Lehi, UT · Member since 2012 · 24 posts · 10 votes
I'm looking for advice on an offer I received on my personal residence.
Yesterday I had a potential buyer submit a full price offer (370k), on my personal residence. They are offering 6k in earnest money, and want to close in 90 days. The catch is they have to sell their home in order to close on mine. They are willing to wave all contingencies, so in theory the EMD should be mine if they fail to close. My concern is that if at 90 days they are unable to close, and I re-list I've missed some of the best selling months.
Have any of you dealt with similar situations? If so, how did you handle it, and what were the end results?
Lehi, UT · Member since 2012 · 24 posts · 10 votes
12y
@Bryan L. I have the home FSBO. I know, it's situations just like this where it's nice to have a realtor.
I'm currently in the process of getting the status of their home. When I have those details I'll be able to make a more informed decision.
I should have asked my question differently. Has anyone ever have a situation like this go bad? Has anyone ever written into the sales contract an out for the seller if they get another offer.
Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
12y
@Tyler Clark - I am also a Realtor in addition to being an investor. If you were my client, I would probably advise you to reject this offer.
We Realtors have a saying that "buyers are liars". One of the many advantages of using a professional Realtor is that we screen out this kind of crap. Most tire-kicker types of buyers and those who don't have two nickels to rub together, and those with a credit score of 372 will not even go make an offer on a house that's listed with a Realtor, because they know that the Realtor will weed that junk out. But they are happy to make offers on FSBOs and the FSBO sellers get so excited because they have an offer - when in reality the offer is often worthless. Anyway, end of rant now about why you should use a Realtor.
Real Estate Broker · San Leandro, CA · Member since 2010 · 47 posts · 10 votes
12y
It would depend on your list price are you at or above market, recent comparable properties in your market -how much competition you are facing vs. how many buyers for your property - is their property listed? What price compared to comps. Is it priced to sell? What Condition, etc.
possibly asking for non refundable deposit, buyers proof of funds & financing in place-loan approval.
Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
12y
I mostly sell FSBO, and I got asked that a lot, although never in contract form as I always said I wouldn't do it unless they provide proof their current home is already under contract with a closing date, any inspections already done, and a copy of their buyer's pre-approval letter from their lender. If that were the case, then I'd be somewhat comfortable as it just means they are nervous that if their home doesn't close for some wacky reason, they can't afford yours (although that would be covered under the loan approval language, I would think).
They can't really say they waive all contingencies if they are asking for a huge contingency of selling their home first or their lender won't qualify them unless they sell, so just be cautious as what they are really doing is transferring their problem to you, as they want to know they've got a place they want if they sell, but still have their own house if they can't sell it for what they want, win-win for them, trouble for you.
Lehi, UT · Member since 2012 · 24 posts · 10 votes
12y
@Lynn McGeein thank you for providing your perspective. I certainly do not want to inherit their problems.
Since I posted my question last night I've gotten more information about the current situation of their home. It is not under contract. Knowing this, I didn't have any interest in entertaining their offer. I let them know that if in the future they were under contract they could contact me and we could discuss possibilities at that point.