House Purchase question (opinions wanted)

[03ozwhip]

I'm not understanding some of these replies. what does he have to lose if he makes a conditional offer? nothing. only the other house if he doesn't sell his current one.

he's not putting himself in a bad position at all, he's not expecting to sell his house in a week. where is the other downside to this?

why would anyone want to carry 2 mortgages if they don't have to? that doesn't make sense to me at all...

[Xtrema]

Originally posted by 03ozwhip
I'm not understanding some of these replies. what does he have to lose if he makes a conditional offer? nothing. only the other house if he doesn't sell his current one.

Seller may not like the condition given typical house may take 60 days to move right now, especially if seller wants a quick exit. So it will go to end of the stack if there are other offers that doesn't have this condition.

So if the house he wants is desirable, a condition like that means he may not win it.

Originally posted by 03ozwhip
why would anyone want to carry 2 mortgages if they don't have to? that doesn't make sense to me at all...

Basically cash/finance up front and you are ready to fight others if there is more than 1 bid.

[03ozwhip]

Originally posted by Xtrema


Seller may not like the condition given typical house may take 60 days to move right now, especially if seller wants a quick exit. So it will go to end of the stack if there are other offers that doesn't have this condition.

So if the house he wants is desirable, a condition like that means he may not win it.



Basically cash/finance up front and you are ready to fight others if there is more than 1 bid.

right, but most people need their down from the he sale of their house and don't have another 10% to plunk down on another house.

[leftwing]

Originally posted by gwill
If your not listening to your realtor youve hired the wrong one. This is what they do for a living. Why take advice from people here when youve hired someone for significant $$$ to handle this exact problem for you.

Let me guess.. you know better.. you dont trust this realtor... so why did you hire them?

I wouldn't say that I am not listening to them. I would say that I don't understand their position regarding a conditional offer. To me there is no real downside to putting in an offer, other than the Realtor having to do work that he doesn't believe he will get paid for - I don't necessarily blame him I guess. He will get paid eventually when my house sells and when I do close on a house.

Originally posted by dirtsniffer


You can always accept the offer and then accept a better one down the road right?

We're in the process of listing our place and definitely going to have it conditional on the sale of ours. why wait until ours sell to put an offer? Probably won't rush on spending the $500 on an inspection though.

Yes, that is how I understand it. Having a conditional offer doesn't mean your house comes off the market or off MLS. I interpret it almost as a Plan B. If you don't have any better or more solid offers in the meantime, your house will sell to the original offer. I do understand why people don't look favourably upon the condition though.

Originally posted by HiTempguy1
Your house is PROBABLY not going to sell in a week in this market If you haven't even listed yet, it sounds like a bad idea.

I never said my place will sell in a week. But I hope it does so you can eat your words!!

Originally posted by JordanLotoski
Might of missed this but where is your current home and where is the new home you want to purchase?

Current place is in Lake Bonavista, new place is in Mckenzie.

Originally posted by 03ozwhip
I'm not understanding some of these replies. what does he have to lose if he makes a conditional offer? nothing. only the other house if he doesn't sell his current one.

he's not putting himself in a bad position at all, he's not expecting to sell his house in a week. where is the other downside to this?

why would anyone want to carry 2 mortgages if they don't have to? that doesn't make sense to me at all...

Im glad you agree with me! I was surprised with some of the posts, but glad to hear the opinions.

[leftwing]

Originally posted by Xtrema


Seller may not like the condition given typical house may take 60 days to move right now, especially if seller wants a quick exit. So it will go to end of the stack if there are other offers that doesn't have this condition.

So if the house he wants is desirable, a condition like that means he may not win it.



Basically cash/finance up front and you are ready to fight others if there is more than 1 bid.

Well if I put an offer and have the condition "upon sale of my current home" and the homeowner accepts it, they can still accept other offers which will force me to meet my conditions (sell my house) in 48 hours or the other offer will get it. In my opinion it doesn't handicap the owner at all. I don't expect to have to engage in a bidding war in a buyers market - especially the houses I am looking it at.

[gwill]

if you accept a conditional offer doesnt that change the status in mls? Thats a huge negative for sellers...

Besides the fact the deal is way too easy to walk away from...

From a sellers pov it makes no sense to accept them unless you were totally desperate

[03ozwhip]

Originally posted by gwill
if you accept a conditional offer doesnt that change the status in mls? Thats a huge negative for sellers...

