Friday, June 22, 2007
Wednesday, June 13, 2007
SOLD!!!!!!!!!!!!!!
well, it is under agreement...they are giving us our asking price and the closing is on July 6th... at which time we will break out the bubbly! yippeee! (thank you st. joe!)
negotiations...
so, the potential buyer offered $5k less than our asking price, and wanted to close at the end of august. we decided that, if we were to hold the house for 2 months, then the offer needed to be for at least $5k more than the asking price. so we countered with a request for full price and a 1 month closing.
they came back with an offer that was still $5k less than asking but a closing in the beginning of July.
we were happy with the closing date, but still didnt feel good about the $$$. after all, we just dropped the price $15k. so, we held our breath and asked for full price and a 1 month closing...and that was our final offer, i think i even said 'take it or leave it'
so, the buyer, who is getting on a plane for Korea today, tentatively accepted that counteroffer and went to the house this morning for a visual inspection (not an official inspection--there was no inspector present). they ultimately decided that they would give us the full asking price and the 1 month closing, but because they didnt have a home inspector present, they want us to give them a home warranty (worth about $500) and they want us to have some tree limbs removed (worth about $1000).
we concluded that we did really mean it when we said the previous was our final offer.
now, we understand that we are not giving the buyer anything that would make them feel good about the negotiations (except for a new house in great condition) , and there is this little voice in our heads screaming "take the offer...you idiots!". but we decided that since we are going to have to carry the house another month anyway; since we just lowered the price on monday and they were the first people to see it with the new price tag; since we have another showing today and monday and an open house on sunday; that we are just going to take the risk.
who knows....i will keep you updated!
they came back with an offer that was still $5k less than asking but a closing in the beginning of July.
we were happy with the closing date, but still didnt feel good about the $$$. after all, we just dropped the price $15k. so, we held our breath and asked for full price and a 1 month closing...and that was our final offer, i think i even said 'take it or leave it'
so, the buyer, who is getting on a plane for Korea today, tentatively accepted that counteroffer and went to the house this morning for a visual inspection (not an official inspection--there was no inspector present). they ultimately decided that they would give us the full asking price and the 1 month closing, but because they didnt have a home inspector present, they want us to give them a home warranty (worth about $500) and they want us to have some tree limbs removed (worth about $1000).
we concluded that we did really mean it when we said the previous was our final offer.
now, we understand that we are not giving the buyer anything that would make them feel good about the negotiations (except for a new house in great condition) , and there is this little voice in our heads screaming "take the offer...you idiots!". but we decided that since we are going to have to carry the house another month anyway; since we just lowered the price on monday and they were the first people to see it with the new price tag; since we have another showing today and monday and an open house on sunday; that we are just going to take the risk.
who knows....i will keep you updated!
our first offer...
i have heard and read over and over again that you have to price your house right in this market or you will not sell. but how do you know what is right? i have also heard that you have to let the market price your house. the challenge with pricing this house was that there were no real comps to comp it against...nothing equivalent at the time had been rehabbed quite as much as this house.
we have received feedback from showings and a few people noted that they thought the house was priced right, and a few others said that it was overpriced...but no offers in 1 month at least indicated to us that it was time to lower the price.
so, we dropped the asking price by $15k. we went with $15k because we want to get rid of the house asap...the next step would be to make a really big "FREE" sign and post it on the front of the house. if we were really brave, we could hold an auction--a good strategy for unloading property in one day, but how scary if the high bid was really really low!
so now we received an offer... not great, but not bad. $5k less than what we are now asking---which means that it is $20k less than the original asking price. which is alot of money considering the profit margin for this flip.
so, to make myself feel better, i am thinking of that $20k as another fee that needs to be paid among the many fees that are required in a real estate transaction...let's call it a Bad-Market-Fee and move on!
are you wondering if we will still make money on the flip; absolutely. we just wont be buying that yacht any time soon.
are you wondering if we would flip again; absolutely!!! we learned so much from this one--we cant put all of that real good learnin' to waste!
we have received feedback from showings and a few people noted that they thought the house was priced right, and a few others said that it was overpriced...but no offers in 1 month at least indicated to us that it was time to lower the price.
so, we dropped the asking price by $15k. we went with $15k because we want to get rid of the house asap...the next step would be to make a really big "FREE" sign and post it on the front of the house. if we were really brave, we could hold an auction--a good strategy for unloading property in one day, but how scary if the high bid was really really low!
so now we received an offer... not great, but not bad. $5k less than what we are now asking---which means that it is $20k less than the original asking price. which is alot of money considering the profit margin for this flip.
so, to make myself feel better, i am thinking of that $20k as another fee that needs to be paid among the many fees that are required in a real estate transaction...let's call it a Bad-Market-Fee and move on!
are you wondering if we will still make money on the flip; absolutely. we just wont be buying that yacht any time soon.
are you wondering if we would flip again; absolutely!!! we learned so much from this one--we cant put all of that real good learnin' to waste!
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