First Time Home Buyer Questions in CLT, NC? (Charlotte: sale, real estate)

[NYnowNC]

Please help me with figuring out the home buying process in Charlotte.

Well, I put in an offer that is $10K below list price and I am asking for the seller to pay closing costs. So far, seller came back and said no to the offer price and no to paying closing costs, stating that they expect to recieve their list price. However, based on the CMA of houses within the subdivision, this current seller's list price is high and my initial offer was low (because I was told that they were motivated). Now, I have increased my offer by $3K, but I am still asking for the closing costs to be paid by the seller.

Grant it, the house has only been on the market for 1 week, I thought they would have been more willing to negotiate considering they are listed as motivated sellers.

Could someone clarify what is meant by negotiating and being motivated, when concerning real estate? -

I will appreciate any input on this process. Thanks in advance.

[CharlotteAgent]

While motivated a week is not a long time. The question you need to answer is what is it worth to you? Come up with a figure and stick with it. Right now its a house. Yo ucan find houses anywhere. Its when you move in a nd get settled its a home. Until then keep your feelings out of it and make sure the numbers work.

Let me know if I can help some....

[AOYAS]

Originally Posted by NYnowNC

Please help me with figuring out the home buying process in Charlotte.

Well, I put in an offer that is $10K below list price and I am asking for the seller to pay closing costs. So far, seller came back and said no to the offer price and no to paying closing costs, stating that they expect to recieve their list price. However, based on the CMA of houses within the subdivision, this current seller's list price is high and my initial offer was low (because I was told that they were motivated). Now, I have increased my offer by $3K, but I am still asking for the closing costs to be paid by the seller.

Grant it, the house has only been on the market for 1 week, I thought they would have been more willing to negotiate considering they are listed as motivated sellers.

Could someone clarify what is meant by negotiating and being motivated, when concerning real estate? -

I will appreciate any input on this process. Thanks in advance.

I've found that just because people add "motivated seller" (or something similar) to their listing, it doesn't mean that they're desperate to sell, and will take any offer (even lowball) that comes to them. It just means that they're anxious to find a seller, and possibly more willing to negotiate a price than "average" sellers.

I'm not sure what price range you're looking in, but to many sellers, a $10k reduction off their list price PLUS being asked to pay ALL closing costs, might be a bit much in that market. Just because they're motivated, does not necessarily mean they have to sell the house absolutely immediately. They may be able to hold out a month or two (or even more) to see what kind of offers they can get. They may be thinking, "Well, we've already had this offer within a week, so maybe if we wait a little longer, we'll get a higher offer."

Your offer/requests may be readily honored in a MAJOR buyer's market, but from what I understand, Charlotte is not completely a buyer's market right now...it's pretty hot, compared to many other markets across the US that are buyer's markets right now. I live in Phoenix, which is very much a buyer's market right now, and $10k off the list price + closing costs probably would be turned down by many sellers here, too...even a "motivated seller." Asking for one or the other would probably get you a contract on the house here, since it's a difficult time to sell a house in this area nowadays, but asking for both would most likely get you turned down. You have to realize that they're trying to get as much as possible out of their house to have for their down payment on their next house, to pay off credit cards, etc.

Maybe if you raise your offer by a few thousand (like you said you did), and pay your own closing costs, the sellers will be willing to deal. It is very common for a seller to list their home about 3-5%higher than what they would be willing to sell it for. Maybe you could offer 3-5% less than the list price, and pay your own closing costs. You can always ask for *small* extras like a year's worth of home warranty coverage, a year's worth of HOA fees, etc, on top of the discount on their list price. But, again, the seller may not be willing to be as flexible as you'd like.

Otherwise, like CharlotteAgent said, you might want to look around more, to see if you can find another house you're interested in, where the sellers might be willing to accept your offer.

Remember "motivated seller" and "willing to negotiate" does not automatically equal "willing to take any offer to get out of this house," especially when it's only been listed for a week.

Also, I'm not sure if you realize this, but buyer's agents don't cost the buyer (you) anything. The seller's realtor pays the buyer's realtor out of his/her (seller's realtor) commission. You should get a buyer's agent...they can help you negotiate a proper price, and they can let you know if your offers are too lowball, or if the sellers are being unrealistically stubborn.

[NYnowNC]

Thanks for all the input.

Based on the advice I recieved yesterday from all over, I have decided that if my 2nd offer is rejected, then I will follow up with a final offer. That final offer will be based on the price of an older home and a brand new home, so in the middle, and half of closing costs. I will then move on if rejected.

I am looking to pay no more than $160K for a resale and no more than $175K for a brand new home. I am aware of my lifestyle and other bills, so I am not looking to pay my limits, if I do not have to.

Once again, thanks for giving me something to think about. -

[CharlotteAgent]

What I would do is get your agent to pull up the homes that have sold in the last 6 months and see what the sale price was and any concessions. With that being said find the average cost per square foot and base it from that.

Now obviously if one home has Granite and the other laminate the prices will differ but this should get you a fair feel of the prices in the neighborhood.

Good Luck!

[south.charlotte&union]

Good advice CharlotteAgent

Remember that when you ask for closing costs to be paid, in the sellers eyes this just comes off what they are going to walk away with...so basically your offer was 10K less, and also less whatever closing costs would be.

[AOYAS]

Originally Posted by NYnowNC

Thanks for all the input.

Based on the advice I recieved yesterday from all over, I have decided that if my 2nd offer is rejected, then I will follow up with a final offer. That final offer will be based on the price of an older home and a brand new home, so in the middle, and half of closing costs. I will then move on if rejected.

I am looking to pay no more than $160K for a resale and no more than $175K for a brand new home. I am aware of my lifestyle and other bills, so I am not looking to pay my limits, if I do not have to.

Once again, thanks for giving me something to think about. -

No problem!

[AOYAS]

Originally Posted by NYnowNC

Thanks for all the input.

Based on the advice I recieved yesterday from all over, I have decided that if my 2nd offer is rejected, then I will follow up with a final offer. That final offer will be based on the price of an older home and a brand new home, so in the middle, and half of closing costs. I will then move on if rejected.

I am looking to pay no more than $160K for a resale and no more than $175K for a brand new home. I am aware of my lifestyle and other bills, so I am not looking to pay my limits, if I do not have to.

Once again, thanks for giving me something to think about. -

Do you have a realtor, or have you thought about getting one? A buyer's agent can be a real asset (as long as you choose a realtor who knows what s/he is doing), especially for a first-time buyer. It won't cost you a penny to use one (as long as the home you purchase is listed with a selling agent...fsbo's work differently), but it could potentially help you to save some (or alot of!) money on your purchase.

[NYnowNC]

Well, I submitted a third and final offer and the sellers accepted. So now I will be moving into my 1st home. I am trying to think of all the "house" stuff I need to buy prior to moving. -

[Swimmom32]

Originally Posted by NYnowNC

Well, I submitted a third and final offer and the sellers accepted. So now I will be moving into my 1st home. I am trying to think of all the "house" stuff I need to buy prior to moving. -

New toliet seats...lol