Real estate advice

[jutaw22mu]

I bought my first home in WI approximately 5 years ago.  I work in IL (Lake County) and my commute is 35-40 min each way.  At the time I bought my house, my lifestyle was a better match for such a commute because I was not involved in many activities outside of work.  Now, I play soccer 2x/week close to where I work, my gym is close to where I work, and during the summer, I play both basketball and soccer close to work, and also try to golf 2x/week (at least...).  On top of that I walk/run approx 6 miles/day.  I think with all these things I am doing, the commute is really killing me, not to mention the gas, mileage, and tolls really kinda eat into the perceived advantage of the WI property taxes.  I have seriously been considering moving, but have been hesitant to pull the trigger.

Today, my neighbor told me that he is still in touch with the family that sold me the house I now own.  They are apparently moving back to WI from out of state this summer and would be interested in buying the property from me.  Does anyone have any advice on how to proceed?  I wonder if, by virtue of having sold the house to me, they think they will get a really good deal or something?  The house has risen in value by approx $100k since I bought it 5 years ago and I just don't want to get screwed over in a potential deal.

[jutaw22mu]

I also have made considerable upgrades to the property (new water heater, new well pump, new well tank, rewired the entire house, installation of overhead lights in all rooms, installation of new water softener and iron curtain, installation of a basketball hoop, landscaping changes, etc.  There are probably some things that they can pick at too, like the roof maybe has 5 years on it and the AC unit is from when the house was built in 1984.  I also removed almost all of the ceiling fans, which for some reason, people like.

[wadesworld]

I don't have any great advice to give to you unfortunately.  Just my personal thought that you should sell your house if you want to on your own schedule.  In this market, my guess is you'll be able to sell it at some point, whether it's to the person who sold it to you originally or not.

And as a first time home owner, I'd get a real estate agent, or at least get someone who understands that side of things (if you have a friend who is a real estate agent or whatever), even if you're selling it back to the person who sold it to you.

[ATL MU Warrior]

I bought my first home in WI approximately 5 years ago.  I work in IL (Lake County) and my commute is 35-40 min each way.  At the time I bought my house, my lifestyle was a better match for such a commute because I was not involved in many activities outside of work.  Now, I play soccer 2x/week close to where I work, my gym is close to where I work, and during the summer, I play both basketball and soccer close to work, and also try to golf 2x/week (at least...).  On top of that I walk/run approx 6 miles/day.  I think with all these things I am doing, the commute is really killing me, not to mention the gas, mileage, and tolls really kinda eat into the perceived advantage of the WI property taxes.  I have seriously been considering moving, but have been hesitant to pull the trigger.

Today, my neighbor told me that he is still in touch with the family that sold me the house I now own.  They are apparently moving back to WI from out of state this summer and would be interested in buying the property from me.  Does anyone have any advice on how to proceed?  I wonder if, by virtue of having sold the house to me, they think they will get a really good deal or something?  The house has risen in value by approx $100k since I bought it 5 years ago and I just don't want to get screwed over in a potential deal.

If you truly want to explore selling, talk to an agent. They can help you determine a fair price, which you should stick to, regardless of who the potential buyer might be. Don’t cut these folks some kind of deal just because they were the previous owner. It is first and foremost a financial transaction and you should look out for your own best interests.

If you haven’t already, you really need to determine if you can afford a place closer to your work.  That’s a huge factor in figuring out if you want to make the move.

[real chili 83]

They should pay you a premium for getting THE house!

[Babybluejeans]

The previous owner’s interest means absolutely nothing, and should have zero influence on any decision-making of yours. It’s your house. Do what you want.  If you decide to sell, sell at whatever price point you want and to whomever you want.

I actually agree with chili that their desire to get the house back may be useful to you, if anyone. They’ll have to pay you a premium to keep you from listing the house on the market.

[ZiggysFryBoy]

Alternatively, jutaw could save a lot on commissions by going private sale.  Get an attorney to handle the paperwork for a flat fee.