Besides the fact the deal is way too easy to walk away from...

From a sellers pov it makes no sense to accept them unless you were totally desperate

It doesn't show up on MLS, only the realtor knows. it's still completely open if you have a condition of a buyer. the buyer has 48 hours if a better offer comes in, to match it or beat it.

[Buster]

People only stress about selling their house because they usually suck at staging (I do). And mostly because they want to get 99.9% of their hoped-for value.

If people were only willing to be realistic about the market, they should be able to sell most normal houses almost immediately.

Oh, and just call Jordan.

[Sugarphreak]

...

[roll_over]

Originally posted by gwill
if you accept a conditional offer doesnt that change the status in mls? Thats a huge negative for sellers...

Besides the fact the deal is way too easy to walk away from...

From a sellers pov it makes no sense to accept them unless you were totally desperate

Conditional offers are total BS and way too easy to walk away from, not only that but they’re almost always completely in the buyers favour.

I’m in the market right now and am lowballing like crazy but all my offers are as strong as they can get:
No conditions
50k deposit
30 day possession
25% down

I built a home earlier this year strictly to sell and did not waste even the tiniest bit of time on any bullshit conditional offers or low offers from first time home buyers with 5% down still waiting on approval.

[danno]

Thanks guys, maybe I'll change my plan and get rid of the condition.

[gwill]

Originally posted by 03ozwhip

It doesn't show up on MLS, only the realtor knows. it's still completely open if you have a condition of a buyer. the buyer has 48 hours if a better offer comes in, to match it or beat it.

And when the realtor needs to book viewings they or their client will focus on other homes that arent conditionally sold.

[03ozwhip]

Originally posted by gwill


And when the realtor needs to book viewings they or their client will focus on other homes that arent conditionally sold.

not unless they have shitty conditions. if people want the house and have better conditions, there is no reason they can't make an offer, other than another conditional to the sale of their house.

[JordanLotoski]

Originally posted by danno
Thanks guys, maybe I'll change my plan and get rid of the condition.

Go with a 90 days possession, add a term that allows you to move up possession once your home has sold, (must be an acceptable day for both you and the sellers)

Let me know if you need a hand

[spikerS]

Originally posted by roll_over



Conditional offers are total BS and way too easy to walk away from, not only that but they’re almost always completely in the buyers favour.

I’m in the market right now and am lowballing like crazy but all my offers are as strong as they can get:
No conditions
50k deposit
30 day possession
25% down

I built a home earlier this year strictly to sell and did not waste even the tiniest bit of time on any bullshit conditional offers or low offers from first time home buyers with 5% down still waiting on approval.

As a person that has been around RE a lot, the seller doesn't care too much about how much you are putting down. The biggest thing is possession. Not many sellers will like 30 day possessions unless the property is vacant, and if it is, I would bump that to a 7-10 day possession pending an inspection.

The only thing that makes your offer strong is "no conditions". However, lowballing it usually puts the buyers back up unless they are so desperate to sell, they are forced to take the first offer that is presented.

TBH, your offer is no "Strong as they can get". Maybe your commitment is, but not your offers, and that's why you are not getting anywhere.

[roll_over]

Originally posted by spikerS


As a person that has been around RE a lot, the seller doesn't care too much about how much you are putting down. The biggest thing is possession. Not many sellers will like 30 day possessions unless the property is vacant, and if it is, I would bump that to a 7-10 day possession pending an inspection.

The only thing that makes your offer strong is "no conditions". However, lowballing it usually puts the buyers back up unless they are so desperate to sell, they are forced to take the first offer that is presented.

TBH, your offer is no "Strong as they can get". Maybe your commitment is, but not your offers, and that's why you are not getting anywhere.

Leaving a sizeable deposit with a large down payment definitely makes for a strong offer, it’s like showing up to purchase a car with money in hand vs. needing to get financing. The 30 day possession is for vacant properties.

I just landed a property in the Keynote as well as a lot that’s currently being rezoned to RCG so I think it seems to be working.

This is also advice from one of Calgary’s top agents.

[03ozwhip]

Originally posted by roll_over


Leaving a sizeable deposit with a large down payment definitely makes for a strong offer, it’s like showing up to purchase a car with money in hand vs. needing to get financing. The 30 day possession is for vacant properties.


