Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm a first time buyer looking at a single family home that came on the market three years ago at 349K and is currently 245K. I placed an offer in April and after a few counters, we ended the deal 10K apart. (240 vs 250) Five months last the owners son (not the Power of Atty) called me at work and gruffly said if I want the house to resubmit my offer of 240K. I explained I couldn't and mentioned an increase in rates and down payment money allocated elsewhere. He became furious, confrontational and rambled on about the 8K tax rebate only to eventually hang up. As odd as that was, their Agent also called me and inquired about our conversation and sought my previous offer totally bypassing my Agent.
A couple weeks later I revisited the property and placed a offer of 230K, which they ignored / refused to counter. I tried to call the son and explain my offer which he became hateful and hung up.
Is offering 230K on a listing w/ 245K asking price -- on a vacant piece of property that's been on the market 3 years, insulting? I don't get it. I really want the property but can no longer afford the 240K offer I placed back in April. The difference in rates from then to now adds 21K to the life of loan. I can't afford that --but 230K I can. It seems I have offended the sellers POA and family. Is it justified? Was it an offensive offer?
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.
What you need to look at is the market and the market activity. What do the comps say? Do the comps say that $240k is a fair price? Do the comps say that $240k is still overpriced? Show them your comps to justify your offer, but you can't just say your offer is fair because the house has been on the market for 3 years. That makes no sense.
My motto is that I don't patronize people who dick me around. And you certainly got that treatment from the seller. So walk away or totally sell your dignity out.
I don't know what the sellers might have to say about all this. It's a shame that you & the sellers were only $10K apart and couldn't arrive at an agreement. It's too bad for both of you. It makes me wonder if there isn't plenty of hard heads on both sides?
I must agree with FalconheadWest. If the current comps support your offer you have something to talk about. However if they don't - stop this game. (& this sounds like a lousy game - a power pull, no fun at all)
you are being rational. you owe these people nothing. Make whatever offer you deem reasonable, and disregard there opinion. they are the other half of a business transaction. their feelings are irregardless
There are many sellers right now that feel that buyers don't deserve getting 8K in credit. I don't think it's any of their business. One of my sellers actually wanted to raise the sales price by 8K just screw around with a buyer that asked for assistance with closing costs. Thankfully, the calmed down after a few days.
You offer is very reasonable. Find another home if you don't want to deal with these people.
No, I think you were spot on. Its not even that rates changed (even though that is a factor). You were at 240k... months ago. They didn't want 240k. They wanted to gamble and wait for something higher.
Time is money. The market in that area might have fallen further. In essence, you called their bluff and they cracked. I think you did right in placing a 230k offer. Walk away and keep looking. They might wind up calling you back in a couple of weeks and want to accept it.
At that point, I would not be shrewd and lowball again. But, 5 months time between your last offer and their willingness to accept it? That comes with a price. If you really wanted to (depending on where you live), you could claim that your increased commuting costs since you were living further away (maybe?) and your rent (in which you were just burning money) was around $10000.
$10K difference in home prices means different things to people.
Some people think irrationally about money.
Financially, if a home is sitting empty, it's losing money. That's why I don't understand people haggling over such a small amount. Yes I do think $10K is a small amount with the 230K vs. 240K offer. Most people would agree with me. Especially with the depressed housing market and the motivation of the seller.
People lose sight of the big picture when such little money is involved. If they don't owe much on the mortgage, than maybe they have no need to be motivated...but they are still paying RE taxes and or HOA fees.
I know quite a few car dealers that routinely have folks walk out of the showroom over the price of a nice dinner...
If you decide you can't afford the house then you really shouldn't worry about offending someone; if they decide that your offer is worth accepting they might communicate that at some later date. Such a process probably won't be an occasion to develop long lasting friendships...
Aren't rates better today than they were in April? Just sayin..
F this seller. Offer what you are willing to pay TODAY and if they don't want to deal too bad. You owe him nothing. Your job is to pay as little as possible. He can sit and eat thousands more waiting due to spite/pride/stupidity. You call it what you want.
I would reoffer $225k and if no response $220k. But I am a jerk.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
