Offer Full price for house No counter from seller in PA confused?? (2013, 4%)
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I offer full price for a house in PA with 4 percent seller assist. The seller rejected the offer and said the assist was too much. I was willing to negotiate the seller assist. However the the seller decided they didnt even want to negotiate.
Does anyone else besides me find this odd. Why would you not negotiate the seller assist??? Seems like such a small part for a major deal.
Low inventory means they can be choosey and if you don't have a sizable down payment, then they'll prefer to go with someone that does, since more deals fall apart with those with lower down payments.
Many deals are coming in with 20-50% downs, or even all cash. They have the money to take on any hiccups along the way.
Even if you had offered 4% over asking, they likely would have turned you down, btw. Didn't your REA explain this??? Time to find a new one.
Maybe with the agent's commission and the 4% you requested, they'll be losing money. I think a lot of people can be unreasonable or too emotional though. It does seem odd that they wouldn't negotiate at all.
Nothing's stopping you from making a second offer without the assist, if you like the house. Though it does sound like the seller might be a pain to deal with if they won't even negotiate a good offer.
Evidently you're in an area with low inventory. A seller doesn't have to take an offer just because it's full price.
As noted, they could be waiting for a larger down payment ( stronger chance at getting the loan); no seller assist, less seller assist.
Also, how long ago did you put in your offer? Did you have a time clause in your offer that the seller had to make a decision by a certain date ( say 24 or 48 hours after receiving it ) or is it open ended ?. He could also just be sitting on it for a while waiting to see if any other offers come in that might be better.
Has your agent spoken to the seller's agent ? Those two should be communicating to each other and then to you so you know why your offer is not being accepted.
Full price means nothing when you've asked them to come off their price by 4%. You didn't mention the price point, but at $200k, that's $8000 you just asked for. What do you need that much for? If your closing costs are that high, find a new lender.
If you're going to ask for closing costs, you need to be prepared to offer over the asking price in order for the seller to come down. It's his prerogative to not counter your offer. There were probably other terms in the offer he didn't like. Maybe he didn't like your closing date or earnest money amount. It doesn't mean you can't submit a new offer to him with a better/different strategy.
full price does not = asking for closing cost. full price is a net to the seller at their asking price (not taking into account things out of your control, such as realtor fees or sellers closing costs)
If the buyers want full price and won't negotiate the seller's assist, then it sounds like you have your answer. Your only choice is to offer full price. