My neighbor is a building contractor; I asked him for an estimate on some exterior repair work. He is interested in buying our home. I am not ready to put the house on the market yet. I am in the process of getting a Home Equity Line of Credit and getting estimates for repairs. I want to get an appraisal and home inspection before I give him a figure.
He says he wants to buy the house, make repairs, and rent the property! He would like to have “dibs” (first choice) on our property … I would like to be able to repair and advertise the house before I sell it. It is a 3 bedroom, 2 bath ranch style home on 1-1/2 acres land with a double garage on a wooded lot. We are in a small town outside of Richmond, Va.
He has offered to finance our repairs! I am not comfortable with this. I have had two market comparisons, one from a realtor and the other from our mortgage company. I think I may be able to get more for the property as the market is skyrocketing in our area.
What do you suggest?
This is not a problem, everyone should have a neighbor interested in buying their house!
I thimk you should follow your first mind. It’s great that he’s a motivated buyer, but it appears that you feel pressured in a way. I’d let him know that I wasn’t ready to sell yet, but that you would keep him in mind once you have your numbers worked out.
It is great that you have a motivated buyer right next door. I mean if you lived next to someone who was thinking of selling, would you not inquire a few times to get in before it was listed?
I would go figure out what everything costs and what you want for the home then approach him with your max asking price. He probably is trying to get a deal, like we all should be doing. Once you have your price, he might fade off or maybe he will jump on it.
Don’t let a motivated buyer bother you. If anything, it should give you some confidence to go out there and do what you want to do.
I agree with evergreen I would take it one step futher I would show him the market comps do to the fact I do not know what your house is worth For basic numbers lets say 200k minus realtor fees @ 6% so 12k and offer him the home for 188k WHY NOT? tell him you will sell your house when you are ready for appraised value minus the 6% its a win win… Like my neighbor who wants to buy my house I told him O.K. and worked him the same deal he told me I thought we were friends! So I had to tell him the truth NO we are neighbors I have friends and do not need anymore they cost to much!LOL
the real question is do you want to sell becuase you want to move or are your just trying to make money/cash out. Remember, you have to live somewhere and while you may be able to sell for a great deal over what you paid for it, you might be unhappy when you go to find another place to live (and how much it will cost).
With that said, a motivated buyer is a great thing but don’t be in a hurry.