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Mortgage Offer, Accept?

Home Real Estate Investing Mortgage Offer, Accept?

  • Zaphod Zaphod 
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    Status: Physician, Small Business Owner
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    Disability Insurance

    I have my house on the market, for about half a week now and received a few strange offers. One is kind of compelling but as soon as we got the offer the caveats came in. Buyer is an NBA player, full asking, but they said…ugh, maybe we need 75-90 day closing?!?

    First off, no, I do not have that fancy of a house, they are buying for family clearly.

    Real question is, I look the person up, they are indeed an NBA guy, from this town but have been in and out of G league since drafted in 2016. Did just sign a 3M 2y contract but only 300k guaranteed each year. I checked and he’s been playing in big leagues steady (51 games so far) this year. So it seems he should be able to have some money and steady pay. Ofc we’ve all heard of athletes blowing their cash, not sure he came out big enough to even start that. Maybe my house can be the start!

    Anyways, he doesnt have much of a credit history reportedly, which I can actually believe being just 2 years out, etc…

    Would you accept this offer, with a counter of higher earnest money deposit?

    #196602 Reply
    Avatar Peds 
    Participant
    Status: Physician
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    Joined: 01/08/2016

    Why not? Let them waste their money anyway they like!

    #196603 Reply
    Liked by ENT Doc, Zaphod
    Zaphod Zaphod 
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    Status: Physician, Small Business Owner
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    Joined: 01/12/2016

    The why not part is why is there a caveat, longer escrow that makes you think it might fall apart since they have no credit history, are buying for someone else, etc…and may have trouble getting a loan. Supposedly RE agent has experience in this area.

    I am leaning toward yes with the higher deposit counter.

    Since I’ll be out of town I would love a super solid offer I dont have to worry about that closes instantly of course.

    #196605 Reply
    SerrateAndDominate SerrateAndDominate 
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    Status: Physician
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    If you’re ready to move it, then accept. But if they played for Kentucky, ask for double. They get paid well in college

    Earn everything.

    Avatar Tim 
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    Status: Accountant
    Posts: 2127
    Joined: 09/18/2018
    Would you accept this offer, with a counter of higher earnest money deposit?

    Click to expand…

    NBA or G-League has nothing to do with it!

    You didn’t mention the earnest money amount.  He wants 75-90? Rather fluid. How much money is it worth to take it off the market until May 15,2019? As you mentioned, the hassles selling long distance and carrying costs add up.  How much is 25% of your property tax and insurance and value of you money tied up?  Your costs are known and you have uncertain risk.  The earnest money is the value you choose to accept for non-performance which will be a PITA. From a marketing standpoint, listing in May is not a disadvantage.  Tactically, throwing out your concerns with you listing agent may get an updated offer with a nice increase in the deposit and some price for the carrying costs. If its simply cash flow, you win!  If its financing ability, you still need to sell it. How much is it worth for getting stiffed?

     

    #196617 Reply
    Zaphod Zaphod 
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    Status: Physician, Small Business Owner
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    Joined: 01/12/2016
    Would you accept this offer, with a counter of higher earnest money deposit? 

    Click to expand…

    NBA or G-League has nothing to do with it!

    You didn’t mention the earnest money amount.  He wants 75-90? Rather fluid. How much money is it worth to take it off the market until May 15,2019? As you mentioned, the hassles selling long distance and carrying costs add up.  How much is 25% of your property tax and insurance and value of you money tied up?  Your costs are known and you have uncertain risk.  The earnest money is the value you choose to accept for non-performance which will be a PITA. From a marketing standpoint, listing in May is not a disadvantage.  Tactically, throwing out your concerns with you listing agent may get an updated offer with a nice increase in the deposit and some price for the carrying costs. If its simply cash flow, you win!  If its financing ability, you still need to sell it. How much is it worth for getting stiffed?

     

    Click to expand…

    The upped deposit will cover holding costs, and honestly if it doesnt go through and gets relisted in May, selling is probably a better thing seasonally at that time. So leaning towards worth it. Ofc course market/economy could do worse and more houses may be available, but thats the game.

    #196620 Reply
    Craigy Craigy 
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    Get a big, hard money non-refundable deposit.

    LEVEL 1 WCI FORUM MEMBER.

    #196621 Reply
    Avatar DCdoc 
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    Status: Physician
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    Joined: 06/14/2016

    What’s the earnest deposit amount?

    #196649 Reply
    SerrateAndDominate SerrateAndDominate 
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    Status: Physician
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    Come to think of it, I bet the delay is for the end of the NBA season so he can find out if he gets his non-guaranteed salary. Time to start cheering for this dude and his team

    Earn everything.

    #196650 Reply
    Avatar jhwkr542 
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    Status: Physician
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    Joined: 02/15/2016

    It doesn’t sound too unreasonable to accept to me.  Higher earnest deposit should cover the longer closing period.  Maybe he’s waiting to move until after the season is over…?  Is he on a playoff-bound team?

    #196652 Reply
    DMFA DMFA 
    Moderator
    Status: Physician
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    Joined: 06/24/2016

    If earnest deposit covers longer closing period and possibility of not closing, it seems reasonable.  Bird in the hand, and all that.

    "I like money." - Frito Pendejo (Idiocracy)

    [Not a financial professional (yet), lawyer, or employee of The White Coat Investor]

    #196656 Reply
    Avatar Kamban 
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    Status: Physician
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    Joined: 08/01/2016

    Make sure that the earnest money is iron clad language in escrow that he cannot wiggle out of and is worth your time to relist in May-June 2019 should it fall through

    #196658 Reply
    portlandia portlandia 
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    Status: Physician
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    Joined: 07/07/2017

    Hmmm, tough call. The closing request throws up a lot of red flags for me. Is this a cash offer or conventional financing?

    How have the other offers been? You mentioned they were strange, in what ways? Is your house competitively priced? Sounds like it might be if you have had several offers in the first 1.5 weeks. Did your relator try and pump their realtor for any information about the unusually long closing request and what considerations the buyer would provide the seller for this unusual request?

    If my house were competitively priced and I felt that I could get another full priced offer soon with a typical 30-45 day close, I would pass unless they sweeten the deal in some manner, e.g. a large non refundable deposit to cover carrying costs/hassle and possibly loss of “new home momentum” if the deal were to fall through.

    #196661 Reply
    Liked by Zaphod
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
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    Joined: 01/12/2016

    The other offers were someone contingent on sale and their house had been on market for almost a month I think, so no go. The other was someone who came in with a low ball offer and wanted me to pay closing. Both of those were on day 2 on the market, this one came day 4. I thought I priced it a smidge high, but its had an incredible amount of interest online and in person…so Im thinking maybe not? Friday will be one week. I was gonna drop the price by next week if we didnt have a solid offer.

    I agree the offer makes me feel red flags..their agent thinks it will be no problem and is “just looking out”, and given that he isnt a starter and was a two way player (housing is covered, etc..) and this is only his second year the minimal credit history, etc…does make sense a bit. I am trying to learn all about the sportzballz rn.

    #196669 Reply
    Liked by Vagabond MD
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
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    Joined: 01/12/2016

    It doesn’t sound too unreasonable to accept to me.  Higher earnest deposit should cover the longer closing period.  Maybe he’s waiting to move until after the season is over…?  Is he on a playoff-bound team?

    Click to expand…

    It looks like theyre in contention to make a playoff spot, but not guaranteed. Interesting stuff.

    #196670 Reply

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