Too bad either of you went through realtors -- which will eat 5-6% from the price you agree on. This means they will be taking a significant hit by accepting your offer. Without knowing what kind of contractual arrangement either of you has with these realtors, it would seem fair - and compassionate - to see if you can work out a direct deal with the seller.

Since you've spoken to the homeowner before, it wouldn't be untoward to reach out to her to talk through the situation. Ask what their concerns are, when will they solidify their plans, etc. Feel free to mention the issue you're facing (ability to get mortgage now vs later as a consultant) and that, while you want their house, you can't sit in limbo since the clock is ticking for you. Give them a timeframe when you need to have your offer accepted or rejected. Also, understand that offering $5k more may not be enough of a motivation depending on the issues the couple is facing/trying to decide on.

That said, you would be doing the homeowner a disservice by attempting to persuade her to cut a direct deal instead of honoring her agreement with her realtor. And, know that if she's the type of person willing to betray her listing agent, expect that she won't hesitate to screw you over in some way before this is all done, too.

She has listed with a realtor. Which tells me she is serious about selling her house. She knows you want the house. Maybe she is sitting back a week or so to see what other offers she may get. Since she knows you won't walk away. And she knows that if she gets an equivalent or better offer, that most likely you will up your offer and create a bidding war.

I do agree with jewel about honoring any agreement made with your respective realtors. But be sure that those agreements actually cover your case - where you and the seller found each other. The seller may not have hired her realtor yet, and should ask for an exemption from the standard commission for a buyer the seller has found or wants to name. This is commonplace in the case of neighbors, for example.

I'd lean on your agent a bit more to get the story from the seller's agent. This is part of the "hassle factor" of having 2 middlemen/women in the process. But since you've hired them, it's their job to be the squeaky wheel and get the info you need. See what their concerns are so you can address them.

I wouldn't bump up your offer at this point, because you don't know if that's the sticking point for them. If you did that, they might say "hey, let's wait just a bit longer and see if they increase their offer again."

You are applying for a mortgage with false information--you have already quit the job you are using as a claimed, steady, income source. Even if your mortgage is approved, they can, and likely will, revoke that approval should they discover it. And you are possibly putting your financial future at great risk by counting on consulting income to cover your mortgage obligation. Only you can accurately assess that risk, and the certainty that the consulting income will be equal to, or greater than, that of your current job. Is this really a good time for you to purchase a house?

As for "... Feel free to mention the issue you're facing..." well, only if you promise to not be surprised when they use screwdriver you handed them to tighten the screws on you later in the negotiations. They might not, but unless there is some greater advantage to you for disclosing the information, why take that risk?

are you using your current income to qualify?
if so, lenders always re-verify your employment status and your income will not be used.

**As for "... Feel free to mention the issue you're facing..." well, only if you promise to not be surprised when they use screwdriver you handed them to tighten the screws on you later in the negotiations. They might not, but unless there is some greater advantage to you for disclosing the information, why take that risk?**

Well, sure, if they're psychopaths or otherwise unscrupulous. However, I've yet to encounter a person who has successfully used the info I've told them about my circumstances to take advantage (and this is NOT my first rodeo, by the way).

If the seller attempts to manipulate the buyer like that, she'll be taking quite a risk of alienating the buyer and will have to scramble to back-track to make the situation right when the buyer walks or comes back with her own unreasonable demands.

This homeowner was planning to sell originally, so she likely still has a vested interest in trying to make the sale work. I see no reason not to tell the seller why the buyer wants a solid response about the offer sooner rather than later.

Thank you everyone - Such great advice - Still feeling confused. I do want to mention that YES - we can afford this house on just one of our salaries - I'm just concerned about jumping through the hoops of getting our mortgage approved without two solid incomes. For today I think we may just sit back and let them settle into their tough decision for a bit. I think they may be a bit paralyzed at the moment - selling due to a job layoff - have a baby - must be very sad about the whole situation.

I also think that if they were in it to grab every penny possibly they would have at least counter-offered to see if we would say YES - right?

Our realtor mentioned that they are concerned about getting their next housing situation settled - concerned about the timeline.

