Posts Tagged ‘Offer’

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Stall Tactics


2010
03.17

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Day 79 - 12 days to go!

 

Stalling. That’s what these people are doing. Before our last walk-through of “the-house-with-the-view” we had agreed to a purchase price and fully expected that to be, well… that. We resubmitted the paperwork for a purchase price of $435,000, after we got home… Done.

 

There agent actually had the gall to say to us, “Would you do… $442?” Laughable! Yeah, right! Do they want to sell this house or not? Do they actually think one more stroll around puke peach lane would actually make us just want to give these people more money? I truely think they pictured us just tossing bills into the air as we walked around the grounds. “Oh, my God, honey… This house is worth so much more, let’s give them another $7,000.” “NO WAY!,” was all we could say.

 

I feel like they submissively hung their heads mumbling to themselves… “OK, just checking…”

 

But it’s now two days later and still, No Signed Contract. What seems to be the deal? We inquired about the hold up today to find out they had to have their lawyer ‘take a look’. It’s a standard real estate contract… but, OK, whatever floats your boat.

 

Turns out the lawyer has ‘recommended’ that we pay for the heating oil that was recently delivered. All $434.00 dollars worth. Now isn’t that interesting? It just happens to be the almost exact the same number as the purchase price, minus a few zeros. Really? So, they paid their lawyer, I dont’ know… maybe, $500.00 to tell them we should give them $434 for the oil? Sounds, reasonable.

 

Sure, we will pay them for the damn oil, right after we have someone actually measure what’s in the tank… the day before closing, not a month out with them still running the heat. Stall — Stall — Stall. That’s what I’m thinking.

 

Still no contract. Curious… What other amateur magic tricks do you suppose — they feel they have up their sleeve? We, my friends, shall see.

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The Art of Negotiation


2010
03.15

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Posted in Buying a Home, Counter Offer, The Offer | No Comments »

Day 77 - Two weeks to go! Wow! That’s soon!

 

As you know we put an offer in on “the-house-with-the-view”…

 

Our overall objective in this battle of life’s financial snags was to start over in a new house on a economic scale that would allow us to actually save money and maybe be able to someday send our children to college. We feel this is important so they could grow up, get good jobs and when we are old, support their parents. During the house hunting process, our mission was not to find the most fabulous house no matter the cost… we did that last time, but simply to keep our mortgage payment under a certain amount each month. This, my friends in the state of Maryland, in the areas we want to live in, is not an easy thing to accomplish! But it was our goal, and damn it… we feel we deserve it and we were going to achieve it. My husband and I have been screwed over more times lately than most people we know. We think it’s because we are just too nice. Well, we are sick of being nice! We have decided to start being mean! We have pledged to say “NO” more often, fight a bit harder for what we feel is right, and take this world by storm! It’s time things took a turn for the better. Our plan now was to lowball a bunch of offers around town til we got what we wanted.

 

So, “the-house-with-the-view” was listed at, not using real numbers here, so lets just say for argument’s sake… $479,000, and it really needed a loving touch and bit of updating. First of all, the entire house was peach, with the exception of the exterior which was baby shit brown. It need a new kitchen, new bathrooms, and it has never seen an inch of hardwood in it’s life. But it has good bones, a great blank canvas I must say, and of course that view. We offered $419. The comps in the area went both ways. Some were more, some less, depending on the house. We were kind of expecting a counter of about $449, because these people were motivated. We were utterly shocked when the counter came back at $469. What kind of motivation is that? “Just make an offer,” was what their agent had said to ours… So what do we do now?.. This was not the plan I had concocted in my head. AARRGHH! Animosity mounting.

 

We thought about it long and hard and decided… Screw this whole real estate game! I’m not in the mood to play! Games went out of style in my 20’s. I’m now a down to business, just tell me what’s what, 40 year old. So let’s just tell them our final offer… so we did. We told them $430. This number would allow us to keep our mortgage under a certain amount and allow for some minor improvements. Roxie told their agent that was all we could do and it was our final offer. Take it, or leave it. We actually expected them to just say NO. I started scanning the internet for our next conquest. That night we received a phone call from Roxie. She said they had countered again, even though she was clear that it was our final offer. They countered at $450. What seriously! We were convinced it was over and done. There was no way we could keep our monthly bills down with a $450 purchase price. We were considering moving on!

