Post Number: 190
|Posted on Tuesday, May 08, 2007 - 3:32 am:
I hate posting non-alembic material, but I usually get such good advice and input from the people on this forum that I have found it is the best place to turn to for input.
I live in eastern PA, just outside pf philadelphia (if anyone is local and wants a more exact location to better answer my questions, please email me).
I advertised my home on craigslist a few months ago after doing research to find out what I could expect to sell my house for. This research was done by looking comps. This was in february....I knew the house needed some work, but at that point I thought it was just some cosmetic work such as painting...Based on that information, a friend who is a realtor advised me to list at 290k, and that it would probably sell for 280k. Advertising privately, I found a buyer, and we agreed upon a pre-home inspection price of 275k. This was arrived at with buyer knowing he was buying ahouse that needed painting, an updated kitchen, and a bathroom that needs to be done..
The home inspection was yesterday, and a few things were found. While I do not have a full report yet, the major issues that I am aware of are as follows:
1) Dryer vent is supposed to vent to the outside, there is a vent in the back of the house, but is sealed with duct tape. Apparently the home inspector could not determine where it is venting to (this was all unkown to me)
2) half bath in downstairs has no fan, local code calls for a fan or window to be in all bathrooms....this was the way my house was when I moved in, my home inspector never mentioned it.
3) rotted trim around two circle top windows....(already have an estimate for this, that would 1k to replace)
4) some siding needs readjustment, as it is letting rain in once in awhile....
5) deck is basically junk, just old and worn out, plus it has no footers....(that was the condition it was in when I moved in)
With this information in hand, the buyer is already making comments about how since the real estate market continues to slide, and with these repairs needed, he feels a readjustment in price is needed. The real estate market in my area has not declined that much, (example, a middle unit townhome is listed across the street from me at 330k, but this has basement, and backs up to open space, mine has no basement, and backs up to a highway, and I was told that the lack of a basement and the backing up to a highway will make a 15k difference in price) and the repairs will probably not be more than 4-5k or so...
So, keeping in mind that I am saving realtor fees by selling privately, the buyer is saving fees by buying privately, and the house is already priced a little below market, should I tell this guy to walk and take my chances by going with a realtor, or just lower the price even more......(also, according to my friend the realtor, as of two days ago he still said I should list the house at around 290k)
Time is critical here, because I need to move in with and help with my moms care, and take ~5-6 months to get myself together financially enough to buy her property....
Oh, just to keep SOME alembic content in here, remember, the more I get for my house, the more chance I have of getting a custom SII.
Post Number: 1156
|Posted on Tuesday, May 08, 2007 - 3:52 am:
Call Mica & get that custom on the drawing board for now, start packing your stuff & you can even host a yard sale then sell the house w/out a realtor because all the money is yours hurry-up cause your Mom needs you!
Post Number: 142
|Posted on Tuesday, May 08, 2007 - 4:40 am:
The deck seems to be the only semi-major expense - let him walk, make the repairs,slap on some paint (easy, low cost, greatly improves salability) sell it yourself, buy your S II.
Post Number: 756
|Posted on Tuesday, May 08, 2007 - 5:41 am:
Did you already sign a contract or a binding offer with the buyer? If yes then it all depends upon what the documents specify. Otherwise it depends upon how you wish to defend a verbal agreement with buyer. Is it worth the time, effort and hassle to you?
In any event if you list the house with an agent you will now be required to disclose any home inspection problems you decide not to fix.
Post Number: 191
|Posted on Tuesday, May 08, 2007 - 5:51 am:
Well, we signed a preliminary agreement basically saying he would buy the house for 275k, pending the results of the inspections...this figure was arrived at taking into account the fact that it needs the bathroom/kitchen updated...
Comparable homes in me area, with updates are selling for ~300k
Post Number: 1157
|Posted on Tuesday, May 08, 2007 - 8:28 am:
I'd like to see a Club member with an alembic 25th anniv Sterling model,could that be you?.....with a bass like that i'd carry a glocke to every gig!LOL..
Post Number: 192
|Posted on Tuesday, May 08, 2007 - 9:13 am:
haaa....actually "all" I really am looking for is a series II 4 string, with some psychedelic coco-bolo, with an omega cutout, and a small custom inlay somewhere....
some day....gotta get rid of this house and make sure moms taken care of first....than I can get back to my own life and dreams!
