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Agreed, but there is too much unknown. Was the offer presented and accepted? Was the offer just penned and it was reduced before the offer was received? Is the agent just trying to make their sales price vs. asking price look really good?
Ergo the huge "if" in my comment.
The OP needs to have their buyers agent step up to the plate and provide clarity.
In my opinion, if the buyer knew the price dropped to $79,900 so the offer could be $70,000 (plus minus 3% closing cost) instead of made the offer for $80,000 vs the asking price $89,000. ( It means the buyer can bargain and lower the price more )
In my opinion, if the buyer knew the price dropped to $79,900 so the offer could be $70,000 (plus minus 3% closing cost) instead of made the offer for $80,000 vs the asking price $89,000. ( It means the buyer can bargain and lower the price more )
Maybe, maybe not. Let's assume that the buyer had reviewed comparable sales and determined that $80K was a fair offer including a 3% closing cost discount. The seller may agree and may not be inclined to further lower the price, especially by yet another $10K.
It's also possible as indicated above by Mike, that the price was dropped after contract signing to bring in back up offers.
It all depends on the circumstances, which we do not know.
If $100 bucks makes the difference between you being happy or not happy walk away. I mean you got the home for $9,000 off asking price. Would it make you feel that much better to get it for $9,100 off asking?
How much time did you spend looking for a home? Is it worth starting over for $100?
The assumption the OP and others are making is that if they knew the asking price was $79.9K to begin with, then they may have gotten it for much lower than what they settled at ($70K in one posters suggestion). I highly doubt it. As the price gets down to the seller's bottom line and going market rate, your ability to negotiate lower greatly diminishes.
The assumption the OP and others are making is that if they knew the asking price was $79.9K to begin with, then they may have gotten it for much lower than what they settled at ($70K in one posters suggestion).
My sentiments exactly. I need to feel I got the best deal possible. This is especially true if i'm going to be paying for it the next 30 years.
My sentiments exactly. I need to feel I got the best deal possible. This is especially true if i'm going to be paying for it the next 30 years.
The best way to do this is to know your local market and comparable sales. Basically ignore the list price and determine for yourself what you feel is a fair price. Then you can make informed offers with confidence that you are getting a good deal, and if the listing price is reasonable to begin with.
If $100 bucks makes the difference between you being happy or not happy walk away. I mean you got the home for $9,000 off asking price. Would it make you feel that much better to get it for $9,100 off asking?
How much time did you spend looking for a home? Is it worth starting over for $100?
It's not about $100.
As I understood here, the asking price was $89,900 so the OP made an offer for 80K.
After offer was submitted, the price dropped to $79,900.
If the OP didn't make an offer for 80K, so with the new price, he could offer for 70K (10K less than the offer was submitted).
Maybe that's why he was unhappy with his offer?
It's not about $100.
As I understood here, the asking price was $89,900 so the OP made an offer for 80K.
After offer was submitted, the price dropped to $79,900.
If the OP didn't make an offer for 80K, so with the new price, he could offer for 70K (10K less than the offer was submitted).
Maybe that's why he was unhappy with his offer?
But, that $10,000 is unlikely to be the dynamic at work here.
Bear in mind, the OP did not actually offer $80,000.
The OP offered $80,000 - $2,400(3%) for closing costs giving the offer a true value of $77,600.
So, the new price is actualy higher than the value of the OP's offer.
One of two things has probably happened:
1. The seller and listing agent lowered the price to attract back up offers. A back up offer may allow the seller to be more confident and firm in negotiating repairs, etc, during the transaction.
2. The listing agent talked the seller into lowering the price for that reason, but the listing agent wants to manipulate the sales price/listing price ratio.
I don't mind #1, although it is a little hardball.
#2 would be more offensive, IMO.
But, that $10,000 is unlikely to be the dynamic at work here.
Bear in mind, the OP did not actually offer $80,000.
The OP offered $80,000 - $2,400(3%) for closing costs giving the offer a true value of $77,600.
So, the new price is actualy higher than the value of the OP's offer.
One of two things has probably happened:
1. The seller and listing agent lowered the price to attract back up offers. A back up offer may allow the seller to be more confident and firm in negotiating repairs, etc, during the transaction.
2. The listing agent talked the seller into lowering the price for that reason, but the listing agent wants to manipulate the sales price/listing price ratio.
I don't mind #1, although it is a little hardball.
#2 would be more offensive, IMO.
I think, if the price dropped to $79,900 then the buyer could make an offer for 70K and still want minus the closing cost, too.
Is this situation, the true value that the buyer have to pay would be $70,000 - $2,100 = $67,900
That means the buyer always want to make offer (maybe 10K?) less than the asking price.
My 2cents
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My sentiments exactly. I need to feel I got the best deal possible. This is especially true if i'm going to be paying for it the next 30 years.
