Strategy for buying a relo house (Aurora: relocation company, how much, houses)

[cgonsalv]

My wife and I have agreed on a house we really like. However the house is priced at $472K about $60K above comparable houses that sold in the area. The nearest comparable the SELLER's realtor could find was a house that sold for $420 but it has an additional bathroom and a finished basement.

The house has been on the market since September with no price reductions. We have put an offer on the house for $407K in early December but it was rejected. The seller's realtor mentioned that the sellers have a much higher buyout offer and that they would not consider an offer below $450K. My realtor tells me that there has been no activity on this house since our first offer.

The house is vacant and the owners have relocated to Texas. When we put in our offer we had to deal with the owners and their relocation company. We called the relocation company directly to ask them when the house would be transferred to the relo company and they said they the owners would always be involved.

We (our realtor included) are not sure how to approach this situation. My wife and I really this house. We don't know how the sellers can afford to keep a vacant house on the market at an inflated price for this long.

Any advice or insight would be appreciated.

Thanks

[shine2424]

dont buy that home for anything over your initial offer. chicago market is depreciated around 3-4% last year. any offer over comparables would be retarded.

[nwburbsGuy]

Originally Posted by shine2424

dont buy that home for anything over your initial offer. chicago market is depreciated around 3-4% last year. any offer over comparables would be retarded.

RETARDED! I liked the way you put it. The housing market, in general, is retarded!

[mdz]

You put in an offer you thought was fair for the property. Stick to your guns, there's always more than one "perfect" house for you.

[middle-aged mom]

What town are you considering? Some areas have lost value while others are flatlining.

Relo packages vary from sponsoring company to sponsoring company. Your agent should be able to find out how much the seller paid for and owes on the house and perhaps this is the problem- they may not have enough paper equity to close at the price you want to pay.

It also sounds as though they are hoping the spring market bears some fruit.What is it they say about a bird in hand.......

Often times submitting an final offer- good till cancelled and waiting it out is the best strategy, if the current ask is not defendable with facts.

I am aware of a similar situation on a house in my town, last year. Interestingly, the owners also relocated to Texas. The house began its long jouney in the low $600's. It eventually sold in the mid $400's, far less than anyone thought it would sell for. It had become the stale donut of the neighborhood and had it been priced right to begin with it probably would have sold for $100K more than it did, early on.

This had nothing to do with market conditions. This was a seller who thought his place was worth more than anyone else did and his number could not be defended. And eventually, the seller had to let go.

[cgonsalv]

Middle Aged Mom,

Thanks for your email.

They paid $389 in the late 90s. Not sure how much they owe on the house. The house is in Aurora in the 204 school district.