The Ups, Downs, and All-Arounds of Escrow

Oh wow. It's been quite a journey and we're not scheduled to close until March 27th.
What makes me cringe even more is knowing that this is just the FIRST half of our journey. After we move into an apartment, we will be going into the second phase as buyers.
I want to crawl into bed and pretend I don't have to do anything. Instead, I'm writing this entry. So sort of the same thing.
A week or so after we accepted the offer from our buyer, they must have just looked at the paper work we submitted. Why it took so long for them to get the paperwork, I have no idea. Anyway. They freaked out when they saw we had been burglarized. In fact, they cancelled the inspection that was scheduled for that day so they could review the police report. And request from us a letter stating what had happened.
Oh hell. Our realtor said that we should be OK but needed to hear back from the buyer's realtor. We were so nervous. What if they backed out? Luckily, they read the report and our statement and felt better - no violence, no damage. Just some stolen items. Sucks but they could deal with that.
Sale still on. Phew. We rescheduled the inspection and all is good. The home is almost five years old and is in great shape. They're happy, we're happy.
Then came the appraisal. No problem, we thought.
Son of a biscuit. The appraiser valued our home 15K less than the price we listed it. That means our home is about 65K less than what we paid. This threw all sorts of sh*t into the fan yesterday. The sellers freaked out, causing us to freak out,  then they changed their offer to 20K less than what we all agreed upon AND were no longer offering to let us stay 30 days rent free.
Confused? I was. I thought they were pissed at us because they thought we knew our home value was less than what we listed it. Hell, I thought we were listing it at a stupid low price and come to find out, it's worse.
I couldn't sleep last night. I thought, what the hell did we sign papers for if everything was going to change with the appraisal? In fact, our contract STATED that it was regardless of what the appraisal was. I'm still confused but I think I mostly get it:
So, even though they are now getting the house 20K less than what they originally bidded, the buyers are paying 5K more out of pocket because their loan will only cover what the house is appraised for. That's why they took away the one month rent free because they were fronting 5K more out of their pocket. Even though they are buying the home for 20K less than what they originally offered. My realtor said that they must really want our home because they are essentially paying 65K above the value of the home.
Of course, how I see it, is that we're now taking a 10K loss. But, since we listed it at a 50K loss, we still feel very fortunate. And yes, blessed. Our realtor said that our buyers are offering 40% down which is very competitive and helps us when we turn around and become buyers ourselves.
If you follow all this, good for you. You are clearly a smart cookie. I have a very nice realtor who explained this to me and then answered my many questions because I didn't quite understand why sh*t changed after the appraisal when we all signed the contract. As well as why they were taking away the 30 days rent free. I saw it as they were getting the home 20K cheaper. They saw it as an additional 5K they had to immediately shell out. How sad that both parties feel S-O-L.
If you can't tell already, I find the business of selling and buying homes very confusing. And extremely frustrating. My FaceBook status update last night was, "Escrow is fickle hag." I knew stuff could go down, like loans not being approved but there is a lot that can go wrong and/or change during escrow. I also appreciate my realtor more because I know she and the buyer's realtor are working hard on making this all work.
My realtor paid me a compliment, saying that I should think about becoming a realtor because I have the personality for it. Funny enough, The Man said the same thing the day I was showing our home all day. I take it as a compliment because I think you have to be very patient, smart, savvy, persuasive and persistent to be a successful realtor. But it is definitely not my calling. I don't have the patience nor do I want to work the hours that they do. They have to show homes after work hours and on the weekends in addition to all the paperwork and negotiation they do with realtors, lenders and brokers. I know I'm a problem solver but there are way too many unknown factors and too many things that could go awry for my comfort. Everyone thinks it's all good and then BAM. Something comes out of left field to muck it all up. I can only imagine how it must be with older homes. No, thank you. What a headache. I do have a new found respect for the good realtors, though. Like mine. And, even though I have limited interaction, I think the buyers' realtor is good, too.
Now we are figuring out how we can move in the next four weeks. The buyers agreed to give us two weeks after escrow closes. We have to find a storage unit, a two bedroom apartment that allows dogs, moving company and time to pack up all our crap sooner rather than later. Somewhere between working demanding full-time jobs and a three year old who rightfully demands attention when we're all home.
That last part is the reason why I want to crawl into bed. Or procrastinate by updating my blog.

Thanking God

As you know, we are selling our home. I felt guilty for asking so much in my prayers: for us to sell our home at a good price, for my parents to do the same and for us to then buy a good home at a good price. But many folks told me that I must be specific in my prayers. So I prayed for it all in addition to praying what I always pray for-good health, happiness and prosperity for all my loved ones. I felt like I was asking for so much.
Well, exactly one week ago and six days after our home went on the market, my realtor called me saying we received a very good offer. (Two days after we showed our home for one day by appointment only). Remember how we listed at a 50K loss? The buyer offered to pay 60K above the asking price. This means we will break even because the additional profit will cover all the taxes, fees and other costs. The buyer also offered to let us stay one month rent free after escrow.
We feel so blessed. We were disheartened when our realtor first suggested we list lower than what we paid. We understood, however, it was what we needed to do to be competitive. Bigger homes in our neighborhood recently sold for close to that price. We trusted in God that it would all work out and we hoped to recoup some of the loss when folks started bidding. We never expected, though, to sell over the price we paid!
We still have so much more to go through with this sale (we're officially in escrow!) and everything else before finally getting into a new-to-us-but-not-new home. I'm still in awe, though. And so thankful.
Oh, and buyer IS one of the families we fell in love with! They are the initial couple who reminded us of ourselves when we were younger and fresher:) We know it shouldn't matter but we are very pleased it's them. The Man and I already agreed we were going to make this home as nice as possible before we leave and deep clean it so they don't have to worry about it.


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