97BossHammer

They were actually working through a realtor and asked if I'd work through them....I said no b/c I'm not about to pay 6% when the realtor didn't actually sell the house....I did. We've basically got 2 ways to do the deal....1. close now and then I rent the house from the. 2. Get some escrow money (3K) and close in 4-5 months, whenever my house is complete.

I contacted a lawyer we'll probably use for the closing, they said normally I'll pay for the appraisal, termite inspection, and lawyer fee's.

97BossHammer

Here's the deal. Going to collect $1000 earnest money and we'll set it up on a contengency. We're drawing up the contract this weekend.......terms will be sale upon completion of our new house. Buyer has assured me that they are 100% on buying the house, his wife is nuts about it. Told him I understand stuff happens and I realize that they might have to backout......but he assured me they'll come through.

Are there any special terms I need to put in the contract??

Krumbsnatcher

Hey Boss,

What are the specs on your new house, Kitchen, countertops, flooring, etc. How about the workshop for the boat?

97BossHammer

New one is 3000sq ft. 2700 downstairs w/ 407ft bonus upstairs. It's plenty big for just 2 people, no kids but the wife is pestering me about it 3 car garage, big kitchen, doing tile throughout....we picked out some awesome looking stuff and going to make it look real nice. Hardwoods in the living room, dining room, hallways. I'll have to post some pics of the progress so far. As far as the workshop, that idea got shot down We are going to stretch the concrete drive and make a boat pad for it. Plus I'm thinking since we're waiting on the workshop......I'll have time to get a bigger boat for a bigger workshop right

JPD Motorsports

The inspections are a negotiating tool. On the contract between you 2 who stated tehy will pay? If now one did, you might antie up and offer to pay half the fees if you think that they might bail on them paying the fees soley. Just feel out the waters with them. I usually have the buyer pay the costs or negotiate it out in the price, along with all inspections. Also try and use the closing office that you used when you closed on the house, I know that the one I use gives a discount on repeat customers, and the will have a copy of the survey and stuff like that on hand as well, might keep you from having to pay for another. As for the inspections get them done asap so if anything is wrong which most inspectors find something, you can have it fixed asap andlet the new buyers in to see that is has been done. I usually set these up after the first few days depending on how long the closing is away to get the things fixed asap and show proof that it was done, then the new owners have another chance to come in and look at the house again.

Semper Fi

What is the size of the house? 1800sq ft?

You make fun or the "909", I live in the "909" (Temecula) and I bought a 3,400 sq ft home on a 16,500 sq ft lot (corner lot with a view) in a gated golf course community for $500,228 last July. The house just appraised for $705,000 last week. The "909" isn't as bad as you seem to usually discredit it. It's actually alot nicer in this area than you think it is. Don't get me wrong, I love Newport Beach, etc...., if money was no object, I would live on Balboa Island and have a 42' tiger on a hydrohoist.

Turbojoc

Boss,

I am a Realtor (95% commercial) and deal in Alabama and Florida (Mississippi is a little different). First of all let your attorney draw up the contract. Do not let the buyers attorney do it. If your attorney does not do much real estate, find one that does.
In one of the other posts I think you said that you will pay for the appraisal. The appraisal should be paid for by the purchaser (his bank is the one that needs it).

If the purchaser intends to have a home inspection done (90% of buyers do) make sure a dollar limit is set to cover the repairs. $500 is usually a good number. Wording often is something like; seller will pay up to $500 toward repairs to correct any health, safety, structural, or mechanical deficiencies found by a qualified and licensed home inspector. (If the buyer does not bring up having an inspection done, it is not your job to bring it up). After the $500 the seller can pay to have repairs done, you can pay more, seller can accept the defects, or if you refuse to fix the seller can cancel contract and have earnest $ returned.

You also need to make sure the buyer is qualified. Just because they were working with a agent does not mean the agent qualified them (unfortunately many agents do not).

$1,000 is not enough earnest money. Remember you are taking your home off the market for up to 6 months, if (God forbid) something bad (terrorist attack, fuel continues to go up, interest rates take a big upward jump) happens your buyer may go away and most other buyers may be out of the market until things settle down. The reverse of this may also happen where a major company decides to move to your town and there becomes a housing shortage and values spike up.
If paying both mortgages is not a problem then you do not need to worry about the market going down, however if you would make your banker much happier with just one house payment I would consider closing on the home 45 days from now and leasing it back for 3-5 months.

The other thing you can do is continue to market your home and give the buyer a right of first refusal if you get another offer.

If you decide to place the home under contract now for a closing when your new home is completed, I think you need to set a drop dead date that you will move out whether your new home if finished or not.

I hope my late night writing makes sense, and if it does not send me a pm and I'll give you my phone number if you like.

Congrats on the new home,

Scott

wannabe

BOSS

Turbo had some exceelent points. You want a copy of the mortgage qualification letter or a "comfort letter".

I agree $ 1000 is way too little.

Your downside is if they get to closing and the bank has pulled the financing. If you can, get them to close and YOU rent from them.

Most Mortgages applications are only good for 60 days from approval unless they stipulated the closing date AFTER that time frame.

Wannabe