Ethical to change the offer? (real estate, renting, mortgages)

[skapur]

I made an offer on a house and the seller agreed for it. But from market analysis the house value could be less by 5000-10000. Is it ethical to change the quote now? Contract is not signed yet.

[tahiti]

Originally Posted by skapur

I made an offer on a house and the seller agreed for it. But from market analysis the house value could be less by 5000-10000. Is it ethical to change the quote now? Contract is not signed yet.

ethics really have nothing to do with it - you may have a financing problem if the appraisal doesn't come in near your purchase price.

[hrjersey]

Tahiti makes a good point but that is assuming the that you are planning on financing with very little down.

If the seller is smart they'll tell you to take a walk. They already know what you're willing to pay for the house. I am probably different than a lot people here in that if it were my house I would walk away from the deal or up the price from what I originally accepted just for spite. But that's me. What does your real estate agent have to say about this?

[njkate]

By markeyt analysis what exactly are you referring to?

If the lender appraisal 10k lower then the accepted offer either you will need to come up with that or seller needs to come down.

With all the topsy turvy upside down mortgages out there...house worth less that what is owed you would be nuts unless seller came down...and seller in this market would be nuts to think they are going to get 10k over appraisal in this market..jmo

[JerseyG]

Originally Posted by skapur

I made an offer on a house and the seller agreed for it. But from market analysis the house value could be less by 5000-10000. Is it ethical to change the quote now? Contract is not signed yet.

It does depend on what you mean by "market analysis". Are you looking at other homes in the same area with the same square footage, same acreage adn the same amenities?

I have a house I've been trying to sell for a good 10 months now. I've been getting "but in Green Brook the taxes are so much less than yours..and yours is in GB TWP". Yeah, well, you're on the other side of Rt. 22...my house has a Warren address...and other than being 20 yards into GB, you're in Warren. "but for it being a Green Brook house, there are bigger houses on smaller lots everywhere else in GB"...ok, again, what side of 22 and the mountain are you comparing my house to? And then there's my most favorite question " we really love that everything is brand new, but why are you $20K more than a beat up old mid-century house that has a formal dining room on a .25 lot on the "other side" of 22?" So done! I'm renting it. I don't care!

Take into consideration everything you'd be getting with the house you put a bid on vs. those houses that are "comping?" at the same price. You never know what is inside and how much work ($$$) you'd have to spend out of pocket to "fix her up". Are the lots bigger or smaller? How much updating needs to be done? Have you seen the houses you are comparing the one you bid on? If you have and it's is a non-issue then I'd look around a little bit more and retract my offer.

[JamesBoyer]

Originally Posted by JerseyG

It does depend on what you mean by "market analysis". Are you looking at other homes in the same area with the same square footage, same acreage adn the same amenities?

I have a house I've been trying to sell for a good 10 months now. I've been getting "but in Green Brook the taxes are so much less than yours..and yours is in GB TWP". Yeah, well, you're on the other side of Rt. 22...my house has a Warren address...and other than being 20 yards into GB, you're in Warren. "but for it being a Green Brook house, there are bigger houses on smaller lots everywhere else in GB"...ok, again, what side of 22 and the mountain are you comparing my house to? And then there's my most favorite question " we really love that everything is brand new, but why are you $20K more than a beat up old mid-century house that has a formal dining room on a .25 lot on the "other side" of 22?" So done! I'm renting it. I don't care!

Take into consideration everything you'd be getting with the house you put a bid on vs. those houses that are "comping?" at the same price. You never know what is inside and how much work ($$$) you'd have to spend out of pocket to "fix her up". Are the lots bigger or smaller? How much updating needs to be done? Have you seen the houses you are comparing the one you bid on? If you have and it's is a non-issue then I'd look around a little bit more and retract my offer.

yes, what are you comparing it too. Are you making a fair comparison to homes which have sold and you know the price at which they sold, or are you just comparing to the unsold competition which you think your home is better than???