finally got offer on home but in a dilemma?

Question

OK house has been on the market for 6 months and was listed, at that time for 395. After a few months I lowered price to 349 and that price stayed fromJuly to Dec. I had around 15 agents look all this time. Then 2 weeks ago I lowered it again down to 325 due to comps. I finally got offer yesterday. I do want to mention that my mortgage is going to balloon soon from 1100 to 2300 a month which makes me more vulnerale to see so low. My home is now the lowest in my neighborhood with around 40 homes for sale. I never had it apprasied which was very stupid of me. Anyway went and met agent and hear is what buyer wants. The price they accepeted but the problem is they want to move in on the 28th of Dec. There is no way I can get out by then due to low funds. I have to hire a mover and cannot pay him until settlement. I am sure these people are anxious to move in due to tax break, not sure but assume that is it. also have to pay closing of 9500 closing cost, carpet professionally cleaned and get this the agency makes a whopping 20,000 on the deal. That is half of what I will make. Like I said I am afraid to turn down the deal due to the upcoming balloon payment. I have not even found a home yet. Does anyone have any answers for me. I am going to phone the agent this morning and tell him there is no way I can get out of here in 23 days. thanks

Janet Speckmeier

Answer 1

Assuming that your offer is for $325,000, you are paying the standard commission of 6% of the final sale price. Not out of line, given that the agency has marketed the property for fix months.

If you feel better about it, have the place appraised so that you know if you have a decent offer or not. The closing cost of $9500 seems out of line, and I assume that the buyers want you to cover their costs. Not unusual to demand carpets be cleaned at your expense.

As far as the close date, it's your call. If you REALLY want to sell, find a way to get out of there when requested. Twenty eight days isn't that outrageous, and offers aren't falling from the sky, as you are now learning. You are going to have to hire movers one way or the other.

Of course, if you phone the agent advising that you can't be out by the 28th, you are effectively rejecting the offer of the buyer, since that criterion is one of the requirements of the offer. It's your call.

Answer 2

I would HIGHLY recommend that in this market, and with 40 homes for sale in your neighborhood alone, AND with your mortgage almost doubling in a few months...that you DO NOT make that phone call.

Apply for a credit card, borrow money from family or friends...but you NEED to sell that house to your current buyer on their terms.

If you call that Realtor and tell them that you don't want to move until you find a house, which means you'll have to go through loan approval yourself, I'll also guarantee that Realtor will advise his/her client to find ANOTHER home.

Listen to Acermill...if you change the closing date, you have rejected the ENTIRE offer.

Do you have ANY idea of how lucky you are to sell a home in this kind of market and not have to bring money to closing? Especially around the holidays?

If this is the first offer you have had in a year, I would wager you wouldn't get another one for at least 6 months. Can you financially handle that?

Yes, you CAN get out in 23 days....you just have to turn problems into solutions. It's called temporary housing.

Answer 3

I would be afraid to turn the deal down also considering how the housing market is and too if you do turn it down then it just may be on the market another six months. You certainly are doing the right thing with the closing date but consider this- is it worth taking a MAJOR RISK- if you set your mind to it you can close- why not ask for a rent back.