-2008, 06:04 AM
 
Location: Kauai
649 posts, read 3,324,099 times
Reputation: 471
Thanks for the tips. I am a lawyer, I don't specialize in real estate but I do see all the cases where things fall apart, so I have a pretty good idea of what to look for in contracts, how to read and interpret them, and so on.

I have a contract prepared for them to sign this morning, I'm taking an earnest money deposit, I also have a post-closing possession agreement prepared. I think I have all the bases covered legally. I was just wondering if anyone could shed light on why cash buyers (no mortgage concerns) who are currently renting, and are abiding by our (sellers') timetable for getting out of the house, would want to close sooner.

I think I have the answer - it's a 'steal of a deal'. I did really want to sell, and priced accordingly, and gave the buyers a good deal of the saved commissions... I followed everyone's advice on here, I guess I'm just surprised how well it worked! I wonder if I priced it TOO low... guess that would be a first, huh? There were some slightly higher-priced recent sales in the area but the agent who did the CMA for us convinced us that there were some flaws in our house, layout and so on (it's very quirky), that would make it difficult to get above a certain amount. And I sold it for the equivalent of what I would have gotten, after the standard commission, if it had sold for 4,000 MORE than what he suggested as a LIST price with the kitchen done - WITHOUT touching the kitchen. (I'm talking myself out of being worried about the price being too low... after all, I didn't have people knocking down my door to buy it... I had shown it to a few who passed... it couldn't be THAT much of a 'steal', right??)

I'll let you know when it's inked!
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Old 04-27-2008, 06:12 AM
 
Location: Cary, NC
39,066 posts, read 67,677,351 times
Reputation: 39961
You know, some folks just demand stability, and solid planning.

Might be the steal of a deal, but it might be that they like the house and want to know for sure where they will live, have that item put to rest, and move onto dealing with other details of the move.
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Old 04-27-2008, 06:20 AM
 
2,197 posts, read 7,034,286 times
Reputation: 1698
I rented back once for a month. The buyer was nice about it, but charged me high rent and demanded a $2500 security deposit. He also had me sign an addendum contract that I would take care of the house and the landscaping and that I would release it in exactly the same condition it was in on the day of the closing.

He came and took pictures of the yard and every room in the house and attached color copies to the contract. All this for a house that I had impeccably maintained for five years! I shrugged and signed it, and he returned my deposit when it was over. It was overkill, but we both got what we wanted. It's very weird, though, to be a tenant in your own house. Good luck!
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Old 04-27-2008, 06:39 AM
 
Location: Palm Coast, Fl
2,249 posts, read 8,485,413 times
Reputation: 1006
It's a great deal for all parties, I'm not sure why you would question it. They want to lock in a place and be done with it...perhaps they aren't ready to move or in a hurry to move..or perhaps they never plan to live there to begin with. In the meantime, they have people already there, taking care of the place, willing to pay rent. What could be better than to purchase a place, have someone taking care of it and making money off your investment from day one? It's a plus plus for everyone involved.

Congrats on making a heck of a deal!
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Old 04-27-2008, 12:16 PM
 
Location: Kauai
649 posts, read 3,324,099 times
Reputation: 471
Well, we now have a signed contract. Phew!

Now it's just the building inspection (15-day contingency for that), and we're scheduled to close on or before May 30th.

Once my husband spent a few more hours with the buyers I think he came to the conclusion that they aren't out to pull one over on us; now he seems much more comfortable with the lease-back provision. We also ran some numbers and it really is a win-win situation, for both sides - they are gaining a return on their investment for the time we are here, and we are paying only a tiny bit more than we would be paying for mortgage interest and taxes.

Thanks all on here who helped me to make this deal happen.
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