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Old 02-12-2019, 11:14 PM
 
Location: Wyoming Michigan
35 posts, read 11,537 times
Reputation: 39

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Quote:
Originally Posted by MeSoBe View Post
My concern with increasing the asking price is that the house may not be appraised at an increased price and their bank won't approve the lending.

I'm inclined to make up the difference in sellers concessions for closing costs.
The concern of a low appraisal is already in place right now. By that I mean that you could accept this offfer and it still could appraise low. The FHA loan process has an amendaory clause that is attached to the purchase agreement. Ask your agent what would be the next step should the home not appraise.

Again a bunch goes into this. I am not in your market or position to be 100% on this.
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Old Yesterday, 12:50 AM
 
Location: You call this living?
3,461 posts, read 1,405,192 times
Reputation: 8969
Hot market, less than full asking price? Wait to see if you get a better offer.
Not so hot? Negotiate.

We lived in an inconvenient area and expected a long listing, but got an offer the first day. We negotiated 2.4 percent under asking, 2 week closing (buyer was in a hurry), and we were out of there.
As it turned out, nobody else ever even came to look at the house.
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Old Yesterday, 12:52 AM
 
6,316 posts, read 3,522,344 times
Reputation: 13466
Quote:
Originally Posted by MeSoBe View Post
Do you take the first offer on a home?

Home was placed on the market Feb 7th. We received an offer Feb 11th. They are first time buyers using an FHA loan, asking for 5% toward closing and 1k toward any repairs. They offered the asking price.

There have been four showings to date with more two more scheduled as of this post. The whole thing has me wondering - is it ever a good idea to take the first offer?
I expect that you have a contract with a real estate agent that will pay in the area of five to six percent of the selling price for their expertise in advising you along the way due to their knowledge of your market, local tradition, experience and other factors unique to your situation. Why are you asking me, and others, to advise you for free about something nobody here really knows any of the specifics about?
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Old Yesterday, 02:57 AM
 
5,414 posts, read 2,447,115 times
Reputation: 13818
With minimal experience in being the seller....My spouse and I took the first offer.
No regrets . We knew the Buyer . No haggling. Fair price .
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Old Yesterday, 06:23 AM
 
Location: Mooresville
5 posts, read 1,067 times
Reputation: 10
I would counter the offer and not pay the 5% of closing costs. The offer is just that, an offer to be negotiated by both sides. You will end up negotiating with anyone who makes an offer, so have your realtor write up a counter and see if you can get the buyer to where you need to be. If you can't negotiate the deal to make it work for you, don't accept it and wait for another offer.
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Old Yesterday, 07:00 AM
 
Location: Cary, NC
32,354 posts, read 56,567,854 times
Reputation: 31061
1. "Pigs get fat. Hogs get slaughtered."

2. There is an old real estate cliché:
"Your first offer is usually your best offer."
It isn't always true. Not by a long shot.
But, refer to Item 1.
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Old Yesterday, 07:14 AM
 
10,270 posts, read 7,871,562 times
Reputation: 25259
Quote:
Originally Posted by MeSoBe View Post
Yes, you are right. I was concerned about FHA financing being clunky, taking too long and requiring lots of minute repairs.
FHA doesn't take any longer. If your home is in decent shape, they won't ask for needless repairs.

You didn't have a rough idea of what your house would appraise for before you put it on the market?
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Old Yesterday, 08:10 AM
 
Location: Williamsburg, VA
2,560 posts, read 1,125,999 times
Reputation: 6173
They are offering $1K toward repairs, without doing an inspection? Is that common in your state? Or will there be extra charges once they see the inspection report?
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Old Yesterday, 08:44 AM
 
Location: Raleigh NC
8,364 posts, read 6,568,992 times
Reputation: 7483
^that does seem odd, as does 5% in closing costs (at least in my market!)

It's definitely worth countering.
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Old Yesterday, 08:47 AM
 
Location: Kansas City North
3,755 posts, read 6,985,321 times
Reputation: 5011
Our first offer (on day 2) was laughably a lowball and contingent on the sale of their home, which they didn’t have on the market yet! We countered $2,500 under asking and no contingencies. Never heard from them again. Got much more realistic offer on day 10, which we took after a couple back and forth negotiations.

When we were selling a different house in 2009-2010, we took first offer (after being on the market for 15 months) without any negotiation. It was pretty close to our then-asking price (which was much lower than the price we originally were asking).
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