What to do? (for sale, foreclosure, mortgage)

[Sweetie_9]

We made an offer on a house, 20k less than asking price, hoping that they will ask for 10K more. But they completely refused the offer asking for the whole price. We though it was a fare price due to houses prices on the area.
I honestly don't think the house is worth the whole price, so that is out of the question. Should I offer 10K more even though they want the whole price? Or this is a tactic sellers use?

Please give your opinions.

[rider80]

Thats up to you. Do you really want this house now, or can you wait to see if they'll budge? It's a waiting game and if the house is not worth asking price then I would hold out until they give in. Again, thats all up to you if you think that this is the house that you want.

[mingus]

If you truly don't think the house is worth the asking price and with the large number of houses for sale, I'd walk away and look elsewhere.

[Sweetie_9]

Thanks for your replies, as a first time home owner I don't want to make a mistake. The sellers bought the house for 80k less than asking price in 2003, that is why i think is a little expensive. What is your opinion?

Thanks again

[jobrien79]

You really can't go just by what they paid in 2003. What condition was the house in then, what improvements were made, etc. Maybe it was a foreclosure then, or a divorce sale, etc. Who knows.

If you are using a realtor they should be able to give you comparison prices on similiar houses that sold in the past 3-6 months. That's the most realistic way to figure the current value. AFter the contract, the bank or mortgage company will do an appraisal, and that will be the important value to you.

Good luck.

[elflord1973]

Originally Posted by Sweetie_9

We made an offer on a house, 20k less than asking price, hoping that they will ask for 10K more. But they completely refused the offer asking for the whole price. We though it was a fare price due to houses prices on the area.
I honestly don't think the house is worth the whole price, so that is out of the question. Should I offer 10K more even though they want the whole price? Or this is a tactic sellers use?

Please give your opinions.

The only thing that matters as far as price is concerned, is sold comps.

If you have a buyers agent, then your buyers agent should be able to send you the full listings of recently sold places. If you don't have a buyers agent, you should get one.

I think if the seller doesn't counter and they don't have any offers on the table, that's bad negotiating on their part. Since they've made it clear that they are not willing to sell it at its market value, I think you should walk away.

It doesn't hurt to walk -- if the place is overpriced, it's not going anywhere if you walk away and look at other places. Who knows, they might come to their senses and either call you or lower their price.

PS I had exactly the same happen to me recently. I walked away, which was hard to do because I liked the place, and my very picky wife loved it. But if the person listing it isn't serious about selling the place, there's no point wasting more of your time.

[AntoinetteNJ]

Hi Sweetie,

Has a comparative market analysis been run on the subject house? What have similiar homes sold for in the past six month? The past nine months? The price needs to be justified by recent sales of similar homes or it won't appraise. Good luck with your decision.

[luckyshoes]

Originally Posted by Sweetie_9

We made an offer on a house, 20k less than asking price, hoping that they will ask for 10K more. But they completely refused the offer asking for the whole price. We though it was a fare price due to houses prices on the area.
I honestly don't think the house is worth the whole price, so that is out of the question. Should I offer 10K more even though they want the whole price? Or this is a tactic sellers use?

Please give your opinions.

Yeah, they might be angling to meet in the middle at 10K more.

If you're ok with paying 10K more, if the house is worth it to you, then go ahead. That's really all that matters.

Not sure what % 80K is, but that asking price does sound high versus 2003, unless they have done something really big in terms of renovations.

[joe moving]

What kind of person expects full price on a house in October of 2009? Nobody prices their house this way unless they are expecting a bidding war.

However, I would not let this get personal. Don't worry about 2003, worry about yourself and 2009. Is the house perfect for you and will it be perfect for 10+ years to come.

For my wife in I, in my senses, 20-25k would have bought us a house we would be much happier in. I would give up in an INSTANT if I could go back and change it.

[Sweetie_9]

Thanks to all.

We found out that similar houses near by, recently sold for 40K less, so we are not making a second offer.

It was our first offer in a house, so we had high hopes. This definitely is a learning experience.