So there we were at the Spring Rally, with an accepted offer on the house the day before we left for Sevierville, TN. Told the 2014 Graduates. A few hours ago our realtor told us the FHA appraisal came in at $15,000 LESS than the agreed sale price. I am in shock , DH is . Our realtor is going to fight it and let us know next week. Did anyone else go thru this? We need prayers from our awesome RV Dreamers
manycats said
06:49 PM May 23, 2014
FHA appraisals are many times lower than conventional mortgage appraisals. I once had a house rejected by FHA because the kitchen was separate from the main house and joined to it by a breezeway. Don't give up hope, if your buyers are willing to consider other financing options you could still have a sale. Your realtor may be able to work this out.
Barbaraok said
07:35 PM May 23, 2014
And consider whether the $15K is enough to make you delay your dream? Yes, it is quite a chunk, but do you think another offer will be just around the corner?
Barb
LibertyLinda said
07:54 PM May 23, 2014
Thank you Dyana for your encouragement.
Barb, no, we don't think another offer will be around the corner. It really, really eats into that 'nest egg' we were going to leave with. We are going to keep working however. Its just awful what has happened to the house buying "investment" philosophy, which is now a lie - especially since the housing market bottomed out. Thank you for your encouragement too.
jrzygrl64 said
08:35 PM May 23, 2014
I am not going to claim to know exactly how you feel but I can imagine your anger and frustration. You know the week I've had. Please don't lose hope yet. What did you tell me? Things will happen the way they are supposed to when it is supposed to. Believe me I know it's hard. Enjoy your weekend and let your realtor do their job. Keep us updated. Call if you need to.
LibertyLinda said
05:01 AM May 24, 2014
Kelly - Thank you for reminding me of what I said to you, lol.
Camper Chronicles said
06:39 AM May 24, 2014
I love how we are all talking each other through this...Linda if you want to chat reach out...Lee and ai were wondering how you were doing last night. All I can say is that sucks about the offer.
el Rojo and Pam said
07:09 AM May 24, 2014
PM sent. Wishing y'all the best.
Red
BiggarView said
08:47 AM May 24, 2014
One door closes, another will open. Keep the faith... sending positive thoughts your way
Brian
WestWardHo said
05:08 PM May 24, 2014
Ummmm, when we sold our house last year we declined a VA dependent loan offer because we were advised that they could be really picky so the buyers had to go conventional. That still took longer. Now we're buying it back (long story) with a VA loan - go figure. The house was and still is in exceptional condition and is in an area that is coming out of the downturn so the VA appraised it spot on.
Linda & Scott, do you have to accept this? Can you now reject their offer and return their earnest money? We're so sorry this has happened. How does the appraisal match up with recent comps in your area? Somehow, it will all work out, that's one thing we've all learned.
Just do what's right for you both!
Sherry
LibertyLinda said
05:56 PM May 24, 2014
You guys are all terrific and you are helping so much - you have no idea! :)
Sherry, Our realtor is fighting it, apparently with just what you are saying, an expanded comp search that the appraiser did not (nor do they have to) do. The buyer can walk away based on it all, this appraisal sticks for 6 months! So we will do everything we can to make this sale work. We will not benefit by letting it go, not in our area. We are lucky to have a buyer that fell in love with the house, so I believe you, it will all work out. :)
Jo and Ben said
06:29 PM May 24, 2014
Linda, so sorry you have run into this complication! I am glad to hear that your realtor is fighting it and it seems it was priced right based on the comps. It sure sounds like there is still hope that the deal can go through. If they have fallen in love with the house they will be pushing to make it work from their end too. Hang in there, it will all work out! Keep us posted :)
cherylbrv said
08:30 PM May 24, 2014
Linda, the words you said, "things will happen the way they are supposed to when it is supposed to" are so true and words I try to live by. I really don't understand how appraisals work. Our buyer's appraisal came in exactly at the offer price (not our listing price) which made me wonder if the bank knew the amount in advance and just gave a yay or nay and didn't actually look at any comps. I'm glad your realtor is fighting it, especially if the comps in the area say otherwise. I understand the pain and frustration. Just hang in there and it will all work out in the end.
Meanwhile, we were supposed to hear of a mortgage commitment by May 15th. On May 16th they asked for an extension until the 23rd. Today is the 24th and we still haven't heard anything, and probably won't until Tuesday. Meanwhile the buyers asked us if we could move out next week and rent to them until closing (the date of which hasn't even been confirmed, as they still don't have a commitment!).
