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I always have to hide a smile when someone says they want to offer below list and ask for closing in a seller's market. Then, they are heartbroken and can't believe they didn't get the home, and 9 out of 10 times, they blame the agent, even though their agent and others warned them this isn't the market to lowball sellers. I will always tell a buyer to bid like you want the home, if it really is the one you want. Don't mess around. And to take it a step further, if they take your offer at first bid, don't second guess yourself and wonder if you could have done better. Reminds me of a seller with a home priced right, getting an offer from the first person to come through. Their first thought is almost always they priced the home too low. no! The home was priced right.
About 20 years ago, an old timer (RE broker) told me more often than not, a seller's first offer received would be their best offer. Same with the buyer side, the first home a buyer likes well enough to make an offer on is usually "the house" they really want. And if they don't get the home, they measure each home against it. I dismissed this info at first, but over the years, I've found truer than not.
highly true, both ways.
oftentimes, buyers find a better house. but they almost always are comparing "the" house to "that" house.
Plus if the deal falls thru, and goes back on the market, as a seller, you don't want new buyers to start negotiating down from your previous offer. Or even expect you to accept the same offer.
Just as a side note, I would suggest people overpay for things all the time. Cars, fashions, vacations. Why can housing not be considered in the same light? If someone really wants a property, they really want it! Regrets come with all sorts of decisions, but if someone can afford to splurge to satisfy their inner desires, why be critical?
It's one thing to overpay a little, but I've seen some pretty boneheaded moves. However, these people just had to have this house and they may or may not end up regretting what they did. Only time will tell.
The thing about "overpaying" is that it is subjective. So if they had to have that house maybe it is because a relative/good friend lives one block over and they are going to share daycare. What is it worth to you as a parent to not have to haul your kids 20-30 minutes to drop them off at daycare and then go to work? Maybe that is worth $20k to you in an increased housing price because it saves you 40-60 minutes of your day 5 days a week. Did they overpay if it saves them gas, time and reduces stress?
Maybe that house is walking distance to work so you can get rid of one car. What is that worth to you as a buyer to not have the cost of maintaining a car? Is that worth an extra $20k in a house price?
I'm just saying that there are many reasons that buyers pay a certain price for a house that has everything to do with their personal situation that may not be relevant to anyone else. So did they overpay if they don't have one more car payment? That actually might be a financial win to "overpay" for a house, but get rid of a car. The monthly overpayment of the house will surely be less than a car payment.
Price is just one piece of the puzzle. Even if they said offers were at 97% of list price; that doesn't tell you if they asked the seller to pay closing costs on behalf of the buyer, how soon they could close, what type of loan, are they buying the property as is, is it contingent on anything, etc.
I offer the price and conditions I'm willing to do/live with to buy the house. The seller is welcome to come back with their own counter.
We can go back and forth until it's either settled and we agree and move on to the sale or disagree and we go our separate ways. The thing is YOU love your house and feel it's worth X amount. To me it's only worth y amount.
I dont get in bidding wars. I simply make my best offer and if it goes it goes if it doesn't? Well, there are other houses. I'm looking for a specific type of house now. I recently put a bid on a house. We agreed on most things but I was only going so high on price, seller wasn't willing to lower price. They relented and dropped $500 off. Which was a bs price drop. And he had crazy demands. I was offering 3% less than asking price. And that was because the carpet, paint and it needed a few repairs I could see without having a inspection. Not to mention the kitchen eould need to be redone in the next few years. And I was willing to buy as is but at my price. Seller felt they could get more from me. Could I go higher? Sure. But it wasn't worth it as it was overpriced by about 20-25k. So I moved on. He was pretty mad from what my realtor said
House is still listed for sale. We will see what it finally sells for. Houses at that price in that area tend to stay listed for 6-8+ months and tend to sell at about 10-20% less than original listing price
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no! The home was priced right.
