Selling my home, offering $ to another seller in my neighborhood to turn away a buyer

[TripleAAA]

I've been trying to sell my home for the past few months and the market has slowed so much that I'm now at a point of desperation to sell the place. I received an offer from a buyer a few days ago and since then, this buyer has also put in an offer on another house around the corner from mine.

I've considered writing a letter to this other seller and offering them $500 to turn away this potential buyer. The important thing to note here is that the buyer has been extremely "lowballing" both of our homes asking prices. I literally HAVE to sell my home in the next month or so, or risk a lot of educational/future goals that I have for myself right now. My hope is that this other seller will take the offer I've proposed and be willing to hold out longer for another offer to come around.

What would you do and does anyone know the legalities of this? I realize its a desperate move.

I'm so stressed out and never want to sell a house again under my financial conditions!

 

[lokiju]

What state are you in?

 

[TripleAAA]

Originally posted by: lokiju
What state are you in?

California, but trying to relocate to Kentucky for grad school.

 

[fbrdphreak]

All I gotta say is you have to do what you have to do to survive. Its up to that guy if he wants to take your money, but if the housing situation is as desperate as you say, I doubt he'd take it. I know I wouldn't

 

[fbrdphreak]

All I gotta say is you have to do what you have to do to survive. Its up to that guy if he wants to take your money, but if the housing situation is as desperate as you say, I doubt he'd take it. I know I wouldn't

 

[ThaGrandCow]

I've heard rumors that the housing market in CA is dropping through the floor, is this true or just a quirk of the area that you live in?

 

[TripleAAA]

The other house involved in this situation is significantly higher priced, which leads me to believe that maybe this other seller (with a little bit of enticing) will turn away this buyer's ridiculously low offer.

If I were able to hold out for another month or two, I would, but I don't have that luxury anymore.

 

[TripleAAA]

Originally posted by: ThaGrandCow
I've heard rumors that the housing market in CA is dropping through the floor, is this true or just a quirk of the area that you live in?

In my area, (central valley) there has been a drop. The prices soared over the past 3-4 years though and a lot of people are still being unrealistic in their asking prices. I'm just to a point where I gotta make something happen. At the same time though, I've been noticing a lot more activity in the area with potential buyers. I would say their is a fair liklihood that both myself and this other seller would get other offers in the near future, but I can't afford to waste much more time myself.

 

[ThaGrandCow]

I'm sorry to hear that TripleAAA, I wish you the best of luck on selling the house and hope it all works out for you

 

[kranky]

I would not ask your neighbor to turn down that offer. How do you know the guy offered to buy your neighbor's home? What if your neighbor comes back to you next week saying he had a different buyer make an offer, so please hand over another $500? What if he does that every week?

You can sell your home in a day if you make the price attractive enough. I'm not suggesting you take a beating, but in your circumstances would it make sense to lower the asking price to the point where it sells right away? Would that cripple you financially?

Has your agent been working hard to find buyers?

 

[TripleAAA]

Originally posted by: ThaGrandCow
I'm sorry to hear that TripleAAA, I wish you the best of luck on selling the house and hope it all works out for you

Thank you sir. I'm trying to remain optimistic.

 

[TripleAAA]

Originally posted by: kranky
I would not ask your neighbor to turn down that offer. How do you know the guy offered to buy your neighbor's home? What if your neighbor comes back to you next week saying he had a different buyer make an offer, so please hand over another $500? What if he does that every week?

You can sell your home in a day if you make the price attractive enough. I'm not suggesting you take a beating, but in your circumstances would it make sense to lower the asking price to the point where it sells right away? Would that cripple you financially?

Has your agent been working hard to find buyers?

The reason I know the information I have is because both me and the other seller are using the same brokerage. My agent knows the other agent fairly well, so we've been able to gather some knowledge that way. As far as the $500 is concerned, it would be under the condition that this potential buyer closes escrow with me. In other words, this other seller wouldn't recieve the funds until I closed the deal.

 

[QED]

It's probably legal, but I wouldn't do it myself.

First of all, if the buyer is seriously lowballing both of you I don't even think you'd have to worry about the other seller accepting his offer.

If the buyer is just a little low on his offers, the other seller won't have too much diffuclty getting the buyer to up his offer by $500 or more-- meaning your $500 doesn't look all that appealing anymore.

Even if the seller accepts your agreement and turns down the offer, there's no guaruntee the buyer will still buy yours.