Ripples - just lots of ripples. But you'll get through it. I promise!
bigboomer said
09:17 PM May 24, 2014
Linda,
Keep the faith! Things always happen for a reason (we went thru 5 offers and 3 contracts before we finally sold). It all worked out for the best. We will keep you in our prayers and we know it will all work out.
Les
The Restless Youngs said
06:08 AM May 25, 2014
Keep focused on the goal at hand and hopefully some sort of compromise can be worked out. I don't think it would matter for the FHA loan process, but if you had your own appraisal done perhaps it might get the buyers to understand the appraisals are perhaps not always created equal. Through the whole mortgage crisis, they have really tightened down the appraisal process. Last year we were buying a rental (which needed some work) and the appraisal came in higher than the purchase price and the bank still wouldn't loan us the money based on the condition of the house--even with 25% down. CRAZY!! Tell that story only because it shows how whacked (and still broken) the system is. Fingers crossed that they are able to get something worked out....
Positive vibes being sent your way. Hopefully your realtor will have some good solutions and buyers may have options to go with other financing. Stay strong and keep focused!
cherylbrv said
06:09 AM May 25, 2014
Wow, Greg & Cori! That really is crazy! There really should be some kind of consistency within the industry!
LibertyLinda said
06:25 AM May 25, 2014
Ugh Cheryl, that is awful! Well we will certainly remember Memorial Day weekend.
Greg & Cori the "system" is broken and just awful - why we are getting out of it right?
Les & Sue, Jo & Ben - thank you so much - I love waking up (I finally slept) and reading your heart felt encouragement.
RV-Dreamers are just awesome - we feel very blessed.
WestWardHo said
06:34 AM May 25, 2014
You should receive a complete copy of the appraisal which should have the specific comps on it. Our current appraisal came in at exactly our purchase price so the appraiser had to know our offer. Interestingly he used ONLY the higher sales prices in the area for comps. (That may have been a result of some top down pressure from Washington in our case.) There doesn't seem to be consistency in the process. Getting your own independent appraisal by a local banks approved appraisal may help in negotiations, current or future ones.
Again, if the buyers are qualified and really want the house they could go conventional or FHA.
Hang in there Linda & Scott!
Sherry
Camper Chronicles said
06:34 AM May 26, 2014
LibertyLinda wrote
Les & Sue, Jo & Ben - thank you so much - I love waking up (I finally slept) and reading your heart felt encouragement.
RV-Dreamers are just awesome - we feel very blessed.
So glad you slept...that's important. We've been thinking about you guys this weekend and as much as I hate when people say his to me :) I know you'll be fine. You are deeply committed to making this work and your both smart and kind people. So I will pass along what my dad (who is not a risk taker ) said to me when I told him my plans... "Your smart...you will figure it out." His words come back to me often because for him that was his highest endorsement of the plan.
You guys will figure this out and make it happen ...not a doubt in my mind.
Trace
PIEERE said
08:06 AM May 26, 2014
As a last step; maybe should have been a first. When evany thing goes awry; I have to remember to take time to meditate and give the prblem to Jesus and let go.Sometime it is difficult to be patient and wait for the answer. It usually comes when I. least expect it.
Howard said
09:56 AM May 26, 2014
Linda,
There are several on this Forum and elsewhere that have gone through similar issues. Being a former real estate attorney, I've seen countless contracts fall through for countless reasons. We try not to celebrate contracts, only closings with cash in hand because we've seen it so often.
I know it's disappointing, but hang in there. My advice would be to make sure your realtor is pushing harder than ever to get back-up contracts. That will give the buyers and their realtor even more incentive to get their financing worked out. Or, you could even offer the realtors an extra percentage point of commission if they can make the deal happen within a certain number of days - a side contract signed by both realtors and you. We used that technique successfully ourselves.
As for back-up contracts, a little price break on your end will be worth it if you get an offer 1) for cash, 2) with conventional mortgage financing, and/or 3) with no contingencies on the sale of the buyer's house.
IF this deal falls through, make sure you are priced correctly. Have your realtor go over his/her market analysis with you and discuss in detail what the realtor is doing for you to get the house sold. The 80/20 rule applies in real estate - 80% of the houses are sold by 20% of the realtors, so you can't assume they all have the ability you need. Make him/her earn that commission.
