House #6: Fifth Offer

September 16, 2009 · 10 comments

After my small rant yesterday about The Red Garage House being “the bane of my existence,” we just received our 5th offer this morning!

But, unlike the previous four offers, I’m actually confident that we’ll be able to get this one closed. The buyer submitted the offer this morning, and gave us a deadline of about two hours to accept it or counter-offer (obviously they are anxious).

It was a very good offer, but they wanted a good bit of our staging furniture as well. Unfortunately, some of that stuff is irreplaceable, as my wife found some perfect pieces of furniture on Craigslist that she hasn’t been able to find anywhere else. So, we counter-offered with all the same financial terms, but taking out about half of the furniture that they had requested. They quickly agreed to the counter-offer, and we now have a binding contract.

The best part of this offer is that the buyers are not FHA. While it doesn’t matter from a timing perspective (we’re well past 90 days that we’ve owned the property), their conventional loan can close much more quickly and will only require a single appraisal. Plus, the buyers are allowed to select their own appraiser (and have asked our recommendation), so we shouldn’t have to worry about any appraisal issues.

The buyers have 5 days to do their inspections, and want to close on September 30 — two weeks from today. I don’t think we could have asked for anything more than that…

Btw, that now makes four properties we have under contract and scheduled to close in the next three weeks…if all four close on schedule, we will officially be out of properties to work on, other than The Poor House, which we officially purchase next week…I guess that’s a good problem to have… 🙂

10 responses to “House #6: Fifth Offer”

  1. Jingle says:

    You are a busy man right now. 4 contract and a baby days away! A very exciting time for sure.


  2. Shae says:

    Congrats Jason! This is excellent news. It’s funny, but I’m in anticipation of the baby’s arrival now too…looking forward to your exciting announcement.

  3. J Scott says:

    Shae –

    That makes two of us!!! 🙂

  4. J Scott says:

    Jingle –

    As I’m sure you know, things can go from great to annoying in this business in a very short period of time…so I’m not counting my chickens just yet…

    That said, hopefully the next couple weeks will go smoothly in both the business and the baby worlds… 🙂

  5. jeffrey gordon says:

    I thought the new appraisal rules forbid buyer/and or loan office/real estate agency from picking the appraisers? I was under the impression end lender picks the appraisers these days?

  6. J Scott says:

    Jeffrey –

    The appraisal rules are dependent on the type of loan (FHA, VA, Conventional, etc all have different rules) and the specific lender. FHA is required to follow HVCC rules, where the appraiser is chosen through a third-party management company. But, for Conventional loans, the lender can pick anyone they want to do the appraisal, including allowing the buyer to choose their owner appraiser.

  7. I was hoping to not see a post from you today cause that would mean the baby was on the way. Here’s hoping to a great weekend for you!

  8. Kristeen says:

    That is awesome news! I, too, am excited for baby news!

  9. Bob Jones says:

    J Scott – you have it backwards – the lender is allowed to select the appraiser from the FHA Roster of approved/certified appraisers. Third party AMC selection is not the rule, only an option. The AMC companies have led the public and lenders to believe this is the only option, it is not. The new rules forbid any loan production personnel that have a financial interest in the transaction ( officers) from having a say as to the appraiser that it goes too. It is a good rule but poorly written and very misleading. As far as appraising goes – the number is what it is – all lending and underwriting rules are the same – FHA and VA are concerned about safety, sale-ability, soundness, and sanitary – the values should be the same as any conventional appraisal if the guy knows what he is going.

  10. J Scott says:

    Bob –

    Thanks for the clarification! Yes, that all makes sense and is in accordance with what I’ve seen — I guess I just didn’t put all the pieces together.

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