Accepting a FSBO Offer
I am selling a one bedroom, and it looks like I have some offers coming in. In terms of deciding whom to accept (I am aware of the coop board and its requirements as I am on it) but does anyone run a credit check on the prospective buyer before accepting, to be sure that…
I am selling a one bedroom, and it looks like I have some offers coming in. In terms of deciding whom to accept (I am aware of the coop board and its requirements as I am on it) but does anyone run a credit check on the prospective buyer before accepting, to be sure that nothing ontoward will show up? What do you ask for?
Thanks…And has anyone negotiated to stay a few months after the closing- as we are going to have to find somewhere to buy (or rent if needs be)
I will have to find a new place very quick (or rent instead). Any advice on buyer’s brokers in the brownstone brooklyn area, mostly fort greene clinton hill, propect heights etc. to help me look..
For buyer’s broker: Erin from housebywe–we used them to both sell and buy (and renovate, actually). You can probably get selling advice from her as well if you employ her on the buy-side.
I’ve sold a couple of time FSBO. I always had people submit an offer sheet — a one page that summarizes their finances, employment in addition to the offering price. You can find one online. Brokers use them (Of course, this is back in the days when you’d get several offers after one open house. Maybe they’re not used quite so often these days.)
I’d add that since you’re on your coop board, you might want to rule out a buyer that your board has historically been skittish about–like an out-of-state parent holding the mortgage, or someone who runs a business from home, etc…
Obviously you need to make a decision before you go to the coop board. I would ask the potential buyers if any have been prequalified for a mortgage and for how much, as well as the downpayment they plan on making.
I would also get your RE atty involved ASAP to give advice and get the contract process moving.
As for moving, getting to closing is likely going to take 60-90 days minimum, so maybe you’ll be okay. When I sold my coop FSBO, I was able to delay the closing for another month as this worked out better for both of us. It can’t hurt to ask.
i agree with crimonson– between your co-op board, co-op lawyer, your lawyer, and the bank, anything worrisome will be quickly vetted. when i did FSBO, i just asked anyone making an offer to provide a pre-approval from a mortgage company, just to clear the first hurdle (which when I bought from a broker is all they asked for before accepting my offer anyway).
i’d also advise against trying to stay longer– your buyer’s lawyer will likely advise clients not to let you stay. even if there’s a contract saying you’ll agree to cover any damages, no one wants the hassle if it happens (after all, the last walk-through is right before closing), there’s always the worry that you’ll not leave on time, or whatever (even if you know you’re a perfectly reliable stand-up tenant, doesn’t mean the buyer should trust that. it could make it tougher to sell to the best bidder, so i say get on the stick and start looking for a new place!
Your co-op board and mortgage bank will do the proper credit check, or at least better than what you will be able to do.
The bank and co-op board will ask for the same thing including W2s, tax return, pay stubs, account number and bank statements, etc.
NYC co-op board tends to be more conservative thus request more W2s, pay stubs and higher standards to liquidity.
I have heard people negotiated to stay a bit longer but it means you pay the mortgage and you will be under contract in regards to damages and repairs. So many do not do it as it is costly.
jp–
1. Having done it, I would not recommend negotiating for a lengthy post-closing stayover. You will lose buyers. Our case was unique and was during the boom but you can avoid the need. Get on your search, and fast. Be thinking short-term storage and sublet as a back-up plan.
2. We don’t have real multi-listing in BK so do your own searching on line — NYT, CL, realtors’ ads — then call whomever is showing what you want to see. If you are savvy enough to FSBO, you don’t need a buyer’s broker and you will miss a lot of what’s available if you rely too heavily on one.
Do any of your prospects have brokers? For us, the fact that our buyer had a broker helped tremendously. We also went with the person who had the most cash down, not the highest offer. It sounds counterintuitive, but it’s all about who can get to the finish line with you. The finish line is way more important that eeking out that extra ten grand or so.
Good luck!