As for the current deal, if it turns out you have to drop the price to make it work, you have to balance the time it will take to get another contract with the number of additional mortgage payments you may have to make and the drop in price. Sometimes, it really is best to take the price hit for a quicker sale especially if the house is unique, in a higher price range, or has simply been on the market a long time.
We know folks that have rejected lower offers and sold a year or two later. The following sometimes happens: 1) they make mortgage payments that end up being more than the amount they would have "lost" by taking the lower offer, or 2) they end up selling the house for the lower amount, or worse yet, for an even lower amount than the offer they rejected, or 3) they finally get the price they want, but they have made mortgage payments that have depleted their cash reserves to the point where they would have been in the same position as taking the lower offer, BUT they gave up a year or two of their lives to get there.
We also know of a couple that finally got their price, but it turned out to be a fraudulent offer accepted by the real estate agent who failed to collect the appropriate earnest money. The sellers were excited and took the property off the market, but imagine their shock when the deal went bad, there was no earnest money to compensate them for damages, and they had to go back to the drawing board. Fortunately, the realtor/broker realized their huge mistake and settled with the sellers before they got sued, but imagine the additional stress of dealing with all that.
Every situation is different, and I'm not encouraging you to take a $15,000 hit. However, I do want you to know that your aren't alone in dealing with home sale contract problems, there are things you can do that may help the situation, there are pro-active steps you can take, and in the overall scheme of things that $15,000 hit (or whatever it is) may not be as bad as it looks given the totality of the circumstances.
It'll work out, and feel free to email me if you want to discuss your specific situation in more detail. Perhaps I can help, or perhaps not.
cherylbrv said
10:45 AM May 26, 2014
PIEERE wrote:
As a last step; maybe should have been a first. When evany thing goes awry; I have to remember to take time to meditate and give the prblem to Jesus and let go.Sometime it is difficult to be patient and wait for the answer. It usually comes when I. least expect it.
True. So absolutely very true.
dewwood said
11:11 AM May 26, 2014
Have all of the inspections been completed? With FHA financing there can sometimes be several things to "fix" before the deal can be closed. I do not want to alarm you any more but FHA contracts usually take a bit longer than regular financing. Like others have said continue to market the property. Good luck!
LibertyLinda said
02:31 PM May 26, 2014
Howard, thank you so much for your insight and wisdom. We really liked this:
"Every situation is different, and I'm not encouraging you to take a $15,000 hit. However, I do want you to know that your aren't alone in dealing with home sale contract problems, there are things you can do that may help the situation, there are pro-active steps you can take, and in the overall scheme of things that $15,000 hit (or whatever it is) may not be as bad as it looks given the totality of the circumstances."
I think after the weekend - and the awesome kayaking we did today :) - that what you said here is where we are at. We are prepared for the worse, but we also don't want to delay our many years of planning for the RV Full timing Dream for a real estate market that is not good in our area, and will never be worth the time it will take to gamble for another buyer. Having said that, we just may contact you depending on the news we get this week, lol.
I really appreciate it Howard, all this just makes us want full timing even more.
folivier said
07:28 AM May 27, 2014
When we finally sold our house last year our listing agreement had expired and we had decided to take it off the market until the summer. The offer came in much lower than our listing price. We negotiated a bit then did some real hard thinking. A friend suggested to look at what the total cost would be each year we keep it and drop the price at least that amount. Hard to accept but it did make sense since it would have taken at least another year to sell in our market. So our final counter offer was at that price. They accepted and the sale went through. Now it was hard to accept at first what we considered a loss, but when all is said and done it was a big relief to be done with it and finally realize our dream to full-time. And after over a year we wish we would have dropped the price sooner to be able to full-time earlier. You never what is around the corner that could change your plans.
Good luck with the sale!
Technomadia said
08:08 AM May 27, 2014
Sending you lots of supportive wishes as you navigate through this.
I sold my house in 2008 (after a year trial run on the road), and the market was crashing hard - to a point I would have to dip into savings to sell the house and pay off the mortgage, or navigate the lengthy short sale process.
I did the same math, what would it cost me to keep the house until it could be sold for what the mortgage was? Given that predications at the time was for another two years before prices might return in the area, I used that number to calculate what it would cost to keep the house on the market. I set the asking price at that amount, quickly got a cash offer and closed in two weeks. Yup, shelling out a lot of cash at the closing table wasn't fun - but the freedom of moving on was so worth it.
