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Would you guys take the money and run?
Posted on 8/1/12 at 6:06 pm
Posted on 8/1/12 at 6:06 pm
I got unbelievably lucky. Decided to buy a repo house. Negotiated with the bank and finally got the financing. At the closing the selling agent says to me I have a backup offer on this house for 16% above what I was purchasing the house for. I said no thats not enough. So today he comes back with an offer for 26% above what I purchased the house for yesterday. Wife really likes the house but I like money. So should I take the money?
8
Posted on 8/1/12 at 6:24 pm to Eon Blue
If two agents are involved, you could end up paying 6% of the selling price + closing.
Posted on 8/1/12 at 6:24 pm to Eon Blue
quote:
should I take the money?
Where will you live if you don't buy the house? That is way more important than the ROI. Happy wife is also way more important.
Posted on 8/1/12 at 6:29 pm to Eon Blue
Percentages? Lets talk numbers....
26% on a 50k house or 26% on a million dollar property.
26% on a 50k house or 26% on a million dollar property.
Posted on 8/1/12 at 6:32 pm to I Love Bama
Also, you better hope the buyer has cash. The new buyer won't get financed.
Posted on 8/1/12 at 6:33 pm to Eon Blue
I would most likely take the money and run. I would have to know the value of the house to know for sure.
Posted on 8/1/12 at 6:33 pm to Eon Blue
quote:Once you figure out how much she likes the new house, you'll have you're answer.
Wife really likes the house
Posted on 8/1/12 at 6:57 pm to Eon Blue
How long have you there? The minimum to avoid cap gains is two years. I'm sure there are exceptions/ ways around it though. 
Posted on 8/1/12 at 7:39 pm to TigerDeBaiter
We paid 260k. We haven't moved in yet. Just purchase yesterday. We currently own a home and were trying to upgrade bc of another baby on the way so we would stay in current house if we sell new house. Have a renter lined up that will cover mortgage, expenses etc on the current house if we don't sell new house. I know cap gains is going to take a third. And the real estate agent is not getting 6% for doing nothing. I figure I can get him down to 4.5. The buyer has an agent too. So I don't think I can get much lower than 4.5%
Tiger94 why do you say that? the bank won't lend them the money bc I haven't lived there long enough??? I thouht that may be a problem.
Tiger94 why do you say that? the bank won't lend them the money bc I haven't lived there long enough??? I thouht that may be a problem.
Posted on 8/1/12 at 7:59 pm to Eon Blue
How much you paid for it isn't really important other than to calculate your capital gains tax. What matters is whether this new offer is higher than you think is fair value. Since this is a repo I assume you've done some due diligence and have a good idea of what that fair value is.
Look at it this way - if the seller is offering you a fair market price then why bother?
Look at it this way - if the seller is offering you a fair market price then why bother?
Posted on 8/1/12 at 9:32 pm to foshizzle
quote:
if the seller is offering you a fair market price then why bother?
This is my 1st thought as well. If you 26% over fair market value I'd say take it but if he is just getting the normal deal it just negates your deal.
I don't suspect you would be able to get a better deal on a new house if you took the money
Posted on 8/1/12 at 9:44 pm to Eon Blue
So before tax and fees you are looking at $67k in profit? How is that housing market in that area?
Posted on 8/1/12 at 10:03 pm to BACONisMEATcandy
Yeah you guys are right. I'm prob not going to find another steal like it. So if I plan on buying anytime soon I should just keep it. His offer is 20k over my appraisal fwiw.
Posted on 8/1/12 at 10:12 pm to Eon Blue
Eh you seem to have a great thing going already-- make the wife happy.
+ you own and renting out another house (you can make money here).
+ you own and renting out another house (you can make money here).
Posted on 8/2/12 at 7:47 am to LSUTigers00884
quote:
Eh you seem to have a great thing going already-- make the wife happy.
+ you own and renting out another house (you can make money here).
Agreed. Now, if he comes back w/ another offer. Take it and run and tell the wife to start find another home she likes.
Posted on 8/2/12 at 8:34 am to Eon Blue
quote:i would not sell
His offer is 20k over my appraisal fwiw.
Posted on 8/2/12 at 8:43 am to Eon Blue
How often do you have the opportunity to make $60k with so little effort? I would sell....that's a nice profit for no work. You buy it and live there, if and when you sell it, you'll never net out on the positive.
Posted on 8/2/12 at 8:36 pm to cwill
6% comm=~17
cap gains min of 5k
looks like you are losing money
cap gains min of 5k
looks like you are losing money
Posted on 8/2/12 at 10:02 pm to 756
Made the decision to keep it. Rejected their offer this afternoon. Get a call at 7pm they increased offer by 20k.
Posted on 8/2/12 at 10:11 pm to Eon Blue
quote:
increased offer by 20k.
Keeps getting harder huh?
No matter what keep the wife happy and family life in order. The extra few thousands isn't worth the stress of searching for another home and possibly paying more for less in the end
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