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My husband and I have put down an offer for a house in bedford ,which is sale by owner, it is accepted by the owner.
We were in market for past 6 months and were looking in properties in Arlington, Winchester but inspite of putting our offer 60,000 over asking we were loosing the bid there.
It was our first property in Bedford and we liked it, as it was meeting our criteria, but we gave again 25000 over asking as an offer, Owner was ready to counter offer but then also we gave that much, it got accepted now.
Now we are thinking if it is a good deal, as we didn't explored Bedford that well before. We still have inspection and Apr raisers pending. So how can we negotiate with the seller on the price? as we feel without agent it is a profit from seller end and we could also have saved some 10-12 k on it as we went above 25 k asking price.
Please advise on the Bedford area for living and also the way to negotiate with Seller after inspection and appraisers
if your offer was already accepted then you can't go back and change it unless issues come up in the inspection. If major issues come up in the inspection than you can negotiate a price reduction. If the property does not appraise at sales price than you can ask seller to reduce the price to what it appraised for. Hopefully your offer stated that it must appraise at sales price because if it does not include that language you may have to pay the difference.
Little too late to try and renegotiate the price after having your offer accepted. Only opportunity to do that now is if some issues come up during the inspection, or the appraisal comes in low.
Bedford is a nice town. Unsure of your expectations, but property values tend to be high and reflect the quality of the homes there. Lots of business and tech in the area, as well as the location tend to be other reasons why there is perceived high value.
It may not appeal much to a 20-something year old single as it lacks a nightlife.
Bedford is a terrific community with a very hot housing market. I work with several people who live in Bedford and they are all very pleased with the town.
Regarding your negotiations, as mentioned above, depending on the findings from the home inspection, you can try and negotiate concessions from the seller.
I wouldn't worry too much about $25,000 +- on a house in Bedford. I'm betting that represents less than 5% of the total purchase price.
My husband and I have put down an offer for a house in bedford ,which is sale by owner, it is accepted by the owner.
We were in market for past 6 months and were looking in properties in Arlington, Winchester but inspite of putting our offer 60,000 over asking we were loosing the bid there.
It was our first property in Bedford and we liked it, as it was meeting our criteria, but we gave again 25000 over asking as an offer, Owner was ready to counter offer but then also we gave that much, it got accepted now.
Now we are thinking if it is a good deal, as we didn't explored Bedford that well before. We still have inspection and Apr raisers pending. So how can we negotiate with the seller on the price? as we feel without agent it is a profit from seller end and we could also have saved some 10-12 k on it as we went above 25 k asking price.
Please advise on the Bedford area for living and also the way to negotiate with Seller after inspection and appraisers
Thank you
Your "out" is the bank appraisal which is implicit in the mortgage contingency. If the bank appraisal comes in below the agreed upon selling price, you can either (A) walk away, because the bank will not give you a loan of $XX based on whatever % your down payment was, meaning the mortgage contingency is triggered or (B) renegotiate the selling price down with the Seller. Sometimes, especially if you think you overpaid, the Seller may also choose to negotiate down rather than put the house back on the market, and risk the same thing happening again with another Buyer.
Interestingly under the new mortgage rules, the appraiser is an independent 3rd party who (in addition to pulling the usual comparatives) interviews the Seller's listing agent to have him/her justify the selling price. I didn't realize this until we ourselves bought our house in MA within the past year. It does seem like this practice acts as a safeguard against overpaying. Plus, in this market, that too in Bedford, unless you sell in less than a year, you will no doubt come out ahead despite the $25K premium.
It's irrelevant now, unless some contingency specifically mentioned in the contract is not met.
Bedford is nice. It's further out than Arlington and Winchester. For my personal taste, Bedford is too far from the city. But I know some people who absolutely love it.
Even at $25K over ask, I wouldn't bank on the appraisal coming in low. I've seen a number of peers/family/etc sell and buy their home these past 2 years in a "hot" area, and every one hit their appraisal number. My parents sold their home last fall and received an offer of $55K over asking. I personally thought this was high, and was worried about it failing to meet that number, but sure as hell the appraisal came right in at that price.
Now, that is all my personal experience and not a reflection of what others may see.
Even at $25K over ask, I wouldn't bank on the appraisal coming in low. I've seen a number of peers/family/etc sell and buy their home these past 2 years in a "hot" area, and every one hit their appraisal number. My parents sold their home last fall and received an offer of $55K over asking. I personally thought this was high, and was worried about it failing to meet that number, but sure as hell the appraisal came right in at that price.
Now, that is all my personal experience and not a reflection of what others may see.
The appraisals are a joke. As long as you don't offer twice the asking price the appraisal should come back just close enough to meet the target.
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