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penny wise, pound foolish

May 21st, 2017 at 03:44 pm

So we're moving out of our place. I negotiated moving out 2 weeks early and not losing our deposit. Saving us $1200. Our plan is to have it cleaned July 1st. Then move in a mix of us and movers July 2nd-5th. Then be out by the 5th and let our property manager clean and the new tenants in by the 15th. 10 days should be enough to have it cleaned and repaired. The property manager agreed and I agreed to show the house as needed.

Now I had friends who were interested in the place. They are a family of 5 with a parent staying with them so 6 people. They live 5 minutes from me in a townhouse complex where they rent a 2 bed/1 bath townhouse with 1 car garage for $2275/month. Their lease is up end of May. They can resign for $2275 (it was $2200) or they can pay month to month for $2775. The lease breakage is 3 months or $6825 if they break their lease. I told the mom (my friend) she's better off going month to month because the $500 works out cheaper than signing a lease. They are house hunting and the realtor told them they are likely to be able to buy in November/December when there is less people looking.

However I don't think they are in a position to buy since they were approved for less than the mom hoped. She initially thought they'd get approved for $600k. But the bank told them $450k. This puts a big damper on their house hunt. She said they don't have more than $30-35k to put down and she needed help selling her jewlery to get more. I told her don't sell her jewelry. But that will bring in $10k for closing costs she thinks. I have no idea how selling jewelry works except I feel like you don't get much.

They have a house from where they moved that they could sell and it would help with the downpayment. Currently it's rented out. I told her that would really help them with the downpayment and minimize risk in buying. She said they have to think about it. They want to try to be "rich" by being landlords.

Anyway I told my property manager about them and gave them his contact info. They offered him $2275 a month to rent. I slapped my head. Seriously? Less than I'm paying they thought was a good idea? It was ridiculous and he said he didn't get back to them. They asked me to inquire if he had gotten the email and that's when he told me what they offered. I told him just tell them no. It wasn't feasible.

Oh well. Since he has 8 offers now for showings on Tuesday 4-6 pm I guess we'll be fine. It's for $2500/month and I am guessing that it'll be taken on Tuesday. So we are set to save money.

As for my friends? They lost out on renting a bigger house for $125/month more. Maybe $125/month is a lot but at the same time they would have had space for 6 people better than in a 2 bedroom townhouse. It's cheaper than a 3 bedroom townhouse in their complex which was $2500/month. Sometimes people are penny wise, pound foolish. In trying to score a deal and be cheap they lost out I think on a better house and a better flexible rental agreement. I sent them a copy of mine so they could read it for lease breakage. Oh well. Say La Vie.

3 Responses to “penny wise, pound foolish”

  1. rob62521 Says:

    It's amazing how silly folks can be...thinking they can low ball something and then wonder why it didn't work. Hope everything goes smoothly for you as you do all this.

  2. LivingAlmostLarge Says:

    Exactly I thought the deal was good enough they'd be thrilled to offer $2400 and be happy to land it before it went live on rental sites. Pennywise and pound foolish.

  3. PatientSaver Says:

    the main jewelry of value is gold and diamonds; both have cyclical prices that fluctuate. When i recently tried to sold a diamond ring, it was suggested i wait til the economy improves more because more people try to sell jewelry and other items when they have a hardship or when the economy is generally down, thus depressing prices by flooding the market.

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