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Re: House sale quandary - got offer from neighbor before agent listed house

Posted: Tue Sep 08, 2020 8:48 pm
by ram
I paid our attorney for 2 hours. I think 400 or 500. (LCOLA). I read up everything, went to him saying that this is what I was planning and if I had missed anything. He said I had done fine. He reviewed everything before I signed.

Re: House sale quandary - got offer from neighbor before agent listed house

Posted: Tue Sep 08, 2020 9:27 pm
by the way
I remember a similar thread of selling to a neighbor that did not go well viewtopic.php?f=2&t=281215

Re: House sale quandary - got offer from neighbor before agent listed house

Posted: Wed Sep 09, 2020 6:16 am
by Freetime76
OP: So...? Any neighborly agreement yet ? (Is that the gardener thread, oh dear...OP should read that saga).

To expand/echo on the advice of others:
1. I am getting rid of that agent. It’s already a “no” as soon as I read that your agent is ‘a close family acquaintance’. Oh no. Not available for days?!? I want a response within 24 hours - at minimum. We just fired our agent (like pulling teeth, I tell you), for non communication and missed deadlines (he’d say, “I’ll have this to you as soon as I get back from showings, tonight”...2 days later, I am p.o.’ed and on the phone. Voicemails left, emails sent (other times...several in fact), and zero acknowledgement of receipt.
Please trust me, there is no reason for inaccessibility, and the agent is not going to improve after the listing is live ( don’t they have other listings up now? What about those clients?!?). If your close acquaintance (whatever that means?) is in a yurt in Antarctica, then you should be notified in advance, and his work delegated to his broker. How many houses does this agent sell per year? Maybe: Too few =not serious. Too many = not paying attention to your listing.

2. I am going with the wife, if it truly is a gut feeling that you can do better. Sometimes we get a feeling about something that the spreadsheets don’t show...also, you might hear about it for years to come if the neighbor deal goes south and she wasn’t fully on board with it.( My DH insists I add that part :wink: )

3. Make sure you look at sold comps on your own - look on Zillow or similar website.

4. Whatever you do, read your contracts, and if it’s not in writing, it’s not a real offer (yet).
Good luck!

Re: House sale quandary - got offer from neighbor before agent listed house

Posted: Wed Sep 09, 2020 6:23 am
by onourway
I agree - right now is absolute peak season for home sales in what is the hottest market in years if not decades in many locations. If your realtor went MIA for a week right now - especially without informing you - it’s time for a different realtor if you decide to go to market. A realtor who is hungry and wants your business should be responding to any questions from you within the hour right now. It’s their busy season and they are well compensated for their efforts.

Re: House sale quandary - got offer from neighbor before agent listed house

Posted: Wed Sep 09, 2020 6:26 am
by lostdog
It might be a wash. If you get more than asking, the realtor fees plus closing fees will cost you.

We sold our house for $215,000 in a LCOL area. We paid $18,000 on fees. I wanted to puke.

It might be a wash. Pick whatever is more simple.

Re: House sale quandary - got offer from neighbor before agent listed house

Posted: Wed Sep 09, 2020 8:54 am
by Quirkz
Freetime76 wrote: Wed Sep 09, 2020 6:16 am
To expand/echo on the advice of others:
1. I am getting rid of that agent. It’s already a “no” as soon as I read that your agent is ‘a close family acquaintance’. Oh no. Not available for days?!? I want a response within 24 hours - at minimum. We just fired our agent (like pulling teeth, I tell you), for non communication and missed deadlines (he’d say, “I’ll have this to you as soon as I get back from showings, tonight”...2 days later, I am p.o.’ed and on the phone. Voicemails left, emails sent (other times...several in fact), and zero acknowledgement of receipt.
Please trust me, there is no reason for inaccessibility, and the agent is not going to improve after the listing is live ( don’t they have other listings up now? What about those clients?!?). If your close acquaintance (whatever that means?) is in a yurt in Antarctica, then you should be notified in advance, and his work delegated to his broker. How many houses does this agent sell per year? Maybe: Too few =not serious. Too many = not paying attention to your listing.
I think you may have gotten someone else's comments mixed in with mine. The agent wasn't a close family acquaintance, she's a very successful one in town who we've used before. She told us up-front that she'd be incommunicado for a few days. As it was before the house was going to list (delays also caused by other things, like a professional photographer, and a need to patch a piece of roof), that seemed acceptable to us. I believe she closed 30 houses last month, so maybe on the too-busy side, but that also means it was easy for her partner to let us out of the contract.

