Offer on a house, would you be offened...

[SoonerSarah]

Here is an interesting story. (I have never heard of this happening before).

Backstory: A co worker who lived one street over decided to retire and sell his house to move to a different state. So he put his house up for sale, here is what happened. (as told to me)

A bidding war started on his house. The bidders were a young nice couple and a well off couple who had a bit of an ego and knew they could outbid the other couple. Well I guess after several back and forth bids between the two couples the young couple final told the seller that they could not afford to increase their bid but they really liked the house.

Well I guess the ego of the well to do couple offended the seller and the seller decided to accept the younger couples offer, even though it was less.

We had something very similar happen to us when we bought our first house. We wouldn't go look at it for quite a while and our realtor was driving by so we stopped. It was an older home with a phone console built into the hallway, the one number on it was the number of the church that my DH worked for. We put an offer on the house and found out that it was owned by a former member who was in a nursing home. Her daughter had power of attorney.

We were told that someone else had put an offer in as well, and we later found out that their offer was higher than ours, and that they didn't ask for closing costs to be paid (we did). The daughter sold us the home. She even came by at one point later while we were making some repairs for the inspector. She was very sweet and wished us happy years in the house.

 

[Frye7127]

Thanks everyone! Loving the feedback I never imagined how stressful a cross country move could be and whats involved when looking for a house and a very limited time range. We basically have a month, to find a house, move, & close. Really don't see that happening. We are looking a only vacant/new home & have found several. We plan on flying out there next weekend, putting bids in on the house(s) we like and go from there. We are pre-qualified for the loan, but, even that is stressful because I know underwriting can look at it and say no (which she doesn't see happening in her 16 years of experience) but I hate to go through all of this and it fall through. Kinda wondering if renting would have been a better option - lol. Ugh...talk about major headache!

We are still trying to sell our home, but aren't having much luck, even with price reductions. We woudl be thrilled if someone would just come with an offer at all. Thank goodness my husband's company is allowing him to come back and home and work until our home sells - after one year of being apart.

Just so we don't feel pushed, we are going to rent an apartment there. I keep finding areas that I like every time I go out, so that way we can make sure we are happy with our location and schools - great school system throughout the area - just want to make sure it is a good fit for our boy.

 

[rbork]

Hi OP.
SOunds like your moving out of state. Do you really and I mean REALLY know the area your moving to? Just saying this because indeed renting may be a good option in the beginning until you get to know the area.
I say this because we bought a house once during the winter and thought the neighborhood was a good location. Well let's just say it was winter and no one was outside. 6 months later we knew we HAD to get out because we ended up on the "party street". eeekkkk. Not where I wanted to raise my kids. So we put the brand new house back on the market and luckily had a buyer 8 months later. Lesson learned don't rush buying a house, REALLY check out the area and neighbors and don't buy in the winter in our case.
I do recommend having an experienced buyers agent from the area you are moving to.

 

[bethy]

Hi OP.
SOunds like your moving out of state. Do you really and I mean REALLY know the area your moving to? Just saying this because indeed renting may be a good option in the beginning until you get to know the area.
I say this because we bought a house once during the winter and thought the neighborhood was a good location. Well let's just say it was winter and no one was outside. 6 months later we knew we HAD to get out because we ended up on the "party street". eeekkkk. Not where I wanted to raise my kids. So we put the brand new house back on the market and luckily had a buyer 8 months later. Lesson learned don't rush buying a house, REALLY check out the area and neighbors and don't buy in the winter in our case.
I do recommend having an experienced buyers agent from the area you are moving to.

I couldn't agree with this more! I spent nearly 2 years researching and stalking various neighborhoods to pinpoint our "forever home and neighborhood." That cultural fit can be so important!

 

[seashoreCM]

We had something very similar happen to us when we bought our first house.

We were told that someone else had put an offer in as well, and we later found out that their offer was higher than ours, and that they didn't ask for closing costs to be paid (we did). The daughter sold us the home.

