House question!?
Answer:
Frankly, the housing market continues to slump. The realtor probably sweet talked to her, saying the house worth more, so she would list the house with the agent.
There is not much you can do. Your sister in law now is convinced her property can fetch a lot more money in open market.
If you can delay your plan, then perfect. If not, please interview several realtors and hire a good one (this is crucial!!). Since seller pays for the commission, it doesn't make difference for you if you buy from your sister-in-law or stranger.
This article gives you tips on negotiation:
http://biz.yahoo.com/brn/060909/19463.ht.
Articles about current market:
http://money.cnn.com/2006/09/25/news/eco.
http://money.cnn.com/2006/09/08/real_est.
Please interview several and pick a good realtor or agent.
Bad ones will talk you into buying the largest property at your credit limit. Good ones will find you a good deal (Sellers are offering discount and incentives now).
Try to stay away from Adjustable Mortgage, because 30 year fix mortgage rate is very low right now. There is no reason to use Adjustable loans except fatter commission for loan agents.
Interests only loans are not good iether. Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it. If you want to use interests only loans, might as well rent, especially during market downturn, because housing price won't appreciate.
Finally, for tax benefits, talk to your CPA or tax accountant. Do not consult finance with realtors or agents. They get commissions when you sign the check!
Good luck!
Remind her that family is more important than the almighty dollar..
Good Luck
You had just a verbal agreement? Or also a written agreement? Who all witnessed her agreement to sell you the house for $197k? If you have one or more witnesses then you may want to see if it will stand up in court as a verbal contract. If you talked specific details like, who was going to pay for what, timeframe, what would be left with house, type of financing, etc. will give you more credibility.
She needs to understand that she will most likely be PAYING the realtor 6% of the sales price to sell the home. Does she realize how much money that is?? That is $13,200 ! She will barely make more than what she offered you. What is she thinking??
And when you have the appraisal done, and the appraisal only goes for $200k, well then the Buyer will have to come up with the additional $20k or your sis in law will have to lower her home price by the $20k AND pay the 6% Realtor fee off of the $200k, which is $12k less from $200k, leaving her $188,000.
You need to point out the math to her. It is always cheaper to avoid the Realtor, and just pull the legal documents from the Real Estate website that does your state and print off the forms used in closing from there. In Texas, we use TREC forms (Texas Real Estate Commission), which has a website that you can print forms off of for using in doing the sales yourself.
If in doubt, just hire a real estate lawyer to draw up the docs for you and his/her expertise. Then you pay that single fee, the appraisal, and other fees agreed between you both, go to the Title company and get the sale closed.
Sounds like your sis in law's greed is going to not only loose money in the short run, but will lose face with family in the long run.
Shame on her! :(
Sometimes family choose money over loyalty. Just do your best with whatever decision she makes and remember it may not be only her decision.
She obviously is after the money. Money to her means more than family. When it comes to money there's no such thing as "good" family
well i would let her know what you are telling us that your expecting, you can only afford this much, it's the perfect house etc. if that doesn't work try to make a deal like in 5 years will refinance the house and give you x amount of dollars . tell her you guys can make a document of the deal and have it notarized
so no complacation can arise in the future. good luck !!
Tell her that if she sells it to you without the real estate agent, she will be saving in commission nearly the difference of what the higher price would yield. Plus, it's just the right thing to do to help family members. But many sisters-in-law are bitches. Mine sure wouldn't help me if I needed help! So you may be out of luck.
If she sells her house through the Realtor she will owe approx. 6% commission on the sale, if she gets her asking price which right now is iffy as the market is getting very soft. That's over $13000 to the Realtor. (If she gets full price) Subtract that and you are really in the same ballpark so she might as well sell to you.
Hopefully you will qualify for a mortgage for that amount and aren't expecting her to hold it, as that might be a reason why she wants to sell out of the family. Good luck with this.
Well, she bought the house with her own money, it is her investment (I'm assuming your brother is not a co-owner in the house, since you didn't mention him). While it would be really, really nice of her to basically give you $23,000 dollars of that investment for nothing, is it really fair to ask her to do so? After all, if you had invested in the stock market and did really well, would you feel obligated to give away 10% of that money to people just because you married into their family? It's not like you are living on the street, after all.
Perhaps you could work out a deal with her to "rent to own" the house at the higher price or something. Or, start looking at other houses in your price range.
Unfortunately, it sounds like you are already going to resent her if she sells to someone else, and she will certainly resent you if you guilt her into giving up a hefty profit and selling to you, so
good luck, your family gatherings are going to need it.
Well I think if she is working with a realtor then that should be enough to let you know you cant depend on her loyalty. I would start looking for another house so you and your family wont be left in the cold. I know you love your sister but,when you mix family with money it is a bad situation. You need to look out for your own family. Why dont you use her realtor to find a house for you and your family she will get the picture.
why not wait and see what happens?
listing the house at any price does not mean it will sell for that.
you could remind her from time to time that you are definitely interested, and perhaps improve your offer to $200,000
let's hope her loyalty to family wins through.
I wouldn't try to pressure her a lot. Selling you the house for substantially less than it is worth will not create happy feelings for anyone except you and your husband.
Remind her that if she uses the realtor, she will have to pay him around 7% of what she sells it for. She would be just as well off to sell it to you and get all of the money. She would only need a realtor to try to help her find someone to purchase it, and she does not need that, since you offered to buy it already.
how much money she will get after she pay the commission for the real estate agent and what guaranty did she have ,that the house will sell for listing price? with you she have ready deal and for couple more money she is risking not to sell the house at all.
if she don't agree with you- you can also find the house, similar to hers with the same price range.
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