This is also advice from one of Calgary’s top agents.

nobody is debating that. the issue at hand is that he doesn't have an extra 60k or whatever to put down on another house. I personally would never do that unless it was an income property.

I have bought and sold 6 houses in the last 12 years and all of them have been subject to sale of my house. I've been lucky that I was able to sell them all really fast, but obviously it doesn't always happen.

I was always of the mindset that if it doesn't sell, I don't move. Nothing gained, nothing lost.

[spikerS]

Originally posted by roll_over


Leaving a sizeable deposit with a large down payment definitely makes for a strong offer, it’s like showing up to purchase a car with money in hand vs. needing to get financing. The 30 day possession is for vacant properties.

I just landed a property in the Keynote as well as a lot that’s currently being rezoned to RCG so I think it seems to be working.

This is also advice from one of Calgary’s top agents.

well, if you want to make it a "strong offer" on a vacant property, bump up your possession timeframe. In this market they don't want to hold the property any longer than absolutely necessary. Make your possession dates 7-14 days. THAT along with no conditions will get everyone's rapt attention on a vacant property and, IMO, make the offer as strong as it can get without giving them their asking price. You may find more traction that way.

[zhao]

Originally posted by spikerS


As a person that has been around RE a lot, the seller doesn't care too much about how much you are putting down. The biggest thing is possession. Not many sellers will like 30 day possessions unless the property is vacant, and if it is, I would bump that to a 7-10 day possession pending an inspection.

How the hell do you get your shit together so fast with a 7 day possession date without stressing like crazy it'll be enough time?

Banks can eat up a week easy. Dealing with TD on my income property purchase this summer was like navigating a minefield for paperwork bombs.

Random shit that caused delays like: oh that property you own free and clear that we shouldn't care about, we need proof it's mortgage free, insurance coverages, etc. <- like wtf.

plus stuff like strata documents, new tenancy agreement with the current tenant, etc etc. That all can take time to get that can push finalizing the mortgage beyond a week.

14 days seems like a bare minimum in my world.




As far as deposits go they haven't factored in in my world. Imo it's unlikely someone rolling around with a real estate agent is looking at X00,000 properties and making offers on them if they don't have preapproval for X00,000+ a bit. I couldn't care less what their downpayment is either and my goal with selling a place is selling it; and if it sells for what i'm happy I dont care if the guy had to borrow his downpayment from 6 relatives or Bill Gates showed up with cash to buy it. Infact, if it's vacant Mr. 5% down minimum deposit is probably awesome because this'll probably be his first property and he's probably wanting to move in asap to avoid paying rent a day longer than he has to. Someone buying their first place is more likely to have minimal conditions too (or absolutely retarded conditions) because it's their first time out and they have no experience.

What I'd care about is the offer, the possession date, and the conditions.

[spikerS]

Originally posted by zhao


How the hell do you get your shit together so fast with a 7 day possession date without stressing like crazy it'll be enough time?

Banks can eat up a week easy. Dealing with TD on my income property purchase this summer was like navigating a minefield for paperwork bombs.

Random shit that caused delays like: oh that property you own free and clear that we shouldn't care about, we need proof it's mortgage free, insurance coverages, etc. &lt;- like wtf.

plus stuff like strata documents, new tenancy agreement with the current tenant, etc etc. That all can take time to get that can push finalizing the mortgage beyond a week.

14 days seems like a bare minimum in my world.

A serious buyer that is making an offer like that already has all of that lined up before they even start house hunting. They know their budget, what type of house / neighborhood they are after and so on. They are not worried about the mortgage because the bank is just waiting for a signature in most cases.

While I am not a RE agent of any sort, my father was for 45 years, 32 of them in Calgary. I was with him for so many deals, I can't even begin to count them all. We went through the boom and bust in the 80's, and again in the 90's and 2000's. At one point, my father had an ex-CFL player as a client who bought and sold somewhere between 25-30 houses with in the span of ~4 years, and I would have to say the last dozen or so were done on vacant properties, with 10 day possessions and no conditions. They were very successful with it up until my dad passed in 2005.

What I'd care about is the offer, the possession date, and the conditions.

and that is true of probably 99% of sellers. I would say the most import thing is the offer amount, the conditions, and lastly the possession date. In that order for most.