So I offered $180,000 on the house they were asking $199,000 for and...

[Reasonable Doubt]

So I offered $180,000 on the house they were asking $199,000 for and they didn't budge. They stayed firm at $199,000.

Total offer was $180,000 and also requested that they pay closing cost up to $5000.

The real estate lady I'm working with said that it was a more than fair offer because the house was overpriced.


Original thread: http://forums.anandtech.com/showthread.php?t=2427127

 

[JulesMaximus]

So... what do you want me to do about it?

 

[TwiceOver]

When we were looking we offered $10k less than asking on a house that was in a pretty nice neighborhood and the couple didn't take it because they already had a full price offer that fell through and were convinced they'd get another one.

It sat for almost 2 years before selling. Some people have a price in mind, and some people have a price the NEED or they can't sell.

Is what it is. Currently in a sellers market here and thinking about selling and upgrading.

 

[Genx87]

Heh this is turning into a sellers market out there and you are requesting closing costs?
Anyways they are holding firm. Go find another home at 180.

 

[Phokus]

Heh this is turning into a sellers market out there and you are requesting closing costs?
Anyways they are holding firm. Go find another home at 180.

Not all markets in the US are the same.

 

[kaerflog]

You really could have just updated the other thread.

 

[Uppsala9496]

With you asking $5K in closing costs, from the sellers point of view you are $25,000 below what they listed the place at.
You should only offer what you feel it is worth and they are only going to sell for what they feel it is worth.

 

[dullard]

So I offered $180,000 on the house they were asking $199,000 for and they didn't budge. They stayed firm at $199,000.

Total offer was $180,000 and also requested that they pay closing cost up to $5000.

In reality, you offered $175,000 not $180,000. I am not surprized that they didn't budge when you were that much below what they were asking for. The $180,000 offer may have been more realistic.

Note that the "cash back" type of deal is really frowned on by sellers (regardless of whether it is for the closing costs or for anything else). In many places, it also means that you are now paying real estate taxes on a $180,000 home instead of a $175,000 home. Theoretically it could also trigger taxes for the sellers in more expensive parts of the country, but not in this case since they don't have gains. It could cause the sale to fall through (the bank and the appraiser have to both agree that it is worth $180,000 and not $175,000). And in many cases, you are essentially breaking the law about full disclosure to the bank (they think you have a $180,000 collateral and not a $175,000 collateral).

That said, it is common to do so. I just want to point out that there are potential negatives of this cash back.

 

[Vdubchaos]

OP, put yourself in their shoes. How would YOU feel?

:|

 

[s0me0nesmind1]

When we were looking we offered $10k less than asking on a house that was in a pretty nice neighborhood and the couple didn't take it because they already had a full price offer that fell through and were convinced they'd get another one.

It sat for almost 2 years before selling. Some people have a price in mind, and some people have a price the NEED or they can't sell.

Is what it is. Currently in a sellers market here and thinking about selling and upgrading.

This. Except the sellers market (depends where you are, job conditions, buyers, etc..)

Even though people who own said home are often too stupid to realize how much it costs them with every month that goes by:
1) Another payment is another interest payment to the bank with very little going to equity usually
2) More deterioration / depreciation costs
3) More time/money. Time is valueable, and if they want to keep showing it off, etc.. by all means.

In the end, if you take 2 years to sell then you should have just sold to the person who offered a slightly lower bid in the first 1-3 months.

 

[brianmanahan]

OP, put yourself in their shoes. How would YOU feel?

:|

"So some jerk tried to screw me out of $19,000 on my house sale and..."

 

[vi edit]

Personally as a seller, I would have rejected too, but I at least would have countered at something like 197,500 just to see if you were willing to play ball.

I sold a house a few years back that I had listed at 272,000k. It was high for the house and I knew it, but it was in a desirable area without a ton of inventory. I really wanted 260'ish to be happy. First offer came in at 240k. I could have laughed and said "No, go away". But we countered back $269,000. They countered again and said $250k. I told my realtor get it to $260k and it's good. We countered a second time at $262k. They put a third offer in at $260k along with a $3k earnest check and we accepted.

Some times people are just feeling you out to see how desperate you are. Depending on the realtor relationships they'll backchannel info between themselves.

 

[waffleironhead]

It may or may not have been a fair offer. Though they may already be at the lowest they can go without having to bring money to the closing table.

 

[ultimatebob]

So I offered $180,000 on the house they were asking $199,000 for and they didn't budge. They stayed firm at $199,000.

Total offer was $180,000 and also requested that they pay closing cost up to $5000.

The real estate lady I'm working with said that it was a more than fair offer because the house was overpriced.


Original thread: http://forums.anandtech.com/showthread.php?t=2427127

If they weren't willing to budge at all, it's time to start looking at another property. These people seem to have a delusion in their heads as to how much their property is worth. Only a few months of time on the market can fix that.

 

[slag]

What closing costs does a buyer have? Seller pays both agents....What's left? title fees? inspection costs?

 

[Ns1]

Personally as a seller, I would have rejected too, but I at least would have countered at something like 197,500 just to see if you were willing to play ball.

