Survivalism & Self Sufficiency Topics > Homesteading and Self Reliant Living

we have an offer on the house. red flags?

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Morning Sunshine:
We accepted an offer today on our house.  It is full asking price (YEA!), and they want to close in 2 weeks, taking possession in 24 hours.  but there are some weirdnesses.  tell me what you think


* the showing was an older guy, dad-like, maybe mid 40s and a teen girl 15-17, no wife or mom.  They did not spend a lot of time in the house, but did stand on the drive talking to their agent for about 10 min after.
* we bought the house at 370, listed it for 340, and our agent says that houses like ours are not selling for more than 310, IF WE ARE LUCKY.  and they offered listing price.  which almost never happens, much less in the current housing market
* the offer is made in the name of a business
* this is a cash offer, and as far as we know, no verification that they actually have the cash, like there would be on a loan
* they only put down $500 earnest money, with inspection and appraisal to be done by Nov 29.
* they, according to our agent who got from their agent, are living in temporary housing, like an extended stay hotel
* their agent, J, says that as an extended family, they have offers on a few houses.  what is that about??

I think that is all, but there may be more.  what do you think?  This is very weird.  on the other hand, I don't want to rock the boat too much - it is tough selling a house right now.

Bradbn4:
Just a 500 dollar fee to lock up the house - for a 2 week period - not too bad of a hold time.  So they might be making a few offers and more than willing to eat the earnest money to try and get the best possible house.

Odd that there was no wife - unless they are house hunting at the same time.

I have made an offer on the house above list price - and still lost out on the deal.  Good ranch - but the MC'D was too close - wonderful yard - but I could smell them french fries a cooking.  I lost out because the other person placed the same bid - but put an extra 25k down - so his loan would be lower.

The house that I did buy, I offered 25k less than asking.  I did up my price by 5k, and with finger's crossed, I only have 4 more years until it is paid for.

Brad - In Colorado

P.S.  Your right, something does not quite feel right - but i hope you end up with a clean sale.

4bull:
There is a scam out there where they ask for deposit back in cash, then cancle the check.

Im still in the middle of loan prosses still.
I own one its on contract of sale now.
1 is storage, 1 is a rental, 1 the 110 year old monster we live in and a bissness down town.
then i have more with a partner. 
the new AO is 3 1/2 acers 4 bed,2 1/2 bath barn and nice shop. 
Listed for 300,000  bought for 149,500.   4 hours from here.

There out there if you look.

LdMorgan:

--- Quote from: Morning Sunshine on November 18, 2010, 09:28:37 PM ---We accepted an offer today on our house.  It is full asking price (YEA!), and they want to close in 2 weeks, taking possession in 24 hours.  but there are some weirdnesses.  tell me what you think


* the showing was an older guy, dad-like, maybe mid 40s and a teen girl 15-17, no wife or mom.  They did not spend a lot of time in the house, but did stand on the drive talking to their agent for about 10 min after.
* we bought the house at 370, listed it for 340, and our agent says that houses like ours are not selling for more than 310, IF WE ARE LUCKY.  and they offered listing price.  which almost never happens, much less in the current housing market
* the offer is made in the name of a business
* this is a cash offer, and as far as we know, no verification that they actually have the cash, like there would be on a loan
* they only put down $500 earnest money, with inspection and appraisal to be done by Nov 29.
* they, according to our agent who got from their agent, are living in temporary housing, like an extended stay hotel
* their agent, J, says that as an extended family, they have offers on a few houses.  what is that about??

I think that is all, but there may be more.  what do you think?  This is very weird.  on the other hand, I don't want to rock the boat too much - it is tough selling a house right now.

--- End quote ---

You are wise to question anything that seems odd.

I take it they want to close in two weeks and then take possession 24 hours later. That does not leave you much time to pack up--and it puts you in the position of having to pack up (at least in part) before the house closes. That is a little odd.

You should scout the business. Find out if it's actually a going concern, find out who owns it. You should know what people you are dealing with. You should have the ID of the man, and he should be demonstrably connected to the business. If he isn't double the night guard, and have everybody with a briefcase searched. Twice.

Every offer is a cash offer--unless you're doing their financing. Where they get their money doesn't matter, but they have to pay in full at closing, or their is no closing.  If you doubt their ability to pay, let them know that payment will be accepted by electronic transfer from their bank to yours before you close. That's two phone calls from the lawyer's office: Theirs to instruct the transfer, and yours to confirm the receipt of the funds.

Hmmm. If they don't like the inspection and/or appraisal, do they get their $500.00 back? They should have done that before they put earnest money down. If they walk, keep the cash--unless you are fine-printed into having to refund it.

They may be shills for a bank or a corp. that's buying up property. Disney did a LOT of that to get the FL property for Disney World without running the land prices up. They used 400-odd shell companies as "buyers".

They may also be part of a religious group that is relocating its congregation into the area. The older guy and the young girl could be a simple case of a single parent family. Even if that family is part of an extended one.






Morning Sunshine:
well, LDMorgan,

on the 2 weeks + 24 hrs thing, I have already moved non essentials to a storage unit (book shelves, books, extra dressers).  gotten rid of big pieces of furniture (couches, guest bed; we still have our beds and 2 dressers).  My food storage is either at my parents (6-gal buckets) or my SIL's (everything else); nice thing about being LDS no one blinks if you have a years supply of food you have to move/store temporarily  ;D.  But it does mean that we will have about a day to actually get the rest of it out.  to hire a truck and movers or corral friends/neighbors into helping.  and that is worrisome.
And actually, we were prepared for this.  last time we moved, they wanted us out in 6 days from the time they made an offer.  having had a baby just 6 days prior to that, I balked and put my foot down, and got 4 weeks.  But we wanted to be prepared for something like that again.

we can keep the earnest money.  but $500 is almost nothing to the hassle of packing 4 kids and a house for a fraudulent buy, KWIM?

We thought about the single parent family thing.

I don't know.  Mostly, it "seems to good to be true"

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