"i'd carry a glocke to every gig!LOL.."
actually I prefer 1911's...with coco-bolo grips of course!
Post Number: 1574
|Posted on Tuesday, May 08, 2007 - 9:57 am:
Well, here are some thoughts in no particular order...
1. Selling through a realtor for 290K will put about the same amount of cash in your pocket as if you sell privately for $273K when you consider typical realtor fees. If you use the realtor and drop to $280K, you're looking at more like $263K into your pocket.
2. The dryer vent thing scares me. That's throwing a bunch of hot and humid air somewhere and, if it isn't outside, there could be damage.
3. A buyer coming from CraigsList is probably looking for a deal moreso than one using a realtor. The realtor might find you people more willing to pay the full load.
4. I assume the buyer looked at the house before they made the offer. If they did, then they saw the condition of the deck. The fact that it needs work shouldn't have been a surprise the way you describe it. I wouldn't think a discount would be in order for anything that was in plain sight before the inspection.
5. The bathroom window/exhaust fan issue shouldn't matter unless they are forcing code compliance on the transaction. The lack of a fan shouldn't or window shouldn't cause harm where there's no hot shower generating steam.
6. Get the siding and window trim fixed before you show anyone else if this guy doesn't buy. Water damage can get scary and expensive. Same for the dryer vent, I suppose.
Obviously, the buyer is trying to get you down as far as possible. Hold your ground as much as you see fit. Only you know what your finances dictate. Only you know how important it is to sell quickly, or if you can wait for another bite. Only you can say if you would prefer to fix some things yourself or forego the dollars to avoid the hassles.
If you trust the realtor and would have been willing to take $280K through that channel, then $270K from this guy sounds like a win. On the limited info you provided, I would target $272.5K as an actual sale price.
Reading between the lines, it also seems like this is the only strong lead you have after 2-3 months of advertising. You might not want to lose this guy and wait for another buyer. Can you discuss the new circumstances with your realtor friend? Be aware that once you tell the realtor about any issues with the house, they are obligated to disclose them if they end up representing the house.
Post Number: 193
|Posted on Tuesday, May 08, 2007 - 10:38 am:
thanks bob....I knew Id get decent advice here....
actually this guy responded within 48 hours, and made an offer within 72 hours....so it has been a pending sale for the past 2-3 months...
Ill probably get the trim fixed and have the dryer vent taken care of regardless if this guy buys the house or not...
As for the price, it is already at a pretty good price..fully renovated and updated homes like mine are priced at 300k-330k....
so 275k to me is a pretty fair price, but id take 272.5k..
anyway, thanks to everyone who responded...I am on many different forums, and this one by far is my favorite, and probably has the most friendly people Ive come across....
Post Number: 1480
|Posted on Wednesday, May 09, 2007 - 4:02 pm:
ok i am in the business.
1- find out if the buyer has a commitment letter from a broker or lender- this means he is ready and able
a prequal is as worthless as the paper its written on
if he has no commitment letter ask him to get one.
2- use a closing attorney
Comps mean some but it depends how old they are, you are right the other house has higher value
no basement- deck has to go- near the highway is a real bad thing- location location location.
he realtor is teling you to list at 290? how many months of mortgage payments are you willing to wait to end up at 260?
the house needs work- you will get baged by most buyers. Cost me 40k my last time around
If the buyer is credit worthy and you have fond a home- time to move on....
are the homes really like yours? are they different models with diff amenities is the same area near the highway?
you are also both saving commission fees
i would suggest 269,500 and move on
foreclosure rates are up, values are down or static and it is definitely a buyers market
Post Number: 2357
|Posted on Wednesday, May 09, 2007 - 5:12 pm:
From my perspective, this thread is rather amusing (I have to laugh or I'll cry). Houses for 300K or less? It's like reading about some foreign land where a brand new Further goes for $3000. Out here in the Bay area all $300K gets you is a garage (no house attached - just a garage) in the ghetto!
I'd take Flax's advice very seriously. I've heard him wheel and deal. He knows of what he speaks.
Post Number: 194
|Posted on Thursday, May 10, 2007 - 7:36 am:
thanks flax..got the inspection report, nothing major showed up that wasnt mentioned above.
The report mentioned some "electrical hazards"
which are basically outlets that I took the covers off of while I pained and did not put back on.
they offered 260k...they seem like they really want the house, so I have feeling they will take it for 269.5