Should I take cash offer?

Asked by Nhbb22, Dahlgren, VA Mon Mar 26, 2012

I bought my home for $795k 2009 brand new. I paid total $810 with transfer tax . Biulder sold home next door for $750k in 2010 , 765K with transfer tax. This was last new home in community sold by by builder same exact home as mine. I took a $550 mortgage. I want to sell. I received a offer of 730k cash . I told them I need $800k they came back with $750k cash. they keep stressing the home next door is a comp sold a year after mine $45k less.. what should I do they said they are walking away. Haven't heard from them

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24
Marie Souza…, Agent, Centerville, MA
Mon Mar 26, 2012
Do you have an agent who can guide you here?
1 vote
Nhbb22, Home Buyer, Dahlgren, VA
Sat Jun 30, 2012
The cash buyers did a appraisal and it came in at $720. They offered me $770 prior to the comp. they now dropped there price to $755. I did my own appraisial a it came in at $780 but buyer say they did not use viable comps becuz one comp home was 1000sq ft bigger and lot was 1800 sq ft bigger. So they say this come isn't viable becuz thers was other more viable comps available . So I lost deal at $770 and I didn't agree to $755. Do you think if I got buyers with a mortgage it would be better becuz they will not care if it comps lower and bank gives them mortgage.
0 votes
Mitchell Fel…, Agent, Brooklyn, NY
Fri Jun 22, 2012
Dear Nhbb22:

Here is Brooklyn, most contracts of sale involving a mortgage contingency will also be subject to the property appraising properly. This means it has to appraise for at least the sales price in order for the bank to lend the original amount which was applied for. If you have a buyer putting more than 20% down, you may have some wiggle room as long as the loan amount is not more than 80% of the appraised value.

If you want to discuss this further, please call me. We can have a conversation which will answer all your questions and you will not need to go back and forth here on Trulia, it will save you a lot of time and risk!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes
Nhbb22, Home Buyer, Dahlgren, VA
Fri Jun 22, 2012
Do most buyer put in purchase contract that house must appraise for sale price. And do most buy back out of deal if home does not appraise for purchase price?
0 votes
Annette Law…, Agent, Palm Harbor, FL
Fri Jun 22, 2012
As of May, if I read correctly, your home has not sold.
One buyer walked away because of a $50,000 difference on a $8000,000 sale could not be reconciled. That is 6%. Not insignificant.

Now, what did your agent share with you to be the statistical 'discount' of recent sales in the $800K range. This number may truly reveal the buyer was or was not negotiating in good faith. If they were, you may have made a bad decision. Now is the time to move on to the next opportunity.

Be aware, you will only sell your home to one buyer. Hopefully, that was not the ONE!
If I were representing this buyer, and you chased me down to resurrect this deal...it WILL cost you. Buyers dream of desperate sellers.

Unfortunately, when you are selling a home in a community where the builder is still active. you are at the mercy of the builder. You knew this when your purchased. This means your situation has changed requiring the current need to sell.

Have a serious conversation with your real estate professional regarding your priorities and timeline. There are many, many, many options available to the agent, however , as revealed in your question and actions, you can and will sabotage success if you are unwilling to negotiate and get the best deal available. I did not say the deal you want...but the best deal available. When there is only one deal on the table, you've got to make THAT deal work.

Best of success in selling your Virginia home.
0 votes
Mitchell Fel…, Agent, Brooklyn, NY
Fri Jun 22, 2012
Dear Sue:

I had answered your question a while back. A lot of time has passed since then and I am wondering why are you waiting for that one buyer? Sounds to me like they are in control of the situation, not you. I think that needs to change and I know how you can do it!

Even if you get another buyer who needs a mortgage, you may be able to get the house to appraise for higher. When I meet with appraisers I bring comparable sale information to make sure they do not miss any good sales comps. Plus they do their own appraisal, they do not use yours. It doesn't matter what your appraiser said, you can have 5 different appraisers go in and get 5 very different amounts!