 

We thought about it a while, made some drinks and tried to contemplate different ways to make this happen. I really wasn’t looking forward to spending time looking at more houses. Were they concerned with the property values of the neighborhood? Was that it? Maybe we should say $440 and have them pay closing costs, which would bring us back, in actuality to $430. Our creative juices were flowing.

 

As we were weighing our options, my brother came through the door. We sat down, talked about his new job, his wife, daughter and the daughter he was expecting. Talked a bit of politics regarding the guy my mother single handedly got elected to congress who was now resigning. Then finally, about our house hunting prospects. He joined us in our drunken state as we filled him in. He then told us about my brother-in-law who when buying his current house, which was a foreclosure, went through the same thing… and how he stood his ground with the bank. “I told you… This was all I could afford, quit playing games, accept it or just don’t call me back.” Wow! You know what! He’s right. Screw this! We told them our final was $430, well… our final it shall be! If they don’t take it, and I’m sure they won’t we’ll drag Roxie to another 20 houses, we are getting what we want no matter how long it takes! Stick’n to our Guns!

 

So, we told Roxie $430 was our final and we weren’t budging. Not 30 minutes later she emailed and said “Their agent wants to know if you’ll take $435.”

 

What!?! Really!!!! Whoo, hoo! That’s fantastic!. You see what no one knew, not even Roxie was that $435 was always our top number! Kept that one in the vault. I was flabbergasted! Are you serious? That really worked? You’ve got to be kidding me…

 

Well, we asked for one more day to think about it and take another walk around the house. This time with the in-laws and our contractor, to see if he can pull us out of the peach grove with the budgeted amount of cash. So, we just resubmitted the papers for an offer of $435. Which was what we wanted all along. :) We feel we are getting a great deal for the house and it’s property. And my friends… once I’m done with it, it’s going to be fabulous! Overall, a great investment. High fivin’ myself right now! Slight right turn towards Deservingville up ahead!

 

As we were taking our final pre-purchase tour of the house, my husband filled Roxie in on our little secret of what our final price actually was. Damn him! Can’t keep a secret! Did we loose a little trust in our friend Roxie? Hope not… Hope she just thought us clever, and liked us just a little bit more! Especially because she won’t have to loose her shoes in the snow anymore at mold ridden homes. Now let’s just hope these people sign on the dotted line and not rethink things… That would suck.

 

And I have to say thanks to my brother for sharing, and my brother in-law for sticking to his paintball guns! :)

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Less Stress


2010
03.10

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Posted in Buying a Home, Foreclosure, Mold | No Comments »

Day 72 - 19 to go.

 

So we did another whirlwind day of house hunting. Seven homes all in under 4 hrs. It all started with a trip into the boonies to take a gander at a foreclosure in Glen Arm. We had to park on the side of the road, because, even though it was 60 degrees and sunny, the driveway hadn’t been plowed and there was still much to melt. Climbing the driveway tundra was a challenge. Especially since Roxie was wearing clogs. We took a peak inside the window and could not believe what we saw. “Oh, no. We can’t go in there” Roxie exclaimed. “That’s just not sanitary.” The place was caked in mold! It was visible on every surface you could see through that window. Oh, disgusting! So we turned to leave. As we were falling on our asses down the snowy driveway, Roxie through a jab in my direction…”That one was your wifes idea, not mine.” She directed at my husband with a giggle in her voice. Yes, that one was mine. I take full ownership. I’m now done with foreclosures!

 

We saw a couple of great places too, one that was a zen-like tree house, and one that was over 4,000 sq. ft. They were both on the high end of our scale and I think we have decided to keep things on the down low. Saving money in the long run with a smaller mortgage will result in… let’s face it, less stress. And my friends, isn’t that what we all really need in life… LESS STRESS. I think I might be able to slow the population of gray hairs, improve my complection and maybe even loose a few pounds… all with less stress. I could actually RELAX with a martini in the evening instead of escaping my reality with a martini in the evening. Less stress could make for a happier marriage, happier family, all-in-all… a happier life.

