ASSIGNMENT OF CONTRACT/ how does it work? Should there be a fee?
Greetings BP,
I recently came across an off market property for sale located close to the Central Ward in Newark, NJ. The asking price was 150,000 and I offered them the full amount to purchase the property. Currently we have been unable to move forward because even though the owner wants to sell, he has tenants/family members who live in the property; they don't want to leave and they are making the process difficult.
As the seller and his company are trying to sort the situation out. I was offered the opportunity to do an assignment of contract. I was told that this means that I would be able to purchase the house and that they would stop marketing it to others. The only thing though is that they are charging me an additional $5,000 because the contract will be dependent on inspection. So if I'm not satisfied I can walk away after inspection considering that this may be the first time I get to see the property. They also said that I would pretty much have to use the title company that they work with.
My concerns are that I probably already offered too much since it doesn't seem like they have other offers on the table now. So I feel uncertain about paying an additional $5,000. I told them 150,000 is what I am willing to pay ...they said they will get back to me.
Nevertheless, the property is currently valued at about 190,000- 200,000. So there is a lot of equity there...
My goal is to live in the property , so it will become my primary residence. I may eventually rent it out in the future.
For those of you who have done deals in this manner, is this typical protocol, or are they being unreasonable? should I move forward and pay the additional fee?