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Just to play devils advocate, your husband really doesnt' want to move, and is in your ear that this 'dream house' of yours is priced wayyy too high but he 'would move' if they accept an huge price cut that they obviously aren't going to do.
Just to play devils advocate, your husband really doesnt' want to move, and is in your ear that this 'dream house' of yours is priced wayyy too high but he 'would move' if they accept an huge price cut that they obviously aren't going to do.
I've seen that situation a time or two.
It really IS overpriced. I was an appraiser. I know how to read comps.
He would move for the right price. He just hates change. He thinks the house is beautiful.
I told him he can go to work in the morning one day from our old house and come home that night to the new one and I will take care of the rest.
You love a home so much, you are working hard to get a seller that does not want to sell at a price you want to pay, to sell it at your price. The seller will sell if they can get their price. You are willing to buy, if you can get the home at your price, which by now you should realize is not going to happen.
You and the seller have different ideas as to the value of the property. You are working with old comps, which are worth nothing, in today's market.
You by now, should realize that the seller is just not going to do it, no matter how much you beg and keep making what he seller calls crazy low offers.
The more you keep pursuing your lost cause, the more the seller will dig in their heels, and reject your offers.
SOLUTION: Pay for an official appraisal on the property to get a true current value. If the appraisal is anywhere near your estimate, it can be used to get the seller to sell at that price if it is properly presented. This is a tactic I have used numerous times over the years.
But be willing to pay the appraised price, if the appraisal is higher than you think it is.
How to do it. Write a firm offer that you will buy at, and the seller will sell at, the amount to be the appraised value of the property. The appraisal to be ordered by the lender who will make the loan if you buy.
Sometimes you get a real boost, when the appraisal is down around the price you want to pay. Sometimes you find that the appraisal is a lot higher than you want too pay, but you know you got the property at it's true value.
You are working with old comps, which are worth nothing, in today's market.
You by now, should realize that the seller is just not going to do it, no matter how much you beg and keep making what he seller calls crazy low offers.
The more you keep pursuing your lost cause, the more the seller will dig in their heels, and reject your offers.
SOLUTION: Pay for an official appraisal on the property to get a true current value. If the appraisal is anywhere near your estimate, it can be used to get the seller to sell at that price if it is properly presented. This is a tactic I have used numerous times over the years.
But be willing to pay the appraised price, if the appraisal is higher than you think it is.
How to do it. Write a firm offer that you will buy at, and the seller will sell at, the amount to be the appraised value of the property. The appraisal to be ordered by the lender who will make the loan if you buy.
Sometimes you get a real boost, when the appraisal is down around the price you want to pay. Sometimes you find that the appraisal is a lot higher than you want too pay, but you know you got the property at it's true value.
#1 I am not working with old comps. I am not sure where you got that impression.
#2 I am not begging them to do anything. We haven't had any contact with the agent in well over two months. We haven't made an offer. They can wait to 'get their price' all day long but they won't get it. It's not worth it.
#3 I used to be an appraiser, which I am sure I have said before. Of course they will get an appraisal when the lender requires them. This seller knows they are full of it. They blocked out the value on every site that they could. They are clearly not in a hurry to sell but I am betting when their house they are building nears completion, they will be more incentivized to sell.
Finally, something interesting on my house. They are having an open house this weekend. This is the first one they have had since listing.
I have a realtor coming to look at my house today about possibly listing. I explained the situation to her and I am hoping she will advise me. I told her about who I had been working with and she agreed that realtor is very green.
I'm confused. Did you write a offer on the house and get rejected? Or is this just all bs'ing on the phone with the realtor. I've used the same strategy as old trader to get our current house to a reasonable price.
I'm confused. Did you write a offer on the house and get rejected? Or is this just all bs'ing on the phone with the realtor. I've used the same strategy as old trader to get our current house to a reasonable price.
We did not write an offer. My realtor called their realtor months ago to feel them out and see if they would be all offended by a low offer. Their agent said they would not take in the range we want to offer. We never told her what we would offer.
The conversation went something like this:
My agent: My seller is VERY interested in making an offer but since nothing much is selling in that price range right now and the comps that did sell are much lower and the listings that are in that range are for MUCH bigger houses, we want to know it if is worth even bothering.
Their agent: Our house is worth asking because of blah, blah, blah....We don't get too caught up in square footage.
My agent: The offer would not have an $x in front of it. It would have a $y.
Their agent: Like what? They are not going to take in the $000s, which is where our offer would be.
So we didn't make an offer. Meanwhile, it sits and sits. I don't think they are even getting showing based on the reports my realtor is running. The only way they are getting them is if they go through their realtor directly. Now they have it listed as an open house this weekend. Their realtor runs opens houses on her listings every weekend so I am guessing she talked them into it because since it was listed in May, this is the first one.