 

With that said, we have turned our attention to the house with “the view that saved it”. That we saw earlier, see Here We Go Again. It’s a perfect size, optimal for great sunrises, it has garage and basement storage, a fireplace and the future makings of a possible mudroom. It needs my creative touch and a little… ok A LOT of love (as my mortgage broker put it… “It’s just peachy”.) Yes, lots of painting and ripping out of apricot colored wallpaper and carpet awaits. But, I think we could make it a wonderful place for my kids to grow up. The neighborhood is quiet with a lot of not-so-busy-streets to ride bikes on. That is a drastic change from the high speed road where we currently live. There is a nice yard for a vegetable garden and a place for the play set. Sorry kids… no pool, but the in-laws are 15 min up the road and they have one!

 

So, at the end of our second flurry of homes, we took a second look at the house with the view. I have been asked if a second showing means an offer is on its way. Well, I have to say, in this case… Yes. Roxie is on her way over tonight to finalize the details on our offer. Initially, we were thinking we would try to close on the 31st, this being the 10th. That way, moving would be more actual moving and less storing, but logistically… it’s not going to happen. It’s too much to accomplish in such a short amount of time… Didn’t I just determine my life would be better with less stress? So, less stress it is! Of course, now we have to see if they accept our offer. Oh no, not out of the stress woods yet… but I’m getting closer.

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Do Banks Counter Foreclosure Offers?


2010
02.23

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Day 57 - 34 to go.

 

Yes, they do. Mine did anyway. I actually just thought they would deny our offer all together. But to my surprise… they countered! It took them exactly a week to get back to us with their new price. It wasn’t as great as we had hoped it to be, remember… we really lowballed them. Well, they highballed us back. I fear this could go on for sometime.

 

We have now countered their counter with another lowball number. This time we sent along a little ammunition. Pictures of the state of the interior and our contractors bid to bring it up to snuff… and the waiting game goes on.

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Still Waiting


2010
02.17

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Posted in Home Inspection, The Offer | 1 Comment »

Day 51 - 40 to go.

 

Still Waiting… double entendre intended! I feel like this house, the process, the weather, my physicality is just plain lifeless. I’m stuck in a blah blob milieu.

 

The Home Inspection process is turning out to be a long one. The inside of our house has been thoroughly inspected, however, we are still waiting for a “mold test” sample to come back… What exactly will that report state? I’m wondering… Our radon test was fine, we passed. The pest inspection, also fine. But we are being held up because of the snow. AARRGGHH the damn snow! The inspector can’t inspect the exterior of the house with 4 feet of snow on the ground and the roof. The buyers had us sign an addendum to the contract so that they can have an ‘inspection extension’. This is what is said…”Buyer requests an extension of the time frame to inspect roof and exterior components of the property due to weather conditions. Said inspection will be done within seven (7) days of notification by Sellers agent to Buyers agent of the roof being clear of snow.” Well, the way the weather is going that may be well into June. So we’re… Waiting Again!

 

The offer on our foreclosure house is still out there in the foreclosure abyss. No word yet. – Waiting Again!

 

Every day I’m checking out the new listings on-line. Maybe one here, another there, but nothing really worth looking at. I guess everyone is waiting for the snow to melt to list their house. – Waiting Again!

 

This waiting game is making me fat! There is nothing to do but eat and watch the Olympics. Oh well…Go team USA!.. pass the brownies.

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Making an Offer


2010
02.12

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Posted in Foreclosure, The Offer | No Comments »

Day 46 - 45 to go.

 

We were getting ready to submit an offer on the foreclosure house when our agent Roxie sent us this email… “Hi, I just got off the phone with the listing agent for the foreclosure. He said they will not be able to have electric or plumbing working for the FHA inspection. According to your lender, your loan will not be approved without it.”

 

GASP! What did this mean? Was that it? Was it over? It can’t be. You see, we were planning on getting a FHA 203K Rehab loan to fix up the house. We knew it would be subject to an FHA inspection, we just didn’t know the inspector needed working electric and plumbing. What kind of a rehab loan is that?