Please call me and we can discuss this further. I bet you I can even find you another buyer if need be to offer you even more money. Even in today's market, there are plenty of all cash buyers out there and I work with some as well. I am sure if I were to show them your home they would give offers.

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes
Sue, Both Buyer And Seller, 11210
Thu Jun 21, 2012
If I don't sell to cash buyer and I get another buyer who needs a mortgage and they offer above the appraisal price is the deal usually dead.do most contracts have appraisal stipulation that house must appraise for purchase price
0 votes
Sue, Both Buyer And Seller, 11210
Thu Jun 21, 2012
The buyer offered me 770k cash and home appraised for 770k . They said they believe the appraisal was low but want me to pay for second appraisal which I did second appraisal 735k. Now buyers want to purchase at this price. What should do?
0 votes
Marie Souza…, Agent, Centerville, MA
Thu Jun 21, 2012
Any update on your sale? Curious as to how your market is...
0 votes
Nhbb22, Home Buyer, Dahlgren, VA
Fri May 18, 2012
Stil haven't sold home yet
0 votes
Jeanne Feeni…, Agent, Basking Ridge, NJ
Fri May 18, 2012
Very curious what happened with this offer - I hope you were able to recharge the discussion with this buyer and accept the deal. Assuming he provides proof of funds - you should accept this deal and get to close, pronto.

To sellers generally I say this - when a ready, willing and able buyer presents themselves, respond. Remember they are testing your floor - just as you are testing their ceiling. You will never know if the deal can be consummated if you don't respond.

Best,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
0 votes
Nhbb22, Home Buyer, Dahlgren, VA
Mon Mar 26, 2012
Ii am using a agent. He advised to negotiate but I didn't. He said then wait the buying season just started. I didn't and they walked. Other comps sold in the eights but they were two family. I just don't want to take a hit. I will be losing a lot of money. I feel I will look desperate if I have agent call. How long should I wait. Should I see if they call me back. They said they don't believe I am serious .
0 votes
Don Tepper, Agent, Burke, VA
Mon Mar 26, 2012
Take it. Call them and say you'll take it.

I know, I know. There's a lot of real good advice below. Seriously. That they're using the comp as a negotiating tool even though they're paying cash. Prices/values may have changed. Depends on what you're comfortable with. Consult with your Realtor. Yada yada yada.

Bottom line: The best comp is $750,000. They offered $750,000 cash. You want to sell. Take it.

Do you look desperate pursuing them? Maybe, though not if you handle it properly. But you should appear willing and not unreasonable.

Take it.
0 votes
Mitchell Fel…, Agent, Brooklyn, NY
Mon Mar 26, 2012
Dear Nhbb22:

With regard to your comment and further question. The first thing you should do is have them put the offer in writing and furnish you with their attorney's name and contact info. This way you will now exactly what terms they are offering and if they are in fact ready to go. Also tell them you are selling the house as-is and ask if they need to do an inspection. If they do need to do an inspection, they need to do it before you actually enter into a legally binding contract.

If they are 100% ready to go, especially if they are NOT going to do an inspection, perhaps you should just accept their offer and have your attorney send them a contract (make sure it is as-is). The biggest question I have is how much do you think you will be able to sell your home for if you had fantastic real estate agent professionally market the home for you and give it the highest level of exposure possible? This usually bears the homeowner the highest price.

If you want, contact me and we can discuss these ideas further and I can give you additional insights that will be helpful.

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes
Nhbb22, Home Buyer, Dahlgren, VA
Mon Mar 26, 2012
They walked a couple days ago what should I do. Should we call and get them to up the price. But isn't it desperate to contact them . What approach should I take
0 votes
Benjamin Me…, Agent, new york, NY
Mon Mar 26, 2012
Cash is king I would take the 750 cash. Negociate
0 votes
Will I look desperate
Flag Mon Mar 26, 2012
What do I do they already walked could I call them back?. Can I have agent call them back should I wait to hear from them.
Flag Mon Mar 26, 2012
Alistair Bar…, Agent, Fruitland Park, FL
Mon Mar 26, 2012
Hi there,

Marie is right, do you have an agent or a lawyer that can guide you here?

