Survivalism & Self Sufficiency Topics > Homesteading and Self Reliant Living

we have an offer on the house. red flags?

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Wrender:
As a Realtor I have some experience here.

You should require them to provide you with proof of funds.  If you haven't accepted their offer as of yet make it contingent upon them providing proof of all funds via. a letter from a bank stating they have $X available for the purchase (Personally I would want something like this within 24 hours of acceptance). 

Additionally, look at any and all other contingencies they have built into the contract.  Are they asking for an inspection period?  If so how much time do you have to remedy any problems they may find?  Forget about all the personal / subjective details in the deal.  If they have the cash they can afford to buy the property.  However, you DO want to make sure that you are protecting your ass(ets) and have a verifiable timeline until you are fully in contract.  Make arrangements to move but don't start pulling cash out of pocket before all of their contingencies are used.  For example if they have an inspection period make sure that you have something in writing verifying that they are either satisfied w/ the inspection (in short waiving the contingency) or are simply waiving it.  If they are fully in the contract with no other contingencies (all inspection periods - proof of funds - etc... have gone through) then you technically have the right to that $500 if they walk away from the deal. 

The last place I sold was similar.  Cash offer 2 week closing period.  However, in this market cash deals sometimes work far better than financed deals.  You don't have to wait for them to obtain financing, don't have to worry about the ever changing rules behind the appraisal process, don't have to worry about FHA, VA, or even a conventional lender balking at the insignificant.  My advice, in an uncertain market that is showing little to no signs of improvement, a cash deal at asking price is fantastic if they actually have the money and don't put too many contingencies into the deal. 

My 2cents...  Good luck!

survivininct:
The places I have sold, the buyer takes possession at closing, so I don't know what this 24 hr thing is about?  If I am buying a house, I will be the only one in it after I deliver the cash - no squatters - even for a minute!

As far as the deal, who cares?  If they give you a certified check, then your good to go.  Tell your attorney the story, just to be safe.  I do not think they can come after you for money if the money came from a less than honest means.  What would happen, is they would take the house and sell it to recoup the loss. 

Have-Gun-Will-Travel:
Wife is a Division manager for a national title company (owned by one of the nations top builders)
they do not take certified check anymore, all wire now.
They had way to many fraudulent certified checks, the last one she told me about is the closer caught one that it did not look right
so she called Bank of America and the said no check with that number was issued.
 

reefmarker:
So, what happened?  It has been more than 2 weeks.  Did this all work out, or was is a scam?

I bought a house 3 years ago with a friend as the realtor that I truly trusted, and it was still very scary. 

Morning Sunshine:
well, a few days after the original offer, there was an addendum.  they pushed out the closing date to "On or before December 17th" so that they could get their cash through homeland security.   :o
see all the money is offshore in foreign banks.   ::)

but there was no appraisal done, and we have heard NOTHING else from them.  My agent has been calling and calling their agent, and she either ignores his calls or knows nothing.  their agent is legit - she has worked with my agent a number of times over the past 10 years, but, as my agent said "she is a really nice person, but not a good Realtor."

My neighbor is a realtor, and when we were talking, she said there was a guy who has made offers on houses before, full-price, cash offers with foreign money, that is just jerking people around.  that he pushes out the dates and pushes and never does anything else.  hmmm, sounds familiar, yes?  she said she has only run into one herself, and seen 2 others, but this fits what she has seen.

so, there is a possibility that we close on Friday.  I do not think it is going to happen.  dh and our Agent do not think it is going to happen.  But, if it does, I think I can be ready.  I have spent the last 2 weeks cleaning and organizing the house.  the basement has been emptied into 2 rooms at the front of the house; the upstairs has only 2 dressers and our beds.  it is our offices and my kitchen that will be a pain.

meanwhile, on Saturday, we are putting up our Christmas tree.  :)

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