View Full Version : My real estate snafu
I have an issue I could use some advice on - perhaps it's a legal question but objective advice is appreciated. I am selling my house as a FSBO and now have two very interested buyers simply by word of mouth. Both are qualified but the second is the one I wish to sell to. They are exactly the kind of buyer I envisioned living in my house right down to their simple living values. They are also very flexible on our move out date which is huge with us. How do I tell the first couple that I don't want to sell to them? I don't have any contracts yet from either. Thoughts?
Gardenarian
4-24-16, 7:11pm
I would tell the other buyers that you have a better offer, but would be happy to take a back up offer. A "better offer" could mean lots of things: that the other buyers have cash, or a higher credit rating - or that you simply like them more.
We have put in put in back up offers in the past; it's very common in California.
Miss Cellane
4-24-16, 7:15pm
Do not tell the first buyer anything until you have a written, signed contract with the second buyer. Then you can just tell them you accepted a better offer.
The second offer may fall through for any number of reasons, so don't send the first buyers away until you know for sure the second buyers want the house and all the paperwork is in place.
If the first buyers want an answer right away, then you will have to tell them, "We got a better offer, and we'll let you know when the house is under contract. And if this offer falls through, we'll be sure to let you know, if you are still interested." You don't have to tell them that "better offer" means that you like the other buyers better.
I think it's pretty common now to sell to those you like. My friend in Portland did; they wanted to sell to people who weren't just going to subdivide the property and build condos. The people who bought it are avid gardeners who appreciate all the fruit trees, etc. on the property. People often choose buyers based partly on personal letters in a hot market, as well. Follow your instincts.
I am emotionally attached to this house in a way I can't explain. It brings me great comfort to think that the couple/family I want to sell it to are in love with it for all the same reasons I have been. However, the first couple have very well to do parents who wwould be buying it for them (cash). I just don't want any legal issues popping up. I don't know if intent to buy means anything without a contract in the works.
If you're concerned, consult a good real estate attorney. And sell it to the couple you like
Williamsmith
4-24-16, 8:05pm
I am adverse to selling without an agent representing me. You have to deal with the buyers, the buyers agent if they have one, the buyers attorney, the inspectors, appraisers, the bank and maybe contractors. You might have more patience than I but even so, avoiding land mines is a full time job when selling your house.
I would be very careful at how you explain which party you accepted and which you rejected. First come first served is fair. I chose you because of your color, race, religion or some amorphous you connect with my place sounds like a possible quagmire if the rejected party feels like going to court.
There is a reason you asked about this scenario. Because it bothers you that the other party might be offended. Your real reasons might be justified in your mind but if the first offer was cash.........take it and run. Divest yourself of your emotions.
I disagree completely--well, nearly completely--with Williamsmith. I bought a FSBO house--a condo--and the sale went perfectly. I didn't know enough to be worried about it, but we went through a mortgage bank and a good title company. I will never, never, never turn off my instincts when it comes to housing. I did that once, and I'm living in a house I've never liked because of it. You don't have to explain anything; Miss Cellane explains it well. You got a better offer. And it wouldn't hurt to consult an attorney.
Williamsmith
4-24-16, 8:43pm
I can give JaneV2.0 her due here. With one exception. I would simply ask both buyers to submit their best offer and take the highest bid. That's fair and smart.
Yes, I think the safe thing to do is ask both buyers to submit their offers and hope that the one we like works out. For the record, we have bought and sold quite a few homes. Two were done with realtors and those two were disasters. The FSBOs all went without a hitch.
I second saying nothing until all conditions are met by the final buyer provided that each buyer has a chance to submit an offer. I would never sell a house without a real estate lawyer checking the wording of the offers. A tiny word change can be interpreted many ways.
I wish you well in your efforts.
I'm sure I mentioned before that the sellers of this house were very concerned that the buyer might be (gasp!) a Republican. :~) Maybe if I had been, they would have warned me off...Dang.
Williamsmith
4-24-16, 10:51pm
I'm sure I mentioned before that the sellers of this house were very concerned that the buyer might be (gasp!) a Republican. :~) Maybe if I had been, they would have warned me off...Dang.
Thats why I'm an Independent. Call it politically fluid....at any time I may identify as Democrat or Republican or neither. It's non binary politics. There, I just came out.
Teacher Terry
4-25-16, 2:20pm
I would take the people that are paying cash. Things can go wrong when people need mortgages.
Thats why I'm an Independent. Call it politically fluid....at any time I may identify as Democrat or Republican or neither. It's non binary politics. There, I just came out.
I have been a registered Independent for all the years I've lived in Washington. All I had to swear to :~) was not being a Republican. Would anyone like to buy this ramshackle house? :help:
freshstart
4-25-16, 4:45pm
I agree on not cutting ties with the first buyer until the deal is in place with the one you prefer. How great you found someone who loves your house the way you did.
iris lilies
4-25-16, 7:05pm
I'm sure I mentioned before that the sellers of this house were very concerned that the buyer might be (gasp!) a Republican. :~) Maybe if I had been, they would have warned me off...Dang.
I cant help but hope the sellers lost money in that deal. That has got to be the most ridiculous condition for a real estate deal Ive ever heard.