The other potential buyer probably had conditions (subject-to clauses aka weasel clauses) such as delaying the closing until "my current" house sells. Or maybe an interview suggested that the chance of not qualifying for a mortgage loan was great.

I once made an offer of $210,000. with no bank mortgage, half to be paid in cash now, the rest spread out as monthly payments over two years. Someone else made an offer of $190,000. either all cash or with a regular mortgage I don't recall. The seller chose the other buyer.

 

[ConnieB]

If it is a fair offer than it is not rude at all. Look at what other houses have sold for in your area.
You could certainly use the same realtor if you are comfortable with him/her.

I would NOT use the same realtor. That realtor is being paid by the seller. While they may try to stay nuetral in any troubles that arise, if they're not able to do so, their loyalty is naturally going to go with the one paying them. If they piss you off and the sale falls through, they simply have to find another buyer. Piss off the seller and they can cancel your contract.

In the same way that you wouldn't use a single lawyer for both sides, you should not use the same realtor. It will NOT cost you any extra to have your own realtor as they share the same commission. Seller's realtor would LOVE to have you as their client as well, because then they get the entire commission, so be wary if they tell you there is no conflict of interest in their representing both sides.

And offering $10k less than the asking price is not rude at all. Your OWN realtor can better advise you after looking at comps in the area to see if the seller's realtor built in some wiggle room....and will likely advise you to make an offer that is LOWER than the comps in the area.....that's what the offers are all about, negotiating a price. Seller wants high, you want low, the best deal will be somewhere in the middle. YOUR realtor will work to get you the lowest price they can...whereas the seller's realtor will want the higher price even if they also represent you...remember their pay is based on the selling price.

 

[Frannie115]

Not rude at all. We had our house listed for $290K (which was below value)and someone offered $220K . My realtor did not even call them back. I would also get my own realtor. Good luck!

 

[shortbun]

People who would take that kind of thing personally would be rare. It's a business transaction. Offer what you want. They will counter or you can bid again if you want to.

 

[ccgirl]

I just wanted to add; know the comps and consider how much you want the house. If you submit a low ball offer (which yours was not) the seller may not counter at all. Not because they are insulted but because they don't think you are serious. The other thing that could happen is that another offer that is higher could come in and they will just ignore yours. I have written letters on behalf of my clients stating how much they wanted the house when there were multiple bids. I have been fortunate, that their offer was always accepted even if it wasn't the higher $$ amount. I would suggest getting your own realtor so they can do the work for you. Good luck.

 

[luvmylittleboy2003]

This is what I just found out about the house being sold: home sold for $149k back in 2005. They started to sale it in June 08' for $167k. Its been a rental since.

 

[ccgirl]

This is what I just found out about the house being sold: home sold for $149k back in 2005. They started to sale it in June 08' for $167k. Its been a rental since.

My big concern here is whether or not this would be a short sale. Depending on how much the mortgage was and how much realtor commissions are; it could very well be. Also, there won't be much wiggle room with the selling price. They have to be able to pay off their mortgage and realtor commission else it would be a short sale (which has to be approved by the bank). Good luck!

 

[Took]

Our first home was listed for $119,900. We offered $100,000. We ended up getting it for $105,000.

When we sold it, we listed it for $134,900. They offered $120,000. We sold it for $125,000.

Next home we offered on they listed it for $299,000. We offered around $270,000. They got offended and wouldn't counter. A year later they sold the home for $255,000.

Our current home we offered $14,000 less and ended up meeting in the middle at $300,000.

This happened twice when we were home-shopping a few years back. We made offers that seemed "low" and the individuals wouldn't consider them. Later on, BOTH of these homes sold for less than we had offered. Sometimes, for many reasons, homes just won't sell for what folks think they need or want from them.

Offer what you think you can afford. Let the owner deicde if that's something they can accept. Don't worry about "rude."

