A question for the real estate agents.

[golfgal]

$540K is about 10% off the current asking price, not unusual at all. Keep in mind this is a BUSINESS decision. Try to remove emotion-which is difficult. A few things can happen, first, they flat out accept your offer, second, they refuse your offer with no counteroffer or third, they counteroffer. What have you got to lose in any of these situations? Make the offer and see what happens. If they flat out refuse to negotiate, walk away. Give them a week or two to really consider and if you REALLY want the house that much, come back in a couple weeks with a bit higher offer and see if they will work with you.

If the comps in the area are at the $540K mark it won't matter what they want to sell the house for, they won't get it from anyone because no one is going to cough up $50K over the appraised price in this market. Look at it from their viewpoint, they probably listed the house for the most they think they can get from it and hope someone comes in around 10% of that price.

 

[golfgal]

Another thought-we put in an offer on a house that we thought was seriously overpriced. They flat out rejected the offer. A month later it was still on the market and we really liked the house so we put in an offer that stated we would pay $XXX,XXX or the appraised price, which ever was lower. The appraised price came in at just above our original offer, surprise, surprise, they took that, we bought the house.

 

[The Mystery Machine]

The whole house is only 11 years old, so most should be fine. At least I would hope.

11yrs is so-so for furnance/AC, roof and flooring unless of course it is hardwood.

So, that means you are going to be the one to replace the roof and furnance/AC to the tune of 20,000+?

That means YOU are going to be the one to eat that maintenance on the house.

Now if you plan on staying there for a long time then no problem. But my point is that it is a "hidden cost" in the purchase price since you are going to be the one to invest that into the house.

Giving top dollar with 11yo roof and AC/furnace is not good business sense. Now if the stuff was brand new, OK, you got me.

 

[Big Cuddly Bear]

11yrs is so-so for furnance/AC, roof and flooring unless of course it is hardwood.

So, that means you are going to be the one to replace the roof and furnance/AC to the tune of 20,000+?

That means YOU are going to be the one to eat that maintenance on the house.

Now if you plan on staying there for a long time then no problem. But my point is that it is a "hidden cost" in the purchase price since you are going to be the one to invest that into the house.

Giving top dollar with 11yo roof and AC/furnace is not good business sense. Now if the stuff was brand new, OK, you got me.

Floors are hardwood.... just refinished last year.

Roof is 11 years, but don't most last 20 years? My roof is 10 years old, and I just had some minor work done on it, and the guy said the roof should last about 10 more years.

The AC is only 7 years old. There was a defective unit from the original owner and it was replaced after 4 years.

I'm not arguing.... just trying to make it clear what I have ahead of me.

And, definitely, if we move, we're there for at least 10 years, and probably longer... but probably not longer than 15 years.

 

[rie'smom]

Is there a possibility of the homeowner providing a home warranty? That would take care of some worries for the first year.

 

[Big Cuddly Bear]

Is there a possibility of the homeowner providing a home warranty? That would take care of some worries for the first year.

I imagine so... I had one when I bought my second - now sold - home.... and it saved me thousand's of dollars.... The whole heating system just stopped working about 3 months after we bought the place. Whew!

 

[golfgal]

I imagine so... I had one when I bought my second - now sold - home.... and it saved me thousand's of dollars.... The whole heating system just stopped working about 3 months after we bought the place. Whew!

If the homeowner doesn't provide you one, you can always get one on your own or check with your gas or electric company and see if they offer a service plan. When we bought this house our realtor actually gave us the home warranty.

 

[The Mystery Machine]

Floors are hardwood.... just refinished last year.

Roof is 11 years, but don't most last 20 years? My roof is 10 years old, and I just had some minor work done on it, and the guy said the roof should last about 10 more years.

The AC is only 7 years old. There was a defective unit from the original owner and it was replaced after 4 years.

I'm not arguing.... just trying to make it clear what I have ahead of me.

And, definitely, if we move, we're there for at least 10 years, and probably longer... but probably not longer than 15 years.

So that means you will be putting on a roof and a furnance for sure. Remember that as you are putting in your offer. Not that you are ripping off the owner but the offer price is reflective that the items are 11yrs old and not brand new.

Good Luck!

 

[Big Cuddly Bear]

Long story short.... we went back and saw last night, a home that we saw in August, just to be sure we had the best choice. It was off the market, but my agent asked then if the had interest in still selling. They said yes.

It was $611K when it went on the market last summer. They dropped to $605K, then $599K. Just like with the other home, the real estate agent said to offer $540K based on comps. So we did.

Today she called the guy and said we would make a bid of $540K if he was interested. He told her that $590K was the lowest he would go, and not a penny less. I don't even think it can appraise at 590.... but here is the thing... he didn't want any counter offers. And the house was nearly empty, as his family had already moved into a new home... So now he has a 2nd home he has no use for, unless he rents it, I guess.

Anyway, since he didn't want to negotiate, we are now making the same $540K offer on the house I mentioned in my OP. I don't expect them to go that low, but I bet they negotiate.... and we would be happy to try and work something out.

 

[sweet angel]

Good luck!

Not sure if you mentioned it, but where are you from?

 

[Big Cuddly Bear]

Good luck!

Not sure if you mentioned it, but where are you from?

25 miles west of Philly.... give or take.