It wasn't a formal condition; but they expressed a concern about it. They did OK, considering this albatross. >:(
As the tale unravels, the first couple backed out because I wouldn't agree to their terms of a very quick close - yeah!. I showed the house to a new person (another cash buyer) who appears to be very interested. I had promised her I would a month ago as she was coming to town from out of state. She was very pushy and wanted me to name a price so she could submit her offer. We are still having repair estimates done so we don't have our final ask price figured out - just a range. I want to proceed with the couple I like as they have now been pre-approved for our range and are eager to move forward. Do I owe any explanation to the new person or is that a lawyer question? I do not wish to have a bidding war - just want to move forward with the couple I like. I am going to hire an attorney to look over everything once the contract negotiations begin but wonder about the right way to deter the pushy lady.
I vote to move forward with the perfect couple. I know people who chose from among several potential buyers. IMO you don't owe anyone anything.
freshstart
5-4-16, 10:57am
the perfect couple put in an offer first, right? I agree with Jane
Technically, they have not put in an offer as the house was never officially advertised at a certain price. They are coming by tomorrow to take a second look at my request. We planned to just sit down togther at the dining table with a contract and hash out the details until everyone is in agreement. Once they have their inspection done, more negotiation will take place no doubt. She is a lawyer so we will definitely make sure to have everything checked out by ours. I just am not sure about how to respond to the pushy lady.
iris lilies
5-4-16, 4:27pm
Technically, they have not put in an offer as the house was never officially advertised at a certain price. They are coming by tomorrow to take a second look at my request. We planned to just sit down togther at the dining table with a contract and hash out the details until everyone is in agreement. Once they have their inspection done, more negotiation will take place no doubt. She is a lawyer so we will definitely make sure to have everything checked out by ours. I just am not sure about how to respond to the pushy lady.
You tell her that you are negotiating with another party, and if that falls theough you will let her know.
keep repeating, give her no more information.
Funny thing, the AC guy just came to do an energy audit required by the city before you sell a house. Right away, he asked if I would consider an offer on the spot. Much weirdness going on here.
Teacher Terry
5-4-16, 6:08pm
I would let everyone bid and take the highest. WE had an old house that we lovingly restored for 14 years and I thought we would live in forever. But we had to move due to needing a job. I got very unsentimental and let people bid against each other and took the highest one. Many years later I was visiting the next door neighbor and the owners of ours came out to meet me and said they kept the house the way it was because they loved it and gave me a tour.
Miss Cellane
5-4-16, 9:18pm
Get a bid from the couple you like--but keep showing the house until you have a signed contract. There are all sorts of things that can go wrong or delay a mortgage. Show the house to the pushy lady--she might not like it and then she will leave you alone. If she likes it, tell her to make an offer. You don't have to accept it.
Just don't get so focused on the couple that you like that you stop showing the house. If they end up not being able to buy it, you will have to start from scratch, and may have lost months of potential showings. Houses tend to sell better in spring and summer, as most people move then so as not to disrupt their children's schooling. You are in the prime house-showing months. Show the house to as many people as possible, until you have a signed contract.
Just a thought to consider. What happens if your favourite couple buys the house and then in a couple of years flips it to the highest bidder because their circumstances changed?
IMHO, a house when it is no longer the home, it becomes an investment. Would you give your retirement funds to the couple you like the best based on superficial perception or sell to the highest bidder as a wise investor?
Williamsmith
5-5-16, 8:09am
These are the kind of headaches that a real estate agent gets paid to take on. Selling your house on your own will definitely reap more profit but you are going to earn it. Otherwise reasonable people turn into raging maniacs in the course of a primary residence deal. You have my admiration. I don't have the patience for much weirdness.
I didn't realize how difficult the showing part would be. Once the couple buys (assuming all goes through), we plan to be long gone and starting a new life elsewhere. At that point, I won't care too much. However, I do believe in finding a good neighbor for this little community. Something about karma over personal gain.
It's fine to go the karma route - but then you have to accept the fact that you won't maximize your profits on the sale. Be sure before you do that so you don't have sellers remorse.
This morning I set my price for the two interested parties. They will submit offers and we will consider. I will be so glad to get this over with...
ToomuchStuff
5-5-16, 12:41pm
Where are you moving to. I am beginning to wonder if you are really underpricing your home and going to end up with a bigger mortgage in the future, by passing on the money to the buyer of your home.
This sale will yield enough cash to allow a cash purchase of another house elsewhere if we decide to buy again. Will most likely rent for a year in one of two places we have picked in Colorado - near to some of my family.
Teacher Terry
5-5-16, 1:29pm
did you run the comps to see what houses like yours are going for so you don't price too low?
I had many realtor visits while trying to decide whether to do a FSBO or not. Several continued to send me comps so we have a good idea of what it is worth.
Teacher Terry
5-5-16, 2:22pm
that's great. You can also look on Zillow and see what comparab;es are selling for. Good luck!
As our house selling adventure turned out, we accepted a contract for full asking price a week ago from the couple we like. The inspection was today and they have three more days to decide if they want to continue with the escrow process. There have been lots of twists and turns with other interested parties and many a lost weekend due to repairs and make-ready for showings. It has been grueling but will save us a very sizable realtor's commission if we pull it all off. To be continued as the next hurdle is moving far away with too much stuff and way too many pets. I am going to go take a well-deserved nap now.
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