Seller is 2 months behind and sold her stainless steel appliances to raise cash to pay bills and for moving money. I showed the house to an interested buyer who’s interested in buying sub-2. But he asked me what are we to do about no appliances since they typically convey with the house? I don’t stand to make much on this deal as it is so I can’t work in a repair allowance. Plus I’m broke.
My first thought is to just tell him suck it up and buy a new set, or go try to find somebody else’s house to buy with no bank qualifying.
nsu1997, I agree with your first thought. Cripe he’s getting the deed.
Question though, what are you doing in the middle, all the work not much money? Herbster
Not doing much at all in the middle other than putting the deal together and sending the contracts to closing. That’s the only reason it’s still worth it, hardly no work on my part.
Herb I think what I’ll try is give him an appliance allowance at closing and just increase his cash to close to cover it, or I’ll tell him to take it or leave it.
You didn’t say whether the appliances were permanently installed or not. If not then they could be considered personal property and buyer should get his own. Does he know what kind of appliances were in the house? If not don’t tell him so you can keep cost down if you decide you are going to replace or give an allowance.
Its really not your problem anyhow being as how you didn’t own the house when she took them. If the deal is a good one for the buyer I’d tell him take it or leave it. The best I’d do for him might be to split the cost of new ones if the deal has enough in it.
Sounds like she is already 2 payments late and sold the appliances to keep from going farther behind. Could be she done him a favor by not going another month behind. Either way the loan have to come current and its going to cost someone but not you. Herbster
The appliances weren’t permanently installed, they were upgraded. So I agree, I won’t tell him they were top of the line-ers. I like your idea of splitting the cost; I’ll first tell him to take it or leave it but if I feel him pulling away I’ll offer to split.
I keep hearing about Twitter. I think I’ll look into it. Thanks Don!
She’s pretty much given up on the mortgages but she definitely sold the appliances to raise money for something. And yep he’s definitely gonna be responsible for making the loan current. I’m calling the bank tomorrow as a matter of fact, so I can get the exact numbers for him. The good thing is he doesn’t even have to catch them up at closing if he doesn’t want to. She hasn’t even received a NOD yet.
Actually that was the original plan. I submitted the short sale package to Wachovia last week and started showing the house based on what I think it’ll come back at. Then this guy comes along with bad credit and inquired about the sub-2. I wouldn’t make as much money on the sub-2 because he can only thrown $10-15k at it and DC transfer taxes are HIGH, but at least I’d be in and out. I really don’t want to have to retail this thing to owner occupants who have to get a mortgage if I can help it.
By the way folks this house is in excellent condition and is fully remodeled. Except for appliances of course. LOL
If I set this deal up on a land contract / agreement for deed or whatever is customary in DC, would transfer taxes be deferred until he pays off the note and actually gets the deed? If so I’ll just do it that way because transfer taxes alone will be over $8K; deferring this tax will free up money for me to actually make a decent profit. Plus it’ll lower his funds-to-close down to well within his available budget.
Questions:
First off, is closing on a land contract / agreement for deed a transfer-taxable event?
On a land contract / agreement for deed, would it be advisable (or required) to still set up a formal closing with my attorney? I actually have copies of these agreements saved on my computer.
Does the deed remain in the seller’s name until the note is paid off? Or does the deed go in escrow?
Finally, I want the buyer to know that he still “owns” the house, so to speak. But since he wouldn’t be actually getting the deed at closing how do I explain/sell this concept to him? He understands subject-to, but probably won’t understand why he won’t actually be getting the deed at closing.
Appliances unless affixed do no convey, of course check your local laws. Of course if you have a contract with her that specifically includes them that would be a different story.
Legally speaking-
Affixed = real property
Non-affixed = personal property
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