I sincerely hope you are past this soon, and look back at this as just a little speed bump on the great journey ahead of you!
- Cherie
Terry and Jo said
06:16 PM May 27, 2014
Unlike Cherie, we went a full three years in trying to sell our home and 3/4 acre lot. Granted, we went on the market right at the bust of the housing market and other related economic situation. After some time, our realtor told us that they were not having problems selling homes that were under $200,000. Likewise, except for REALLY expensive places, places over $300,000 were selling fairly well. Our price on the house was less than $250,000 and we went two and a half years with little interest.
After that 2 1/2 years, we went "for sale by owner" and had it sold in about 6 months. But, even then, we took a loss on the house, although we figured we came out ahead by not having to keep paying that hefty mortgage payment.
Keep up the faith. Things will work out, although you might have to give a bit.
Terry
EBendana said
07:55 AM May 29, 2014
Is there any chance that you can hold a small owner financed 2nd mortgage for part of that? I'm thinking, "meet in the middle", and hold a 2nd mortage for $7,500 with rally easy terms, even if you only get $50 per month on it, its like money in the bank.....sending positive vibes your way.
WendysPhotos said
07:57 AM May 29, 2014
Linda,
Sorry late on this, Howard is correct. A Lot of contracts fall through and you should have your realtor looking for other buyers even as you are negotiating with this one. We have been in a similar situation. our house had a VA mortgage on it when we bought it, but at first they would not approve our VA loan. It took a few hundred dollars to fix a couple of things and send them a copy of the other VA loan and a new appraisal to get it done, but it finally went through.
BTW appraisal's can be so different from one person to the next. We had three different appraiser's out before we listed and the price varied by 43,000.00, so if you still have your buyers. ask for a different appraisal, if possible. Then also ask for one familiar with your area. Some mortgage companies send apprasier's from miles away and different sections of the city they are unfamiliar with.
cherylbrv said
08:34 AM May 29, 2014
In the "I'm not happy unless I have something to worry about" department: this question is for Wendy and Howard and other realtors out there.... what are the chances of a contract falling through once the mortgage commitment is in hand and a closing date set?
BiggarView said
10:16 AM May 29, 2014
cherylbrv wrote:
In the "I'm not happy unless I have something to worry about" department:...
... Cheryl, Cheryl, Cheryl.... I hear the following domain name is available.... www.worrywarts.com Seriously, I'm thinking about putting the champagne back on the shelf, and I was soooooo ready to toast your successful sale.
Brian
cherylbrv said
10:25 AM May 29, 2014
Or maybe I can have that champagne in advance so I can forget about it all?
BiggarView said
10:43 AM May 29, 2014
cherylbrv wrote:
Or maybe I can have that champagne in advance so I can forget about it all?
I make killer Margaritas to do that
cherylbrv said
01:00 PM May 29, 2014
YES, YES, YES!!!!! I'm visiting you first thing! Can I have one now? Pleeeeeeese?
suse1023 said
08:57 PM May 29, 2014
oh I'm sorry you're going through this.
Last year we took a huge loss on the sale of our farm and now are working to recoup that loss. But even so, dh and I are living in our rv and having a wonderful time. We've traveled some, not a whole lot, but enough to get a feel for it, and are still really happy we took the money and ran--or drove away, as it turns out.
I hope you get what you need to start your rv life very soon.
PJ Vagabond said
08:26 PM May 30, 2014
Hang in there and keep going....I wound up with no equity, had to do a deed in lieu instead of repossession, but managed to finance my rv through serendipity, and have been FT-ing it for 2+ months now, living on SS, and couldn't be happier. It is worth whatever you need to do to live your dream!!! Good luck!
cheryls-other-half said
09:57 PM May 31, 2014
biggaRView wrote:
cherylbrv wrote:
In the "I'm not happy unless I have something to worry about" department:...
... Cheryl, Cheryl, Cheryl.... I hear the following domain name is available.... www.worrywarts.com Seriously, I'm thinking about putting the champagne back on the shelf, and I was soooooo ready to toast your successful sale.
Brian
oo oh BRIAN, you DONT know the half of it... I have to LIVE with this. and the PRESSURE, on me... now july 31st, only 4 more days.
OK: Quick status report.
ALL of our furniture is gone.
Dining room set? gone a month ago
Kitchen table/chairs? left thursday
Recliner in the living room? Gone.
