It was definitely the right time to list the beach condo for sale. Within 3 days, we had 3 offers to purchase the unit. With a list price of $179,900, the 3 offers were as follows:
1. A full price offer with a contingency stating that their condo must be sold first
2. A cash offer of $165,000
3. A offer of $171,000 with a 24 hour deadline to accept and settlement in June
The 3rd offer was accepted after the party with the cash offer refused to go any higher. The contingency offer was not considered due to the uncertainty of their sale. After our contract was signed, we learned that the two others were considering a change to their offers in the event that our transaction does not make it to settlement; so it is great to have these as potential backups. There is no guarantee the transaction will be completed as it requires numerous steps to be attained. These include a property inspection, real estate appraisal and financing approval.
An inspection has been done and requests by the buyer for additional settlement credits were countered with an offer to purchase a home warranty insurance policy on their behalf with a term of 1 year. This was accepted and is a common concession in these circumstances. A year policy can be purchased for around $500. Step 1 is now completed. Next step is to ensure that the unit is valued at the sales price by a real estate appraiser so that the bank will approve their financing. I will keep you posted on our progress.
Thanks for reading.