Selling Q - WWYD?

[SiValleySteph]

Our house is for sale and we're taking offers today. Our neighbor had their house on the market a few weeks back and it's in escrow now. The buyer of their house wants to buy ours instead. They are willing to lose their deposit on the neighbor's house and have already verbally told us they are offering $10k over asking on our house and are willing to go higher if there are other bids. (We'll see when we get the actual offers on paper later today.)

The problem is, I feel really bad that they are going to back out of the neighbor's house. Ours is bigger and they just like it a lot more. We didn't solicit them, they looked at our house on their own and decided. We really just know a lot more than we normally would because the buyers don't speak English and both they and my husband are Shanghainese, so they've been communicating through my husband.

Just curious what others would do in this situation ???

In some ways I want to sell it to this guy because they have to close in a week and a half (good for us) and in other ways, I want there to be another buyer who offers more so I don't feel bad about the neighbor. FWIW, the neighbor had 3 offers in one week on there house for asking price, so I do think they will be able to sell it again fairly rapidly.

(I know I've been posting a lot of house threads recently - that's what happens when you're buying/selling! :p)

[Asha]

i would wait until the time has expired for other offers to come in. the only concern i would have is the fickleness of this buyer. who is to say that he won't back out at the last minute if he finds a house better than your's. are you friends with these neighbors? if so, i would just worry about losing a friendship over this.

[LILRTL]

Ditto Asha. If you are taking offers today, I would just see what the other offers are first.

[SiValleySteph]

We're definitely waiting to see what the other offers are first. I hope (fingers crossed!) there are at least 2 others.

I was also worried about the buyer's fickleness. However, the deposit he is talking about losing is roughly $20k (plus he's looking at paying another $30k to buy our house instead of the neighbors), so I'm not thinking he'll want to walk away from another house.

We shall see. 5pm is the offer deadline. :p

Oh, we aren't really friends with the neighbors. We have only talked to them a handful of times in 4 years of living here. I don't think we'll ever see them again after moving.

[ajb524]

If they like your house better and you didn't solicite them I wouldn't have a problem with it. I would also wait though and see what the other offers are though just in case.

[SiValleySteph]

I would just like to add that I had NO IDEA there was so much drama involved in buying/selling a house. :p

[Tanya]

... However, the deposit he is talking about losing is roughly $20k (plus he's looking at paying another $30k to buy our house instead of the neighbors), so I'm not thinking he'll want to walk away from another house...

Well, if I were the neighbors, I'd be ecstatic to be getting $20k and still most likely have a buyer lined up (the other 2 offers). I wouldn't worry about upsetting them.

[SiValleySteph]

Well, if I were the neighbors, I'd be ecstatic to be getting $20k and still most likely have a buyer lined up (the other 2 offers). I wouldn't worry about upsetting them.

That was totally my thought too! But, then, our RE agent was saying that if the neighbors are able to sell their house right away for the same price or more, they wouldn't necessarily get to keep the deposit since they wouldn't have been damaged. We will how it goes this evening!

[Jenyfer9]

I think that you need to keep one thing in mind: this is a business transaction. As long as you aren't doing anything illegal or underhanded (which you are not, the buyer does have the ability to get out of a deal for a price that he seems to be willing to part with) I don't know why you wouldn't take the best offer. If that's this buyer's, great! If not, then you might feel better about it ;). I understand what you mean about worrying about the other seller... I'd feel the same way. But if you aren't friends with them, look at it this way: if they don't sell, this buyer will be the one that will have to live next to them :)

Good luck!

[Rose]

I think it's probably best from this point on you have their agent speak with your agent. You never no when you might slit and say the wrong thing and it could be used against by the neighbors and it's just when their are agents involved to leave the buyers and sellers apart.

[laura]

I agree with this:

If they like your house better and you didn't solicite them I wouldn't have a problem with it. I would also wait though and see what the other offers are though just in case.

But I disagree w/ the above comment about 'slipping up' by speaking to the buyers directly. I mean I think going through agents would make you less emotionally involved either way, but until things are in writing, I can't see how any party could use anything 'against' you.

[MrsBeckyLP]

I say: You're moving out of the 'hood, so who cares if the neighbors get mad??!! ;)

(And I cannot believe anyone would be willing to lose a $20,000 deposit! Wow!)

