April 22, 2010, 8:18 am

I Already Sold My House!

by: The Financial Blogger    Category: Properties
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This is a great relief for me as I just accepted the promise to purchase for my house! It’s now time to go and shop around for my next house :-D.

Selling a house can be a stressful time as it is normally a very long transaction. Between the time you put the house up for sale and the time that you actually get the cash in your hands, it can take several months.

In fact, even if I sold my house within 20 days, it will still take 2 months before everything is settled. I’ll get my check only in June! And this is actually quite fast!

I faltered as a negotiator…

I am usually pretty good at negotiating deals. In fact, I negotiate all day long so it’s easier for me when it’s time to elaborate a plan. Unfortunately, it is quite hard when emotions come into play. I have the tendency of clamming up right away instead of being cool as a cucumber.

I guess this is why I only got 331K for my house instead of generating a few more grand. I was torn between selling my house in 2 weeks or waiting for the next offer which may have been 335k at most. I figured leaving 4K on the table is not the end of the world.  As they say, “a bird in hand is better than two in the bush”.

On the other hand, selling this quick is a blessing as I am relieve from the stress of cleaning up before each visit and I can move forward faster. I have also accepted because it was higher than my “reserve” price of 325K. Now I can shop around and make a firm offer instead of fooling around with a conditional offer. The only restraint is my time frame… which is a little bit less than 60 days.

I think I am frustrated because I feel the other guy “won” as I wasn’t able to get more money out of him. This is hard for my pride… and for the wallet ;-). The gravy could have paid for all the other related fees and now I will have to pay for them…

In the end, it’s a very weird feeling as I am happy and frustrated at the same time. Greed is a very powerful emotion. When I put my house up for sale, I was hoping to get 325K, at best maybe 330K. Now I will close at 331K and I am still disappointed as I thought I could get 335k… my brain works in strange ways doesn’t it?

Oh well, now it’s time to go house hunting! This is way more interesting!

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Comments

wow tha’ts amazing!!! congratulations TFB!!! good luck on your house hunting!! I guess you might have a few ideas already hehehe

That’s interesting and I’m really happy for you. You must be excited!!

I have a few questions!! You didn’t make the deal through an agent, right? What kind of contract do you have to do? Should you have a lawyer?

Do you have to verify the buyer’s credit profile? Since it’s already sold, what will happen to taxes now on? Do you have a clause to buy another house (mortgage)?

Thanks!

by: The Financial Blogger | April 22nd, 2010 (2:52 pm)

@ John,

we used the contract provided by bytheowner.com. It looks about the same thing as the regular RE contracts. No lawyer required.

we just have to ask for a banking approbation from the buyer, no need to check their credit profile. I actually have a post in queued for next week about this 😉

thx for your questions, very pertinent!

“…I am still disappointed as I thought I could get 335k… my brain works in strange ways doesn’t it?”

No, your brain is right. If you should have been able to get 335 and you only got 331 then you left 4K behind. On the other hand, it’s already done so don’t worry about, just learn from it.

As I mentioned on a previous post, I’m the same way … when it’s my own money I am much easier to push around. I have tons of good advice for others, but for myself I’m a coward. I am learning though, and I do go harder with negotiations nowadays. One quote I read somewhere was to consider that the extra $4K was pure bottom line tax and expense free money. If it took an extra few hours of negotiating to get it, that few hours would be the highest paid work you’ll do.

$4K bottom line is $8K+ of earned gross salary here in Quebec so that’s how much was at stake! The key is not to lament it afterwards, but use that motivation on the front end. Just thinking about it that way has helped me in the past.

Congratulations! Yes, a bird in hand is almost always better than two in the bush. 10 years from now, you won’t miss the 4 K. Great job!!

by: TKO from Ontario | April 23rd, 2010 (9:35 pm)

Classic!

Kicking your own ass over 1%, instead of celebrating 5% savings by not hiring some RE agent.

You and I will get along just fine.

Cheers,

Your feelings are normal. Good work and keep grinding.

Congrats!

Can you do a post on how “offers” work on private home sales? I mean what prevents the buyer or the seller from backing out? Do you use a lawyer to make the offer firm?

by: The Financial Blogger | April 25th, 2010 (7:31 pm)

@ Matt,

We used the contract provided by Bytheowner.com. This is a legal contract including clauses where the buyer or the seller can’t back once it is signed.

@ CR,
yeah, I won’t make that mistake again! at least, I negotiate tightly when I bought my new house 😉

@ TKO,
Glad to see you around, it’s been a while 😉
Now that it has been a week since I have sold my house, I already feel better! In the end, I would have not made more than 335K even if I have waited a few months so it’s ok!

Mike,
Great posts on this, congrats on getting it done yourself, thanks for sharing with us. I think its worth losing the 4K for saving about 16K in realtor fees. You really don’t know if you lost 4K anyway, perhaps the buyer was over his top of $330K. I am interested to know if you had any realtors give you a selling price on what they would have asked and what they expected to sell for? Really looking forward to a post on the whole FSBO experience, and the ins and outs of using contracts, lawyers, etc. for this.
Thanks

[…] a series of posts on selling his house himself. He’s had pretty good success at it too, selling it in less than 2 weeks, although he didn’t quite get as much for it as he hoped. He outlines his reasons for not […]

by: The Financial Blogger | April 29th, 2010 (4:45 am)

Hey Bill,

In order to ask for a fair price on my home, I have made a comparison with the home for sale in my area. The good thing is to be able to see the final sale price on bytheowner.com. So it helps to know how much you can get for.

If I had to do it again, I would order a professional appraisal for my house. This could give me more argument while doing my counter offer.

I’ve wrote more about my experience already:
http://www.thefinancialblogger.com/required-steps-when-selling-your-house/

http://www.thefinancialblogger.com/how-to-get-a-bridge-loan/

don’t hesitate to ask me any other question!

Cheers,

TFB