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

[TripleAAA]

Originally posted by: 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.

I've heard they still sell out at all the football games though! Looking forward to it...if I ever get there!

 

[skrilla]

That would be a waste of $500.

 

[JS80]

can you not afford to pay mortgage? renting it out is not an option? shame to lose property in CA.

 

[TripleAAA]

Going by that zillow.com my home is valued at about $415k. I have it listed at $365k.

Renting is an option, but very undesirable since I'll be in Kentucky for at least 2-3 years. I was planning on buying a home out there, so I wouldn't be wasting money on rent every month. It's still a possibility, but I don't like the idea of renting out my very new home and not being close enough to check in on it from time to time.

 

[PingSpike]

I honestly don't think $500 contingent upon you selling your home is really a lucrative enough deal to get the other seller to agree to this. I'm not trying to be an ass, I just don't think thats going to motivate some one trying to sell a house in a market that may continue to get harder to sell in.

 

[z42]

This is completely unethical and probably illegal, FYI. I'm a licensed RE agent in Ca and your agent should lose his/her license for it, as should the brokerage if they are involved in any way.

The agent is bound by contract to represent his client and their best interests. I can't believe your agent would even think of this. If I was the buyer, I'd sue the crap out of everyone involved and go buy a nice 5 mill house somewhere else.

 

[TripleAAA]

Originally posted by: z42
This is completely unethical and probably illegal, FYI. I'm a licensed RE agent in Ca and your agent should lose his/her license for it, as should the brokerage if they are involved in any way.

The agent is bound by contract to represent his client and their best interests. I can't believe your agent would even think of this. If I was the buyer, I'd sue the crap out of everyone involved and go buy a nice 5 mill house somewhere else.

It was my idea and my agent doesn't even know that I've considered doing this.

I just found out that the seller took the buyers low offer on the other place, but they are still squabbling over commission so there might be a slight chance that something else happens. :frown:

 

[Number1]

are you talking to us about this? Talk to your real estates agent. He/she has all the required info to inteligently advise you.

 

[DrPizza]

Originally posted by: z42
This is completely unethical and probably illegal, FYI. I'm a licensed RE agent in Ca and your agent should lose his/her license for it, as should the brokerage if they are involved in any way.

The agent is bound by contract to represent his client and their best interests. I can't believe your agent would even think of this. If I was the buyer, I'd sue the crap out of everyone involved and go buy a nice 5 mill house somewhere else.

Since the agent is acting on the behalf of the two homeowners, including the OP, the only one who seems to have a case against the RE agent is the owner of the other home. Since his agent is giving out information to others, which obviously could affect the sale of his home, his agent isn't acting on his best behalf. Therefore, he could go after the agency. Your $500 offer is all he needs to prove the agency isn't acting on his behalf.

 

[kranky]

I didn't want to comment on the apparent ethical breach on the agent's part, but I'm glad that someone who knows the rules noticed it.

Both homeowners are using different agents, but at the same brokerage.

 

[Rumpltzer]

Originally posted by: TripleAAA
Going by that zillow.com my home is valued at about $415k. I have it listed at $365k.

Renting is an option, but very undesirable since I'll be in Kentucky for at least 2-3 years. I was planning on buying a home out there, so I wouldn't be wasting money on rent every month. It's still a possibility, but I don't like the idea of renting out my very new home and not being close enough to check in on it from time to time.

I can understand how renting wouldn't be desireable, but you might consider it a little more. You can hire places that'll take care of managing the place for you while you're away.

In most cases I would be of the same mind set as you, but my sister gave me this book a few weeks ago, and I've been reading it for the past few days. It talks about buying a house and working your way up in value, but not selling the old house when you move out. The guy suggests renting out the old property and using a home equity loan to buy into the new property. It seems that this would work out well for a move to KY from CA.

My opinion is that the book is mostly trash and obvious advice and wouldn't work for most people in the CA market, but I didn't have anything else around the house to read... and it seems that it might work for you as you've already got a house in CA and you're moving to what I assume is a less expensive market.

You could probably read the book in a few hours...

At any rate, good luck!

 

[thomsbrain]

your house is worth what people will pay for it. if no one will pay for it at the price you are asking, you're asking too much.

 

[TripleAAA]

Originally posted by: Rumpltzer

Originally posted by: TripleAAA
Going by that zillow.com my home is valued at about $415k. I have it listed at $365k.

Renting is an option, but very undesirable since I'll be in Kentucky for at least 2-3 years. I was planning on buying a home out there, so I wouldn't be wasting money on rent every month. It's still a possibility, but I don't like the idea of renting out my very new home and not being close enough to check in on it from time to time.

