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First time homebuyers get back in the saddle after a three-year hiatus, but this time it’s an instant success with a slight bump!
I had worked with first time buyers Alison and Scott when the market was a lot more competitive. They were both successful hard-working young professionals who had saved some money as a small down payment, but still had student debts to pay they just could not compete with all the cash offers and crazy multiple offers that were going on at the time. After many months, they decided to quit looking as it was so stressful and disheartening. They thought that perhaps down the road they would move back to Montana, where it was less expensive.
In the meantime, they moved to Capitol Hill from Columbia City and rented an apartment, however, as we all know, circumstances change, and they reached out to me again a few months ago in September.
They had saved more money for a down payment and wanted to try again, given the fact that they had good jobs and now Alison was expecting a baby. It was lovely to reconnect with them; they were still looking for a single-family home with three bedrooms and two baths in a competitive first-time buyer price range.
We met for coffee in Seward Park to strategize, and I suggested we look at a townhouse that had been on my radar as it had been on the market for quite a while and was a nice home that had slipped through the cracks. As luck would have it, it was just around the corner from the coffee shop.
They were not really thinking of a townhouse at all, but when they looked at this one, they were quite surprised at how great it was, and it totally fit their needs and then some. It had three good-sized bedrooms on the top floor and two full baths, an open kitchen/living room on the main with real hardwood floors, a pantry in the kitchen plus a half bath.
On the ground floor there was a separate room with another full bath which would be perfect for guests and or a great home office. Plus, there was a decent sized garage to store stuff. There was lots of light in the house due to all the windows and the vaulted ceilings in the bedrooms. The house also had a lovely view of Lake Washington, so it really was quite a find!
Often, when a house has been on the market for more than couple of weeks it loses momentum; this house had been listed in late June when the market starts to slow down a bit as we head into the summer months. There had also been very few open houses as the listing agent lived in Florida, so it had very little exposure.
We went and looked at a few more houses that first day, but they were really smitten by the townhome. The listing agent however, who luckily, I know, informed us that someone had put in a contingent offer, but it had not been accepted. So, we had to act quickly. I suggested that Scott and Alison sleep on it as it was a bit higher than they had wanted to go.
However, the good thing was that they could have an inspection contingency and have more time to think about their decision and back out and if things came up on the inspection we could negotiate, unlike last time when everyone was doing pre-inspections.
We talked the next morning and they decided to go for it, as it was just where they wanted to live, close to a small park for the new kiddo and not far from their beloved Columbia City and light rail.
This house was being sold through a relo-company, which makes things a bit more complicated as they have their own set of forms which override the standard purchase and sale forms, so you must read them diligently.
Our offer was accepted, and the inspection came out well but there was a small leak in the roof and the water heater was old, but very expensive to replace as it actually ran through the electric furnace. I had never seen such a configuration before. The inspector said he had seen this set up mostly in commercial buildings. Anyway, it meant if the water heater died then the furnace would not work, so no hot water or heat!
So, we really needed to find out what that would cost to replace. Luckily, I have a wonderfully experienced furnace/boiler contractor who I was able to get in quickly to assess. He said it could cost as much as $8,000 to replace. My roofer looked at the roof leak which was not major but would cost $1,800.
So, we asked for a $10,000 credit towards Alison and Scott’s closing costs and the relo company agreed. Whew!
However they also sent another addendum to sign which had an indemnity clause, and Alison, being a lawyer, refused to sign, as it basically meant that they would be liable for legal fees for any issues that came up in the future. For example, if Alison and Scott found that the seller or the relo company or the inspector had somehow misrepresented information or been fraudulent and they all wanted to take them to court, Alison and Scott would be liable for everyone’s legal fees! It seemed unlikely that this would happen but as Alison said, you never know!
It was a little tense for a while as relo companies are usually unwilling to make any contractual changes even if they make no sense! But at the last minute they agreed to remove that clause and we were able to close.
I am grateful to Alison for educating me and my managing broker on this issue as I, like most agents, rarely deal with relo companies and it is also good to know that you can take a stand against a big company and win!
Congratulations, you two!