Why are you scared to make a offer? In general don't trust the realtors. How are they supposed to evaluate your offer if your basically just gossiping with their agent (who if she is not good may not have been talked to the clients)? What's holding you back from making a offer?
It only takes a few hours to write a offer and at worst you might offend them (and they would not have taken your offeranyways.
.) Right now you sound like a lookie lou but not a actual buyer. More like a dreamer.
How foolish would the buyer / seller really have to be?!?
Quote:
Originally Posted by oldtrader
...
SOLUTION: Pay for an official appraisal on the property to get a true current value. If the appraisal is anywhere near your estimate, it can be used to get the seller to sell at that price if it is properly presented. This is a tactic I have used numerous times over the years.
But be willing to pay the appraised price, if the appraisal is higher than you think it is.
How to do it. Write a firm offer that you will buy at, and the seller will sell at, the amount to be the appraised value of the property. The appraisal to be ordered by the lender who will make the loan if you buy.
Sometimes you get a real boost, when the appraisal is down around the price you want to pay. Sometimes you find that the appraisal is a lot higher than you want too pay, but you know you got the property at it's true value. ...
Quote:
Originally Posted by maddog49
... I've used the same strategy as old trader to get our current house to a reasonable price.
I have plenty of experience with appraisers. Some are excellent and work very hard to account every variance from the most solid comps they kind, documenting each items that adds value to the subject house as well as those that are lacking in comparison. I've also encountered a large number of lenders that are perfectly content to have "drive by" (or worse electronic desktop review...) appraisers.
To be sure the fact that an appraisal is ordered by the lender should ensure that the deal could go forward with the property as collateral for the loan, but depending on the financial position of the buyer (that could remain confidential through the standard sorts of per-qualification proceedures...) the buyer may not really be what the buyer really can afford.
In situations where the subject house is NOT entered into, there is very limited ability to adjust values relative to sold comps, and the seller may be "told" in essence that their house, though lacking the upgrades of comps, is far more "valuable" that its actual value, similarly "buyers" who may be presented with an appraisal of the subject home that may be either significantly upgraded OR even more poorly maintained than is apparent from a standard appraisal (which is never going to reflect the results of things like home inspections ...) would be agreeing to a price that is really no more "rock solid" than what would be agreed to through traditional negotiation and they might be facing a money pit of undisclosed defects.
While the offer could probably reflect additional "escape clauses" like the inspection / cost of repairs contingency, I don't see this situation as really adding anything for buyers or sellers who'd have those contingencies in a normal offer...
I'm very curious as to what sort of market maddog49 is in? If the areas was pretty hot and favored sellers how much below ask did this process encourage the seller to come down from their inflated asking price??? If the area was quite cold, and already favored buyers how do they know their home really is worth what the appraisal said was reasonable? Have they done any upgrades or unexpected repairs? I'm certainly do not want to go out of the way to make them feel less than satisfied with the success of the process, I am simply skeptical that this process is superior to traditional negotiation -- I can think of several ways for markets which are either rapidly increasing or decreasing to badly distort the accuracy of appraisals. Lenders understand this and some have put in place safeguards like increased down payments / or lower debt:equity guidelines but I do not believe that would work at the buyer / seller level...
Bottom line: Never let any third party 'dictate' either the terms of sale or the price.
Last edited by chet everett; 09-12-2018 at 08:26 AM..
Chet we are also in ththe Chicago suburbs in a relatively good but not extremely expensive area. We did not let a appraiser pick our final price (very difficult in our area as it was almost 100% custom built and every house is different by a fairly large margin ie 1800 square foot ranch next to a 3600 square foot ranch or 4200 square foot 2 story with a wide degreen of finishes). However as we still had a mortgage we had to still get a appraisal in the end. Either way OP needs to put in a offer and see where it goes. She's wasting her time with the realtor and it sounds like she does not actually have the ability to purchase (or cant convince her husband to put in an offer). Since she's never talked to the actual sellers it's almost all idle conjecture at this point and will eventually hurt her negotiating position when her realtor says she's been hanging out for months trying to buy a house.
*In our case the seller came down 21% with the last one and it took around 3 days to reach that agreement and 2 rounds of negotiationing.* it was also worth noting the house was sitting longer than others but everyone was afraid to make a offer and offend them. We went and intial feeling was disbelief by sellers but eventually we had several people tell us they walked the house but did not put in a offer out of fear of rejection and would certainly have purchased at our closing price. We also worked on another house before our final one and it eventually it closed 19% below asking and 1% above our offer (4 months later).
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How foolish would the buyer / seller really have to be?!?
