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Old 03-16-2011, 10:18 PM
 
3 posts, read 4,764 times
Reputation: 10

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I have put on 4 offers in the last year on houses. I have been rejected on all of them.

First house - 87% of list - seller replied they would go only 2k lower
Second house - 90% of list - seller said they had another offer ( i still see this house on the market now, oh so sorry it fell through)
Third house - 93% of list i offered - seller said they would only go 2k lower
Fourth house - 97% of list i offered, cash offer, would close at any time, no house to sell, etc, someone else outbid me...

I have looked at houses from 850 square feet in morris county to 1800 in essex county

3 br 1 or 1.5 baths, small yards, etc... some needed cosmetic work, some were move in... overall this is very frustrating...

I am a first time home buyer... looking in morris / essex county for a 3 br / 1 bath for around $350k or less with a decent commute to both whippany (40 min or less) and manhattan (1 hr 15 or less)... not in a flood zone... not on a busy road... taxes $8k or less

I am pretty sure it is impossible, i've been looking for almost a year now... I really don't mind a house from 1920 or whatever, I don't need a garage... (I do want a basement though) I dont need stainless steel appliances, etc... would prefer radiators or baseboard heat though... don't need central air... etc i comp out these houses and always offer appropriately and i am barely even countered...

Someone smack me into reality or tell me im too picky, or is it really the sellers?...

Some buyers market...
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Old 03-17-2011, 12:24 AM
 
1,320 posts, read 3,499,970 times
Reputation: 800
Sorry to hear you are having hard time finding a place. Personally I don't think it's neither buyer or seller's market right. In my opinion, we're somewhere in the middle and largely dependent on what town.

What I do know is this. Good as in desirable units or houses are moving well and sometimes buyers can be stringent with their prices. Bad ones aren't moving and these are the ones that sellers have upper hand on.

Let's not forget that while RE market is down over all, some places in Brooklyn are actually up.

Good luck and I hope your journey ends well.
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Old 03-17-2011, 04:32 AM
 
Location: The Milky Way Galaxy
2,256 posts, read 5,904,058 times
Reputation: 1505
Quote:
Originally Posted by babo111 View Post
Sorry to hear you are having hard time finding a place. Personally I don't think it's neither buyer or seller's market right. In my opinion, we're somewhere in the middle and largely dependent on what town.

What I do know is this. Good as in desirable units or houses are moving well and sometimes buyers can be stringent with their prices. Bad ones aren't moving and these are the ones that sellers have upper hand on.

Let's not forget that while RE market is down over all, some places in Brooklyn are actually up.

Good luck and I hope your journey ends well.
Agreed...I consider you within the vicinity of NYC and honestly the only huge drops in home prices were the $5 million dollar NYC penthouses being reduced to $2 million. So percentage-wise its a 60% drop but its still $2 million.

I agree we are somewhere in the middle. And while there's all this talk that we're coming out of the recession, I have my doubts as to what is considered being out of a recession. It just seems like the richer got richer and the poorer got poorer at a much higher rate than usual.
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Old 03-17-2011, 05:34 AM
 
2,910 posts, read 2,863,006 times
Reputation: 1047
my sister in law is a realtor, and found the data I have reviewed in the MLS, most home sold w/i +/- 3%. That mean, some houses sold above ask. The two times I see them drops price is when they renew their listing, and they MUST sell by the end of the listing.

For example, there was a house my wife like and wanted to make offer. The ask was 550k, I insist we wait. Then 2 weeks later, their listing expired and renew and they dropped the ask to 500k. The house sold the very day at 500k.

We didn't get the house. We saw a better house and made an offer and closed the deal 4% below ask.
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Old 03-17-2011, 05:56 AM
 
1,527 posts, read 3,494,929 times
Reputation: 435
Quote:
Originally Posted by ASRomavsLazio View Post
I have put on 4 offers in the last year on houses. I have been rejected on all of them.

First house - 87% of list - seller replied they would go only 2k lower
Second house - 90% of list - seller said they had another offer ( i still see this house on the market now, oh so sorry it fell through)
Third house - 93% of list i offered - seller said they would only go 2k lower
Fourth house - 97% of list i offered, cash offer, would close at any time, no house to sell, etc, someone else outbid me...
Well, for the first three, you bid quite a bit under asking, so it's not that surprising you didn't get them.

For the last one, that just sounds random that someone came along with a better offer.

The thing is, even though someone's house is on the market, it doesn't mean the people have to sell right now. They might just stay there.

I think this is especially true for the upgrade market, where people are trying to buy something bigger, nicer whatever, but they won't do it unless they get a certain price. Actually, even retirees can usually stay put if they want.
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Old 03-17-2011, 06:36 AM
 
Location: Northern NJ
7,405 posts, read 7,363,057 times
Reputation: 10609
Quote:
Originally Posted by ASRomavsLazio View Post
I have put on 4 offers in the last year on houses. I have been rejected on all of them.

