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We viewed a home yesterday that we really liked,the selling agent on arrival at the home told us the seller had that day reduced the asking price by $20,000. After speaking to our realtor this morning, prior to making an offer, he went over the comparables with us,and the comparables showed that the house we love is vastly over priced.We made an offer what we thought was fair, the selling agent got back to our realtor to inform us there's another offer in, that she has not got hold of the sellers as yet, but was going to advice them to ask both party's making the offer to submit their best offers.
I am having a hard time believing after this home has been on the market for 145 days, that on the same day it's reduced by $20,000 it gets 2 offers on it, and a hard time that the selling agent is doing this in a buyers market, is this normal practise ?, this will be the 4th home we would have owned if we get it, we have not been faced with this before. The market it is pretty much dead in this town. We were going to offer close to the reduced asking price until we saw what the comparables were selling for.
Any advice on how we should take it from here would be great thanks
It happens. You can gamble if you aren't attached to the home and hope there is no other offer or yours is better. If you must have the home offer what you're willing to pay.
Takes a lot of self discipline when you really want a house and fear you might lose it, but I would probably make the offer I felt was appropriate as if there was no other competition for this house.
We had a similar situation. We really wanted the home, but made an offer based on what we felt it was worth. We were informed before even leaving the realtor's office that another offer had come in and did we want to change our bid. We called their bluff, held firm. The seller accepted the other offer, we took our marbles and looked at another house. And it turned out we are glad we did not have an accepted bid on the first one. Oh, and the "winning" bidder didn't buy the house either we found out, they didn't get the mortgage.
You might lose the house to another bidder. Oh well, there's another house.
We are getting into the selling season and here there is a lot of buyer traffic. Manytimes lowering the price $5-10k hits the magic number where it compared to others becomes a pretty good deal.
I've seen houses sit on the market for months and with a small price adjustment along with a lower selection of homes to choose from the house becomes the best deal available and multiple offers are made.
I agree with Brandon but would suggest you have in your offer that the house must appraise at or above the price you offer. It's not unusual for there to be more than one offer when there is a large reduction in price.
Thank's for your replies. I think you are both right. I cannot understand why the selling agent is doing this, when our offer is above the sale prices of the comparables.
Because the listing agent works for the seller..it's in the seller's interest to call for best and final. By the way, if the other offer is accepted you can always submit your offer as a back up while you keep looking around.
Thank's for your replies. I think you are both right. I cannot understand why the selling agent is doing this, when our offer is above the sale prices of the comparables.
But below the asking price. Sometimes Sellers and their agents think their homes are worth more.
Also, there can be a wide range of comparables depending on updates, location, etc. You may be picking low comps and they are picking higher comps feeling their house might be comparable to the better homes.
So just confirm your offer and you will it will either be accepted or not. That may happen with both if the owner thinks they are too low,. It is what it is basically.
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