Need Advice on Offer and Negotiation (square foot, appraise, mortgage, mortgage)
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When I was housebuying, I would not play the come down, go up, come down, go up repeat game. I made an offer, I heard the counter; if there was no way to meet after that counter, I walked. I knew my markets, I knew what I wanted and what I could/would pay. No game.
Since your buyer was so far below your asking, it's reasonable to assume, they are not going to play with your minimal adjustment from your asking. I'd be walking. They don't think you're in the same market they are. Since your home needs a lot of updating and this is the first offer you've had, I think your buyer is probably more in tune with your market than you are. Consider the costs of updating and meet your buyer with a realistic counter based on that.
If I were that buyer, I'd already be looking elsewhere. You'll have to get my head back into considering your house.
The 355k house was similar age and style, smaller Sq ft and smaller yard. It has more updates then our property. However, our neighborhood is more prestigious and houses not as on top of one another. What are the odds another buyer.comes along of we decrease? Is a bird in hand worth more then two in the bush at this stage?
every month you don't sell is costing you money. your price is obviously too high combined with your home not being updated like the homes you have the comps for. no offers in 300 days, a small market to boot, I would make a deal and be done with it.
The 355k house was similar age and style, smaller Sq ft and smaller yard. It has more updates then our property. However, our neighborhood is more prestigious and houses not as on top of one another. What are the odds another buyer.comes along of we decrease? Is a bird in hand worth more then two in the bush at this stage?
When I was housebuying, I would not play the come down, go up, come down, go up repeat game. I made an offer, I heard the counter; if there was no way to meet after that counter, I walked. I knew my markets, I knew what I wanted and what I could/would pay. No game.
Since your buyer was so far below your asking, it's reasonable to assume, they are not going to play with your minimal adjustment from your asking. I'd be walking. They don't think you're in the same market they are. Since your home needs a lot of updating and this is the first offer you've had, I think your buyer is probably more in tune with your market than you are. Consider the costs of updating and meet your buyer with a realistic counter based on that.
If I were that buyer, I'd already be looking elsewhere. You'll have to get my head back into considering your house.
I buy houses the same way. I like a clean deal, I will not play the game. I too would walk from the op's house.
I just had a buyer walk after the counter offer wasn't close to market. His first offer was his best offer and that was it. Everyone is different on how they want to negotiate. Perhaps your agent can feel out the other agent to see if there is any room at all to get to an agreement.
I am posting here because I am trying to gather as much advice as possible. My wife and I put up our house for sale almost a year ago. We priced it high as we were still living there and were willing to rent if the right buyer came along. We recently built a new house and have moved out. We thought the house was in line with pricing but we received no offers for over 300 days on market. Our realtor recently held an open house and only two couples attended with one expressing an interest in the property. They toured it again with their realtor and made an offer. They are pre-approved, putting 20% down and sent over a deposit of 5k with the offer sheet. Their realtor pointed out that his clients felt the house needed updates to the kitchen, baths, deck, walkway and installation of central A/C and subsequently dropped their offer to 345k when asking was 394k. They also sent over some comps with a house at 355k being considered the most comparable. We were happy to get an offer and submitted a counter of 380k. Well the Buyers rejected it, stated the concerns regarding updates and that the house was a fair offer in line with the applicable comps -their agent said they were still very much open to purchasing at the 345k initially offered. I am really unsure as to what to do next, part of me thinks they should pound sand while the other part realizes we haven't had an offer in over 300 days!
Your house was obviously overpriced for the last 300 days. Hold out for your price if you want and can afford to let it sit for a lot longer.
The 355k house was similar age and style, smaller Sq ft and smaller yard. It has more updates then our property. However, our neighborhood is more prestigious and houses not as on top of one another. What are the odds another buyer.comes along of we decrease? Is a bird in hand worth more then two in the bush at this stage?
Is this a real post? I'm having a hard time believing that someone who has had their house for sale for nearly a YEAR, has moved out, and is already paying for another house would actually consider turning down this offer and waiting for another one.
You just said it. The other house has more updates. Your buyers are going to have to spend $20,000? to get your house to match the other one (assuming the square footage isn't WAY off. Then you are at your "market price" of $370,000 and right up at your counter.
For goodness sake. Take the offer. Let the house go and move on with your life.
Based on what the OP has posted, a better offer likely will not be forthcoming. You got your one move, now get rid of the house before you have to carry it for another year.
If there is less buyer traffic in your area, then the price is absolutely too high. You mentioned the space of your home compared to other houses that are on top of each other. This may or may not be of interest to your buyer. They mentioned the updates so that is important to them. Most buyers know how long a house has been vacant before they make an offer. In many people's minds long vacancy=not cared for anymore. It sounds like a realistic offer. How much money would you save on the insurance and taxes if it sells now as opposed to a year or two down the road?
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