First house - 87% of list - seller replied they would go only 2k lower
Second house - 90% of list - seller said they had another offer ( i still see this house on the market now, oh so sorry it fell through)
Third house - 93% of list i offered - seller said they would only go 2k lower
Fourth house - 97% of list i offered, cash offer, would close at any time, no house to sell, etc, someone else outbid me...

I have looked at houses from 850 square feet in morris county to 1800 in essex county

3 br 1 or 1.5 baths, small yards, etc... some needed cosmetic work, some were move in... overall this is very frustrating...

I am a first time home buyer... looking in morris / essex county for a 3 br / 1 bath for around $350k or less with a decent commute to both whippany (40 min or less) and manhattan (1 hr 15 or less)... not in a flood zone... not on a busy road... taxes $8k or less

I am pretty sure it is impossible, i've been looking for almost a year now... I really don't mind a house from 1920 or whatever, I don't need a garage... (I do want a basement though) I dont need stainless steel appliances, etc... would prefer radiators or baseboard heat though... don't need central air... etc i comp out these houses and always offer appropriately and i am barely even countered...

Someone smack me into reality or tell me im too picky, or is it really the sellers?...

Some buyers market...
It is a difficult market right now, and you just have to be persistent. If you run into a seller who is only going to drop $2,000, you are not dealing with a motivated seller. If the $2,000 discount results in a purchase price that is in line with other comps, just buy it. The size of the discount from list does not determine the "fairness" of the price. If the $2,000 discount from list results in a price that is too high compared to the other similar homes that have sold recently, then it is up to your agent to provide sufficient data to the seller to demonstrate that $2,000 below list is above the market and will not wash, and will not appraise even if he gets it from some other buyer. Data is far more effective than an emotional conversation, and it is your agent's job to sell your offer to the buyer by providing market data that will make your position incontrovertible.

Now, if you are indeed trying to buy "below market", you are going to have to make a lot of offers until you find a seller who is weak and basically willing to pay you some money to buy his home. While such sellers exists, they are hard to find. You need someone under duress who is dealing with divorce, death, bankruptcy, etc. In other words, you have to be a vulture looking for a tasty carcass.

So basically, just keep trying. And remember, data speaks louder than words. Any future offer should be presented with a market analysis that proves that your offer is fair and should be accepted.

Also, stay away from short sales. They are rarely a good deal and are filled with months of frustration in most cases. And you usually end up without a house. Or a house that you find out is not such a great deal when you move in and discover the hidden neglect.
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Old 03-17-2011, 06:38 AM
 
73 posts, read 187,193 times
Reputation: 39
I can't offer insight, but I can offer sympathy.

My husband and I are having a terrible time finding a 3bed/1bath home within commuting distance of NYC. We have a very tight budget, but are very open to a home that needs cosmetic work. I think a previous thread nailed it when they described the current NJ market as a stalemate. Sellers want what the could have gotten in '06-'07 and buyers want the deals we hear about in places like Phoenix, Vegas, and Miami. Adding to that, anything in North Jersey that is listed below $350k seems to be in a section of the market that is still quite competitive.

Best of luck to you!!!
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Old 03-17-2011, 06:45 AM
 
1,527 posts, read 3,494,929 times
Reputation: 435
Quote:
Originally Posted by Marc Paolella View Post
I

Now, if you are indeed trying to buy "below market", you are going to have to make a lot of offers until you find a seller who is weak and basically willing to pay you some money to buy his home. While such sellers exists, they are hard to find. You need someone under duress who is dealing with divorce, death, bankruptcy, etc. In other words, you have to be a vulture looking for a tasty carcass.
Sellers have to get to the price on their own.

Even someone dying in a nursing home might refuse a lowball.
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Old 03-17-2011, 07:21 AM
 
Location: NJ
17,579 posts, read 38,303,849 times
Reputation: 16098
You seem to be foucing on the wrong thing. You listed % off of list that you offered. House 1 may list their house $50,000 above market value (based on comps) and house 2 may list their house $10,000 under market value. % off of list not become pretty meaningless when comparing them.
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Old 03-17-2011, 07:41 AM
 
Location: West Orange, NJ
12,542 posts, read 17,732,845 times
Reputation: 3681
it largely depends on which "market" you're in. the cheaper homes ($100,000-$300,000) never really dropped in price significantly. the largest decline was in houses that were $600,000 and more. this had to do a lot with the difficulty in getting jumbo loans, managing payments that size in an uneasy job market, etc. a few towns just completely tax assessments, so some unkowns have just disappeared, bringing more people to the table for sure, i would assume. also, a lot of sellers wised up and started listing their homes for realistic prices. just because it isn't selling for less than list doesn't mean it's not a decent price, relative to prior years.

a lot depends on individual circumanstances also. don't get frustrated. always remember, there are thousands of homes out there that fit what you like. if you're not in a hurry to move, just keep chugging along.

make sure you have a realtor that's catering to your likes and dislikes too. if he/she is showing you homes with features you're not thrilled with after looking for a year...find a new one! there are plenty of good ones out there.
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