 

[Karlzmom]

Lets say a house is listed for 144,000 is it rude to offer 134,000? I think 134 seems rude, but, hubby doesn't...I would offer 139...need advice on this please. Also...would you use the Realtor that is listing the house or get your own?

A 134K offer is less than 10% off the list price. Are you offering less because the comps are closer to 134, or just "because you should offer less"? The offer is not an automatic insult, but I am not a big believer in offering less "just because." If the house is over-priced, sure. Also, be aware that if it is "THE HOUSE" you may lose it over a $10K difference. If you are ok walking away, fine. Something else to consider in your offer is what has the history of the listing been? Think of it this way, lots of houses have been listed for a while and repriced downward while the house waited to sell. The owners will look at the price as ALREADY being X $$s less then what "its worth" [at least in their minds]. If the listing has already had price reductions, that $10K will play out differently than a fresh listing.

Always get your own agent as a buyer. Costs you nothing, and the agent will solely have your interests at heart....You'll be better able to have the "is it worth it to offer X less than list" conversation than with an agent who is also duty bound to get the best $$ for the seller. Good Luck!

 

[Karlzmom]

I remember my real estate agent telling us that we don't want to go too low for risk of offending the seller. She said if he was offended, that was it, we lost the house. She was a new and her mom worked with me (we got suckered into using her - she was terrible). Maybe there's some truth to this? It seems like a tactic to get a higher commission to me. She didn't like that we kept wanting to look at fixers in the 60s-90s. We were approved to 120, so she kept pushing those houses on us.

To OP, I don't think that's an unreasonable offer at all. It's not like you're coming in $50k+ below asking. What is the house assessed for? I definitely wouldn't go much below assessment.

I'm not a realtor. We have bought and sold a large number of houses in the last 15 years. There is as much an art to the buy/sell as a science. If it is a house you love and have your heart set on [yes, not a purely business decsion - but happens a lot, why do you think realtors work so hard to stage houses & bake cookies to make the place feel "homey"?] then shutting down the negotiation due to an offense can be a bad thing.

People are funny about their homes. Most have a sense their home is better than most on the block. It the neighborhood comp is X, then they certainly should get Y for theirs!

Its not a matter of making friends, its a matter of being able to do business. I have frankly walked away from an offer because the writing was on the wall the escrow process would likely be a problem based on how the intial offer was approached. Made the mistake once of dealing with a person who looked like trouble and was....daily.....through the whole process and swore never again. Unrealistic expectations = no more of my time. Period. The couple I blew off clearly wanted the house, but there were other fish in the sea, so to speak. Got the price I wanted without the grief.

Long and short, not just a realtor tactic.

 

[LBIJim]

I don't understand the idea that an offer can be rude.

You put an offer in for what the house is worth to you. The seller can take it or leave it. I've both bought and sold houses. It's a business deal.

Exactly....no offer is rude. I don't understand why any sellers would be offended by a lowball offer either. Just decline it. I believe some sellers have an emotional attachment to their homes and think they're worth more than the current market can justfy. Obviously any seller wants to get as much as they can, but they need to be realistic.

Jim

 

[QVCshopper]

I think a problem with the current market is that the comps aren't really accurate. I just noticed a house now listed at $485K, last spring it went on the market at $639K. That's quite a reduction and I'm not sure why, beside it not selling for nearly a year.

It's not a $600K house in any market in my opinion. Not sure it's a $485K house either. Comps for the glory days are in the $600Ks, but obviously those days are long over. So, how do you accurately know what to offer besides going off of what you're willing to pay? Just musing...

 

[ConnieB]

Exactly....no offer is rude. I don't understand why any sellers would be offended by a lowball offer either. Just decline it. I believe some sellers have an emotional attachment to their homes and think they're worth more than the current market can justfy. Obviously any seller wants to get as much as they can, but they need to be realistic.

