Tuesday, June 17, 2008

Offer Received On Rental #1 (Updated)

I received an offer today on rental #1. I'm not going to list the details until we get a signed contract (or until we walk away from negotiations). This is simply because I know there are people who read this blog that know where this property is located and I don't want to give away too much during the negotiating period. I will say however, that the offer was for below my asking price, but it was for as-is condition. That's a big plus for me, given that the property isn't in the best neighborhood and seems to have a habit of falling into disrepair rather quickly. Still, their offer price was too long for me to consider, so I'm going to counter-offer. My counter-offer is still below the max amount the buyers are approved for. Another plus is that they want to close in less than a month. The as-is clause and less than a month till close makes me believe this is an investor making the offer, not someone who will live in the place.

Update: I got a fax of the offer this evening (I just had an email from the agent before) and, if I read it correctly, it looks like they accepted my counter-offer of $55,000. Strangely, the agent never faxed me the full contract for the offer. All I have is the addendum page and the page with the price, which was changed to show $55,000 and which I initialed. I'll get all the pages before I sign anything.

One very important fact the agent did not tell me: this is an all-cash offer! When the agent told me the buyer was approved to $57,000, she was incorrect. The letter from the bank, which I got a copy of, actually says the buyer has $57,000 on deposit with them. The contract addendum states this is a cash sale, the sale is as-is although the buyer can still inspect the property before close of escrow, and that I will pay property taxes through the close of escrow date. Note sure why the agent didn't think to tell me this was a cash sale. It's obviously a big plus for the buyer. Escrow is to close on July 2.


real estate for sale said...

hey thanks for the encouragement and building up our interest in investing.

Shaun said...

I'm about to go out of town for the funeral, but just a quick note to say that I heard from the agent and the buyers did indeed accept my counter offer. They want to close by July 2, but we're not sure if we can get all the paperwork done by then. Even if the closing runs late, at least that's one less mortgage payment I have to make.

Steve said...

Good job. Hope all goes well with the closing. Sorry to hear you have to attend a funeral, tho.

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