I believe our plan will be to send over the offer again - two weeks from now - Maybe the same amount - but with a section added that they can stay in the house for a few more months for a specific monthly payment + utilities. That way they have more breathing room - and a much smaller monthly payment to think about.

Any thoughts on this move?

And YES - I do wish we had moved forward without realtors - kind of? We are first time house buyers and I wanted to make sure that all of our bases were covered.

Thanks everyone!

Thank you everyone - Such great advice - Still feeling confused. I do want to mention that YES - we can afford this house on just one of our salaries - I'm just concerned about jumping through the hoops of getting our mortgage approved without two solid incomes. For today I think we may just sit back and let them settle into their tough decision for a bit. I think they may be a bit paralyzed at the moment - selling due to a job layoff - have a baby - must be very sad about the whole situation.

I also think that if they were in it to grab every penny possibly they would have at least counter-offered to see if we would say YES - right?

Our realtor mentioned that they are concerned about getting their next housing situation settled - concerned about the timeline.

I believe our plan will be to send over the offer again - two weeks from now - Maybe the same amount - but with a section added that they can stay in the house for a few more months for a specific monthly payment + utilities. That way they have more breathing room - and a much smaller monthly payment to think about.

Any thoughts on this move?

And YES - I do wish we had moved forward without realtors - kind of? We are first time house buyers and I wanted to make sure that all of our bases were covered.

Thanks everyone!

You may feel comfortable with the mortgage with one salary, but the lender may not. You don't want to pussyfoot around this issue. You need to find out one way or the other prior to it really screwing the deal up later.
I think your idea to send them another offer with a rent back situation is a great one... bit I would advise to do it NOW!

The mortgage company is going to have you hoop-jumping no matter what your financial situation is. :)

If you send over another offer, do yourself a favor and add a clause...this is the offer and it's good until 12:00am on XYZ date. You give them a time by which they HAVE to respond....voila, you aren't left wondering.

I'm surprised your realtor didn't advise you about this on the first offer.

Jmc01... I usually do not advise to put a time limit on a sellers response. First, 99% of sellers will respond timely anyhow. Second, what happens if the seller does not respond by your timeline?
Here's what happens... the buyer is now faced with two unsavory situations. One, the buyer saves face and moves on and loses the house of their dreams only because they put a time limit on the seller. Or secondly, and usually the case, the buyer realizes that they don't want to walk away from the deal after the deadline and continues with the transaction. Now, the buyer is faced with the decision of how to get back into the deal. And when you do, you just showed the seller that you are not serious about your "RED LINES" drawn in the sand. You cornered yourself in a box, and the two ways out of that box are usually very undesirable to the buyer.
What I would do here is to meet the seller agent for lunch and really find out what the true concerns are for the sellers. And then address them. (I like to eat)

This post was edited by ncrealestateguy on Mon, Oct 13, 14 at 8:38

The way to nudge the buyer to get moving without imposing a deadline is to have your broker make it known that you are still actively looking, and have some other properties you are considering.

Without an expiration date, what's to prevent a seller from counter-signing the offer months later, well after the buyer has emotionally, financially, and physically "moved on".

If the buyer is done with that particular house and has moved on, then the agent should terminate the offer with a simple email stating so.

Funny how differently things are done in different parts of the country. Out here, nobody writes an offer without stipulating X amount of time the seller has to respond. The seller may very well ask for an extension of that time period and the buyer can then say yes to more time or decide to call it and move on to the next house. As a seller, this works for me; as a buyer, this works for me. Doggone if I want to be hanging out in limbo.

Jmc01... I usually do not advise to put a time limit on a sellers response. First, 99% of sellers will respond timely anyhow. Second, what happens if the seller does not respond by your timeline?

You might not advise it, but every one of the offers I've ever submitted have included it. As a buyer, that one little clause reduces the stress around not knowing. If the seller is serious about selling, they will respond. And if they don't respond, I as the buyer have the upper hand because I get to decide whether to renew or not. Contract law is details. The more clearly the details are defined, the less ambiguity for all. I wouldn't expect a realtor to recommend a clause that could end a deal.

This post was edited by jmc01 on Mon, Oct 13, 14 at 20:26

Is it just me or is GW multiplying posts?

This post was edited by tomatofreak on Mon, Oct 13, 14 at 23:08