Why the Buto offer is not higher
Whether or not Weiden will get his loan can be resolved quite easily. All that’s required is a two-hour meeting between Weiden and any good loan officer at any decent bank. Such a meeting will give everyone the answer they need as to whether Weiden’s mortgage application will be approved. Two hours! I am assuming that they certainly would be approved. People with those kinds of resources do not easily or lightly target a parcel without knowing upfront whether or not they are going to get a mortgage loan. People from that level of society almost always have a long standing relationship with a bank or two, eager and willing to make large loans. Many active real estate investors keep all their financial data on a hard drive in their bankers’ offices so that new loans can be quickly approved for new projects.
What about brokers’ fees? Isn’t there a large commission due if the Buto deal closes, as opposed to the Weiden deal? Once again, the difference of $9,000 is quickly swallowed up and erased by an unconsidered transaction cost.
In conclusion, I would urge everyone, especially our school board, to look at the big picture. This is always a good thing to do when selling or buying real estate. To quickly compare $751K to $742K in a vacuum, and say that the $751K is better, simply because it is higher (when in fact it is not) is a short sighted, myopic and naïve viewpoint at best.
[Daniel Cawley has been investing in Narrowsburg and surrounding towns since 2003, and has been a real estate lawyer since 1984. He resides in Commack, NY.]