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We put an offer on a house. Its about 45-60 min from where I live now...
They were asking way way way over anything that selling nearby and the comps in the area are around 500k (with several more acres of land)
Asking price was 575 , we offered 515.
They came back and countered and said if they accept my 515k I have to take over their 75k loan they have on the solar panels they installed 2 years ago. 50k + 25k interest = 20 years 340 month. Or they said 550k and they will pay the panel loan off....
They never disclosed this in the listing. I don't see it appraising 550k and I'm not paying for the solar panels.
It has had no other offers and been on the market for 2 months.
Sounds as if you already know your answer. Is there anything about this property so unique that you are willing to pay more for it? Do the solar panels mean that much or is there something else? What other features set it apart from the comps? Are you really going to be upset if you lose the house to another offer? Correct me if I'm wrong, but isn't a seller obligated to pay off a solar panel loan before closing? Is having a buyer assume the loan even an option? If their counter is still too high (regardless of the solar panel payoff carrot) walk or counter back.
Let the counter lapse and see if they come back. If not, you're $75k ahead of the game, so to speak.
They can't sell the house without satisfying the solar panel loan, or getting a new buyer to assume it. If it's been marinating in this market for two months they've got unrealistic expectations, and the market is telling them that. Taking a tack like this would drive nearly all potential buyers away, I would think, especially if there's nothing in the property listing about it.
You have the upper hand in this transaction. Use it to your best ability if you really want the place, or move on. As a professionally trained negotiator I can tell you that you have the most powerful tool available - the ability to walk away.
Sounds as if you already know your answer. Is there anything about this property so unique that you are willing to pay more for it? Do the solar panels mean that much or is there something else? What other features set it apart from the comps? Are you really going to be upset if you lose the house to another offer? Correct me if I'm wrong, but isn't a seller obligated to pay off a solar panel loan before closing? Is having a buyer assume the loan even an option? If their counter is still too high (regardless of the solar panel payoff carrot) walk or counter back.
It is unique and pretty much has everything we are looking for. It is not on the best side of town though (which is a big turndown). We were going to be making an exception for that.
However, I firmy believe the house is valued around 500k + 15k (for the solar panels)
That was my offer. Im not forking over another 35k just because they decided to take a 75k loan out for 20 years on solar panels.
I highly doubt solar panels would add 50k in value to any home. I have been reading 15k max.
They already moved and the house is empty. So they still have to make mortgage and solar panel payments. No offers in 2 months leads me to believe that we should just wait this one out and see what happens.
Im not going to cry if we dont get it. We really do like it, but what is the point if it does not appraise? Im not paying out of pocket for the difference.
I did the math and it seems that the solar panel payment is more than what the electric bill would have been. I do believe this people made a bad financial move and they are looking to sell just to get out of this 75k solar panel debt they have put on themselves. However, Im not paying for their bad decision.
My offer stands. They are paying a mortgage, and a solar panel bill of 340 a month. Im in no rush and can wait to see what the market decides. Just going to continue to look elsewhere and if they come back, then great!
Looks like they paid around 350k for the place 4 years ago. So they would still be way ahead and take good profit. I soley believe they are selling it because of this 20 year solar debt they signed off on.
It is unique and pretty much has everything we are looking for. It is not on the best side of town though (which is a big turndown). We were going to be making an exception for that.
However, I firmy believe the house is valued around 500k + 15k (for the solar panels)
That was my offer. Im not forking over another 35k just because they decided to take a 75k loan out for 20 years on solar panels.
I highly doubt solar panels would add 50k in value to any home. I have been reading 15k max.
They already moved and the house is empty. So they still have to make mortgage and solar panel payments. No offers in 2 months leads me to believe that we should just wait this one out and see what happens.
Im not going to cry if we dont get it. We really do like it, but what is the point if it does not appraise? Im not paying out of pocket for the difference.
I did the math and it seems that the solar panel payment is more than what the electric bill would have been. I do believe this people made a bad financial move and they are looking to sell just to get out of this 75k solar panel debt they have put on themselves. However, Im not paying for their bad decision.
My offer stands. They are paying a mortgage, and a solar panel bill of 340 a month. Im in no rush and can wait to see what the market decides. Just going to continue to look elsewhere and if they come back, then great!
Looks like they paid around 350k for the place 4 years ago. So they would still be way ahead and take good profit. I soley believe they are selling it because of this 20 year solar debt they signed off on.
Does the solar panel loan encumber the title? Can they even sell without satisfying the loan?
I suspect "yes" and "no."
And, yes, they should have disclosed it. Them or the agent or both.
Does the solar panel loan encumber the title? Can they even sell without satisfying the loan?
I suspect "yes" and "no."
And, yes, they should have disclosed it. Them or the agent or both.
I would have to check on that. They made 0 disclosure about the solar panels until after our offer was made then said we are countering it because of all this solar panel debt. They sent all the info on it and the payments and contracts etc...
If this did move forward, we were going to add amendment to have the title company pay off that loan on closing day with the proceeds. That way we could be sure to avoid any trouble down the line in case they did not pay it.
I would have to check on that. They made 0 disclosure about the solar panels until after our offer was made then said we are countering it because of all this solar panel debt. They sent all the info on it and the payments and contracts etc...
If this did move forward, we were going to add amendment to have the title company pay off that loan on closing day with the proceeds. That way we could be sure to avoid any trouble down the line in case they did not pay it.
I thought it was a bit sketchy that they would not have disclosed this in the listing. That gives you a good idea of the ethical compass of the sellers. I would be expecting more surprises and wondering what else didn't they disclose if I went forward (which I wouldn't have.)
Sounds like you have a good handle on the situation and aren't going to let emotion drive your decision. You're one of few buyers out there who does so, I believe. Good luck!
I think the seller listed at 575 and he was intending to pay the solar panels off (probably to simplify selling a house with panels).
OP offered 515. Seller countered with 550, panels paid off. Then seller muddies the waters by offering another alternative. This causes OP to have a hissy fit.
By the way, it's not clear if OP's "comps" also have solar panels. If not, then, well, they're not comp.
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