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Old 10-29-2017, 12:42 PM
 
5,207 posts, read 2,371,678 times
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Quote:
Originally Posted by DomRep View Post
Wife and I put in an offer on a townhouse here in Maryland. It's listed at 425K, but based on the comps our agent sent us, the last 3 properties that have sold within the last year have been bigger (by about 300 square feet) and sold for less ($380K being the lowest, $400K being the highest). The most recent home within this community sold back in May so it's still near that 6 month window that appraisers allegedly look at (hoping he/she looks at the last year to further strengthen our case).

Our offer was submitted yesterday, but we haven't heard back (which makes us slightly nervous). House has been on the market 9 days, I'm a little surprised they didn't do an open house on the first weekend so it's why we pounced on it quickly because it is a hot market and things tend to get eaten up quickly. Anyway, we put in an offer at 405 w/sellers covering closing costs (realizing each seller is different but the last 3 homes sold in this community has had the seller cover all closing costs). We're putting in 15% down, our agent thinks it's a strong offer especially if there hadn't been an offer as of COB Tuesday.

But I'm having second thoughts, we initially wanted to go in at full ask and wait for the appraisal, but we legitimately think this house will appraise lower than what we offered so we're hedging our bets here. It doesn't help that it's been almost two full business days and haven't heard anything yet. Thoughts?
It depends on your market. Are houses selling within the week or month, some at full list? Or is a negotiable area?

Your offer sounds reasonable and is based on reality. The glitch may be that it's so new on the market. The sellers are wondering...is this the best offer I'll get? If I counter, will he respond or walk away? Should I reject it and see if I get a better offer?

They haven't had many, if any, offers yet. So they don't know what to think of yours.
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Old 10-29-2017, 12:51 PM
 
Location: Nothing, Idaho
1,761 posts, read 706,274 times
Reputation: 2720
Even if the buyer is spot on as far as what the house is worth, at this point the seller thinks its worth more. Sometimes a house has to sit there a while before the price comes down.
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Old 10-29-2017, 04:40 PM
 
7,423 posts, read 6,284,076 times
Reputation: 15517
What too many posters are not accepting, is the owner has rejected the offer, and is not interested it trying to get into a long term of negotiating. They are rejecting the offer, period.

Considering the comps the buyer is considering, some are a full year before, so they are worthless in determining the value of the property. The 10% difference between two sales, one a year ago, and one fairly current for apparently the same type unit property is a basic indication of the appreciation area home prices are taking.

Just because the potential buyer, wants to negotiate, does not mean the seller is even interested is such a thing.

This is particularly common, when the asking price is dead on as to the value. The seller does not have to sell. The seller is not willing to take tens of thousands less than the property will appraise for. It is no problem for the sellers to wait for an offer in the range they feel the property will sell for. They can take the OP offer and lose thousands, or they can wait and they will get the asking price. They were doing this 45 years ago when I entered the business same as they are doing it today.

There are two type sellers.

1: Price the home above it's true market value, to leave room for negotiating an offer, and still getting the price the home is worth.

2: Price the home at it's actual value, will not negotiate, and are waiting to sell for their price. They may as in this case, refuse to even return the offer which is their legal right. Not returning the offer, is rejecting the offer.

In my many years in the business, I most often placed property on the market for #2 type. We made sure the asking price was reasonable and fair for both parties, and stuck to that price. My sellers were upper middle class investors. Holding on to the property a month or two longer, did not hurt them in any way. They felt the price was fair, and were not going to take a big discount to make someone who wants to play the negotiation game happy. Some lived in Libya North Africa, and the other way as far as Malaysia. They bought the property to hold for the total return on invested dollars to be in a certain range. When they sold, they looked at holding it an extra month or two, as a better investment to hold for their price, than it was to discount the value and lower their total investment return and lose money as far as they were concerned.

I made a lot of sales with out of area buyers/sellers. To even talk to one of these investors, I had to ask his daughter who lived in the family home while her parents were overseas, when the parents called on Sundays, to call me. The father would take the company shuttle to London, and call me from there as he could not take business calls in Libya. He would fly in to London and call from there.

My instructions on sales was to, only accept full price offers (property was priced at true value) and have his daughter sign with her power of attorney (she knew what price she could accept which was full price). Closing papers, were sent to the companies offices in Houston, and a courier would take that along with their company paper work, to Libya, where he would sign and return via the same method. He may not see properties we bought for him, for nearly a year when he vacationed back home on his annual 30 day leave.