Bedroom set? Gone thursday.
Now living out of plastic boxes and a queen sized air matress.
WOW...
Most people sell their houses and have a moving van take out the furniture, we will be leaving with just a few boxes.
looking forward to joining the class of '14... real soon
But our lawyer told us most closings only have a 2 day advance notice, so still looks good, so keep the champagne CHILLED.
And I think we WILL be at the Sept Rally in Goshen this fall
-- Edited by cheryls-other-half on Saturday 31st of May 2014 09:58:48 PM
BiggarView said
09:35 AM Jun 3, 2014
OK champers back in the cooler
the wheelberries said
03:00 PM Jun 3, 2014
So sorry to hear this and hope things will work out for you. I can't imagine how you feel or what we would do if in your situation other than pray and ask for prayer as you are doing. But I just want to post a word of encouragement for others that are beginning this journey are thinking about it.
We took the first actual steps on our journey the first part of April by placing our home on the market thinking that would give us a few months to sell our furniture and dispose of other items. In 16 days we had a contract and the couple was wanting to close asap since was a cash sale but we were able to put them off until the first of May and going with an offer 5000.00 lower than our asking price.
I realize that we were blessed by how quickly and how easy the process moved along and reading this post makes me even more thankful. WOW. It can go either way but you will never know until you put forth the effort and see how things go. Our prayers are with you as you work through this problem.
God Bless
Nancy Faulkenberry
LibertyLinda said
03:14 PM Jun 3, 2014
Okay folks, so it has been a week and my update: *crickets*
I asked our realtor for an update yesterday, the response was "the bank is reviewing and will let you know the second we know". My response - in my head was - of course it's under review we need answers!
So, it has been torture. Thanks for all your thoughts. I know we will forget all about it once we are on the road - but wow are we being tested now!
My RV-Dreamers will be the first to know the update, you have been just awesome and we are very grateful for you all. :)
Joe_Camper said
07:29 AM Jun 7, 2014
OK Cheryl, the 4th has come and gone. Did y'all close?
Jo And Craig said
08:15 AM Jun 7, 2014
Cheryl must be on the road and without cell service?
Terry and Jo said
08:18 PM Jun 7, 2014
While I can't say that this is gospel truth as of this moment, the owner of the truck and trailer that Cheryl and Mitch are buying said on another forum that he had just sold his rig.
Now, did he really sell it and Cheryl and Mitch are now in it, or was he pulling someone's leg.
I guess we won't know until the "kids" check back in.
Terry
BiggarView said
10:58 PM Jun 7, 2014
Terry and Jo wrote:
While I can't say that this is gospel truth as of this moment, the owner of the truck and trailer that Cheryl and Mitch are buying said on another forum that he had just sold his rig.
Now, did he really sell it and Cheryl and Mitch are now in it, or was he pulling someone's leg.
I guess we won't know until the "kids" check back in.
Terry
Well, it is graduation day for many today..... Attended one ourselves, but not RVs.
cherylbrv said
07:53 AM Jun 8, 2014
Joe_Camper wrote:
OK Cheryl, the 4th has come and gone. Did y'all close?
See my post called "Where's the mojo?" No, I did not close yet, although I did leave my S&B and am a wandering nomad without a place to be. Crashing at my daughter's for now, but we'll probably need to find a hotel for the next few days. I guess I can use a little encouragement too.
cherylbrv said
07:56 AM Jun 8, 2014
Terry and Jo wrote:
While I can't say that this is gospel truth as of this moment, the owner of the truck and trailer that Cheryl and Mitch are buying said on another forum that he had just sold his rig.
Now, did he really sell it and Cheryl and Mitch are now in it, or was he pulling someone's leg.
I guess we won't know until the "kids" check back in.
Terry
Yes, he sold the rig to us. He stopped entertaining other offers about a month ago and promised to hold it for us, despite no deposit and no confirmed closing date. He is being incredibly patient and more than trusting. The few things that needed upgrading (like the brake pads) he is taking care of for us.
Terry and Jo said
02:24 PM Jun 8, 2014
Thanks for the update, and it is great news that he is taking care of the brake pads for you. That will be one less issue for you to worry about.
