I just closed recently with a buyer who purchased this well kept rambler. This particular home was an estate sale where the original owner-builder recently passed away and left the home to her family to liquidate.
Our negotiations were tough to make this transaction work. The home is 3,000 SQFT and had been listed at $155,000. However it had not been updated (except for carpet) since the home was built. Following our 90% of list price rule, we offered $145,000 and asked for the seller to pay $5,000 in closing costs. The listing agent felt that our offer would be well received due to his client's eagerness to sell the home.
Unfortunately, things didn't pan out that way when our offer was presented. We received a counteroffer at significantly higher terms. Due too the large number of decision makers involved, it was tough to get a consensus among the children of the deceased owner. Essentially, they were making decisions by committee which makes things really tough in a real estate transaction.
They countered us at $150,000 and paying no closing costs. We responded back with $150,000 but asking for $4,500 in closing costs. The sellers were still unhappy. That is when we negotiated a verbal agreement to $150,000 with the seller paying just $2,500 in closing costs. However, when writing up the addendum, one of the sellers vetoed the agreement and they sent us an addendum where the price was $152,500. Obviously, this was not our verbal agreement and was provocation enough for my buyer to reject the terms and scuttle the transaction.
I felt that the change in terms was an act of bad faith on the sellers part and advised my client to withdraw. However, I told the listing agent to call me if his sellers changed their minds and could honor our verbal agreement. A couple days later I got a call with the agent respectfully asking us to reinstate the contract under our verbal terms. We agreed.
After inspections, we adjusted our price to $149,650. So what does this price point buy you?
It gets you a well kept and nearly original 1968 rambler with new carpet. For a home of this size, type, and condition, this turned into one of the best values of its class in Weber County.
Congrats to my buyer on his new purchase!
Posted by Jeremy Peterson
Ogden, Utah Real Estate Broker
Mountain Real Estate Companies
801-390-1480
Love the blog! Very detailed!
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