I sold a house a few years back that I had listed at 272,000k. It was high for the house and I knew it, but it was in a desirable area without a ton of inventory. I really wanted 260'ish to be happy. First offer came in at 240k. I could have laughed and said "No, go away". But we countered back $269,000. They countered again and said $250k. I told my realtor get it to $260k and it's good. We countered a second time at $262k. They put a third offer in at $260k along with a $3k earnest check and we accepted.

Some times people are just feeling you out to see how desperate you are. Depending on the realtor relationships they'll backchannel info between themselves.

:thumbsup:

 

[dullard]

What closing costs does a buyer have? Seller pays both agents....What's left? title fees? inspection costs?

Title fees can be $500 easilly (more depending on the value of the house). This includes a title search AND insurance against them messing up on the title search.

Bank fees (vary dramatically with mortgage type and value). This can include credit report fees, origination fees, attorney fees, paperwork fees, recording fees, you blinked during the transaction fees, hand cramp after signing 300 pages fees, and whatever else the bank imagined that day.

Realtor fees (no the seller doesn't pay both agents fully, the buyer's agent usually tacks on $500ish in bogus fees such as "retaining paperwork in a safe warehouse for 3 years" fees).

Appraiser fees, inspector fees, survey fees, termite damage/inspector fees. The list keeps going and going.

 

[IndyColtsFan]

So I offered $180,000 on the house they were asking $199,000 for and they didn't budge. They stayed firm at $199,000.

Total offer was $180,000 and also requested that they pay closing cost up to $5000.

The real estate lady I'm working with said that it was a more than fair offer because the house was overpriced.


Original thread: http://forums.anandtech.com/showthread.php?t=2427127

When I bought my current home in 2008, I initially offered $19K less than asking. They responded that they were "insulted" by my offer and stood firm at their asking price. Unfortunately for them, I knew a few things:

1. The housing market was crashing.
2. They already bought a much larger house and likely had 2 mortgages.
3. They had rented the house out for awhile and after the renter had gone, couldn't sell the house in over a year (when they first put the house up, they were asking about $20K more than the asking price they were asking when I decided to buy it).

So, I responded with: "My initial offer was made in good faith and is subject to some negotiation, but *I* won't be insulted by someone repeating the original asking price to me. When you're done playing games and decide it is in your best interest to negotiate, you know where to find me." I cut off all contact with their realtor and instructed mine to do the same. Within 5 days, they called back willing to negotiate and I upped my offer by $6K and told them it was a final offer and not to try testing me again. They accepted.

OP, put yourself in their shoes. How would YOU feel?

:|

Are you serious? Have you ever sold a home before? It is very simple -- if the first offer is a lowball, you come back with a counter offer, not countering with the exact same asking price again. See above for what happens when people play those games with me. Selling a home isn't a place to be an emo little whiner, it is a business transaction and should be treated as such.

 

[slag]

When we sell or attempt to sell our house, we are going to price it at 199k as well. We'll realistically come down 5-7k, but thats about it.

 

[slag]

Title fees can be $500 easilly (more depending on the value of the house). This includes a title search AND insurance against them messing up on the title search.

Bank fees (vary dramatically with mortgage type and value). This can include credit report fees, origination fees, attorney fees, paperwork fees, recording fees, you blinked during the transaction fees, and whatever else the bank imagined that day.

Realtor fees (no the seller doesn't pay both agents fully, the buyer's agent usually tacks on $500ish in bogus fees such as "retaining paperwork for 3 years" fees).

Appraiser fees, inspector fees, termite damage/inspector fees. The list keeps going and going.

Here, the seller pays all of both fees. I won't pay for inspector and termite fees, those are on the buyer and any additional fees as well. If you can't afford it, you shouldn't be buying a home.

 

[Phokus]

I just remembered, when me and the wife were house hunting back in 2010, there was this house that was listed at like 650k. She called the realtor and offered 500k. The realtor laughed in her face. I think i checked back a few years later and found out the house sold for like 400k or a bit more

So glad the realtor didn't bite, we got a much better deal on a short sale.

 

[JulesMaximus]

Here, the seller pays all of both fees. I won't pay for inspector and termite fees, those are on the buyer and any additional fees as well. If you can't afford it, you shouldn't be buying a home.

My wife listed a home recently that was priced to sell (below market) with the condition that the house was sold "as is" and they would not pay for any repairs or issues that came up in the home inspection. She had 23 offers within the first 24 hours and the one they went with was $20k over asking price.

She didn't have any say in the way the house was priced. The person representing the seller needed it sold quickly and priced it accordingly. It needed a fair amount of work but it is in a desirable location.

 

[cabri]

How long has the house been on the market.

Length of time will have some impact on how much negotiation there is.

With the closing costs; you are asking more than a 10% drop in price.

 

[Reasonable Doubt]

How long has the house been on the market.

Length of time will have some impact on how much negotiation there is.

With the closing costs; you are asking more than a 10% drop in price.

The house been on the market since early February. They dropped the price from $205,900 to $199,000 a week ago.

The seller bought it in 2008 for $205,500.

 

[AznAnarchy99]

Good thing you're not in CA. A co-worker of mine wanted to buy a house at list price $515,000. It sold for $600,000.