Tuesday, September 20, 2005

More House Sale Drama…

Ok, so we accepted an offer of $305,900 on the 6th, contingent upon the sale of the buyer’s house, which was supposed to be confirmed a couple of days later. The buyer of the buyer’s house dropped out of the deal at the last minute, leaving him to scrounge up a backup offer. He secured one within 24 hours. The silver lining of that episode was that my closing was pushed back two weeks, leaving us overjoyed at the prospect of avoiding bunking up with the in-laws in the interim until our new house is ready.

While the buyer was nailing down his back-up offer, two things happened almost simultaneously. First, my homebuilder called to say to say the new house will be ready on October 10th. Then, we received a second on my current house, a full price offer at $310,000 without contingencies. We instructed our agent to contact the buyer who placed the first offer and give him 48 to drop the contingencies clause from his offer, otherwise we would take the new deal. 47 hours passed, all the while we’re hoping he drops his offer altogether, leaving us free to accept the higher bid. At the last minute, he agrees to drop the contingencies. Disappointed, we ask the second buyer if we can retain her offer as a backup. She agrees.

Fast forward to last Thursday. Our buyer called our agent to tell him his backup buyer backed out of his deal, so he can’t guarantee his house will sell before we close. He rescinds his offer. Now we’re pissed. He drops the contingencies, then tells us he can’t buy the house after all?! What if our backup offer is no longer valid? What if she bought another property in the 5 days since she first put an offer on our place? This guy could have screwed us, bad! Thankfully, the backup offer is still good. We formally accept on Saturday afternoon: $310,000, no contingencies, close of escrow October 24th.

Later that day, another couple came through the house. They wanted to make an offer on the spot, but they were disappointed to find that it was already under contract. We told them we are still taking backup offers. They said they will submit one to our agent, but they end up passing on the deal instead.

That’s the latest. I have inspectors coming through the house on Wednesday afternoon. I have my fingers crossed that the sorry state of the roof will not be a deal breaker.


At 9/20/2005 12:46 PM, Blogger Eddie said...

310,000, I recall you starting this bad boy out at 285,000. That's an extra 25k since the start. How much does your new home cost?

The nice thing about AZ is, there is almost no new places to build, as the desert is becoming more and more shut out to new development.

At 9/20/2005 1:27 PM, Blogger Ace said...

The new place is going to come out to just shy of $280,000. That includes the base price of the model, a slew of upgrades, plus a premium lot. The base price list has gone up $45,000 since we signed the contracts in January, and the general appreciation in the neighborhood adds another $45,000 since then, as well.

For buying a new house on impulse, I hit the jackpot.

As for the land situation in Phoenix, space is getting tight since much of the desert preserved land this area is controlled by the state. Scottsdale apparently ran out of new space for building last year. Just last week, an 80 acre lot in North Scottsdale released by the public land auction fetched nearly $50 million.

At 9/20/2005 2:24 PM, Blogger azgopbabeval said...

Wow ACE! Congrats on the sale. What a pain in the ass it was to get there, but you know what? It sounds like it was all worth it in the end!
See you tonight.

At 9/21/2005 7:44 AM, Blogger Eddie said...

Ace, when are you eligible to become a citizen? We need your vote sooner than later. Although your voting would probably come in more handy in a swing state than in Arizona.

At 9/21/2005 8:22 AM, Blogger Ace said...

I'll probably be ready to take the oath the summer of '08. Just in time.

At 9/21/2005 8:24 AM, Blogger BACdanielle said...

Congrats on the house!! I'm so glad you got to accept the full-price offer!!


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