[SiValleySteph]

Normally we wouldn't have so much contact with a potential buyer, it was a language issue. The buyer's agent is out of town (complicating things), but he was able to have his agent's broker right up the offer. Apparently. Our RE agent is meeting with us tonight to give us the details of how things went today.

They knew DH spoke Shanghainese as well because we met them in the driveway a couple weeks back (before we knew we were definitely going to putting our house on the market), which is why they left their phone number with our agent for DH to call them.

The potential buyer did not talk directly to our agent because she doesn't speak Chinese and the buyer doesn't speak English. Now their broker is involved which makes it easier.

[mamax2]

But I disagree w/ the above comment about 'slipping up' by speaking to the buyers directly. I mean I think going through agents would make you less emotionally involved either way, but until things are in writing, I can't see how any party could use anything 'against' you.

Actually, buyers, sellers, neighbors, etc. can say things that may put certain parties at an advantage or disadvantage. Knowing the reasons WHY and WHEN someone has to close, how much cash they have available, points on which you're willing to negotiate, etc. are all things that may seem innocent enough, but in reality can be detrimental or extremely advantageous, depending on your position. There's a fine line between revealing what you have to and giving away the farm. Sometimes, people who aren't accustomed to RE transactions may make those mistakes more easily.

Back to the OP's question. I'd be wary of this buyer as well, but it sounds like your market is hot (I'm jealous!!!) and you wouldn't have trouble finding a new buyer even if they defaulted again (like you said, unlikely though). I wouldn't worry about causing hard feelings or anything like that. Business is business and right now, you're in the business of securing top dollar and favorable terms for your property. In certain parts of the country, dropping out (or getting kicked out) during escrow or attorney review is very common. It's virtually unheard of where I am now, but sounds like it's fine in your situation.

[laura]

I meant, in this market the 'slip ups' would undoubtedly be on the buyer's end - ie. the sellers now know these people REALLY want the house and will probably counteroffer even above asking - not the sellers, so from their perspective, I don't think there is danger in talking to the buyers directly. I wouldn't personally do it b/c I don't like those types of situations, but I wouldn't be concerned about, for example, my neighbords 'hearing' that I had spoken directly to the buyers and 'stole' their sale (which is what I assume the person I was referencing was implying). To me it is a business transaction and talking to potential buyers - whatever their other situation is - is not outside the bounds. Also, in this market, you have to put all of your cards on the table when you present your offer, so all of those details will come out today regardless as part of their offer package.

[SiValleySteph]

Well, we got three offers. $3k over asking, $4k over asking and $13k over asking. This guy had the best offer. But, the worst written. So our agent is tracking down his broker. It could be due to to the fact his actual agent is out of town... so she's trying to iron out the kinks.

Of course, DH is saying we should have listed for $10k higher which is what we were originally going to do but we decided to go lower to get a quick sale. :p You just never know.

Our agent is coming over later to discuss the next move.

[SiValleySteph]

An update, we've decided to drop that offer because it just wasn't really finished off. It's too bad for him that his agent is out of town and unreachable.

[LRL]

Steph- Good luck! I would have deon what you did waited for the offers to come in and then decided how I felt about the situation. Did you accept an offer?

[SiValleySteph]

We accepted another offer. $18k over asking.

We're too tired to be excited. :D

[PinkMartini]

Yay!!! Congrats on finding a buyer on your house so quickly...

I'm in Northern California as well but it's definitely turned into a buyers market here - thank god because we're buying our first house :p

[Rose]

Congrats on your offer!

[SiValleySteph]

Thanks guys! :D

We had a call today that this guy's friend (who was also wanting the house, but giving this guy first dibs) is willing to offer an another $7-12k to get the house. Argh! So he's in 1st backup offer position. I could have used that $12k. :p

Oh well, the purchaser is having the appraisal today and a termite inspection this weekend. Looks good!

[Rose]

Wow, I guess you are not quite in a buyer's market! :D

[SiValleySteph]

I guess not!

It still pretty warm here. Not as hot as it used to be, but still pretty brisk! We were able to get our (new) house as the only offer. But we did have them accept it before their second open house! We lost the first house we bid on with a $10k over asking offer.

I think we got more offers because we priced on the lower side. A too high price is the kiss of doom here. Once you're on the market more than a month or so, everyone is wondering what's wrong with the house.