Terry
LibertyLinda said
05:47 PM Jun 10, 2014
Well, we waited all this time and they will not budge at ALL on the FHA appraisal. Our realtor said its the second one she has had this month and "they are being so tight". Tight? I am selling at $10K UNDER what I paid for. So, I am going to go drink a beer- or two- with my husband and curse a lot and get to a place to look forward to getting it done and getting out of this sticks and bricks LIE and RACKETT. I will NEVER tell anyone that buying a house or real estate is an "investment". It might have been years ago, but not now. Whoever thought the Feds should be involved in real estate is complete crook. That's all I got to say about that. We now wait for a closing date.
Camper Chronicles said
05:54 PM Jun 10, 2014
I am really sorry hon... At least your done with it. I know small consolation but there are so many wonderful things in front of you guys hopefully this will be a small blip in the rear view mirror.
cherylbrv said
06:15 PM Jun 10, 2014
You already have your rig. Despite taking a loss on the house, will you have enough $ to live on the road? If the answer is yes, then it helps to try to stay positive and forward looking. <<< HUGS >>>
So there we were at the Spring Rally, with an accepted offer on the house the day before we left for Sevierville, TN. Told the 2014 Graduates. A few hours ago our realtor told us the FHA appraisal came in at $15,000 LESS than the agreed sale price. I am in shock
, DH is 
. Our realtor is going to fight it and let us know next week. Did anyone else go thru this? We need prayers from our awesome RV Dreamers 
Barb
Barb, no, we don't think another offer will be around the corner. It really, really eats into that 'nest egg' we were going to leave with. We are going to keep working however. Its just awful what has happened to the house buying "investment" philosophy, which is now a lie - especially since the housing market bottomed out. Thank you for your encouragement too.
Red
One door closes, another will open. Keep the faith... sending positive thoughts your way
Brian
Linda & Scott, do you have to accept this? Can you now reject their offer and return their earnest money? We're so sorry this has happened. How does the appraisal match up with recent comps in your area? Somehow, it will all work out, that's one thing we've all learned.
Just do what's right for you both!
Sherry
Sherry, Our realtor is fighting it, apparently with just what you are saying, an expanded comp search that the appraiser did not (nor do they have to) do. The buyer can walk away based on it all, this appraisal sticks for 6 months! So we will do everything we can to make this sale work. We will not benefit by letting it go, not in our area. We are lucky to have a buyer that fell in love with the house, so I believe you, it will all work out. :)
Meanwhile, we were supposed to hear of a mortgage commitment by May 15th. On May 16th they asked for an extension until the 23rd. Today is the 24th and we still haven't heard anything, and probably won't until Tuesday. Meanwhile the buyers asked us if we could move out next week and rent to them until closing (the date of which hasn't even been confirmed, as they still don't have a commitment!).
Ripples - just lots of ripples. But you'll get through it. I promise!
Linda,
Keep the faith! Things always happen for a reason (we went thru 5 offers and 3 contracts before we finally sold). It all worked out for the best. We will keep you in our prayers and we know it will all work out.
Les
Positive vibes being sent your way. Hopefully your realtor will have some good solutions and buyers may have options to go with other financing. Stay strong and keep focused!
Greg & Cori the "system" is broken and just awful - why we are getting out of it right?
Les & Sue, Jo & Ben - thank you so much - I love waking up (I finally slept) and reading your heart felt encouragement.
RV-Dreamers are just awesome - we feel very blessed.
themortgagereports.com/11984/va-reconsideration-of-value-how-to-appeal-va-appraisals
Again, if the buyers are qualified and really want the house they could go conventional or FHA.
Hang in there Linda & Scott!
Sherry
Les & Sue, Jo & Ben - thank you so much - I love waking up (I finally slept) and reading your heart felt encouragement.
RV-Dreamers are just awesome - we feel very blessed.
So glad you slept...that's important. We've been thinking about you guys this weekend and as much as I hate when people say his to me :) I know you'll be fine. You are deeply committed to making this work and your both smart and kind people. So I will pass along what my dad (who is not a risk taker ) said to me when I told him my plans... "Your smart...you will figure it out." His words come back to me often because for him that was his highest endorsement of the plan.
You guys will figure this out and make it happen ...not a doubt in my mind.
Trace
Linda,
There are several on this Forum and elsewhere that have gone through similar issues. Being a former real estate attorney, I've seen countless contracts fall through for countless reasons. We try not to celebrate contracts, only closings with cash in hand because we've seen it so often.
