Do you take the first offer on a home? (feedback, appraised, 5%)

[MeSoBe]

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?

[charlygal]

The FHA thing shouldn't matter. Can you clear what you want to clear with the offer at hand?

[MeSoBe]

We'd be 4k shy.

[MLSFan]

sellers tend to get more by waiting for more offers, but you risk other side pulling offer since they find something else

the agents favor quick sales because they are salesmen and that's where they get their money.

[GrandRapidsNative]

Why not just have your agent negotiate the offer up? I dont know what your real estate market is like but in mine, we typically do not take lower than list price in the first few days. Are you in a cold weather climate? That can change things also

[emm74]

So counter back. They aren't offering asking price, they are offering 5% plus 1K UNDER asking.

[MeSoBe]

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.

[MeSoBe]

Originally Posted by emm74

So counter back. They aren't offering asking price, they are offering 5% plus 1K UNDER asking.

Yes, you are right. I was concerned about FHA financing being clunky, taking too long and requiring lots of minute repairs.

[AlaskaErik]

In the Bay area...no. In rural North Dakota...yes. All depends on what the local market is like.

[GrandRapidsNative]

Originally Posted by MLSFan

sellers tend to get more by waiting for more offers, but you risk other side pulling offer since they find something else

the agents favor quick sales because they are salesmen and that's where they get their money.

Actually it is my recent experience that a Sellers ability to get more for the home happens in the first week of the listing. At least in my market with average sales price and below homes which I am asuming is the case here. If you have a great real estate agent they should explain this to you. Especially in a Sellers market I would not come off my list price very much in the first week. I dont know your market but in Grand Rapids Michigan a first time homebuyer priced home usually recieves several offers on the property in the first week. This is the biggest Sellers Market I have seen in our area.

Despite popular belief that Agents are only interested in a paycheck, most of us actually want the best for our clients. As a home sits on the market in a sellers market and weeks pass by, the buyers are actaully wondering why it is still on the market and whats wrong with it. Time on the market works mostly against the favor of the seller.

To the OP. Have your agent explain the market conditions to you if they have not already. Ask what the feedback was on the showings. There is so much more I would need to know to answer this with more certainty.