I need some questions answered PLEASE!!

I need some questions answered PLEASE!!

Contractor · Temecula, CA · Member since 2015 · 190 posts · 36 votes

My wife and I want to sell our house and we have the opportunity to sell to a friend of our next door neighbors, they saw the house and they love it, they got pre-approved by one small bank and are waiting for a second bigger bank to see if they will get more money since our house is at the top of their budget. (Pros) We can sell with no Realtor and save a lot of money, we won't need to list and show the house. (Cons) they will need to sell their house and they are just about even on their equity and might have to come to the table with a check, they need at least two weeks to get their house ready (2/27/2016) to list and we wanted to list our house in 5 days 2/15/2016 before the spring market starts to heat up! Should I tell them that we need to list? Should we ask them to put in an offer? Should we wait for them to get their things in order or should we just list it when we planned on listing in 5 days? Also my wife has her (new) RE license and is signed on with a locale Broker, we talked to her manager about the situation and she said it was okay to sell with a RE Lawyer without having to list but wouldn't recommend selling buy owner. The buyer is also considering listing his house with my wife as their Realtor but she is very new and doesn't know their area, it's 40 mins. away and she works a full time job at the local school although I'm sure she could get some help from one of the other Realtors with some kind of split. Any opinions would be greatly appreciated! Thank you in advance, Nick

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Lender · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
10y

Tell them you would love to sell to them, and if they want to buy, then they need to submit an offer and understand that it will be contingent on the sale of their home.  

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  • Josh C.Pro Member
    Property Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes
    10y
    These are more personal decisions and not business ones. Think if they weren't were friends what would do?
  • Lender · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    10y

    Tell them you would love to sell to them, and if they want to buy, then they need to submit an offer and understand that it will be contingent on the sale of their home.  

  • Patrick LiskaPro Member
    Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
    10y

    Tell them you will sell to them, but they have to commit to submitting an offer with a non refundable deposit of say $5000 and commitment to buy within 15 days. this will tell you if they are serious and not wasting your time, and if they can't commit you have something for the loss of time for not listing the house and just pushes your listing back to the end of the month and enough time to get their house ready.

  • Contractor · Temecula, CA · Member since 2015 · 190 posts · 36 votes
    10y

    Thanks @Charlie Fitzgerald I guess then I should see what his offer is and if it's a good offer I would then accept it contingent upon the sale of his house, but if it not the offer we are looking for keeping in mind the huge savings in RE fees, we should let them know we are going to list the house to see what other offers we get? There are no other houses for sale in our neighborhood right now and our next door neighbor got multiple offers on his house and sole for top dollar about four months ago so the area is well sought after.

  • Contractor · Temecula, CA · Member since 2015 · 190 posts · 36 votes
    10y

    Thanks @Patrick Liska that's a good idea and I feel that's a reasonable request given we are taking a chance not listing in the early spring market.

  • Contractor · Temecula, CA · Member since 2015 · 190 posts · 36 votes
    10y

    @Josh C. their my neighbors friends, not mine.

  • Lender · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    10y

    They can't commit to 15 day timeline if they need 17 to get sale ready...the reality is that if you get your price from them and have no RE commissions to pay and you have to wait until the end of March or Mid April to close you are better off than getting the same price, paying commissions and being out in 30 days with a non-contingent offer 

  • Contractor · Temecula, CA · Member since 2015 · 190 posts · 36 votes
    10y

    @Charlie Fitzgerald  I think what @Patrick Liska meant was ask for a commitment to buy along with a $5,000 non refundable deposit within 15 days as apposed a commitment to buy (close) in 15 days, I think! Not sure, but It did through me off too.

  • Lender · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    10y

    I think you have an opportunity to potentially have this be a win : win and you just need to have an open conversation with them and determine if meeting their needs can meet yours.  If so, do it.  If not and the compromise from either if you necessary to make it work is unrealistic, then you move in a different direction.  

  • Contractor · Temecula, CA · Member since 2015 · 190 posts · 36 votes
    10y

    @Charlie Fitzgerald do you think asking for an offer with a non refundable deposit within 15 days is the way to go here? And on a $400k home, what would be a reasonable deposit?

  • Contractor · Temecula, CA · Member since 2015 · 190 posts · 36 votes
    10y

    Thank you for all your help too @Charlie Fitzgerald and @Patrick Liska I appreciate it!

  • Lender · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    10y

    Thars the part of the open conversation you need to have with them. Do they have enough liquid assets to provide such a deposit? What terms does the non-refundable deposit afford them? They have no way of knowing how long it will take them to sell their home and be able to perform on your contract. You have no way of knowing how long it will take you to get an offer at your asking price from another party and if you go that route, you are certain to pay somewhere in the neighborhood of 20,000 in commissions (5%). Personally, I don't lose sleep over sized of earnest money deposits when I'm the seller. Particularly in an off-market transaction with no agents involved. If you can save the commissions on this deal, it be hooves you to be as flexible within reason as you can be. We're I in your shoes, my inclination would be to ask them for an offer with an Earnest Money Deposit due within 48 hours of acceptance of their offer in the amount of $5000. Closing to be on or before April 15th, contingent on the sale of their home. If closing is extended for any reason past April 15, EMD is immediately released to seller and is non-refundable and close of escrow will be extended to May 30th. If buyer cannot close on or before May 30th, contract is canceled and seller has the right to list and entertain all offers beginning May 31, 2016.

  • Contractor · Temecula, CA · Member since 2015 · 190 posts · 36 votes
    10y

    Does the buyer need to use a RE Lawyer to right an offer?

  • Contractor · Temecula, CA · Member since 2015 · 190 posts · 36 votes
    10y

    Looks good @Charlie Fitzgerald thank you so much for all your time, you've been very helpful!

  • Lender · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    10y

    Very much my pleasure @Nick Stango good luck and I hope it works out for both of you.

  • Lender · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    10y

    You can get a RealEstste Purchase Agreement at any office supply store. When you and the buyer have an agreement, take the signed offer and their check for the EMD to your title company of choice and open escrow.

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