Recently a new client of ours wanted to move from the Tacoma area and purchase their retirement home in Vancouver Washington to be closer to their children and grandchildren.
Being retired, they wanted a One-Level Ranch Style Home for a great price. They had seen many good possible targets in our advertising and on our website, and we started sending them more listing hot-sheets in more specific neighborhoods and a tighter price range.
Since their home in the Puget Sound area was owned free and clear, our clients had the option of:
- traditional financing for their Vancouver home;
- using an FHA reverse-purchase mortgage; or;
- using an equity line of credit loan.
Given that they wanted to sell their existing home within the next few years, they opted for an equity line of credit loan to make them a Cash Buyer for their Vancouver Home.
Armed with their home purchase financing in order, we set out to look at the top homes available on their list. The very first home we looked at was reasonably clean and in a 5 year old neighborhood, and this one stood out more and more as we went through the rest of the homes on the list.
At the end of the afternoon, the first home was the clear winner; and we knew with 5 other showings that same day there would be multiple offers. Thus, we headed back to the office and within 30 minutes had a written offer for $150,000, Cash terms, for a 4 year old home that the seller had paid $250,000 when new!
The offer was submitted to the listing agent who confirmed that other offers were coming in although ours was the only Cash offer. By the end of the weekend our client's offer was not the highest but, the seller felt it was the best offer, and accepted it.
How long does it take a short sale bank to make a decision?
Our clients were excited that their offer had been accepted by the seller, and they had also been coached that it could take several weeks or more to have a decision from the short-sale bank. When the listing agent told us the lending bank was GMAC, we then knew the wait period would likely be much shorter. Turns out we had a verbal green-light in two days, and paperwork in about 7 more days. Early the following week our client's had hired Pillar to Post to conduct the home inspection - with relatively clean results!
At this point the only item delaying closing on the home was the grace period the renter had to vacate the home. Our clients could have asked for an Appraisal Contingency however, after discussing the possible perception by the seller that the buyer's intentions might be less than 100% combined with the fact the home at a $150,000 purchase price was $47,000 less than tax assessed value, they decided not to muddy up the waters with an Appraisal Contingency.
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Allright so how did this one tally up:
- Sold for $150,000 (sold new in 2006 for $250,000)
- Closed within 35 days from time of offer submission (two extra weeks were required owing to renter's rights)
- Buyer's Cash Offer was the third highest offer submitted yet, was the Strongest Offer in the Seller's opinion.
- Relatively Clean Inspection with no major repairs required.
In this home purchase our clients saved a ton of money by leveraging their existing home's equity into a Cash Purchase at a price that was less than competing buyers using low-down financing! Sure they are paying interest on their equity line of credit loan however, the savings they made on their purchase will more than offset the interest they must pay!
If you or anyone you know is looking to purchase a Vancouver WA home for sale or, has an interest in real estate in Vancouver Washington -- please contact us as homes are selling for great bargains!
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