His orders to handle his sale properties, was to either let it just sit and die which is apparently what is happening with the OPs offer. OR----To take my big (great big 5'x7') stamp with huge type saying REJECTED surrounded by a heavy line all around the edge, and stamp with a bright red ink, and return that offer. That stamp, often got full price offers when the buyers realized we were not playing the negotiating game. I had written permanent instructions to handle any sales this way not only with that investor, but with numerous others.

We never went over 45 days waiting for a full price offer. The sellers saved many thousands of dollars, with this policy. We got sales mostly within 2 weeks of going on the market, so this policy worked for my clients benefit.

Too many people think, that they should make a low ball offer on any property they make an offer for, no matter how fair market the asking price is. They want to negotiate all property purchases. They wonder why like the OP is doing, why their offer is not accepted or received a counter offer.

They simply do not understand, that a lot of sellers have put a true market value price on the property and can afford to wait for a full price offer or above. They don't realize, that a lot of sellers do not have the spare time to waste it playing the negotiating game with several potential buyers. Putting a fair to both the buyer and seller price on the property, and not worrying about it until the right offer comes in, and signing it is their goal. My clients were business owners, executives with large companies, upper management in American Oil Companies doing business and living overseas, doctors, well established IT people with large corporations, etc. They hired me as their sole broker handling their accounts, to take care of things, and not waste their time on every offer especially the ridiculous ones.

OP---Accept the fact, that your offer is not acceptable to the sellers, and for all practical purposes is REJECTED. And their agent, is doing exactly what the sellers want them to do. If you want the property, quit trying to play games as the sellers are not interested in doing so.
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Old 10-29-2017, 04:41 PM
 
Location: Raleigh NC
5,550 posts, read 4,633,250 times
Reputation: 4704
5 days and no word?
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Old 10-29-2017, 04:44 PM
 
7,423 posts, read 6,284,076 times
Reputation: 15517
Quote:
Originally Posted by bpollen View Post
They haven't had many, if any, offers yet. So they don't know what to think of yours.
You have no way of knowing this. Realize, by not accepting the offer, they are saying they are not interested, and it has been rejected.
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Old 10-29-2017, 06:52 PM
 
Location: Raleigh NC
5,550 posts, read 4,633,250 times
Reputation: 4704
given the stated communication habits of the Listing Agent, the property could easily be under contract to a different party. Heck, they may have received 10 offers. We have no real idea.
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Old 10-30-2017, 09:12 AM
 
2,073 posts, read 3,147,376 times
Reputation: 1230
Hey everyone, just an update, we got word of them rejecting the offer on Saturday (4 days after the offer was made). The listing agent gave our agent the impression that they hadn't gotten any other offers but they rejected ours with no counter. They are looking for something closer to the list price (so if that's the case why didn't they counter? Seems like they're waiting for us to come up).

Regarding the question about how long have past properties been on the market, two of them were on the market 50+ days, another was on the market 19 days. We're on Day 12 with this property. Our agent basically asked us how much is the house worth to us. Smartmoney mentioned something about how this house will measure up against the other ones, we saw a townhouse yesterday and it just made us want this house even more. We're more than likely going to up our offer and go from there.
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Old 10-30-2017, 11:25 AM
 
Location: Raleigh NC
5,550 posts, read 4,633,250 times
Reputation: 4704
so now, you're bidding against yourself. And the Seller may get to wait several offers from you.

At this point, in order to have a chance at the "upper hand", you need to offer them your max, tell them it's your max and give them 24 hours.

If you have any system whereby if it doesn't appraise you get all deposits back, great. Get the appraisal first and see what the value is.
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Old 10-30-2017, 04:50 PM
 
5,207 posts, read 2,371,678 times
Reputation: 9889
Quote:
Originally Posted by oldtrader View Post
What too many posters are not accepting, is the owner has rejected the offer, and is not interested it trying to get into a long term of negotiating. They are rejecting the offer, period.

Considering the comps the buyer is considering, some are a full year before, so they are worthless in determining the value of the property. The 10% difference between two sales, one a year ago, and one fairly current for apparently the same type unit property is a basic indication of the appreciation area home prices are taking.

Just because the potential buyer, wants to negotiate, does not mean the seller is even interested is such a thing.

This is particularly common, when the asking price is dead on as to the value. The seller does not have to sell. The seller is not willing to take tens of thousands less than the property will appraise for. It is no problem for the sellers to wait for an offer in the range they feel the property will sell for. They can take the OP offer and lose thousands, or they can wait and they will get the asking price. They were doing this 45 years ago when I entered the business same as they are doing it today.