 

rehabilitate [ree-huh-bil-i-teyt, ree-uh-] -tat-ed, -tat-ing.
–verb (used with object)
1. to restore to a condition of good health, ability to work, or the like.

 

Exactly… Rehab, to me, means it is in desperate need of help, nothings working. And in this case, nothing is! So, let me understand this… in order to get a Rehab loan, the house needed to have already been rehabilitated enough to actually have working electricity? I just don’t get it!

 

Depressed and defeated we drank heavily and went to bed.

 

In the morning woke up with new vigor. Nothing like a good nights sleep to clear your head. This whole thing had to be WRONG. We emailed over our concerns to our lender and did a bit of our own research via the internet (what did we ever do without it?) We checked out this site www.fhainfo.com looking for answers:

 

FHA 203K Loan – Eligible Property:

 

To be eligible for the FHA 203k mortgage loan, the property must be a one- to four-family dwelling (it is, ok, check) that has been completed for at least one year (built in the 50’s qualifies, check)… Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place. (that’s the plan, Stan.)… the rehabilitation funds will only be used for the residential functions of the dwelling and areas used to access the residential part of the property. (Yep!)

 

We dug further… On properties older than 30 years and over $7,500 in rehabilitation costs, the cost estimate must include a contingency reserve. The reserve must be a minimum of ten (10) percent of the cost of rehabilitation; however, the contingency reserve may not exceed twenty (20) percent where major remodeling is contemplated. If utilities were not turned on for inspection, a minimum fifteen (15) percent is required. (Ah HA!) There it is! Right there!

 

We sent this info along to our lender, and lo and behold, she confirmed it! Crisis averted! Moving onward!

 

The next stumbling block, other than the blizzard of 2010, is the fact that the listing agent for the foreclosure doesn’t think the bank will take less than 13% off the listing price. Are they insane! Who would buy this place for that? It is NOT livable. No kitchen (no cabinets, no appliances, even some hook-ups are missing), It’s listed as a 2.5 bath, but really it’s one. I could only find one toilet in the home. I don’t think a hole in the floor qualifies. It’s also listed as a 3 bedroom, but during our inspection of the property the “master” had absolutely no vents. How would we get heat in there? We’d freeze! So, I wouldn’t really consider that a bedroom, plus it didn’t have a floor. But here is our problem… The bank who is handling the foreclosure is in Texas. TEXAS! The house is here in Baltimore. How would the bank even know the condition of the house? Would they fly someone up here to check it out? Not for the price we are offering. I guess we are going to have to rely on the listing agent to communicate our concerns to the bank. If he actually does, will they even care? Not sure… But my money is on NO.

 

Even so, we are going to offer… 42% lower than the asking price. We think it’s fair, it’s basically the cost of the land plus the cost of the garage (which is new) hmmm, priorities I guess…

 

Yesterday we drew up the papers. Geez! Like 40 pages of signatures and initials all to see if the bank will accept our lowball. Seems like a lot don’t you think? Especially when the odds are stacked against us. Roxie is sending it off today! We have heard rumors about how long it takes a bank to get back to you on an offer on a foreclosed home. Apparently, they’re backed up with stacks of foreclosure paperwork. But we have been assured with this property, it might be just a week. Well, we shall see…

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The Waiting Place


2010
02.11

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Day 45 - 46 to go.

 

I don’t know if you’ve heard, but we’ve had a bit of snow recently here in Baltimore. I can’t believe it, but there is over 44″ outside my window. The world has stopped, cabin fever is setting in and I’m about ready to murder my kids!

 

Here is the bane of my frustration: My life is on hold… with just about everything…The home inspector needs to come back to inspect the exterior of the house, too much snow. The kids have been out of school all week and won’t be back til next Tuesday. They are driving us batty and for a couple who works from home, with them here, we can’t get anything done. I also can’t search for a new home in 44″ of snow. We can’t put an offer in on the foreclosure house we love because our agent is snowed in and can’t get to her office. The bank is closed, so I can’t deposit the checks I have, therefore I can’t pay my bills. I don’t even think the mail system is running. I’m losing it! I… my friends, have entered… The Waiting Place! I have never liked the waiting place, it’s NOT for me. I need life to move! Things to happen! I’m not bored, just utterly frustrated. So, being in this mental state, I thought I’d pay a little homage to the incomparable Dr. Seuss.