Re: House sale quandary - got offer from neighbor before agent listed house

Posted: Wed Sep 09, 2020 9:02 am
by SebastianIII
You dont owe anything to the RE agent until you have signed listing agreement, RE attorneys are usually not expensive and you will pay either way. Have your buyer get a purchase agreement written up with the terms with closing date and due diligence/inspection period. If you are okay with those items accept the offer with deposit. If it falls through list it.

Re: House sale quandary - got offer from neighbor before agent listed house

Posted: Wed Sep 09, 2020 9:07 am
by Quirkz
Thanks for all the ongoing input, from all angles.

We went back to the neighbor the other day, emphasized that they had to convince us they were serious, negotiated the price up a bit, and while I didn't get him to agree to "as-is" I made it clear giving him a discount meant I wasn't going to be negotiating over dinky cosmetic issues. They confirmed it would be a cash offer with a quick closing and flexibility on the possession date, which helps us figure out how to coordinate a move 1200 miles away. They've done a walk-through of the house and started collecting pertinent data about the house to draw up the contract.

It's true I might be leaving some money on the table, but I really don't think it's a lot. We have seen recently sold comps, and they're in our range. As I laid out in an earlier post, I honestly expected to walk away with $15k less than this offer is going to get me, so it's already exceeding expectations. My expectations might have been too low, but I could easily reach for more and end up with less.

Things we like:
- quick, easy, cash offer
- flexibility on the date we have to leave
- only one showing in Covid times. We are home-schooling two elementary school kids. Having to keep the house presentable is a HUGE cost.
- getting more than I expected (even if I can't know it's the most I could get)

I know there's some skepticism about this actually being completed. I'll keep you posted as it progresses.

Re: House sale quandary - got offer from neighbor before agent listed house

Posted: Wed Sep 09, 2020 9:12 am
by stan1
Quirkz wrote: Wed Sep 09, 2020 9:07 am Thanks for all the ongoing input, from all angles.

We went back to the neighbor the other day, emphasized that they had to convince us they were serious, negotiated the price up a bit, and while I didn't get him to agree to "as-is" I made it clear giving him a discount meant I wasn't going to be negotiating over dinky cosmetic issues. They confirmed it would be a cash offer with a quick closing and flexibility on the possession date, which helps us figure out how to coordinate a move 1200 miles away. They've done a walk-through of the house and started collecting pertinent data about the house to draw up the contract.

It's true I might be leaving some money on the table, but I really don't think it's a lot. We have seen recently sold comps, and they're in our range. As I laid out in an earlier post, I honestly expected to walk away with $15k less than this offer is going to get me, so it's already exceeding expectations. My expectations might have been too low, but I could easily reach for more and end up with less.

Things we like:
- quick, easy, cash offer
- flexibility on the date we have to leave
- only one showing in Covid times. We are home-schooling two elementary school kids. Having to keep the house presentable is a HUGE cost.
- getting more than I expected (even if I can't know it's the most I could get)

I know there's some skepticism about this actually being completed. I'll keep you posted as it progresses.
Well that's progress for sure. You didn't mention the cash offer in your first post; had you done that I think many of the previous 50 posts about the seriousness of the buyer would be different.

Re: House sale quandary - got offer from neighbor before agent listed house

Posted: Wed Sep 09, 2020 12:39 pm
by MarkerFM
Quirkz wrote: Wed Sep 09, 2020 9:07 am Thanks for all the ongoing input, from all angles.

We went back to the neighbor the other day, emphasized that they had to convince us they were serious, negotiated the price up a bit, and while I didn't get him to agree to "as-is" I made it clear giving him a discount meant I wasn't going to be negotiating over dinky cosmetic issues. They confirmed it would be a cash offer with a quick closing and flexibility on the possession date, which helps us figure out how to coordinate a move 1200 miles away. They've done a walk-through of the house and started collecting pertinent data about the house to draw up the contract.

It's true I might be leaving some money on the table, but I really don't think it's a lot. We have seen recently sold comps, and they're in our range. As I laid out in an earlier post, I honestly expected to walk away with $15k less than this offer is going to get me, so it's already exceeding expectations. My expectations might have been too low, but I could easily reach for more and end up with less.