The main thing is whether or not YOU feel comfortable with accepting that price. If you do then go for it, if you don't then hold out.

Real estate prices are really calculated by:

1. Comparables, what sold nearby for how much and how similar it is to yours.
BUT EVEN MORE SO
2. What a buyer is ABLE and WILLING to pay for your property.

If they aren't able to pay more and aren't willing to pay more then you can always wait and find somebody who is willing to pay more, but you take the risk of the property becoming stagnant and your property ultimately getting *stuck* on the market.

If YOU are happy with the price, it's your decision. If you don't feel it's a fair price for you, then that's a decision you have to make to hold out for a better one :)

There are a lot of ifs an buts here and it's all down to your situation but try and find a reputable agent in your area (even speak to a friend) and just bounce off your situation with someone who isn't going to be the recipient of the commission :)

Hope that helps!

Alistair
0 votes
Marie Souza…, Agent, Centerville, MA
Mon Mar 26, 2012
You have to do what works for you. Since 2009 prices have come down, drastically in some areas.
0 votes
Gail Gladsto…, Agent, 11743, NY
Mon Mar 26, 2012
The comp next door would affect a mortgage appraisal, not a cash deal; they are using that as a negotiating tool.

However, it does set the market and you cannot always get what you want, only what the market will bear.

Have you increased the value of the home in any significant way? Landscaping? Upgrades? No two homes are identical. See if you can provide value information. Other than that, the decision is yours and will probably be based on your motivation to sell.
0 votes
paul giacalo…, Agent, brooklyn, NY
Mon Mar 26, 2012
are you working with a Realtor? f the comps from last year are 45k less, than you may have to consider taking the offer. If I were representing you I would get them to see it your way and get you the extra money.If you need to discuss this further, call me at 1-917-587-7847
0 votes
Jack Menashe, Agent, Brooklyn, NY
Mon Mar 26, 2012
Sounds fair. No waiting on mortgage & if he is not approved. Just basically a title search & title insurance. Sounds like you know the market & area pretty well. If your going to hold out for $15-20k that may not come around or not get approved you'll shoot yourself in the foot. Old saying; 1 in the hand... Good luck!

Regards,

Jack Menashe
917.797.0215
Jack@SHERestates.com
http://www.SHERestates.com
0 votes
Mitchell Fel…, Agent, Brooklyn, NY
Mon Mar 26, 2012
Dear Nhbb22:

Only you can make that decision as it is a matter of personal preference. Is there a real estate agent involved in the deal, if so you should ask their opinion. If not you should consider hiring a real estate agent to help you. If the property is in Brooklyn, I would like to apply for that position!

Please contact me and I can give you further advise over the phone. Also, if you like we can get together, you can show me your home and I can then give you my opinion as to how much it really is worth in today's market. There is no cost or obligation for this service and I can also bring you additional comparable sales information.

Either way good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes
Anna M Brocco, Agent, Williston Park, NY
Mon Mar 26, 2012
A decision only you can make; however, don't rely on one comp, do review all comps with your agent, recently sold similar properties in the immediate area, see what the data suggests and go from there....
0 votes
Michael Dvor…, Agent, NYC, NY
Mon Mar 26, 2012
Feel free to contact me at 917-334-8990. Typically one comp is not enough. If you give me your address I would be happy to do a market analysis for your home's value.

Respectfully,

Michael J. Dvorkin
Licensed Real Estate Salesperson
Charles Rutenberg LLC
127 East 56th Street, 4th Floor
New York, NY 10022
917.334.8990 mobile
646.381.3644 fax
mdvorkin@rutenbergrealtyny.com
mjdvorkin@gmail.com
0 votes
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