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LOL. OP, if I were in your shoes, I would have told the son to **** off when he called me 5 months after the last round of negotiations. He should have come to you begging for your last offer, and he has the nerve to insult you?
Just another bitter, delusional seller that should have negotiated a deal the first time around and was very much in the wrong to even call you months down the line. Now his or his parents' house has gone unsold, stagnates, and continues to lose value. He doesn't know your situation, so how dare he mouth off to you? Unbelievable.
You had every right to throw the previous negotiations and offers out the window and start anew, and decrease your offer. Hell, if it was 2005/2006, and you had backed out as they did, then come back 6 months later when the property's "value" had gone up magically by 10 or 20%, would you have asked for (demanded) their previous final selling price? Would you have been angry at them if they had refused?
You didn't have a deal 5 months ago. Too bad for them, they should have signed it or perhaps negotiated to the middle at 245K.
Now they will probably lose the house, and you might be able to get it for under 200K. Too bad, so sad for them!
I sincerely hope that any of the charitable folks who've posted their delightful missives on pleasant deal making are treated to the pleasure of sitting across from their mirror image when the tables are turned...
By definition, the house is worth what you buy it at. Period.
I've even offered money on a house over the period of 5 months.
Nice place, I really wanted it. I'd offered $150, expecting to go to $180.
No response
Months later I offered $170, take it or leave it.
No response
So I was a real bastard. I knew they had two kids in private school. I found out when the school sent out it's bills. Waited 48 hours after I knew they got the bill. Then made an offer for $172K, take it or leave it.
They took it.
Beat that for Jerkyiness.
Oh yeah, 6 years later I sold it for $445K
(I sold it to even bigger jerks, but that is another story)
First, your rational that the price adds $21k to the life of the loan is meaningless because are you really going to stay in your house for 30 years? Plus, there's this thing called bi-weekly payments or just making one extra payment a year will knock off around 7 years of interest, so you can't use that as an excuse.
The difference in payments is probably less than $40 a month. If you really want the house, can you not eat at home once or twice more a month instead of eating out for that $40? So, again, that's just another "excuse" you've convinced yourself of.
First of all, thank you to everyone who replied to my post. Your insight and advice has been greatly valuable.
Falcon.....yes, actually I do plan on staying in the home 30 years if possible. Unlike many, I want to wait, find the house in the location I want, and stick with it. I'm more apt to pay the loan off early before I would move. Additionally, I don't want to corner myself into limiting my personal habits (eating out) to finance my home. I want a home and the added responsibilty of home ownership, not a reason to not do what I want.
I work with people who cannot eat lunch with everyone else because they are living "hand to mouth" and have to pack their own sandwich. I swore I'd never get myself into that position. Heck...maybe that's why I'm a 36 year old first time home buyer.
Aren't rates better today than they were in April? \
Actually, no. Back in April I had bought down a point and was setting with 4.5% on a 30 year fixed. Now I'm at 5.0% but can buy down to 4.875% for several hundred dollars.
Well, just an update here. I called and spoke to their Agent again. I figured it was OK for me to do this since she had called me directly (bypassing my agent) first. I found out some interesting information, some of which I already knew.
The Power of Atty is powerless and all decision making is being made by his Wife (daughter of owner) and a Son of the owner. Son is a odd ball what lives in the desert and has been known as hateful and gruff by neighbors and all parties involved. The Agent believes he is the problem and truly thinks the house is worth beyond 340K. Apparently he relates the value with what his deceased father told him it was worth while he built it, etc, etc. Here is the really odd part.........The Seller (POA, Daughter & Son) dislikes me because I refused to resubmit my offer after they approached me with "hat in hand". They viewed it as, "screwing around" . "insulting" and trying to "nickel and dime" them.
It's hard to get a comp. for this area, because it's on a private lane and area homes are either 350K+ or 170K ranches. Additionally this is the only home on the lane that has a private pond.
I left the conversation with the Agent by me basically saying, "If you want to sell this house, if they want to sell this house, my offer of 230K will stand for one week." I offered to close during the Thanksgiving Holiday season to better facilitate their 1,500 drive / work schedule. And that's honestly call I can do.
I was told long ago, "Don't make home buying personal, as you lose the ability to negotiate". I came up with my max, re-evaluated it as time passed and won't go above it....period.
The seller should drop his price and see if someone else is willing to pay that much. They seem to have forgotten that you arent the only buyer and for at least one person this house has value. You are being stubborn at the risk of losing the home you like. I've had buyers like you and they often end up with nothing. They try to squeeze the last dime out of a deal and when that doesnt work they get less house than they wanted because what they wanted passed them by.
I presume they have it priced at 250 k now. they should drop it to 242 and see if it stirs the pot any. They have nothing to really lose. With the present drop in interest rates your argument is out the window as of 10/8/09.
Actually, no. Back in April I had bought down a point and was setting with 4.5% on a 30 year fixed. Now I'm at 5.0% but can buy down to 4.875% for several hundred dollars.
You are being stubborn at the risk of losing the home you like. I've had buyers like you and they often end up with nothing. They try to squeeze the last dime out of a deal and when that doesnt work they get less house than they wanted because what they wanted passed them by.
Well, I see your point but I've got a few of my own. For me, the concern about the difference of 10K on a loan with a interest rate spread of 4.5 to 5.0 isn't squeezing a dime. It's anywhere from 16K to 21K on the life of the loan depending upon rate fluctuation. I'm also factoring in roughly 15K of repairs (new roof, rehab cedar siding, leaking pond, shed repair) that will need to be completed in the first four months of ownership.
Stubborn indeed, but I'm prepared to lose it and know it isn't the only home on the market I'll like. I'm renting a great home with acreage for nearly nothing and saving tons toward a higher down payment. But I will lose the 8K soon and who knows what the future holds for rates / home values.
Quote:
Originally Posted by AONE
I presume they have it priced at 250 k now. they should drop it to 242 and see if it stirs the pot any.
This home came on the market nearly three years ago at 349K. It's then went down to 329K, 299K, 279K, 269K, 259K and most recently 245K. I'm told from a neighbor that they have received two offers on the home. 240K years ago which they refused and mine. The style of this home, acerage and pond only attracts a certain type of buyer and I guess I'm one of them.
Quote:
Originally Posted by AONE
With the present drop in interest rates your argument is out the window as of 10/8/09.
Eh, nonsense. In early April I had 4.625 and was able to buy down a point (for several hundred dollars) to 4.5. That's what I based my final offer on. 4.5%! As of this minute, Wells Fargo is advertising for my area 4.875 with a full point applied. Bank of America is even higher than that. The difference in those numbers is, to me, serious money.
Don't take this personally. Just throw out your offer...and hang-up on anyone who is rude.
I've seen so much unprofessionalism on the part of sellers and realtors alike since the bubble burst.
The fact is, many don't have a roadmap for the "Buyers Market" and it's exposing the inept business aptitude of the so-called realestate professionals'.
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