Which of these two offers on our house should we pursue?
August 27, 2014 1:28 PM Subscribe
Complicated situation with two competing offers on our house (Missouri, USA). What should we do?
My husband and I are selling our lovely (from the outside) 1908 foursquare. It’s in a great urban neighborhood in Kansas City that’s very desirable to a lot of buyers. However, it needs a LOT of work — we’ve already had one offer with conventional financing fall through because the appraiser wouldn’t even bother submitting it to underwriting without some of the worst areas patched up. Before we went back on the market this past Saturday, our realtor said we just need to wait for the right buyer to show up with either cash or rehab financing, and that she was confident we’d find one soon.
It went back on the market on Saturday, and on Sunday night we had a full-price offer… with conventional financing. *Sad trombone*. Our agent told their agent that she was pretty sure the same thing was going to happen with the appraisal, and the buyers offered to fix everything that would be necessary to get through the underwriting, at their own expense. Our agent told us that that seemed too risky for everyone concerned and advised us to keep waiting.
Yesterday, we got another offer, $5K less than full price, but WITH 203K financing. Our agent told the first people’s agent about it, and then today we received a plaintive letter from the first buyers, saying how much they love the house and how they are willing to write into the offer that they will have licensed contractors come in at our discretion to perform the work that they need for the house to pass appraisal. It says they’re also willing to write in a clause that allows us to continue to market the house while they are in the process of getting the loan together. This seems kind of… well… crazy. On their part, especially.
Is our realtor right that we should take the lower offer with the 203K rather than taking these other people up on their weird proposal? On the one hand, I don’t want the liability for injuries during the time the work is being done, etc. On the other hand, it seems like these people are desperate enough to buy our house that they would agree to a contract that indemnified us completely and put all the risks onto them. Of course, we’d need the help of an attorney to do write such a contract, and yadda yadda yadda maybe not worth $5K of headache?
AskMe, what should we do?