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What would you have done?

east_beast

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Long story short, we sold our house in CO awhile back and moved back to east. It looks like we're probably going to be here for about two years and I have a business that needs a shop so I've been looking for a place to rent for it. Well, why not just buy a house that has an outbuilding that will work, right? I mean, I can probably buy it with a mortgage payment of roughly the same as renting the shop so why not?

Anyway, found the perfect spot. Oh wait, turns out it's owned by an old HS buddy. Sweet. Go look at it, yep this is perfect. Give him a call to catch up and get more details on the place. Tell him I'll be throwing him an offer on it later that day. I give him an aggressive offer. $10k over list. I knew there would be competition and I wanted the place and I made that clear in our conversation and in the offer. Well, the next day I get a text from my realtor that he accepted another offer. Same dollar figure as mine but all cash. Had I known, I could've matched it. I really didn't want to go all cash because it would've tied up practically all of my liquidity but I could've done it.

I'm pissed, but should I be? I'm not pissed he took the better offer. I'm pissed he didn't give me the common courtesy of reaching out to see if I wanted to and/or had the ability the match the better offer. Hell, he didn't even reach out after the fact with a "hey, sorry man I had to go with the better offer". It's what I would've done if the shoe was on the other foot. I wouldn't have accepted a lesser offer from him, but I would've given him the chance to match. At this point, I'm done with the guy I'm basically just asking irate if I'm done with him out of pettiness or is my reasoning legit? LOL!
 
I never understood "all cash" as the seller, I always have all my money at closing. Why do I give a fuck if the name on the transfer is a mortgage company or a personal bank.

I mean I can kinda see a small benefit about appraisals, surveys, title policies, and inspections, but as a buyer, I am requiring all those things before I hand anyone a dollar anyway, and you'd be a fool not to.
 
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I think your reasoning is legit. I would be done with him also. he didn't owe you anything, but a courtesy call would have been the decent thing to do.
 
I never understood "all cash" as the seller, I always have all my money at closing. Why do I give a fuck if the name on the transfer is a mortgage company or a personal bank.

I mean I can kinda see a small benefit about appraisals, surveys, title policies, and inspections, but before I hand anyone a dollar, I am requiring all those things anyway., and you'd be a fool not to.

Because all cash is gonna close a lot quicker. You can get all those inspections and appraisals done way quicker than the full loan approval process takes, even with a pre-approved offer.

To elaborate, he may have been worried about the appraisal. I doubt the house would've appraised for what I offered because it was only two bedroom. I was going to finish the walkout basement anyway. I didn't care about the appraisal and would've covered the difference out of pocket but I never got the chance to explain that. My realtor estimated the appraisal would've come in about $15k under due to the bedroom count.
 
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Justified.
Your old friend pulled a dick move and his action is very telling.
I would move on and not look back because he obviously is only thinking about himself.
 
I think you're making a mistake thinking business and personal lives should intermingle. That was strictly a business decision. I wouldn't be happy about it, but it's ultimately his decision to make.

Of course it was business, but the worthless cocksucker could have at least made a phone call.
 
Cash does not mean a shorter closing time sometimes. It just doesn’t have the bank wait time for a loan.

it does relive the requirement for an appraisal though if you aren’t smart. I would never buy without an appraisal unless I knew it was under market value.
 
Of course it was business, but the worthless cocksucker could have at least made a phone call.

This. It's what I would've done for him. I wouldn't have taken a lesser offer but if he wanted to match I would've let him.

And I've never bought I to the "it's just business" bullshit. That's just what people tell themselves when they know they're being dicks and want to rationalize their actions and feel better about themselves for being dicks.

​​​​​
 
I think you're making a mistake thinking business and personal lives should intermingle. That was strictly a business decision. I wouldn't be happy about it, but it's ultimately his decision to make.

Agreed, and it would be my decision to never talk to that piece of shit again.
 
Only thing to do now is burn it down and make him a low ball offer on the lot.
 
the all cash is not necessarily literally 'all cash', because the seller doesn't get to dictate where you get your money from. the idea is more of an unconditional offer, rather than one with a condition that says "this offer is subject to the purchaser getting a mortgage from xxx bank, at xx% by such and such a date"
If I was selling and got 2 equal offers and one had that clause, but the other didn't, I would be more inclined to take the one without the clause because when I accept - it is a done deal.
If I accept the conditional offer then it isn't a done deal and the buyer can back out saying he didn't get the financing. in the meantime I have turned down other offers, which are no longer on the table because they found another place to buy.
 
I never understood "all cash" as the seller, I always have all my money at closing. Why do I give a fuck if the name on the transfer is a mortgage company or a personal bank.

I mean I can kinda see a small benefit about appraisals, surveys, title policies, and inspections, but as a buyer, I am requiring all those things before I hand anyone a dollar anyway, and you'd be a fool not to.

Because all cash means that there's no risk of not funding... funds being delayed... 3rd party risks, etc....
 
Maybe there's some shit about the place he didn't disclose and he's saving you a world of shit?

