Long story short, we've been renting a property for 12 years and have an opportunity to buy it, but there are now court complications.
Our landlord and the brother own the house 50/50 in a trust. Our landlord is a family friend and has been great and fair. But unbeknownst to us, the brother has wanted more and so he took his brother to court over it.
The outcome is a court order to sell via a court-appointed realtor.
The only reason we found out expediently is, we expressed a desire to buy it from our landlord, and that's when they told us it would be going on the market soon.
There are a few contingencies for the sale.
Another house is also in the trust. In order for our house to go on the market, that house has to go into pending.
Additionally, our house must go on the market and prove it's getting listed at fair market value as the realtor has the final say in choosing the offer, not brothers. And she will need to make her case that the offer is an appropriate one.
We asked the realtor if the winner would have to be the highest offer and she said, not necessarily.
Additionally, the realtor wants to host open houses. I do not want this, especially since we want to buy. I don't want strangers walking through the place.
We are in a strong position to make an offer.
We also have our own realtor who has a strategy for us. Get all of our finances in order, and the second our house is listed, put our offer on the table.
My outstanding considerations are price. I don't really want to pay over if I don't have to. But we are in a hugely competitive market.
I am planning to put at least a 30% down payment. We will have a strong pre-approval letter.
We are still waiting on the inspection to get the final appraisal price. But the realtor has her estimate.
And I question that price. This house needs some reno and repairs. New bathroom, new roof. May have termites. Because of that, I want to offer 50K under what the general market is around me.
Will that put me in a poor offer position?
If I make an offer, is that the final, or will the realtor negotiate? I am a first time home buyer so this is also new to me.
How can we win as tenants buying from a court-appointed realtor?
byu/flowlowland inRealEstate
Posted by flowlowland
4 Comments
The appraisal should reflect the FMV of the house in its current condition. They have to go with FMV and best offer, meaning a cash offer at appraisal price will win over financing with 30% down and $50k shaved off.
It sounds like the realtor is responsible for getting the best close-able offer to maximize the amount received for all parties involved in the sale. You probably have to be competitive but if you ask nicely you can get a slight edge tapping their human emotions, but that’s probably all.
Realtors can negotiate, they just choose not to sometimes
While it’s not advisable, even if you’ve been living here for such a long time that you know its general condition, you could always make a bid that factors in those known repairs already and offer to waive inspection. That ensures a smooth easy sale that skips a few steps for the owners.
Be ready with a strong offer and be prepared to take it as is. I wouldn’t use a realtor for this. I would consider getting a lawyer to handle documents.