How to negotiate my house price? (condo, second mortgage, credit)

[kmann-sherborn]

I agree, I'd accept the $295K.

I hope it works out well!

[LoveAlbuquerque]

He's not a U.S. citizen. He's a green card holder. I hope that doesn't present any problem at closing.

[professorsenator]

Originally Posted by LoveAlbuquerque

How shall I proceed with the situation? I'd appreciate any input!

Good gracious...take the $295K and run! Don't counter -- their offer is very reasonable. Take it and be done. Used appliaces are worth a fraction of their purchase price. Including them in a sale of this size is small potatoes.

[LoveAlbuquerque]

As I was about to accept his offer ($295K), this buyer backed out. It came as a surprise.

I have another offer which is $296K. However, this buyer can only put down 3.5% in cash and she requires an FHA loan. Shall I accept her offer?

[jayrandom]

Originally Posted by LoveAlbuquerque

As I was about to accept his offer ($295K), this buyer backed out. It came as a surprise.

I have another offer which is $296K. However, this buyer can only put down 3.5% in cash and she requires an FHA loan. Shall I accept her offer?

It doesn't surprise me at all. Countering at the original asking price in a flat or declining market is a good way of letting buyers know, "I'm totally inflexible and will be hard to work with." If prices are going up, or your house is priced below its value, that might be a good policy. These buyers thought your house is worth $295k and probably not worth the trouble. Having only been a buyer, that's certainly the position I would have taken. If I had really wanted the place, I would have just offered asking price, or, barring that, accepted asking price when you countered with it.

[Valerie C]

LoveAlbuquerque, where are you getting your information from? An FHA loan is MUCH easier to obtain than conventional financing, due to being more forgiving of past credit history. Total downpayment from Buyer can be as little as 3.5% (or 6%, depending on credit score).

Regarding the appraisal, banks are doing strict appraisals across the board. In addition, the property should appraise at FULL SALE PRICE, not just the portion that the bank is writing the mortgage for. Why on earth would a Buyer purchase a house that doesn't appraise for what they are paying for it?

What does your listing agent recommend that you do with all of these offers? Each buyer, each offer is unique and should be compared carefully, including not only the numbers, but the stability of the morgage company. A pre-approval from many lending institutions aren't worth the paper they're printed on...

And finally, am I reading you correctly? You aren't planning to vacate the property until AFTER the close date? This is highly irregular, and I hope that your listing agent and/or your attorney is wording your contracts very carefully. Please keep us informed as to how it goes for you. This sounds very interesting (and glad that I'm on the sidelines watching...)

Originally Posted by LoveAlbuquerque

It's difficult to get an FHA loan. Since the bank would cover a higher percentage of loan, they would do strict appraisal to make sure the property value is at least at the amount that they would provide financing for. It may also take longer for an FHA loan to get approved than a conventional loan. Therefore, there are uncertainties before the closing date.

I would not be able to preprare for a move until after the closing date when everything is firm. In case the loan is denied, I'll have to put my house back on the market again.

[professorsenator]

Originally Posted by Valerie C

...And finally, am I reading you correctly? You aren't planning to vacate the property until AFTER the close date? This is highly irregular, and I hope that your listing agent and/or your attorney is wording your contracts very carefully.

Indeed. Such a situation is extremely ripe for a messy and expensive dispute -- something breaks or happens and you have an immediate dispute over who pays. I think a standard lease contract should be signed in order to protect all involved parties.

[professorsenator]

Originally Posted by jayrandom

It doesn't surprise me at all. Countering at the original asking price in a flat or declining market is a good way of letting buyers know, "I'm totally inflexible and will be hard to work with."

I hate to pile on, but I have to agree here. I think they may have let this one slip away by being unrealistic. For pete's sake, $295K on $300K is 98.3% of list price. Pigs get fat, hogs get slaughtered.

[LoveAlbuquerque]

Due to the previous offers I've received that were close or even higher than my asking price, I got the impression that I could sell my house for my asking price ($299,900). Therefore, I considered any offer at or below $295K undesirable.

Now I know that any offer at or above $295K is a good offer, so I WILL accept it next time without making any counter offer. Lessons learned!

Since some of you say that FHA loans are not more difficult to obtain than a conventional loan, I would consider the offer of $296K with a 3.5% down.

[LeavingMA]

Originally Posted by LoveAlbuquerque

Due to the previous offers I've received that were close or even higher than my asking price, I got the impression that I could sell my house for my asking price ($299,900). Therefore, I considered any offer at or below $295K undesirable.

Now I know that any offer at or above $295K is a good offer, so I WILL accept it next time without making any counter offer. Lessons learned!

Since some of you say that FHA loans are not more difficult to obtain than a conventional loan, I would consider the offer of $296K with a 3.5% down.

Your talking about a few thousand on a $300,000 house. You should be glad your getting offers and it appears your property is reasonably and competitively priced. I would take any offer at $290,000 and up if it is a solid buyer. Counteroffering over a couple of thousand of dollars on a house is a waste of time.