I know it's disappointing, but hang in there. My advice would be to make sure your realtor is pushing harder than ever to get back-up contracts. That will give the buyers and their realtor even more incentive to get their financing worked out. Or, you could even offer the realtors an extra percentage point of commission if they can make the deal happen within a certain number of days - a side contract signed by both realtors and you. We used that technique successfully ourselves.
As for back-up contracts, a little price break on your end will be worth it if you get an offer 1) for cash, 2) with conventional mortgage financing, and/or 3) with no contingencies on the sale of the buyer's house.
IF this deal falls through, make sure you are priced correctly. Have your realtor go over his/her market analysis with you and discuss in detail what the realtor is doing for you to get the house sold. The 80/20 rule applies in real estate - 80% of the houses are sold by 20% of the realtors, so you can't assume they all have the ability you need. Make him/her earn that commission.
As for the current deal, if it turns out you have to drop the price to make it work, you have to balance the time it will take to get another contract with the number of additional mortgage payments you may have to make and the drop in price. Sometimes, it really is best to take the price hit for a quicker sale especially if the house is unique, in a higher price range, or has simply been on the market a long time.
We know folks that have rejected lower offers and sold a year or two later. The following sometimes happens: 1) they make mortgage payments that end up being more than the amount they would have "lost" by taking the lower offer, or 2) they end up selling the house for the lower amount, or worse yet, for an even lower amount than the offer they rejected, or 3) they finally get the price they want, but they have made mortgage payments that have depleted their cash reserves to the point where they would have been in the same position as taking the lower offer, BUT they gave up a year or two of their lives to get there.
We also know of a couple that finally got their price, but it turned out to be a fraudulent offer accepted by the real estate agent who failed to collect the appropriate earnest money. The sellers were excited and took the property off the market, but imagine their shock when the deal went bad, there was no earnest money to compensate them for damages, and they had to go back to the drawing board. Fortunately, the realtor/broker realized their huge mistake and settled with the sellers before they got sued, but imagine the additional stress of dealing with all that.
Every situation is different, and I'm not encouraging you to take a $15,000 hit. However, I do want you to know that your aren't alone in dealing with home sale contract problems, there are things you can do that may help the situation, there are pro-active steps you can take, and in the overall scheme of things that $15,000 hit (or whatever it is) may not be as bad as it looks given the totality of the circumstances.
It'll work out, and feel free to email me if you want to discuss your specific situation in more detail. Perhaps I can help, or perhaps not.
True. So absolutely very true.
Have all of the inspections been completed? With FHA financing there can sometimes be several things to "fix" before the deal can be closed. I do not want to alarm you any more but FHA contracts usually take a bit longer than regular financing. Like others have said continue to market the property. Good luck!
"Every situation is different, and I'm not encouraging you to take a $15,000 hit. However, I do want you to know that your aren't alone in dealing with home sale contract problems, there are things you can do that may help the situation, there are pro-active steps you can take, and in the overall scheme of things that $15,000 hit (or whatever it is) may not be as bad as it looks given the totality of the circumstances."
I think after the weekend - and the awesome kayaking we did today :) - that what you said here is where we are at. We are prepared for the worse, but we also don't want to delay our many years of planning for the RV Full timing Dream for a real estate market that is not good in our area, and will never be worth the time it will take to gamble for another buyer. Having said that, we just may contact you depending on the news we get this week, lol.
I really appreciate it Howard, all this just makes us want full timing even more.
Good luck with the sale!
I sold my house in 2008 (after a year trial run on the road), and the market was crashing hard - to a point I would have to dip into savings to sell the house and pay off the mortgage, or navigate the lengthy short sale process.
I did the same math, what would it cost me to keep the house until it could be sold for what the mortgage was? Given that predications at the time was for another two years before prices might return in the area, I used that number to calculate what it would cost to keep the house on the market. I set the asking price at that amount, quickly got a cash offer and closed in two weeks. Yup, shelling out a lot of cash at the closing table wasn't fun - but the freedom of moving on was so worth it.
I sincerely hope you are past this soon, and look back at this as just a little speed bump on the great journey ahead of you!
- Cherie
Unlike Cherie, we went a full three years in trying to sell our home and 3/4 acre lot. Granted, we went on the market right at the bust of the housing market and other related economic situation. After some time, our realtor told us that they were not having problems selling homes that were under $200,000. Likewise, except for REALLY expensive places, places over $300,000 were selling fairly well. Our price on the house was less than $250,000 and we went two and a half years with little interest.
