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

DesiPower · Apr 9, 2015

Many sellers are dumb and their heads stuck up their caboose, they think that its a sellers market and want to get over market price. I have an acquaintance who has his house sitting in the market for more than a year but he does not want to sell, all the while paying close to $1500 monthly mortgage. Just move on.

IHateMyJob2004 · Apr 9, 2015

Reasonable Doubt said:
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

Come back in a month and repeat the offer.

IHateMyJob2004 · Apr 9, 2015

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

lawyer fees. Home inspection. Title search. Closing fees for the actual mortgage.

Belegost · Apr 9, 2015

Reasonable Doubt said:
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.

If they bought with a low-down loan option they likely owe more on the loan than you offered, and even with a larger down they would probably still owe out-of-pocket to cover the agent fees.

Not all that surprising they didn't consider the offer. If they're sitting on a house not worth as much as they owe it sucks for them, but it's not irrational for them to wait some time trying to get an offer that at least lets them break even (minus the down payment lost.)

Gooberlx2 · Apr 9, 2015

Denver metro area right now, everything for sale should be going within two weeks, often at or higher than asking. If you're under $400K and on the market for longer than that, you're asking too much.

Shit, my next door neighbors sold for $5K over asking their first day, and that's not an uncommon story. Fucking insane. I'd sell except there's no where around the city I could move to that would make any financial sense.

Sonikku · Apr 9, 2015

JulesMaximus said:
So... what do you want me to do about it?

Send in the union.

JackBurton · Apr 9, 2015

AznAnarchy99 said:
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.

Home prices in CA are crazy. I'm not in CA, but I bought my house new last year and was able to negotiate like $7K off the price and told them to throw in a new refrigerator. Wasn't a huge amount off, but I thought the house was pretty fairly price in the beginning. They were not really looking to negotiate, but in the end they came down a little.

My process was pretty quick. We decided one day to go look for a house, found the perfect house for us that day, and closed 3 weeks later.

Reasonable Doubt · Apr 9, 2015

Belegost said:
If they bought with a low-down loan option they likely owe more on the loan than you offered, and even with a larger down they would probably still owe out-of-pocket to cover the agent fees.

Not all that surprising they didn't consider the offer. If they're sitting on a house not worth as much as they owe it sucks for them, but it's not irrational for them to wait some time trying to get an offer that at least lets them break even (minus the down payment lost.)

So why didn't they counter with that amount?

Belegost · Apr 9, 2015

Gooberlx2 said:
Denver metro area right now, everything for sale should be going within two weeks, often at or higher than asking. If you're under $400K and on the market for longer than that, you're asking too much.

Shit, my next door neighbors sold for $5K over asking their first day, and that's not an uncommon story. Fucking insane. I'd sell except there's no where around the city I could move to that would make any financial sense.

Yea, it's really sucking trying to buy a first house in this market. I'm hoping for an interest rate increase to reduce demand. Or I'll just wait another year when I'll have enough saved to afford something in the mid to upper 400s.

Belegost · Apr 9, 2015

Reasonable Doubt said:
So why didn't they counter with that amount?

1) 199 may be their break even point (possible second/refi taken)
2) The offer was so low they don't think you're serious.

Ns1 · Apr 9, 2015

AznAnarchy99 said:
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.

Chinese investors with cash fucking everything up.

Gooberlx2 · Apr 9, 2015

Belegost said:
Yea, it's really sucking trying to buy a first house in this market. I'm hoping for an interest rate increase to reduce demand. Or I'll just wait another year when I'll have enough saved to afford something in the mid to upper 400s.

Yeah, I'd love to move downtown or at least much closer to it. But the appreciation there, even sacrificing considerable living space, has been far too much.

Dari · Apr 9, 2015

Where the hell can you buy a house for $180k?

NutBucket · Apr 9, 2015

Ns1 said:
Chinese investors with cash fucking everything up.

Similar stuff happens out in Woodland Hills and you can't blame Chinese investors

Ns1 · Apr 9, 2015

NutBucket said:
Similar stuff happens out in Woodland Hills and you can't blame Chinese investors

Sure you can - peeps are priced out of SGV/City of Industry/Hacienda/Rowland/Orange County area which depletes supply, which makes demand higher for the other areas which increases price there too.

Carson Dyle · Apr 9, 2015

I had a neighbor who put his house on the market _every_ spring for about $30-50k over the market value. He finally sold it after nine years when the market got hot one summer. People were outbidding each other for homes priced at the lower end and houses were selling in a matter of hours.

mrjminer · Apr 9, 2015

Carson Dyle said:
I had a neighbor who put his house on the market _every_ spring for about $30-50k over the market value. He finally sold it after nine years when the market got hot one summer. People were outbidding each other for homes priced at the lower end and houses were selling in a matter of hours.

Seems like a good idea. Would just suck to keep the house in a "presentable" manner every year.

NutBucket · Apr 9, 2015

Ns1 said:
Sure you can - peeps are priced out of SGV/City of Industry/Hacienda/Rowland/Orange County area which depletes supply, which makes demand higher for the other areas which increases price there too.

I suppose. I was a bit surprised at the size of the Asian population out this way. Obviously it's the schools but even so....

DaTT · Apr 9, 2015

Dari said:
Where the hell can you buy a house for $180k?

This. 180k wouldn't even get a 1 bedroom condo around my area.

Ns1 · Apr 9, 2015

NutBucket said:
I suppose. I was a bit surprised at the size of the Asian population out this way. Obviously it's the schools but even so....

esp. the koreans. They got quite a few enclaves up there, and I know a lot of rich Chinese like the Chatsworth area.

MongGrel · Apr 9, 2015

Dari said:
Where the hell can you buy a house for $180k?

Florida.

Come on down

:sneaky:

Carson Dyle · Apr 9, 2015

Dari said:
Where the hell can you buy a house for $180k?

Small town, USA. In hundreds, maybe thousands of towns, $180k will get you a LOT of house. Just get far enough away from the nearest city to where there are few jobs and the location isn't viable for commuting, and prices can be lower by half or more.

Hell, in the dying Pennsylvania rust-belt town where I grew up, you can buy houses for $50-75k. Many are older and need work and typically they're turned into shitbox rentals, but they're there in droves. Towns that are really bad off have vacant or abandoned homes by the hundreds and can do nothing but systematically tear them down as they get grants from the state.

OCGuy · Apr 9, 2015

That offer is fairly far off the asking price. By not countering, they are obviously confident that they can get a better offer.

dullard · Apr 9, 2015

Dari said:
Where the hell can you buy a house for $180k?

Since the median home price in the US is $202,600, you can buy a bit under 50% of the homes for $180,000. The median was $170k just two years ago and $155k just over 3 years ago.

Here is a city by city list, you'll notice that only a few cities have median prices over $200k.

http://www.realtor.org/sites/defaul...e-prices-q4-2014-single-family-2015-02-11.pdf

eelw · Apr 9, 2015

The house across the street here just north of Toronto listed for $769,000. Sold in 6 days for $999,000

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

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