This weekend was full of excitement on the home-front. I accepted an offer on the house!
Saturday evening my Agent contacted me to let me know he had a second showing with someone who was very interested in buying. They planned to get together on Sunday to write-up an offer. Before the offer was made, my Agent sent me a form to sign confirming that I was okay with him representing both the buyer and seller. There’s a lot of back and forth, and signing of documents, when it comes to selling/buying a house. Luckily, everything is available online now, so it just takes a few clicks to get everything taken care of. I don’t have an issue with my Agent representing both parties; While he isn’t allowed to disclose any information about the other party, he knows both of our situations, and what we’re looking for. That made me feel more confident with his advice as we were negotiating; He had an idea of where the buyer stood, and knew if I was heading in the right direction.
On Sunday afternoon, my Agent called me with the offer details: The buyer was offering $58,500 for the house. She was asking that I pay her closing costs (up to $3,500), and pay for a home warranty (less than $500). She also wanted to set the closing date for mid-June.
The house is listed at $62,500. In my area, it’s pretty typical for the buyer to ask the seller to pay their closing costs, so I was expecting that. Asking for a mid-June closing date seemed a bit extreme; My Agent pointed out that most sells close in 30-45 days. She wanted a later closing to coincide with when her lease was up. It wasn’t a bad deal, but my Agent recommended that we counter-offer, to see if we could come up with something better.
In the counter-offer, we set the sell price at $60,000. I agreed to pay the closing costs, and pay for the home warranty. I moved the closing date up to mid-May. I signed off on the new deal, and it was sent to the buyer for consideration. About an hour later, I got the call from my Agent; My counter-offer was accepted!
I won’t have an exact date for closing until things are cleared with the bank and title company. There are several things that will happen between now and then. The title company will do a search to ensure that there aren’t any additional leans on my property. The bank she is using for her mortgage will come out to the house to do an appraisal, to ensure the house is worth what they’re lending her for it. The deal is contingent on financing, meaning if her financing falls through, she can walk away without losing the earnest money she put down on the offer. She also has the option of hiring an inspection company to check the house top to bottom, checking for any issues that may need to be addressed before the sale. If issues are found, we’ll come back and renegotiate the deal. If we can’t reach an agreement, she has the right to walk away. If her mortgage is FHA, they will also do an inspection before they approve the financing.
All this basically means that nothing is set in stone until we actually close on the house. But, at least I have an idea of what might happen. As it stands now, I’m looking at a possible couple grand when everything is said in done. That’s taking into account the $48,500 I owe, the 7% fee for the Realtor, paying the buyer and seller closing costs, and the home warranty. If something turns up in the inspection that I have to fix, it could wipe out any potential profit.
My plan for the next 45+ days is to start moving out of the house, and sock away every penny I can. We’re going to try to do everything as inexpensively as possible, but you never know what might come up when you’re moving and selling a house. I’d rather have some cushion for a couple of months, and then go back to throwing everything at the car loan as soon as all of this is done.
Obviously, I’m not going to walk away from this deal with a huge pile of cash. Breaking even isn’t ideal, but turning the house into a rental wouldn’t exactly have been a lucrative proposition either. If everything falls into place, I’ll walk away with an extra $500+ a month. And I’ll be free to move wherever, whenever. Free to stop worrying about the house. Free from ongoing maintenance and repairs.
And now, we wait!
– Cindy W.