Jim

Ahhh, but see you hit it right on the head here....emotional attachment. If a seller is too attached to the house they're selling and the buyer makes an offer substantially below the asking price, some sellers see it as some insult about the worth of the house, lol. Another great reason why it's best to have realtors involved on both sides.

If you offer lower than the seller's bottom line some will simply ignore you, especially if they have other offers, but then you have the choice of upping your offer and resubmitting, or moving on to the next house that you might be able to get for your price. It's important that the buyer also not get to emotionally involved.....there are plenty of other houses available so try not to get your heart too set on one particular house. Keep it business until it's truly yours, then let your heart grow attached. Keeping emotion out of it also helps you to not overpay for it either.

 

[ConnieB]

I think a problem with the current market is that the comps aren't really accurate. I just noticed a house now listed at $485K, last spring it went on the market at $639K. That's quite a reduction and I'm not sure why, beside it not selling for nearly a year.

It's not a $600K house in any market in my opinion. Not sure it's a $485K house either. Comps for the glory days are in the $600Ks, but obviously those days are long over. So, how do you accurately know what to offer besides going off of what you're willing to pay? Just musing...

After a year to lower the price by almost 1/4 is pretty severe in any market!

Realtors are having a hard time in today's market come up with accurate comps....foreclosures often sell for a fraction of the other houses in the area...and of course foreclosures that don't sell at auction revert back to the bank and their comp is generally listed at whatever the defaulted mortgage value is....so that really skews the comp as well because sometimes the mortgage is much higher than any reasonable value because of the decline or the owner may have paid quite a bit towards the mortgage and have it lower than the worth but because of unemployment or whatever have lost the house and their equity. But GOOD realtors look beyond the comps in a market like this (just as they had to in the heyday when prices were rising so rapidly, you don't want to undersell either!). It's not as easy being a realtor today and many have left the field, so interviewing several realtors is a wise idea if you're the seller. One of the more important questions we always ask is for their last 10 listing.....what was the original asking price and what did it actually sell for (and how long did it take to sell). This helps see how realistic they are about their suggested selling price with what it actually sold for, and how aggressive they are in getting houses sold.

It is a fine line in pricing.....sellers want the most they can get of course, but buyers know that in most areas it's a Buyers Market, the field is flooded with foreclosures and even on non-foreclosed it's Buyers because the rest are competing with the low priced foreclosures.

 

[mtblujeans]

When we bought our house, there were renters who were "attached" to the place. They had done some damage to the house that had not been repaired. The owners lived out of state and the market was down at the time. We were making offers back and forth and we were getting real excited that we would get the place for what we considered to be a good deal and then an "anonymous" offer came in for the full asking price. We had 24 hours to prove we had financing for that full asking price or we would lose the house to "anonymous".

We got the house and had to pay the full asking price. We figured out it was the renters who were bidding against us when they drug their feet about moving out and did more damage to the house before leaving. I'm not sure I would buy another house that has renters living in it.

 

[SoonerSarah]

When we bought our house, there were renters who were "attached" to the place. They had done some damage to the house that had not been repaired. The owners lived out of state and the market was down at the time. We were making offers back and forth and we were getting real excited that we would get the place for what we considered to be a good deal and then an "anonymous" offer came in for the full asking price. We had 24 hours to prove we had financing for that full asking price or we would lose the house to "anonymous".

We got the house and had to pay the full asking price. We figured out it was the renters who were bidding against us when they drug their feet about moving out and did more damage to the house before leaving. I'm not sure I would buy another house that has renters living in it.

I don't know that I would have done that, my thinking would be that it was the sellers trying to drive up the house. I've heard of sellers doing damage to a house when they didnt get what they wanted, but I don't know anyone that bought a house with a renter living in it.


Did you not go through a pre-qualification/pre-approval for your mortgage? When we bought our second house (1 1/2 years ago), our realtor was surprised that we had gone through the pre-approval process and we told her that we didn't see the point in making offers unless we knew we could afford that amount.