Selling a house, need advice

[Lindagerr]

After 10 months on the market I finally got an offer on my NJ house. The offer was low and we negotiated up to a semi mid point. Now we are running into all kinds of roadblocks. This is the 1st house we have ever sold, we bought it new 31 years ago. In ~1985 we added a wood stove, in ~1988 we added sky lights and finished the upstairs ( a cape) ~ 2009 we had the roof replaced and in 2004 we had fire damage repaired. We applied for and got permits for all but the roof. Now our buyer wants copies of those permits, we do not have them, we told him he could request them from the town but his lawyer only requested the town look back 10 years so of course there weren't any permits. We do still have some of the interim approval stickers hanging on the studs in the attic upstairs and the electric approval sticker is on the fuse box. Are we being difficult by saying if you want more proof you pay to ask the town if they even have records back over 25 years.

Also the NJ recommended Radon level is 4 we tested at 5.1 so he wants radon remediation. As scientist we feel the margin of error covers this. The test was done in a closed off house in the back corner of an unfinished basement. We did get 2 quotes and they are around $1700 we offered $700 toward him getting it done later. We lived there and raised 3 children there my radon remediation was leave a basement window open a little, it is a lot cheaper than paying for remediation and then the electric cost of running that system plus maintenance on the system. If we/he ever finishes the basement it will probably be easier to install remediation then.

We did also have a list of several items they wanted done after their inspection. We agreed to most and some we didn't really have to do. The closing is not for a couple of weeks and we have not finished everything yet but he was planning on going to see the house tomorrow to check if things were done yet.

I respect the opinions of the people here and hope you can tell me if this is just normal closing stuff, are we being unreasonable or is the guy being difficult.

[rebel100]

I think he's being difficult, but after 10 months on the market with no other offers I'm thinking it may be worth a few bucks to get this done.

I would go to the town and see if they can provide the records or give an accurate description of the house (actual number of beds and baths, etc...). If no discrepancies show up share that with the guy as "all the proof you have". If they aren't showing any open permits and you haven't made any illegal additions I think this should suffice.

Don't know about the Radon.

I would complete his punch list (within reason)...just because its been a difficult sale.

[Prloko]

Its a buyer's market and it seems your buyer knows this. Of course, people naturally ask for more than they're willing to accept, but tread carefully. What is your BATNA, if you don't know what that is look up negotiation. It is always good to know what your options are and your walk away issues. This way you can negotiate from strength.

Try to counter-offer to get a better deal, if he doesn't budge, your option is sell, or take your chances on the market.

[LaterBloomer]

A co-worker just walked away from a house a couple of days before settlement. One of the reasons is that the work she wanted done as a result of an inspections wasn't done by a licensed contractor. She also didn't like how well they cleaned the house.

As someone who took a BIG hit when the market crashed in the late 1980s, I can only share my experience. I did whatever I had to do to sell the house. (That included brining money to the table to pay the difference between the sale price and the mortgage. Painful.)

As to statistics and radon? I wouldn't even go there. To them, the number is 5.1. Anything over 4 is bad. They most likely won't care about the margin of error.

I hate to be such a downer, but it's where I stand.

The bottom line is, how badly do you want to get rid of the house?

Okay, I'm editing for niceness. Congratulations on getting the offer.

[videogamesrock]

Can you go beyond 10 years to request the permits? If yes, I would do so. The buyer is picky, worst case scenario you can reply to the buyer what a seller once told me, "I simply cannot afford putting anymore money in, so sorry, it is what it is" and see what he says. He may just agree to terms.

I just placed an offer on a house that will need a new roof in 4 years, I asked the seller for more money and they said no, they are already selling it under market value. So I went ahead and gave in.

[Lindagerr]

Thanks to all for the advice.

When it came to his punch list we said yes to all except putting GFI's in the kitchen this was not required by law. We eventually did it anyway. When he asked for more time(beyond what was stipulated in the contract) to get his mortgage approval we agreed immediately.

Our original asking price was 234,900 we came down in steps and had just lowered it from 219 to 209 the day before his offer of 192. We negotiated up to 202. For a 4 bd, 1 bath with unfinished basement in NJ some would consider this a steal.

I did call the town today and they said they "might" have permits from 25 years ago. We do have pictures of the approvals on skylights and framing. Part of the problem is we now live 6 hours away so we can't just go to the town clerk and ask for these things. Our lawyer says we do not have to provide the permits. It is his lawyer who only asked for 10 years so why is he mad at us if we were asked we could have told him the years things were done.

I have gotten more quotes for the radon still around $1700 so we will either offer him that much or get it done. Again the distance thing is a problem.

I am just frustrated, we have tried to be reasonable. We also just put $20K into repairs, replacements, full house painting and all new flooring just before we put it on the market. We really can not afford to put much more into it and we also can't afford to carry it much longer.

[bricabrac]

Another option should this deal fall through -
You might ask your agent, or better still a loan officer you trust, if they are still doing rent with option in NJ? With a rent with option your mortgage is paid; and a young couple/single individual who may not be able to come up with a huge down payment, but has a good salary, can still get into a house. This option also works well for those with a fair to good credit rating. It allows them the time needed to strengthen their credit in order to secure a good loan.

If unaware rent with option is basically you and the tenant drawing up a contract. It lists the monthly rent (should cover mortgage, taxes, and insurance plus a bit of padding for inevitable repairs), terms of rental and agreed purchase price of house at 12 mos and 24 mos. When ready the tenant can work with a loan officer to secure a mortgage as a sort of refinance vs first time buyer. It's pretty sweet how streamlined the process becomes when the next owner is already in the home. They use the rental receipts as mortgage payment history and the buyer needs to keep a running balance in the bank that covers the house for a min of 3 months prior to purchase. They would need an appraisal, inspection and CO for the house to close. If needed, after a few years the buyer can even refi into a lower fixed rate.

It's a win win for the seller and buyer. Real estate investors and folks who need to unload a second or third home tend to go with this option. I would definitely rent my house with option if I moved out of state right now. RE has taken a severe hit in my area of NJ, but I could easily get double my mortgage payment in rent.

[Lindagerr]

We are meeting with the buyer and our realtors tomorrow at the house. My husband says we will pay $1700 for radon or get it done ourselves after that we will not put in any more money.
Against our lawyers advice I did request permits going back 30 years, I wanted it just for me to see but our realtor told everyone.

If this falls through my husband and I will look into rent to buy. Thank you for that idea. I just want this done and off my mind.

[LaterBloomer]

Saw this column in today's Washington Post You. It made me think of your situation vis a vis your house. (I'm "guilty" of almost all of the Human behaviors.)

[Lindagerr]

Well we were all responding to misinformation, to many cooks in the kitchen and lawyer talk.
We met with the buyer and his girlfriend today and things went great. They were not getting info we sent to our lawyer and we are not sure which lawyer is at fault. Once I got to the house I found copies of permits they needed for insurance and they saw how we had completed the things they asked for and the tension was relieved. Both of our realtors left early after they saw we were getting along. By the time the buyer left we were all happy and I was feeling good a new family could grow in our home.

@laterbloomer great article and oh so true. I am also guilty of most of the human behaviors.