 

I’m headed… I fear, toward a most useless place.
The Waiting Place…

 

Waiting for a car to go
or the inspector to come,
or entering escrow
or the mail to come,
or finding out what they know
or the phone to ring,
or the melting of snow
or waiting around for a Yes or No
or waiting for their hair to grow.
I seem to be just waiting.

 

Waiting for the potential buyers to bite
or waiting for the power to light a lite
or waiting around for Friday night
or waiting, perhaps, for the appraiser, Jake
or to look for a house, or a Better Break
or a string of emails, or a pair of pants
or an offer to go in, or Another Chance.

 

Everyone is just waiting.

 

NO! That’s not for me!
Somehow I’ll escape all that waiting and staying.
I’m determined to find the bright places where the snow is decaying.
With the For Sale signs flip-flapping, once more I’ll ride high!
Ready for anything under the sky.
I’m SO ready! You see…I need to find a house to buy!

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To Counter Or Not To Counter


2010
01.28

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Posted in The Offer | 1 Comment »

Day 31 – Counter

 

We met with our real estate agent today to discuss our counter offer. It was an emotional conversation. She brought up the fact that if we counter too high our house might just not appraise for that much. Oh yeah, that…

 

Put it this way… The offer was 16.5% lower than what our home appraised for 3 years ago. And I’m actually worried about the appraisal. No appraisal means no loan, which means no buyer. ARRRGHH! The stress! I’m tired and I have a headache. Ok, Roxie… here’s our counter offer… I hope they accept it and I hope it appraises. Everyone pray to the bank Gods!

 

Oh mighty bank Gods please don’t be tightwads
We know that you do rely on comparables nearby
But our house is so much more than those that are next door
So please make our home worthy of your loan
We so desperately need to get past this one milestone

 

And leave this part of our lives in the dust!

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We Got an Offer!!!


2010
01.27

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Posted in The Offer | No Comments »

Day 31 – Ladies and Gentlemen, The Show is on the Road!

 

Holy Cow people we actually got an offer on our house! And not from the “second showing rainy day” buyers, but the couple who came with the “Bowtie” agent! That’s right! Uh huh!

 

Whoo hoo! My husband and I had our moment of euphoria. We did a little dance like giddy school girls and had smiles on our faces a mile wide. Then we took a look at the offer… Well, ok, not bad. It’s a tad low, but overall not bad. At least the people didn’t lowball us! All the stress we were feeling in preparing the house, making it just so, quickly turned into a new kind of anxiety all together… Negotiation Stress!

 

Fear and Loathing in Negotiation: How Anticipatory Stress Affects Bargainers. I have a feeling I’ll be able to write the text book on that one when this process is over.

 

My friends, we have to counter. It’s too low. But what do we counter with? We don’t want to scare them away. For God sakes, don’t scare them away! But it’s too low. If we loose them when will another buyer come along? Could be weeks, months. My smiles and jubilation lasted all of about 10 minutes then turned into a worried grimace. It was 2:45 in the afternoon and I realized I had to get into carpool. My head was swimming the entire way. By the time I reached the school to get my kids not only did I have no recollection of the drive in, but I had developed a migraine. “shhh. No talking on the way home kids… Mommy has a headache.”

 

Earlier in the day I was wondering to myself… Where did everybody go? It was very quiet. What had happened to the swirl of interest? Shouldn’t something be happening? Did the two interested parties go away?.. Was it something I said?.. The waiting was killing me. Alright, I needed to focus on something else… work… kids… the future. We are having another Open House on Sunday I guess I could start cleaning now or do the laundry or something. And just when my mind was tangled up in work my cel phone rang and it was Roxie, our real estate agent, with the news.

 

I am now at a loss. I don’t know what to do with myself. I guess I’ll wait to see what tomorrow brings. Roxie is meeting us at 2:30 to discuss our options. I have a feeling we are in for quite a ride… STAY TUNED!