 

[manning]

OP, just reading your post as a seller I would love to negotiate with you. Why? Because you are too emotionally involved in this house and because of that I would get the better deal. Never show your eagerness to buy. Always the I like it but.....

I used to negotiate before I retired. One of the first rules we learned was put your emotions in check and be prepared to walk away from the deal. Next determine what you are willing to pay and bid below it. In negotiations you will be bidding up and the buyer will be counter offering lower. Somewhere in the middle you will meet. You want room to manuever. Remember if you start at or above what you want to pay odds are you will not buy at that price.


The fair price will be what the house sells for, and only the buyer and seller will determine that.

 

[Big Cuddly Bear]

OP, just reading your post as a seller I would love to negotiate with you. Why? Because you are too emotionally involved in this house and because of that I would get the better deal. Never show your eagerness to buy. Always the I like it but.....

I used to negotiate before I retired. One of the first rules we learned was put your emotions in check and be prepared to walk away from the deal. Next determine what you are willing to pay and bid below it. In negotiations you will be bidding up and the buyer will be counter offering lower. Somewhere in the middle you will meet. You want room to manuever. Remember if you start at or above what you want to pay odds are you will not buy at that price.


The fair price will be what the house sells for, and only the buyer and seller will determine that.

I AM emotionally invested, no doubt. But the seller doesn't know that. My agent is doing all of the work. And we already have a number that we won't cross. I was never going to offer what I would be willing to pay with my opening offer; I just didn't want to offend the seller.

A few posts up, you can see the offer / results of a house I looked at last night.

 

[manning]

I AM emotionally invested, no doubt. But the seller doesn't know that. My agent is doing all of the work. And we already have a number that we won't cross. I was never going to offer what I would be willing to pay with my opening offer; I just didn't want to offend the seller.

A few posts up, you can see the offer / results of a house I looked at last night.

So much for offering my experiences. Sorry.

 

[Big Cuddly Bear]

Well, we didn't get the house. It sat for months with no offers. Then the same day we put in our offer, we were told that another offer went in the same day ( yesterday ).

I really thought I would be feeling much worse about not getting this home, but I really don't feel all that bad. I think it was because I didn't want to use so much of my investments on the down payment. ( Though my current home is paid for, so I would have immediately repaid myself for investments when my home sold ).

I do find it "funny" that it sat for months without any offers, and then they get two on the same day in the middle of January. Is it possible that the other agent could be lying to my agent? They asked if we wanted to up our bid over the other bidder.

Anyway, they didn't want to budge much. My agent said that the other agent said that the homeowner wanted $595K, and would not sell for less....

Anyway, I really thought that this was the house for us, but we had a top number we would go to, and we stuck to our guns.

 

[Coach K]

There are 2 chances that there were two offers in the the middle of January-slim and none; and slim just left. If they come back to you and ask if you want to match that first offer, ask to see that offer in writing with the purchasors address on the offer. If they hem and haw; then one of the agents is lying. I have talked to a lot of agents these past few months-I have a sale of agreement for my house without using an agent. AGENTS WILL LIE TO THEIR MOTHER TO MAKE A SALE!!! At least that is what my real estate lawyer told me. I have also caught some of them lying to me and called them on it. If you are selling, agents say that they can the best dollar for your house; if you are buying, agents say that they can get a lower price for the house you want. It is a profession with a bad reputation.

 

[marlynnp]

Well, we didn't get the house. It sat for months with no offers. Then the same day we put in our offer, we were told that another offer went in the same day ( yesterday ).

I really thought I would be feeling much worse about not getting this home, but I really don't feel all that bad. I think it was because I didn't want to use so much of my investments on the down payment. ( Though my current home is paid for, so I would have immediately repaid myself for investments when my home sold ).

I do find it "funny" that it sat for months without any offers, and then they get two on the same day in the middle of January. Is it possible that the other agent could be lying to my agent? They asked if we wanted to up our bid over the other bidder.

Anyway, they didn't want to budge much. My agent said that the other agent said that the homeowner wanted $595K, and would sell for less....

Anyway, I really thought that this was the house for us, but we had a top number we would go to, and we stuck to our guns.

It happens. Do you have the MLS#? If you send it to me I'll check TREND tomorrow and let you know if it's updated to 'under contract'.

 

[Big Cuddly Bear]

It happens. Do you have the MLS#? If you send it to me I'll check TREND tomorrow and let you know if it's updated to 'under contract'.

I will PM you.

 

[The Mystery Machine]

Sorry to hear your news. Hopefully you will find something else.

 

[golfgal]

There are 2 chances that there were two offers in the the middle of January-slim and none; and slim just left. If they come back to you and ask if you want to match that first offer, ask to see that offer in writing with the purchasors address on the offer. If they hem and haw; then one of the agents is lying. I have talked to a lot of agents these past few months-I have a sale of agreement for my house without using an agent. AGENTS WILL LIE TO THEIR MOTHER TO MAKE A SALE!!! At least that is what my real estate lawyer told me. I have also caught some of them lying to me and called them on it. If you are selling, agents say that they can the best dollar for your house; if you are buying, agents say that they can get a lower price for the house you want. It is a profession with a bad reputation.

It is very possible that the selling agent had someone in the wings that wanted the house but wanted to wait to see what else would happen with the house-"call me if you are getting any offers" type deal.