What would you do?

18 years ago

After less than 6 weeks on the market we accepted an offer on our house for $5000 below asking price that is contingent on the family selling their home in a neighboring town. The inspection was done for informational purposes only and everything went good. The buyers have right of 1st refusal and the contract must be executed by November 1, 2008.

In the meantime, we can continue to market and show our house. Since then, we have turned down 2 other offers (less money and really quick closing requirement).

Anyway, here is the problem- we just received a full price offer with a closing requirement for August 23rd and the buyers want an inspection. I am concerned that the inspector will say that the home needs a new roof and we would be left to negotiate the price with the buyer so that the price difference between the 2 offers would be eliminated. More importantly, we are building a new home that will not be ready until January and if we accept the new offer, we have to get out quick (6 weeks) and rent for an even longer period of time while we wait for our house.

If it were you, what offer would seem better? I know that in a bad market, accepting a contingency is risky but I am confident that the 1st buyers house will sell and if it takes a few months, that just gives us more time to stay comfortable in our place with 2 young children.

I realize that we are very lucky to have options in such a tough market and I am grateful for the offer but am so unsure about what to do. Besides, I know it is crazy and it makes my husband nuts when I say it but I feel a little committed to the 1st buyers and already feel bad about possibly screwing up their plans. I'm sure I will get killed for this because it is just business but I can't help how I feel.

Any opinions or thoughts are welcome and appreciated.

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Comments (5)

mpinto
18 years ago
How sure are you about the roof? I wouldn't want to be rushed out the door over $5000. You will also have the expense of moving twice and have to pay rent (money out the door) longer.

You might want your agent to present this to your first buyer's agent. Maybe they can work on removing the contingency. Do what is convenient for YOU.

I also think it's nice you are thinking of the first buyers. There is nothing wrong with ethics in business. Good luck.
crescent50
Original Author
18 years ago
Mpino-
At our inspection 7 years ago, we were told that the roof was in OK shape- 5 to 10 years before needing to be replaced so I am almost certain the $ for it would have to be negotiated if we went with the new buyers. Also, the house is 60 years old so I'm guessing some other issues might come up although it is in nice shape and well kept.

Our realtor actually made the same suggestion about having the 1st buyers remove the contingency so I guess we will see. We are wondering if they may be willing to close on the house and then let us rent it from them. We have a bank letter from them that states that the sale does not have to be contingent and they are approved for mortgage so in a perfect world, our sale could be settled and we could still enjoy the house (no more showings with a 4 and 1 year old:)!) and they could take their time to find the right buyer for their home.
Time will tell. Thanks for your response and comments- I really do think it is important to consider how an huge decision for my family effects a huge decision for someone else's.
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theroselvr
18 years ago
Crescent. in a perfect world things go smooth, but most time, it is not a perfect world, stuff happens.

When we built our house last year, they were amazed at my hubby's great credit, kept telling us, if the house doesn't sell, don't worry you have equity, think bridge loan was mentioned. Then my hubby fell from his tractor trailer & was out of work 2 months. By February things had changed, we had to sell the old house in order to even move into the new.

Anyway, I'm not nuts about the long close. Too much can go wrong. There are posts about buyers backing out at other forums. The longer the close, the more prices go down, buyers can get remorse.

I would move twice if I had to. You can't predict what will happen tomorrow.
theroselvr
18 years ago
You will also have the expense of moving twice and have to pay rent (money out the door) longer.

If prices in the area go down and they lose their buyer, it's possible that moving twice and paying rent was cheaper then having to do price drops.

We'd originally listed for almost $240k, 9 months later we sold for $207k.
disneyrsh
18 years ago
I would take the second offer and move out. A bird in the hand and all....

Just get an apartment or rent a house for a while. You never know when your new house will be done, anyway. There may be unforseen delays.

And unless you have a crystal ball, being "confident" about the buyer's house selling is nothing more than a warm fuzzy feeling.