After that 2 1/2 years, we went "for sale by owner" and had it sold in about 6 months. But, even then, we took a loss on the house, although we figured we came out ahead by not having to keep paying that hefty mortgage payment.
Keep up the faith. Things will work out, although you might have to give a bit.
Terry
Sorry late on this, Howard is correct. A Lot of contracts fall through and you should have your realtor looking for other buyers even as you are negotiating with this one. We have been in a similar situation. our house had a VA mortgage on it when we bought it, but at first they would not approve our VA loan. It took a few hundred dollars to fix a couple of things and send them a copy of the other VA loan and a new appraisal to get it done, but it finally went through.
BTW appraisal's can be so different from one person to the next. We had three different appraiser's out before we listed and the price varied by 43,000.00, so if you still have your buyers. ask for a different appraisal, if possible. Then also ask for one familiar with your area. Some mortgage companies send apprasier's from miles away and different sections of the city they are unfamiliar with.
Brian
Or maybe I can have that champagne in advance so I can forget about it all?
I make killer Margaritas to do that
Last year we took a huge loss on the sale of our farm and now are working to recoup that loss. But even so, dh and I are living in our rv and having a wonderful time. We've traveled some, not a whole lot, but enough to get a feel for it, and are still really happy we took the money and ran--or drove away, as it turns out.
I hope you get what you need to start your rv life very soon.
oo oh BRIAN, you DONT know the half of it... I have to LIVE with this. and the PRESSURE, on me... now july 31st, only 4 more days.
OK: Quick status report.
ALL of our furniture is gone.
Dining room set? gone a month ago
Kitchen table/chairs? left thursday
Recliner in the living room? Gone.
Bedroom set? Gone thursday.
Now living out of plastic boxes and a queen sized air matress.
WOW...
Most people sell their houses and have a moving van take out the furniture, we will be leaving with just a few boxes.
looking forward to joining the class of '14... real soon
But our lawyer told us most closings only have a 2 day advance notice, so still looks good, so keep the champagne CHILLED.
And I think we WILL be at the Sept Rally in Goshen this fall
-- Edited by cheryls-other-half on Saturday 31st of May 2014 09:58:48 PM
OK champers back in the cooler
So sorry to hear this and hope things will work out for you. I can't imagine how you feel or what we would do if in your situation other than pray and ask for prayer as you are doing. But I just want to post a word of encouragement for others that are beginning this journey are thinking about it.
We took the first actual steps on our journey the first part of April by placing our home on the market thinking that would give us a few months to sell our furniture and dispose of other items. In 16 days we had a contract and the couple was wanting to close asap since was a cash sale but we were able to put them off until the first of May and going with an offer 5000.00 lower than our asking price.
I realize that we were blessed by how quickly and how easy the process moved along and reading this post makes me even more thankful. WOW. It can go either way but you will never know until you put forth the effort and see how things go. Our prayers are with you as you work through this problem.
God Bless
Nancy Faulkenberry
I asked our realtor for an update yesterday, the response was "the bank is reviewing and will let you know the second we know". My response - in my head was - of course it's under review we need answers!
So, it has been torture. Thanks for all your thoughts. I know we will forget all about it once we are on the road - but wow are we being tested now!
My RV-Dreamers will be the first to know the update, you have been just awesome and we are very grateful for you all. :)
Cheryl must be on the road and without cell service?
While I can't say that this is gospel truth as of this moment, the owner of the truck and trailer that Cheryl and Mitch are buying said on another forum that he had just sold his rig.
Now, did he really sell it and Cheryl and Mitch are now in it, or was he pulling someone's leg.
I guess we won't know until the "kids" check back in.
Terry
Well, it is graduation day for many today..... Attended one ourselves
, but not RVs.
See my post called "Where's the mojo?" No, I did not close yet, although I did leave my S&B and am a wandering nomad without a place to be. Crashing at my daughter's for now, but we'll probably need to find a hotel for the next few days. I guess I can use a little encouragement too.
Yes, he sold the rig to us. He stopped entertaining other offers about a month ago and promised to hold it for us, despite no deposit and no confirmed closing date. He is being incredibly patient and more than trusting. The few things that needed upgrading (like the brake pads) he is taking care of for us.
Thanks for the update, and it is great news that he is taking care of the brake pads for you. That will be one less issue for you to worry about.
Terry