I can understand how renting wouldn't be desireable, but you might consider it a little more. You can hire places that'll take care of managing the place for you while you're away.

In most cases I would be of the same mind set as you, but my sister gave me this book a few weeks ago, and I've been reading it for the past few days. It talks about buying a house and working your way up in value, but not selling the old house when you move out. The guy suggests renting out the old property and using a home equity loan to buy into the new property. It seems that this would work out well for a move to KY from CA.

My opinion is that the book is mostly trash and obvious advice and wouldn't work for most people in the CA market, but I didn't have anything else around the house to read... and it seems that it might work for you as you've already got a house in CA and you're moving to what I assume is a less expensive market.

You could probably read the book in a few hours...

At any rate, good luck!

This is yet another option I've considering (drawing out equity to use as a down payment on another home). The issue with that is I'm not sure if I can afford all this whilst still in grad school. My main priority is to finish my education so I would preferably not have to worry about how I'm going to come up with a mortgage every month.

 

[BoomerD]

You could set up with a property manager and realtor to rent the home while it's on the market. Rents have gone up here somewhat, and depending on how much your mortgage payment is, you could recoup much of it that way...Of course, the PM company will charge you monthly even if they do nothing that month, but will (for a fee) take care of any needed repairs or cleaning before/after renters...

 

[jagec]

Originally posted by: TripleAAA
Going by that zillow.com my home is valued at about $415k. I have it listed at $365k.

Renting is an option, but very undesirable since I'll be in Kentucky for at least 2-3 years. I was planning on buying a home out there, so I wouldn't be wasting money on rent every month. It's still a possibility, but I don't like the idea of renting out my very new home and not being close enough to check in on it from time to time.

I'll give you $290k:evil:

 

[trulfe]

i'm assuming you have equity built in the house. Take out a home equity line of credit to cover your mortgage payments in the meantime while the house is on the market. It will give you options and also insure that you don't have to take a low-ball bid.

 

[sandmanwake]

Did you know you were going to move to another state in two years? If so, why did you buy?

 

[TripleAAA]

Originally posted by: sandmanwake
Did you know you were going to move to another state in two years? If so, why did you buy?

Because I knew it was a good investment and either way, it will still pay off. As for doing an equity loan, I'd then be throwing away money every month until the place sells.

 

[pontifex]

hmm....take $500 and continue to wait for someone to buy my overpriced home or SELL MY HOUSE SO I CAN MOVE WHERE I WANT TO AND POSSIBLY MAKE MORE MONEY ON IT?

gee, which one should i choose?

 

[Qujo]

Originally posted by: trulfe
i'm assuming you have equity built in the house. Take out a home equity line of credit to cover your mortgage payments in the meantime while the house is on the market. It will give you options and also insure that you don't have to take a low-ball bid.

This is the worst advice I have ever seen. Pay debt with more debt at a higher rate? This ranks up there along with using a HELOC to pay for a car (you'll be paying for that car over 30 years).

If your house isn't selling, then you are asking too much. This isn't 2005.

 

[RbSX]

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?

Yeah and Arizona too.

Poof. There goes the bubble.

 

[kranky]

Originally posted by: Qujo

Originally posted by: trulfe
i'm assuming you have equity built in the house. Take out a home equity line of credit to cover your mortgage payments in the meantime while the house is on the market. It will give you options and also insure that you don't have to take a low-ball bid.

This is the worst advice I have ever seen. Pay debt with more debt at a higher rate? This ranks up there along with using a HELOC to pay for a car (you'll be paying for that car over 30 years).

If your house isn't selling, then you are asking too much. This isn't 2005.

It's very good advice. It would allow the OP to not be forced into a must-sell scenario with minimal cost. It would be well worth it if waiting a little longer could avoid having to cut the price by many thousands just because of time constraints.

Do the math. Borrowing $20,000 on a HELOC - let's say at 7.5% - could cost $125 a month in interest. Worth it to at least go a couple of more months, until the end of summer at least. Might not pay off, but certainly is worth trying.

 

[TripleAAA]

Well it looks like I have it priced good because I'm getting a lot of showings and another buyer has mentioned they will be putting an offer in. So for now, I just got to be patient and wait it out although each day that goes by right now is crucial.

 

[SampSon]

Offering another homeowner money to turn away a buyer is fully legal.

What you need to do is find your rock bottom price you can sell for. Then when you having showings you should mention to people that you have dropped the listing price to $X (which is obviously below the original list, but above your rock bottom). That usually entices them and opens the door for some dealing.

 

[thereds]

ypgm