There are two type sellers.

1: Price the home above it's true market value, to leave room for negotiating an offer, and still getting the price the home is worth.

2: Price the home at it's actual value, will not negotiate, and are waiting to sell for their price. They may as in this case, refuse to even return the offer which is their legal right. Not returning the offer, is rejecting the offer.

In my many years in the business, I most often placed property on the market for #2 type. We made sure the asking price was reasonable and fair for both parties, and stuck to that price. My sellers were upper middle class investors. Holding on to the property a month or two longer, did not hurt them in any way. They felt the price was fair, and were not going to take a big discount to make someone who wants to play the negotiation game happy. Some lived in Libya North Africa, and the other way as far as Malaysia. They bought the property to hold for the total return on invested dollars to be in a certain range. When they sold, they looked at holding it an extra month or two, as a better investment to hold for their price, than it was to discount the value and lower their total investment return and lose money as far as they were concerned.

I made a lot of sales with out of area buyers/sellers. To even talk to one of these investors, I had to ask his daughter who lived in the family home while her parents were overseas, when the parents called on Sundays, to call me. The father would take the company shuttle to London, and call me from there as he could not take business calls in Libya. He would fly in to London and call from there.

My instructions on sales was to, only accept full price offers (property was priced at true value) and have his daughter sign with her power of attorney (she knew what price she could accept which was full price). Closing papers, were sent to the companies offices in Houston, and a courier would take that along with their company paper work, to Libya, where he would sign and return via the same method. He may not see properties we bought for him, for nearly a year when he vacationed back home on his annual 30 day leave.

His orders to handle his sale properties, was to either let it just sit and die which is apparently what is happening with the OPs offer. OR----To take my big (great big 5'x7') stamp with huge type saying REJECTED surrounded by a heavy line all around the edge, and stamp with a bright red ink, and return that offer. That stamp, often got full price offers when the buyers realized we were not playing the negotiating game. I had written permanent instructions to handle any sales this way not only with that investor, but with numerous others.

We never went over 45 days waiting for a full price offer. The sellers saved many thousands of dollars, with this policy. We got sales mostly within 2 weeks of going on the market, so this policy worked for my clients benefit.

Too many people think, that they should make a low ball offer on any property they make an offer for, no matter how fair market the asking price is. They want to negotiate all property purchases. They wonder why like the OP is doing, why their offer is not accepted or received a counter offer.

They simply do not understand, that a lot of sellers have put a true market value price on the property and can afford to wait for a full price offer or above. They don't realize, that a lot of sellers do not have the spare time to waste it playing the negotiating game with several potential buyers. Putting a fair to both the buyer and seller price on the property, and not worrying about it until the right offer comes in, and signing it is their goal. My clients were business owners, executives with large companies, upper management in American Oil Companies doing business and living overseas, doctors, well established IT people with large corporations, etc. They hired me as their sole broker handling their accounts, to take care of things, and not waste their time on every offer especially the ridiculous ones.

OP---Accept the fact, that your offer is not acceptable to the sellers, and for all practical purposes is REJECTED. And their agent, is doing exactly what the sellers want them to do. If you want the property, quit trying to play games as the sellers are not interested in doing so.
It's too new on the market.

One I put an offer on in April or May...a good offer. It was new on the market. We countered a couple of times. The house had a couple of issues. But nice house, good location. It didn't work out. It's still for sale. I bought a different house. They didn't know a good deal when they saw it. I knew what I was offering was a good deal. Cash...I'll take your damaged floors and recent leak...you choose the closing date, etc. You want $278k, a few thousand above what others sold for in the prior few months (nicer houses, no damaged floors, no leak). I'll give you $272,500. Foolish people.

Another I put an offer on. It was overpriced. I made an offer. They countered almost near their list. I walked away. The agent later called me back, after the house lingered on the market. We finally made a deal close to my original offer. It didn't go through, though, cause it turned out to have a major defect. The house never sold.

I suppose it's human nature. When your house is new on the market, you're not ready to sell until you see how much you can get from at least two offers, unless it's for list.
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Old 10-31-2017, 01:24 PM
 
7,423 posts, read 6,284,076 times
Reputation: 15517
Quote:
Originally Posted by johngolf View Post
Nothing to do but wait for a reply. If not one within a few days, have your agent hound the seller.
If the seller is not interested in an offer you make, they are not interested and hounding them will not get them to change their mind. All it does, is make them disgusted with you, and makes it more difficult to get them to accept another offer from you.

If they are still making up their mind about your offer, start hounding them and they will just reject it every time.
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