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Negotiations settled

May 12th, 2015 at 01:58 pm

We are moving onto the next step in our home sale process...signing the purchase and sale. Easy? no. But we finished negotiations yesterday at 5 pm and then had to negotiate with our neighbors.

We are doing the repair #1 with a range of $5-10k. We are doing it for less money out of our pocket than if they had taken the cash we offered $15k. We were willing to go up to $20k. Yes that's right we were going to throw a ton of money at the problem and they wouldn't bite. They didn't walk away but they instead they said less money and you deal with the headache. And my head does ache thinking about doing my construction project in the next 8 weeks.

We then negotiated with our neighbors about starting IMMEDIATELY as in yesterday. I already sent an email hiring the structural engineer to draw up the plans. I'm hoping they are done next week so I can bid out the project around memorial day and start the work projecting the 1st of June. That will give us a month to do the week, which is estimated at 1 week (I am guessing 2 weeks) and having the bank come out to reassess the repair and give the mortgage a final stamp of approval. Unfortunately this may impact their ability to get a mortgage which will in turn potentially snag our home sale.

Again I'm working as fast as I can. I have contractors coming out this week to look and see if they'll do the work, give an estimate off a report, I've explained about the building plans being worked on, and see what their time frames are and estimate on time to do project.

Talked to my lawyer this morning and he was in disbelief we negotiated with our neighbors in less than 24 hrs to start and pay for a large repair. How did we do it?

Well Neighbor A has an identical unit and is our direct comp. They plan on selling next year and this will tie up their sale and if we put it back on the market and dump it for say $679k they'd get that next year. It was in their best interest for us to not lose our buyers and to keep our comp extremely high. They are hoping to get our $720k pushed higher and next year they may hit $729 or $739k. Who knows. They know which way the bread is buttered.

Neighbor B only holds a 20% equity share in the property because it's a smaller unit. They are in financial difficulties and Neighbor A was calling to see if they could afford it because they agreed. They said yes, but that's not the whole story and we told neighbors A the truth.

The truth is we are giving Neighbor B a 0% personal loan. We are fronting the cash at most $2400 for them to be able to afford the foundation work. We decided privately that we can afford to eat $2400 to sell our home. Right now they are into us for around $1100 anyway because we've paid for association work (painting the house $4k) and other stuff $625 (hiring engineer) out of our own pocket. And our other neighbors owe us something like $2200.

The association owes us and both neighbors agree. Yes we are seriously throwing around money left and right this home sale. The association will need to settle up with us.

But what else can be done? Only thing I can say is thank god we have a ton of cash right now on hand. Thankfully my DH just stashed a lot of cash around $200k for us to move without jobs. We don't need to touch retirement and investment accounts. And while we were debating investing some of this $200k we've been revisiting whether or not we should keep 3 years of expenses in cash.

Right now who knows what our future holds.

2 Responses to “Negotiations settled”

  1. Carol Says:

    You are working so hard. I hope it all starts to go smoothly. Good luck!

  2. creditcardfree Says:

    Cash does buy freedom in this case doesn't it!

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