Things we like:
- quick, easy, cash offer
- flexibility on the date we have to leave
- only one showing in Covid times. We are home-schooling two elementary school kids. Having to keep the house presentable is a HUGE cost.
- getting more than I expected (even if I can't know it's the most I could get)

I know there's some skepticism about this actually being completed. I'll keep you posted as it progresses.
I think you are doing the right thing, especially in light of a looming long-distance move. Best of luck with that.

Re: House sale quandary - got offer from neighbor before agent listed house

Posted: Wed Sep 09, 2020 6:37 pm
by Freetime76
Quirkz wrote: Wed Sep 09, 2020 9:07 am Things we like:
- quick, easy, cash offer
- flexibility on the date we have to leave
- only one showing in Covid times. We are home-schooling two elementary school kids. Having to keep the house presentable is a HUGE cost.
- getting more than I expected (even if I can't know it's the most I could get)

I know there's some skepticism about this actually being completed. I'll keep you posted as it progresses.
Thank you for the update (and correction, above)!

I would do the same as you - take it and run :happy It sounds like they want In and your family wants Out. That’s probably 90% of the whole process.
No Showings almost is priceless, even without Covid.

Re: House sale quandary - under contract!

Posted: Tue Sep 15, 2020 1:48 pm
by Quirkz
Following up. The neighbor was serious. There were some delays caused by busy attorneys and title companies, but we've got a signed contract as of today. Waiting on the title company to confirm the closing date.

The realtor was gracious when she came back from vacation. Dropped us a "I'm thinking of you guys, let me know if things fall apart and you want to list after all" email, not in quite those words.

Now we can shift most of our attention to the far side of the move, and figure out where to live and how to get there.

Re: House sale quandary - under contract!

Posted: Tue Sep 15, 2020 3:42 pm
by clip651
Quirkz wrote: Tue Sep 15, 2020 1:48 pm Following up. The neighbor was serious. There were some delays caused by busy attorneys and title companies, but we've got a signed contract as of today. Waiting on the title company to confirm the closing date.

The realtor was gracious when she came back from vacation. Dropped us a "I'm thinking of you guys, let me know if things fall apart and you want to list after all" email, not in quite those words.

Now we can shift most of our attention to the far side of the move, and figure out where to live and how to get there.
Thanks for updating us. Just curious, how are you selecting a closing date? One of your earlier posts mentioned flexibility from the buyers to accommodate your move. Just wondering how you and the buyer are structuring that with respect to a closing date. I usually think of closing date as the same date the buyer takes possession, but I am admittedly very inexperienced in these matters.

Re: House sale quandary - under contract!

Posted: Tue Sep 15, 2020 4:47 pm
by kelvan80
Are they doing any inspections?

Re: House sale quandary - under contract!

Posted: Wed Sep 16, 2020 9:57 am
by Quirkz
clip651 wrote: Tue Sep 15, 2020 3:42 pm
Thanks for updating us. Just curious, how are you selecting a closing date? One of your earlier posts mentioned flexibility from the buyers to accommodate your move. Just wondering how you and the buyer are structuring that with respect to a closing date. I usually think of closing date as the same date the buyer takes possession, but I am admittedly very inexperienced in these matters.
Closing date and possession date will be the same. But Plan A is a very quick closing which just helps us get out there soon. Plan B, if we have some hangups trying to arrange the moving or where we live out there, is willingness to let us rent the house back from them for a little while to get the timing to work okay.

Re: House sale quandary - under contract!

Posted: Wed Sep 16, 2020 10:00 am
by Quirkz
kelvan80 wrote: Tue Sep 15, 2020 4:47 pm Are they doing any inspections?
We had already set up a pre-inspection which was performed on Monday. The buyer was content to have that as their inspection, but during negotiations they didn't quite agree to as-is, but basically it was determined that we wouldn't make concessions for any minor items, only if something major came up.

Re: House sale quandary - under contract!

Posted: Wed Sep 16, 2020 12:36 pm
by rich126
Quirkz wrote: Tue Sep 15, 2020 1:48 pm Following up. The neighbor was serious. There were some delays caused by busy attorneys and title companies, but we've got a signed contract as of today. Waiting on the title company to confirm the closing date.

