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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?
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?
The worst that can happen is they come back with a counter offer. You did put a time limit on your offer, correct? If not why not? Don't worry, many delay as long as they can with either accepting or countering (expect a counter) in order to make you anxious and more willing to compromise. The worst you can do is to let them know you are worried.
What condition were the sold homes in vs your selected house? Granite or quartz counters in kitchen/baths, updated flooring and fixtures? Stainless steel appliances, fresh paint, updated windows? Same type of lot terrain, size and views? Same street frontage, with similar homes around it or is one of those homes across from a business or back up to a business? Same school district?
A lot more goes into price than just sf. In a hot market, on a new listing I'd be leery about an offer that's 20k below asking plus asking for another 5-10k in closing costs. Most homes just listed are going to get a lot of activity, so they usually won't take such a low offer. And if the mkt is hot, another offer is likely to come in,so you may just scare the seller into taking the next offer that's a little higher.
What condition were the sold homes in vs your selected house? Granite or quartz counters in kitchen/baths, updated flooring and fixtures? Stainless steel appliances, fresh paint, updated windows? Same type of lot terrain, size and views? Same street frontage, with similar homes around it or is one of those homes across from a business or back up to a business? Same school district?
A lot more goes into price than just sf. In a hot market, on a new listing I'd be leery about an offer that's 20k below asking plus asking for another 5-10k in closing costs. Most homes just listed are going to get a lot of activity, so they usually won't take such a low offer. And if the mkt is hot, another offer is likely to come in,so you may just scare the seller into taking the next offer that's a little higher.
House that sold for $380K didn't have an island like this one does, but it seemed to have some sort of granite on their counter top (unlike the one we put an offer in). It also had an extra bedroom and an extra half bath. It has a smaller deck, and I can't tell based on pics/description if it has a walk in closet. But it has the same shower/tub set up. That was about 1,990 square feet.
The one that sold for 400K was about 2,000 square feet, it was also an end unit as opposed to it being an interior like the one we put an offer on. Deck looks similar, 4 beds, 3 full baths, 1 half bath, two car garage. No granite. I can understand why this went for $20,000 more because it appears they put a premium on it being an end unit.
I couldn't find pics of the one that sold for 385 earlier this year but it was slightly bigger and has an extra half bath.
All of these homes are in the same school district, same townhouse community so it's the same set up, 1 car garage, driveway, high ceilings, etc.
So that's where our offer is coming from. Not only is this home smaller, it's also got one less room and half bath than the others but yet it's priced at 425? Eventually we'd like to put granite on the counter tops and maybe get a stainless steel fridge. Other than that, it's move in ready. But I'm not seeing the extra 30K.
As far as contact, e-mail/voicemail. Didn't help that it took almost 3 days to get back to our agent to answer if the house was even still available.
Regardless of how logical your thinking may be, there are few binding requirements when it comes to real estate offers and negotiations. One thing that matters more than appraisals, comparable units and almost everything else ... is a fixed response time on your offer.
Given the hot market and 9-day listing time you describe, your sellers might want to sit on your reduced, open-ended offer for a few showings to see if they get a higher offer ... before countering or accepting.
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?
9 days on market at time of offer, asking the seller to take 30,000+/- less than their list (depending on how much you asked for in subsidy).. doesn't surprise me you haven't heard anything..
Did your agent atleast back up your offer with an explanation at the price you arrived at (showing the other comps)?
House that sold for $380K didn't have an island like this one does, but it seemed to have some sort of granite on their counter top (unlike the one we put an offer in). It also had an extra bedroom and an extra half bath. It has a smaller deck, and I can't tell based on pics/description if it has a walk in closet. But it has the same shower/tub set up. That was about 1,990 square feet.
The one that sold for 400K was about 2,000 square feet, it was also an end unit as opposed to it being an interior like the one we put an offer on. Deck looks similar, 4 beds, 3 full baths, 1 half bath, two car garage. No granite. I can understand why this went for $20,000 more because it appears they put a premium on it being an end unit.
I couldn't find pics of the one that sold for 385 earlier this year but it was slightly bigger and has an extra half bath.
All of these homes are in the same school district, same townhouse community so it's the same set up, 1 car garage, driveway, high ceilings, etc.
So that's where our offer is coming from. Not only is this home smaller, it's also got one less room and half bath than the others but yet it's priced at 425? Eventually we'd like to put granite on the counter tops and maybe get a stainless steel fridge. Other than that, it's move in ready. But I'm not seeing the extra 30K.
As far as contact, e-mail/voicemail. Didn't help that it took almost 3 days to get back to our agent to answer if the house was even still available.
Don't sweat it, continue looking. If, indeed it is not worth even the $405K you offered from the bank's perspective, these people may not negotiate and you'll end up wasting your time when you could have found something else. I take it you didn't put a time limit. Next time give 24-48 hours to respond unless an agent tells you the seller is out of pocket (i.e. on vacation or something and can't respond in that time frame).
With your offer beeing approx. 30K under the asking price, it would be unusual for a seller to not have just let your offer sit, and wait to see if there is a better offer. Waiting that time frame shows, your offer may not even be under consideration.
How long ago, were the sales you used for comparison. If they were not fairly current, they may be behind the price trend in the local area.
Example: In our county, the county assessors office who has track of all sales in the area, to know if prices are increasing or decreasing. This past year, they found that single family home prices increased an average of 12.5%, with a steady price increase throughout the year. Sales made 6 months ago, or a year ago, would be behind the current market value of the property.
When you say one home sold earlier this year, and no such reference for the time frame for the other sales, it is impossible to tell if those sales were current values or 6 month ago values, or a year ago values. Those prices may or may not be currently good price comparisons for determining the value of the home you want to buy.
With your offer beeing approx. 30K under the asking price, it would be unusual for a seller to not have just let your offer sit, and wait to see if there is a better offer. Waiting that time frame shows, your offer may not even be under consideration.
How long ago, were the sales you used for comparison. If they were not fairly current, they may be behind the price trend in the local area.
Example: In our county, the county assessors office who has track of all sales in the area, to know if prices are increasing or decreasing. This past year, they found that single family home prices increased an average of 12.5%, with a steady price increase throughout the year. Sales made 6 months ago, or a year ago, would be behind the current market value of the property.
When you say one home sold earlier this year, and no such reference for the time frame for the other sales, it is impossible to tell if those sales were current values or 6 month ago values, or a year ago values. Those prices may or may not be currently good price comparisons for determining the value of the home you want to buy.
Let's see...
Home that sold on 10/31/2016: $380K. 4 bedrooms, 3 full baths, 2 half baths
Home that sold on 11/30/2016: $400K. 3 bedrooms, 3 full baths, 1 half baths. End unit w/2 car garage
Home that sold on 5/1/2017: $385K. 3 bedrooms, 3 full baths, 1 half bath
Home that closed on 10/5/2017: $440K. 3 bedrooms, 3 full baths, 1 half bath. End unit w/2 car garage. Stainless steel appliances, granite counters, new hardwood flooring, the works. It was listed originally at $465.
Maybe we should have gone in at 425K and let the appraiser figure it out, but how would we know if the listing agent isn't getting back to us.
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