What its like to Buy & Sell a Home at Once

I think there is one word for this magical real estate, juggling act, it’s called “unpredictability”.  It takes a leap of faith, a bit of detachment to the outcome and numerous hours of hard work from all the players to make this happen. Sometimes clients want to throw in the towel and just stay where they are, but then we talk about “why” they are making this move and “what” it will mean to their future.

Let’s take our latest victims… I mean, clients Teri and Todd who sold one house and bought another one at the same time.  They have a special and dear place in our hearts story that starts with the beloved & beautiful 96 year old Nanna.  Nanna is my husband Ray’s grandmother that cared for him since he was a feisty 13 year old. He lived with Nanna and Pa in a single level, 3 bedroom home that Pa built by hand, board by meticulously chosen board. Pa owned and operated the local sawmill for many years and many of the grandkids also had after school jobs there.  Nanna and Pa also had big hearts for family and at least 3 grandchildren lived with them at some point in this home and most family gatherings and holidays were celebrated here.

Arlington, WA -Built 1956

When Nanna passed away there was much discussion about what to do with the homestead; could we sell it to a stranger they asked?  No, Teri, one of the grandchildren stepped up with her husband Todd and decided to buy it and make it their own, but there were a few things that had to happen first. Selling an estate involves providing the Last Will and Testament & Death Certificate to the Title company, agreement and signing from all 3 heirs (in 3 different locations) and agreement from the Buyers; which isn’t a small feat when you are sorting out a 66 year old estate.

Todd had to sell his former rental house and it needed the current tenant to move, remove left over belongings, do landscaping and an almost complete cosmetic remodel job.  Next the buyers had to get pre-approved for a new loan with a lender. They shopped and compared a few lenders before deciding; this involves a lot of paperwork, some math and going with your gut. We then wrote the contract for Nanna’s house under a Contingent Contract that required Todd’s rental to sell first and then they would close on the new home 3 days later. An inspection, more negotiations and more signatures in 3 different locations.

Much discussion and planning went into the remodel, but like any remodel of a resale home, there were snags with contractors, weather and supplies, but they worked until they were exhausted and we presented it on the market to sell in November.  Granite Falls Remodel, Sold Jan 2023

The Contingent contract gave them a few months to find a buyer (longer than usual with this market), but it only took 1 month before we found the right buyer at the right price.  One of the biggest sins in Real Estate is to over price a home.  If you are the highest bidder for a home, you’ll end up keeping it!  Receiving an offer is just the beginning of new challenges; so we spent another 10 days of inspection negotiations, a close call with cancelling the contract, a few late night phone calls and texts until everyone agreed on terms and conditions.

The next hurdle was the appraisal. Real Estate Brokers use the same comparable properties to find “Market Value” as appraisers.  While appraisers are more detailed with the value of amenities, price per square feet, age range, style and condition, we can typically guess where that final price will lie.  In any market, the most valuable comparable properties are the ones Pending or Sold. This is the price where consumers are willing to buy.  An Active price might be high or low depending on the strategy of the Broker, condition and amenities of that home. On Todd’s rental the Value came in at Purchase Price but this FHA appraiser did call out a few items to be addressed.  Even though they did their best to address any predicable concerns, we know that Conventional lenders are less stringent and FHA & VA appraisers are picker.

After that was settled, it was all about making sure the Rental home Buyer got closing docs to escrow, signing and waiting for the county recording numbers.  Immediately we move to Teri & Todd purchase to get loan docs, after a previous approved appraisal, signing all three heirs and signing their lending and closing docs.  I can confidently confirm, I don’t think they took a deep breath for 3 months. 

Today is closing day on the home previously referred to as “Nanna’s House”, it brings tears to my eyes, not only because I am so happy this complicated transaction is done, but because now Teri & Todd can start a new life here on several acres with a little more peace and quiet, and they are closer to family.  We look forward to seeing the progress and transformation of this lovingly built estate and hope you’ll make those treats Nanna used to make; I think she’ll be watching. Congratulations!

By Beth Phillips-York