Nutley, NJ · Member since 2017 · 2 posts · 0 votes
Our offer of full listing price in cash was accepted at a Aug 1 closing. One month. They did not sign the contract yet as we were informed they needed time to find a rental so they can move. Three days later the realtor called us to tell us she was informed they were in foreclosure in another home and could not find a rental that was the same price of their current mortgage on the house they are selling. We were given an option to buy the home and then rent to them for a year! We denied that offer adamantly and said they have 90 days to accept our offer. I dont understand how they could deny 300 thousand in cash if they are in all this debt. Or how they could set an August first deadline? So confusing and frustrating. Well hopefully they realize they wont find a better offer and they feel some pressure with that cash offer. We are completely in love with the property. Thoughts?
Is this an investment property? If so, then being in love with it is bad. Knock it off. *Slaps back of hand.*
It sounded like you said the offer was accepted? If it doesn't have signatures, then it's not accepted, though you probably know that. I'm not familiar with NJ practices, but 90 days to accept your offer sounds like a really, really long time. In my state, the default is 72 hours. Also in my state, the seller would typically have the agreement be contingent upon them finding a replacement property - or do a rent-back, which it sounds like they were asking for (though one year is an unheard-of rent back period for me, I too would have laughed and said no.)
Sellers in financial hardship don't always act rationally, especially if they have an agent who may be giving them lousy advice. Hard to say. I would just move on, but keep the lines of communication open for if/when the seller comes around.
Yes, we were planning on doing 2 years worth of work to it. They never signed and I am aware that it wasnt fully accepted but they did choose us in the process and originally mentioned August 1st is the closing date. Then all of a sudden, they couldnt find a place to rent that was equal or cheaper then what they are paying now in their mortgage. So because of that they offered to sell us the house but keep them on as renters for a year. Thats crazy. We then said we were not interested in being landlords and our offer stands for 90 days incase anything changes.
Buying and selling homes (different than property/investments) is an emotional process.
My only comment would be to not give them 90 days. Give them 72 hours to make a decision, then rescind your offer. If they are interested, they will reach out - and at that point, you can see what kind of offer you want to make. It doesn't have to be the same deal - maybe the same price, but faster close. Or shave a bit off the price since you know they are more desperate now.
In other words, keep your options open. And keep looking. I'd bet that you'll find an even better home!