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That is just flat wrong. Verbal counters are agent chat and haggling. It is not a valid counter offer until it is on paper and signed.
And then what is it?
Nothing, unless it is addended to a potential contract?
Why not just do a contract rather than stack up multiple addenda without a contract?
I suspect that people who demand documented counteroffers are using locally-recognized contract formats wherein the documents refer to a contract document and amend it.
Just another area where regional practices vary enough to create misunderstanding across various locations.
I see no benefit to signing anything but a contract and its addenda, or an amendment.
First, forget about "they need to bring money to closing." Wah, wah, wah! That's their problem. Let them cry, it's not your place in life to worry about their problems. Evidently you are helping them out of a bad situation. The crying is just milking you for more money.
Okay you said closing cost is equivalent to $1,000.
They were asking $189,900. You offered them $185,900 - $1,000 which is $184,900.
They countered with $193,900 which is really $193,900 - $1,000 which is $192,900. That's an increase of $3K over list! That is what I'd call a silly/stupid counter.
Go with the comps and maybe a couple $K over if you really want it.
If you really, really, really want the house, offer them their asking price and tell them that is your last, best, final offer. And that includes them paying your closing costs.
I think you misunderstood the OP calculation of closing costs. Their closing costs are estimated at $5000, so when the seller countered at $4000 above ask, they were actually giving a $1000 discount off their asking price for the house itself.
Keep in mind that these transactions that roll the closing costs into the sale of the home could raise problems with appraisal. If the property does not appraise for the sale price you agree upon with the closing costs included (which appears to be higher than the new properties the OP mentions), the bank may not approve your loan.
First, forget about "they need to bring money to closing." Wah, wah, wah! That's their problem. Let them cry, it's not your place in life to worry about their problems. Evidently you are helping them out of a bad situation. The crying is just milking you for more money.
Okay you said closing cost is equivalent to $1,000.
They were asking $189,900. You offered them $185,900 - $1,000 which is $184,900.
They countered with $193,900 which is really $193,900 - $1,000 which is $192,900. That's an increase of $3K over list! That is what I'd call a silly/stupid counter.
Go with the comps and maybe a couple $K over if you really want it.
If you really, really, really want the house, offer them their asking price and tell them that is your last, best, final offer. And that includes them paying your closing costs.
You missed the OP's last post where they stated they countered at $192,900 minus closing costs of $5K, so a net of $187,900. Fair to the seller, covers the buyer's closing costs, and nets them a fair price based on the comps.
Btw I would love to know of an area in this country where closing costs in a real estate transaction are only $1K!
You missed the OP's last post where they stated they countered at $192,900 minus closing costs of $5K, so a net of $187,900. Fair to the seller, covers the buyer's closing costs, and nets them a fair price based on the comps.
Btw I would love to know of an area in this country where closing costs in a real estate transaction are only $1K!
I can hook you up with countless lenders who will offer "No Closing Costs" loans.
For a bump in interest rates, of course.
I refer the original poster to the rest of the discussion. Myself, I'd rather just have everybody pay their own closing costs. That's the way I've done it in Arizona and California.
Diddling closing cost just confuses the heck out of everything.
Is this one of those word problems I got in elementary school?
I can hook you up with countless lenders who will offer "No Closing Costs" loans.
For a bump in interest rates, of course.
It works for some people.
Maybe in terms of origination fee and points, but when you count settlement fees, lenders title insurance, local taxes, filing fees, doc fees, etc. its hard to find a situation where closings costs would be $1000. We negotiated no origination fee and no points, and still paid close to $3000 in closing costs.
Maybe in terms of origination fee and points, but when you count settlement fees, lenders title insurance, local taxes, filing fees, doc fees, etc. its hard to find a situation where closings costs would be $1000. We negotiated no origination fee and no points, and still paid close to $3000 in closing costs.
$190,000 purchase
$575 for closing attorney
$120 for recording
$650.00 for 1 year's Hazard insurance premium
$450.00 Re-issue of title insurance from prior policy
$19.00 Floor certification
($850 Today only.) Pro rata 50% credit from seller for unpaid property taxes YTD.
No escrow for taxes.
No escrow for insurance
No lender costs.
Dumb question but if it doesn't appraise what options are left? I assume if we want it we pay for it right? Or is this a negotiating point again?
I would hate to accept an offer only to be told it didn't appraise especially since we are closing on our home so soon
If it doesn't appraise, you can either have the sellers come down to the appraisal price or you can make up the difference out of your own pocket. Of course, you can also walk away from the deal.
$575 for closing attorney
$120 for recording
$650.00 for 1 year's Hazard insurance premium
$450.00 Re-issue of title insurance from prior policy
$19.00 Floor certification
($850 Today only.) Pro rata 50% credit from seller for unpaid property taxes YTD.
No escrow for taxes.
No escrow for insurance
No lender costs.
We're flirting with that $1000 CC level.
And, yes, it was work.
And, no survey.
I'm jealous of some of those fees, as they are waaaaaay less than the prevailing rates in my area.
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