Then again he may just be a dick....shrug
 
I think you're making a mistake thinking business and personal lives should intermingle. That was strictly a business decision. I wouldn't be happy about it, but it's ultimately his decision to make.

fully agree.

if you didn't want to keep up with him before, then I wouldn't worry about it going forward. if you hit it off and reconnect, fuck it and full send.

real friends pay full price. he probably would have felt like a dick calling you back and saying "hey, can you tie up all your funds or toss me an extra $10K?" so whateve's. if you sent over your best reasonable offer, that is all anybody can ask for in my opinion.
 
fully agree.

if you didn't want to keep up with him before, then I wouldn't worry about it going forward. if you hit it off and reconnect, fuck it and full send.

real friends pay full price. he probably would have felt like a dick calling you back and saying "hey, can you tie up all your funds or toss me an extra $10K?" so whateve's. if you sent over your best reasonable offer, that is all anybody can ask for in my opinion.

Did you read? My offer was for $10k over list.
 
Did you read? My offer was for $10k over list.

yeah, you were 10k over list and it seemed like the cash offer was the same price as yours, just "cash"

so should he have called you back and said "for $1 more!" or take the risk of selling to you for the same price and then hearing about every little thing that needs fixed over the next 2-5 years?

i'd keep it separate. same reason i'd rather sell a car to a rando for the same (or even a little less) than selling to a good friend or family member.
 
Yea, fuck that dude.

I also don't understand the all cash thing. Can someone explain the benefit? Shortens closing time? :confused:

FHA loan? ok, thats like 90 days. appraisal, haggle over price and if someone is going to make up the difference in cash.. etc.

i get it, but if its truly a friend, i would have called and talked to him about it, and then probably made the non-cash sacrifice for him.
 
Can’t you just offer more in cash right now? Or once an offer is accepted it’s over?

x2 on fuck that dude
 
Maybe there's some shit about the place he didn't disclose and he's saving you a world of shit?

Then again he may just be a dick....shrug

There's that.

OTOH, maybe he didn't want to have to call an old friend and ask him to sweeten the deal? Risk the other buyer finding out that they lost to the exact same deal that they made first? Maybe he didn't want to muddy up the water of a deal he had in his hand. Why overcomplicate things?

OTOOH, Maybe the buyer will fuck it up from here and he'll have to call you when they back out. Are you really done or will you offer him the same deal as now?

:stirthepot:
.
 
FHA loan? ok, thats like 90 days. appraisal, haggle over price and if someone is going to make up the difference in cash.. etc.

i get it, but if its truly a friend, i would have called and talked to him about it, and then probably made the non-cash sacrifice for him.

Oh fha thing I understand... I've told the wife if we ever sell another house there'll be 10% markup for anyone offering fha. :laughing:

But normal shit... im plain old good credit score/credit union guy.... you're the cash guy... we both offer $510k... what's the advantage going you over me?

The last house I sold I got a check from Wells Fargo. How would it be better for me if I got a check from John Smith? :confused:
 
There's that.

OTOH, maybe he didn't want to have to call an old friend and ask him to sweeten the deal? Risk the other buyer finding out that they lost to the exact same deal that they made first? Maybe he didn't want to muddy up the water of a deal he had in his hand. Why overcomplicate things?

OTOOH, Maybe the buyer will fuck it up from here and he'll have to call you when they back out. Are you really done or will you offer him the same deal as now?

:stirthepot:
.

Done. I'm kind of a scorched Earth type of guy.

Now if he calls me up after this deal closes and says, "listen man, there's reasons why I didn't want to sell you that house just trust me on that" I'll feel differently but that's absolutely not the impression I got from him when we talked about it before my offer
 
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Say you're selling a truck for 5K

Your buddy says he'll give you 5500. He's going to go to the bank and get a loan. He's got the cash but doesn't want to spend it all right now. He might have to put tires on it or some shit, but he'll definitely get it to you. Five minutes after he leaves, some nutbag shows up and wants to give you $5500 cash right now.

Pop Quiz. What do you do?

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How good of an old friend is he? Like you kinda knew him in HS and haven't talked to him in 20 years until you found out he is selling the place you want, or you were good friend in HS and still keep up on a regular basis?

Sounds like you thought the deal would go your way because you knew him a long time ago. How do you know the other offer wasn't put in by a newer, better friend?
 
I cash buyer is slightly more likely to actually close. Banks like to be difficult.

That and also no need for appraisal. Cash buyers fucked me on a few deals when I was searching back in October. They were swooping in and buying houses for $30K over the asking prices and not requiring inspection or appraisals. Then when I'd go to put in an offer on other homes in that neighborhood, the listing agents would automatically list at those high numbers that maybe one house (usually nicer) sold for as a comp on price for the entire neighborhood.
 
unless the offer was in writing, it didn't exist. i'd have likely done the same thing as the seller, assuming the other offer came with paperwork. And i guarantee most of the people complaining about the seller would do the exact same thing, roles reversed.
 
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