House sale heartburn
Jan. 15th, 2011 08:22 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
tnrkitectWell, as some have gathered from FB, Home sale #3 fell through last weekend. The bank hired an appraiser who decided to use short-sales and foreclosures as "comparables" to determine the appraised value of the home we are trying to sell in Knoxville. In doing so, he set the "value" of the home at $83,000. The contract price was $95,000. BIG problem.
The loan officer was willing to let my and the buyer's realtors supply true comparables that were not short-sales/ foreclosures, and try and see if underwriting would accept that.
Needless to say, we were not happy. But, last Sunday someone decided to take a look at the house, even though it was under contract. They fell in love with it.
It turns out, that not only did they want the house, but they were CASH BUYERS, so there was no bank involved! PLUS, they were under the gun to buy, as that cash was available under a 1031 exchange that was about to expire. A 1031 exchange is a tax law that allows you to not pay capital gains taxes on the sale of a house, so long as you put the money back into a new house within 45 days. They also indicated that they were willing to make a reasonable offer, if we would get out of contract #3 to sell it to them.
So, Sunday afternoon, we negotiated verbally with them, and settled on a final price of $90,000. Monday, they sent over a signed contract, and Monday morning, we broke contract #3 due to the appraised value not being equal to or more than the contract price, signed the Release of Earnest Money form, then five minutes later signed the new contract along with a counter offer to clear up a few loose ends.
The new closing date? Instead of being Friday Jan 21st, it is now Monday Jan 24th.
So... 9 days of which 4 are weekends or holidays left until we sell.
Keep them fingers and toes crossed!
The loan officer was willing to let my and the buyer's realtors supply true comparables that were not short-sales/ foreclosures, and try and see if underwriting would accept that.
Needless to say, we were not happy. But, last Sunday someone decided to take a look at the house, even though it was under contract. They fell in love with it.
It turns out, that not only did they want the house, but they were CASH BUYERS, so there was no bank involved! PLUS, they were under the gun to buy, as that cash was available under a 1031 exchange that was about to expire. A 1031 exchange is a tax law that allows you to not pay capital gains taxes on the sale of a house, so long as you put the money back into a new house within 45 days. They also indicated that they were willing to make a reasonable offer, if we would get out of contract #3 to sell it to them.
So, Sunday afternoon, we negotiated verbally with them, and settled on a final price of $90,000. Monday, they sent over a signed contract, and Monday morning, we broke contract #3 due to the appraised value not being equal to or more than the contract price, signed the Release of Earnest Money form, then five minutes later signed the new contract along with a counter offer to clear up a few loose ends.
The new closing date? Instead of being Friday Jan 21st, it is now Monday Jan 24th.
So... 9 days of which 4 are weekends or holidays left until we sell.
Keep them fingers and toes crossed!
no subject
Date: 2011-01-16 05:29 pm (UTC)