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Old 02-13-2019, 09:10 AM
 
206 posts, read 360,273 times
Reputation: 240

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Quote:
Originally Posted by MikeJaquish View Post
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.
These two points stay on my mind and are the basis for the question. The first being them, the second being me. You hear the first one so often I wondered what it was based on.


Quote:
Originally Posted by charlygal View Post
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?
It's possible but we were in a middle of a cross country move late last year and negotiating new job packages. It was a stressful time. We had a packet of materials but can't find them now.

Fortunately the house is in great shape and in a great neighborhood.

Quote:
Originally Posted by Piney Creek View Post
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?
They want $1k toward repairs. 5% toward closing costs.With a closing date in the middle of next month. We sent them a counter offer and we will see.

The house will sell. I am certain of that.
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Old 02-13-2019, 09:34 AM
 
Location: BNA
462 posts, read 246,192 times
Reputation: 1139
They want $1k towards repairs pre-inspection? You’re opening a can of worms against yourself by accepting such an offer.
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Old 02-13-2019, 09:52 AM
 
206 posts, read 360,273 times
Reputation: 240
Quote:
Originally Posted by Xelfer View Post
They want $1k towards repairs pre-inspection? You’re opening a can of worms against yourself by accepting such an offer.
We didn't. I guess they were throwing stuff against a wall to see what would stick.
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Old 02-13-2019, 10:57 AM
 
Location: Raleigh
7,602 posts, read 5,613,261 times
Reputation: 10477
Quote:
Originally Posted by MeSoBe View Post
These two points stay on my mind and are the basis for the question. The first being them, the second being me. You hear the first one so often I wondered what it was based on.
A hog referrs to a pig in excess of 120 lbs typically bred for slaughter. At a certain point, it isn't "worth" feeding the animal anymore because the farmer has to pay for progressively more feed for progressively less yield. The ROI for the inputs diminishes. So, to the market (and slaughterhouse and meatpacking plant and Grocery Store Shelves) he goes.

In your situation, being a "hog" would mean that your either unmoving in your purchase price, or concessions during the process, basically greedy, that you don't get to the closing table. Basically, the house isn't worth the price you demand or terms you insist on, and the buyer moves on.

Quote:
Originally Posted by Xelfer View Post
They want $1k towards repairs pre-inspection? You’re opening a can of worms against yourself by accepting such an offer.
How so? They're asking for $1K less that they have to bring to the closing table. "repairs" could mean repairing the mulch that's worn thin in front of the walkway.

Anyhow, I think examining "rules" like "don't accept the first offer" or anything of the like distract people from the true question: "Is this offer for the amount that we think the house is worth in the open market" and "Is the offer strong enough outside of the price that we think we'll get to the closing table reasonably." Its kind of like, "Should I kiss him on the first date."
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Old 02-13-2019, 10:59 AM
 
Location: N of citrus, S of decent corn
35,905 posts, read 44,058,075 times
Reputation: 59630
If your house has been on the market for 3 years, you do. LOL
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Old 02-13-2019, 11:06 AM
 
Location: North Idaho
21,540 posts, read 26,976,143 times
Reputation: 40890
FHA and they want closing costs paid and repairs paid. ... These buyers don't have any money. None at all. This could be a difficult closing.


On the market 5 days before an offer, market isn't smoking hot, but that is a pretty quick offer.


Can you stall them off for a couple of days to see if any other offer comes in?
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Old 02-13-2019, 11:52 AM
 
Location: Cary, NC
32,367 posts, read 56,580,082 times
Reputation: 31078
Quote:
Originally Posted by oregonwoodsmoke View Post
FHA and they want closing costs paid and repairs paid. ... These buyers don't have any money. None at all. This could be a difficult closing.


On the market 5 days before an offer, market isn't smoking hot, but that is a pretty quick offer.


Can you stall them off for a couple of days to see if any other offer comes in?



Lots of closings are hard, whether the buyer is broke or well-heeled.
The interesting question is whether these buyers have credit and cash flow to cover PITI.
If yes, the OP needs to dance a bit, but, yes, keep looking around for another buyer.
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Old 02-13-2019, 01:56 PM
 
Location: Northern panhandle WV
2,916 posts, read 2,003,539 times
Reputation: 6303
I don't see why it matters if it is the first offer or the tenth, if it meets your requirements then accept it, if not then reject it.
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Old 02-13-2019, 02:13 PM
 
473 posts, read 1,058,858 times
Reputation: 340
Quote:
Originally Posted by oregonwoodsmoke View Post
FHA and they want closing costs paid and repairs paid. ... These buyers don't have any money. None at all. This could be a difficult closing.


On the market 5 days before an offer, market isn't smoking hot, but that is a pretty quick offer.


Can you stall them off for a couple of days to see if any other offer comes in?

yup! classic case of them having no money
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Old 02-13-2019, 03:14 PM
 
Location: Florida -
8,578 posts, read 10,388,530 times
Reputation: 16085
You said you made a counter-offer already (?) - I might have suggested raising the price by $4K and agreeing to pay the closing costs ... in the event their reasoning was a lack of funds to pay the closing costs. Otherwise, an offer that close after only 4-days is worth pursuing and negotiating a little.

(Many folks list their homes at least 5-percent above what they are hoping for, in order to leave a little room to negotiate a slightly less than full price offer. Is that you?)
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