frugal offer on our house for sale

We have two offers on our rental property!

The good news? We have two offers on our rental property. The bad news? We don’t know which one to choose!

Here is how they break down.

Offer One

$86,000  sale price

+ Stipulation to replace the roof.

+ Stipulation to bleach and seal the basement.

Outside financing.

Offer Two

The tenant finally came through! Sorta.

$99,900 sale price

+ Stipulation to replace the roof.

We would receive $69,000 upfront, and we would have to finance the other $30,900

Breaking the offers down

Let’s start with the tenant.

The tenant is only approved up to $69,000.

In simplest terms, we would have to hold a second mortgage for around $30k. This equates to about $250 per month at 10% interest.

I spoke with the first mortgager and they have no problem with the second mortgage.

The first offer, has no sale contingency but does have a stipulation for a new roof and a bleached/sealed basement.

What we walk away with

The first offer would give us a cash infusion of about $37,000.

The second offer (tenant) would give us a cash infusion of about $19,000 and also $250 per month for 30 years (assuming no default of the loan).

Update – Counter offer

We countered the first offer and told them $93k would get it done.

A couple hours later and they responded with $89k.

This would increase our NET to $40k.

We countered back again at $90,500.

They refused and said $89k is their max. We know they are approved up to $99k, as we have their pre-qualification letter, but they said they need money to replace the carpets and paint.

We are currently in a stalemate. We want no less than $90.5k and they aren’t budging on $89k.

It’s times like these when I wish I didn’t wear my welcome out at the MMM forum. I could use some advice.

11 thoughts

    1. They banned me and my wife. They said we weren’t listening to advice and were causing a disturbance with the membership.

  1. My advice: Don’t quibble over $1.5k. 30 years is a long time to expect to receive $250/mo. Cut your losses and take the first offer!

  2. Good grief, you’re hair is on fire and you’re gonna lose the deal over $1500. That’s a few weeks of food for your family at your rate.

    How did you arrive at the strange $90,500 red line?

    1. We figured that during the home inspection the buyers would find *something* they wanted to be fixed. Or multiple things. And wanted some wiggle room to be able to eitehr fix those things, or agree to a slightly lesser amount in exchange for not fixing those things. Looking back, I agree with you – Sounds dumb.

  3. We had the same situation happen to us recently with the sale of our first home. We were within $1,500 after a couple rounds we took the darn offer. 1 month after closing I have 0 regrets!! Small price to have the property sold and money back in your pocket. Take the first one!

    1. I think we may have lost the first one. We haven’t heard from them in 2 days. I wonder if we should reach out to them or if that feels desperate.

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