$47.31 Can Cure a Lot of Headaches

So my home that is for sale in Birmingham has an offer. The offer is from an investor. Right now we are quibbling about a few items, including price. I didn't like their first offer, and Kirby countered back on price and who the closing attorney will be. Every other point is pretty much moot until we can get in the same ballpark.

Right now we are $1,500 dollars apart--at which point I will be able to close and not write a check. We are also far from my original asking price. If we can agree on a price, it will be a number that will give me a whole $47.31 in my pocket--and that's just if my numbers are right. My real goal is just to get rid of this house and not write a check in the end.

There are a few other terms we need to iron out. First, I asked for Legal Owl to handle the close. My real reason is because Legal Owl and Attorney Flip are the only people in Birmingham who are fully versed in my LLC structure. Using a different attorney will require several 8" x 10" color glossy photos, pie charts and Venn diagrams to explain. Though it is a pain, it won't be the end of the world to concede this. Besides, as a voice of experience, I can tell you I will never let a sale fall apart on who the closing attorney and title company happens to be.

I also have made it clear for the price of this home, THERE WILL BE NO REPAIRS. None. We are broke. We are done. We have put in a bit of money to make this home salable. There is nothing left. This is non-negotiable. However, it is an investor purchasing this home, so I don't expect a problem here.

There is also a question about the commission. Kirby took a hit on his commission to begin with. However, I am not sure if the buyer side is asking for a commission. If they aren't I am even willing to concede part of the difference in price we are apart. If they are asking for a commission, we can't sell it at their price.

Though as a seller, we aren't excited about giving away our home, there are some reasons why we are willing to let the home go as such a low amount.

1. Homes in this neighborhood stay on the market six months and sell for the price these investors are willing to purchase our home for anyway. So, we have a bird in the hand, so to speak.

2. We owe this particular bank a lot of money for the house they haven't foreclosed on yet. Once they do, they have promised us they will put a lien on the house. We were advised, they might even take any profit we get when we sell this one, so our $47.31 is up for grabs.

3. If we wait for a different offer, we might be waiting a long time, which will cost us a lot more than the $1,500 we are quibbling about. And then the bank may end up taking it anyway. After all, there is a mortgage, taxes, insurance and utilities to pay. There is the risk of vandalism and other hazards. So, as I am writing this, I am realizing the costs of keeping this home outweigh the $1,500 we are apart. Ack!

4. It has been pointed out that we will have a wonderful tax write-off if we sell. Frankly, even if we got a full price offer, we would still be taking a hit. And in all fairness, when I calculated a preliminary tax return next year--even calculating for a recapture in depreciation the IRS will sic on us--we would make our "profit" then. So, there is a light at the end of the tunnel.

The homework I gave Kirby was to give me a few numbers to see if I can make this work. If the dollars don't work, I guess we will be going on to the next offer. But I have to tell you, as an investor and a real estate agent, I realize it would be foolish to loose an opportunity for $1,500 and a few other tid-bits.