[🏀]

Alternatively, jutaw could save a lot on commissions by going private sale.  Get an attorney to handle the paperwork for a flat fee.

This is the way.

Society pays a lot of money to get listings sent to them that can easily be found on Redfin or Zillow.

[Lennys Tap]

Alternatively, jutaw could save a lot on commissions by going private sale.  Get an attorney to handle the paperwork for a flat fee.

Determine a fair price. Figure out how much you’ll save if you sell by owner. Offer the old owner at the fair price minus 1/2 of what you’ll save in real estate agent fees.

Everybody (except the agent you don’t need) wins.

[mix it up]

Determine a fair price. Figure out how much you’ll save if you sell by owner. Offer the old owner at the fair price minus 1/2 of what you’ll save in real estate agent fees.

Everybody (except the agent you don’t need) wins.

Yup^^
We did this and it was a win win.

[ATL MU Warrior]

Yup^^
We did this and it was a win win.

And how did you determine a fair price? 

I agree with the idea of avoiding an agent to save the 6%. For an inexperienced owner, not sure it’s the best idea.

[rocky_warrior]

And how did you determine a fair price? 

Honestly, Zillow, Redfin, and a number of other sites give you a good starting point.  You can adjust up or down from there based on updates or lack thereof.  Honestly, I've never had a Realtor give me a FMV that landed outside the window that those sites had.

[ATL MU Warrior]

Honestly, Zillow, Redfin, and a number of other sites give you a good starting point.  You can adjust up or down from there based on updates or lack thereof.  Honestly, I've never had a Realtor give me a FMV that landed outside the window that those sites had.

.
Maybe that suffices for a sale back to the original owner of the house if they are not working with an agent and they are willing to pay whatever the current owner thinks is FMV, I don't know.  I'd be hesitant.

[mix it up]

And how did you determine a fair price? 

I agree with the idea of avoiding an agent to save the 6%. For an inexperienced owner, not sure it’s the best idea.

We used comps. I came up w a price and negotiated from there.

[dgies9156]

We sold our home in Lake County, IL last summer. I'm no big fan of real estate agents but they're a necessary evil.

The good ones tend to know what's happening in the market, may well have buyers or know people ready to buy. More importantly, if you negotiate with only one person, what happens if that person decides to go elsewhere -- to another home.

Real estate agents can be difficult and often way too pushy. But at a minimum, I'd strongly urge you consult with one or two and get their visions before you make a sale decision.

P.S. -- be wary of today's market. Mortgage rates are falling but we're still not to where we were last year at this time -- and probably won't be for awhile.

[Skatastrophy]

Lawyer-only gang here. If you're comfortable negotiating, get the potential buyer's email address and start a conversation.

[Herman Cain]

Here is a potential game plan :

Reach out to the former owner .

Tell them you are considering selling their former home .

Explain and document the improvements you have made since they sold the house .

Tell them you would be willing to sell the home to them in a private transaction for $xxx Price .

Tell them the sale is as is where is, as they were the former owners and can clearly see and value your improvements .

Ask them to verify proof of their financing

If they agree to all and prove financial viability, give them 45 days to close the transaction .

Put this all in a brief term sheet so there are no misunderstandings

Then go to closing lawyer  with term sheet lawyer to draft sale papers secure title insurance etc

If the deal falls through , you will still have enough time to list the home in the peak spring selling season .

If all that is too much then just hire the best real estate broker you know up front and have them list it .

[Hards Alumni]

Alternatively, jutaw could save a lot on commissions by going private sale.  Get an attorney to handle the paperwork for a flat fee.

Best advice in the thread.  When we sold our last home we did pretty much everything ourselves.  Can feel overwhelming to start, but the cash in hand at the end of the sale felt great.

[jutaw22mu]

Thanks for all the advice everyone!

[Jay Bee]

Please provide the address and we will tell you the value

[Uncle Rico]

Please provide the address and we will tell you the value

Keefe probably has it