The realtor was gracious when she came back from vacation. Dropped us a "I'm thinking of you guys, let me know if things fall apart and you want to list after all" email, not in quite those words.

Now we can shift most of our attention to the far side of the move, and figure out where to live and how to get there.
That is good. I had one agent who always had a 24 hr cancelation policy with his clients. Other agents wanted to lock you in for 3/6 months with contracts. Obviously you couldn't cancel and then go sell it to someone who saw the house through his time but I thought that was fair and did use it once (I decided there was a good chance my next company would cover relocation and I got lucky and they did).

Good luck.

Re: House sale quandary - under contract!

Posted: Mon Oct 12, 2020 7:15 pm
by Quirkz
Wanted to follow up on this one, in case anyone was curious. As of Friday the house has sold.

There were some ups and downs, including:
- a misunderstanding over the inspection report, which I kept sending and the buyer wasn't receiving
- earnest money that was roughly a week late
- sale date bumped by a week
- a whole bunch of us poking them for status updates and them being kind of slow and vague and probably frustrated with us

Still, we got there. Having some knowledge of the buyer in advance helped a bit, and proof of funds wasn't really ever in doubt. But I've got to say this really brought to light the benefit of having intermediaries who can negotiate, communicate, enforce deadlines, and also just know all the steps in the proper order. Having been through both, I think I much prefer having a real estate agent, despite the cost -- a chunk of which the buyer soaked up in a FSBO, anyway, even if we still came out a bit ahead ourselves.

We did use a real estate attorney, who was definitely valuable. The buyer had to take a couple of stabs at the contract before the attorney steered us through all the language (even on the "simple, standard" form, it's not very clear to a layman). Definitely recommend one for anyone who is considering FSBO.

Re: House sale quandary - under contract!

Posted: Tue Oct 13, 2020 12:52 am
by Dottie57
Congratulations!

Re: House sale quandary - under contract!

Posted: Tue Oct 13, 2020 11:25 am
by presto987
Just read this whole thread. Congratulations!

Re: House sale quandary - under contract!

Posted: Tue Oct 13, 2020 12:12 pm
by vested1
I'm late to this thread, and am definitely an outlier in my viewpoint, but here it is anyway. I went through the exact same situation after signing a contract with the top selling agent in the county on the sale of my MIL's condo. The only difference between my case and the OP's is that after the sale of the condo I promised that I would list our primary residence if she would except 5% commission rather than her usual 6% on both properties. She accepted the offer, although she had never taken less than 6% due to her advertising, record short length of listing, and staging.

While I was doing some minor repairs to the condo, a "neighbor" whose business was flipping houses, approached me about buying the condo for the listed price minus commission. This was prior to the listing date. He had purchased an adjacent one and was remodeling it for sale. I told him I was under contract and he said he didn't care and neither should I. I told him no on the spot but that I'd get back to him if things didn't work out with the agent.

I then told the agent about the conversation with the flipper, and she thanked me. In my opinion this event supercharged her effort to get us a good deal, and she said as much as she expressed her appreciation of my ethics. Her connections with other agents and the market netted us more than if we had accepted the offer of the flipper and had not honored the signed contract.

She ended up selling the condo and our primary residence immediately after listing for over asking and similar comps, much more than we were hoping for in both cases. I'm not commenting on the decision or the ethics of the OP, but merely stating that once I sign a contract, that's it. Standing by a contract is sometimes rewarded down the road in unexpected ways, not the least of which is being able to sleep at night.

Re: House sale quandary - under contract!

Posted: Tue Oct 13, 2020 4:48 pm
by rich126
I'm going through a sale right now with settlement supposedly this week but the settlement company (or whatever they are called) is constantly asking me for stuff. The current hassle is the payoff amount. I provided all of the documentation to them but now they want me to get involved. I'm 2,000 miles away from any branch and I don't know what I can do about it. Not to mention most of my computing equipment and stuff is packed up for the move tomorrow.

It is a pain to deal with people. At least with a strong market I basically didn't do anything on the repairs.

Definitely worth a drink or two when it successfully finishes.

The settlement company loses a lot of points (as any company would) when every email sent is "URGENT!!!!!" and a bunch of capital letters and so on. It ends up looking childish to me.

Also many of these companies think you are available 24/7 but during my work day I have no access to my email or cell phone which you can't get through to them.