House #1: First Contract

March 19, 2011 · 2 comments

The first day we put The Corn House on the market, we had a showing (someone who was interested in seeing The Trifecta House after it was under contract)…

It took a few days for them to get up the courage to put in an offer (they are first-time home-buyers, have been looking for a long time, and were hesitant to commit), but after several days, their agent was able to get them to submit a contract. The financials of the the contract — purchase price, closing costs, etc — were very good, but the time-lines were very long, culminating in a closing two months out.

Turns out the buyers are using a local down-payment assistance program, so they are being extra cautious with the closing schedule since those programs are notorious about dragging their feet on underwriting and approvals. The good news is that this is one of those programs where the buyers have to go through financial counseling and are ultimately pre-approved before they ever put in an offer — so the likelihood of the offer actually closing is high.

Ultimately, we countered with a tighter schedule, a bit higher purchase price (to offset the cost of the privacy fence they’ve asked us to install) and a few other minor details. After a couple times going back and forth, we came to terms, the contract was signed, and we are moving forward.

We still have inspections, appraisals and other hurdles to clear, but if everything goes as scheduled, we should close on this property by the end of April. I’ll post more information about contract terms and other details as things progress…






2 responses to “House #1: First Contract”

  1. Luis says:

    I sold one house under one of these programs and have another one under contract with the same. You are right, they take longer but if they get approved under the program then their odds of getting the loan go up exponentially. They are usually assigned a counselor under the program who can tell you how they are coming along.

  2. Don Hines says:

    I sold one a couple of years ago through the ADDIE (ADDY??) HUD program. If this is your source, get ready for a bus load of inspectors. Even their apprasers want to be inspectors.
    I have tried to get into ca-hoots with NACA. You don’t get into ca-hoots with them. They get into ca-hoots with you.
    Don
    PS
    Jason
    I went squirrel hunting in my current project. They chewed about $400 worth of trim that didn’t originally need to be replaced. I found their babies and evicted them.
    Don

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