This is an update on my previous post of "When Houses Sit..." To recap - this weekend I received an offer on a new construction 2 family for a first time home buyer. The house had been sitting on the market for over 18 months, and the builders had already let go of higher offers when they thought they could get more. My offer included builder incentives and transfer tax. Needless to say, when I personally presented the offer on Sunday they were not overly excited...
Today I met with the builders again. Their first reaction was typical and expected - GET ME MORE... But after allowing them to vent and explain their position, I could help them assess the market. Each month that property sits vacant costs them $xxx dollars. We can save that money by having these qualified buyers, with a reputable lender, and motivated to move in. Let's not forget your money is not in that house, not any more, but in the property you will buy now with that money - at an extreme discount!
So, with getting a little movement on the buyers side (having explained to them at the offer that unless you offer full price, you can expect a counter), the builders agreed to our reduced offer with concessions, as long as we got the transaction closed before an extra payment is made on their end (can do with the help of our lender).
Now, let's get that transaction moving so we can close in 30 days. While I'm at it, I better find another opportunity for that builder to invest in...
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