Finally, if the buyer is seriously lowballing you, why would even want to sell him your house?

In my opinion, the best way to sell your house is to lower your asking price or make some other financial incentives (like offer to pay so much towards closing costs/new carpeting/etc). If you are desperate enough to pay another seller $500 to not accept an offer, why don't you just take $500 off of your asking price instead?

 

[AUMM]

Originally posted by: ThaGrandCow
I've heard rumors that the housing market in CA is dropping through the floor, is this true or just a quirk of the area that you live in?

ive been hearing that too, but it's not true everywhere. Here in Orange County most prices are just holding even, some are dropping maybe 5-10 percent. But the city I live in is still on the rise...

 

[lokiju]

You need to figure out what's the rock bottom dollar amount you can take is factoring in moving cost etc..

For example if you owe $500k and are asking $900k then you are really aren't as motivated as you might think but if you're willing to sell it for close to what you owe plus money to move you then if you figure out what that dollar amount is and am willing to accept that amount then you'll have no issue getting a buyer a.s.a.p.

 

[TripleAAA]

Originally posted by: MathMan

It's probably legal, but I wouldn't do it myself.

First of all, if the buyer is seriously lowballing both of you I don't even think you'd have to worry about the other seller accepting his offer.

If the buyer is just a little low on his offers, the other seller won't have too much diffuclty getting the buyer to up his offer by $500 or more-- meaning your $500 doesn't look all that appealing anymore.

Even if the seller accepts your agreement and turns down the offer, there's no guaruntee the buyer will still buy yours.

Finally, if the buyer is seriously lowballing you, why would even want to sell him your house?

In my opinion, the best way to sell your house is to lower your asking price or make some other financial incentives (like offer to pay so much towards closing costs/new carpeting/etc). If you are desperate enough to pay another seller $500 to not accept an offer, why don't you just take $500 off of your asking price instead?

I understand your points, but it's not quite that simple. First of all, this offer involves up to $6,000 in closing costs, along with including nearly new appliances, water softener system, etc. It's honestly a great deal for either a first time buyer or an investor. The house is only 2 years old and in a great area. Compared to other prices in the same neighborhood, it's significantly better. Lowering my price on my offer by $500 isn't going to guarantee anything, nor offering it to this other seller will either. I'm just trying whatever I can at this point. I'm letting the situation with the buyer play out a bit longer before I take any action though.

 

[JS80]

20% drop this year is still 10002343i040234% higher than 4 years ago.

 

[TripleAAA]

Originally posted by: JS80
20% drop this year is still 10002343i040234% higher than 4 years ago.

Although it's impossible to tell for sure, I honestly don't think the prices are doing to come down much more. Everything seems to just be leveling out and the market is just starting to be a bit more realistic than it was for the past few years.

 

[OdiN]

Where in the Central Valley?

I'm in Visalia. I know a few people looking for homes.

 

[TripleAAA]

Originally posted by: OdiN
Where in the Central Valley?

I'm in Visalia. I know a few people looking for homes.

You have a PM

 

[BoomerD]

I'm in Modesto, and houses aren't moving as fast as they were just one year ago. Prices have dropped by a few percent since the first of the year as well. Higher interest rates are slowing or shrinking the bubble unfortunately. (for those wanting to sell) There's one house in my sub-division that has been on the market for over 6 months. Not sure why it's not selling, but I know it's hurting the current owners. Try zillow.com to find out what the current value of your home is, then price from there.

 

[TripleAAA]

Originally posted by: BoomerD
I'm in Modesto, and houses aren't moving as fast as they were just one year ago. Prices have dropped by a few percent since the first of the year as well. Higher interest rates are slowing or shrinking the bubble unfortunately. (for those wanting to sell) There's one house in my sub-division that has been on the market for over 6 months. Not sure why it's not selling, but I know it's hurting the current owners. Try zillow.com to find out what the current value of your home is, then price from there.

I'm about 10 minutes south of you

 

[notfred]

Where's the house, what's it like, and how much are you asking for it? How much is the buyer offering?

 

[MaxDepth]

Kenutcky welcomes you with open arms. Please enjoy your stay.

 

[Feldenak]

Originally posted by: MaxDepth
Kenutcky welcomes you with open arms. Please enjoy your stay.

By the way, where will you be going to school, if I may ask?

It's in his sig.

Welcome to the SEC TripleAAA. You are attending Kentucky so you should know basketball season begins around November...you can just skip football season.