Selling a home, deciding between 2 offers

Because if you accept an offer from a financially irresponsible person then there is a much higher risk of the transaction falling through.
When a buyer has a pre approval letter, it is not a guarantee that they will get the loan or the bank will approve the transaction.
When you are dealing with several hundred thousand dollars or 1million + , everything matters.

 

Umm the bank could deny the loan on either deal and we end up wasting weeks on a contract that falls through?
The banks aren't stupid. They do their due diligence.

 

True. This can get especially tricky if the seller stills owes money on the house he/she is selling.

 

While I understand that, isn't that why there is escrow/earnest money?
So if for any reason they back out you just made a few bucks?

It makes the selling process a pain in the ass, I get that, but I figure the earnest money thing makes it easier if they do flake lol.

 

Then don't sell to either. Then risk wasting weeks for another offer. But sounds like you have several interested parties.


Selling a home sucks.

 

I like that number ... unfortunately that's not my situation. LOL

Have you sold a home? You don't get that money unless you can prove neglect. The 10% down payment that goes into escrow is returned to the buyer if he/she can't secure a mortgage. That's usually 45 days from signing. Only if the buyer secures the mortgage and then it all goes to shit do you have a claim to that down payment. That's why you want to makes sure they have all their ducks in a row before you go into contract.

We're in a good position so I'm not worried.

 

good luck getting the money that's in escrow if a transaction falls through.
It might only happen if it's after the contingency period and the buyer fails to respond to a demand to perform or comply to the contract.
For the most part an escrow deposit is a good faith deposit. For you to claim a buyers deposit, you would most likely have written in to you contract a liquidated damages clause specifically detailing forfeiture of the deposit.

 

Yep.

Here I am, four months later. I just sold my house but now I am dealing with issues on the other end. The seller of the house I want to buy is stalling and delaying our closing by a month. Now I have to reschedule movers and contractors, in addition to extending my mortgage rate lock. This shit is gonna cost me a grand at least.

Thank goodness I had a rental agreement in my contract. For anyone selling a house who's also buying a new one, make sure to have this. Basically I can rent my house from the new owner while I sort out the purchase of a new house.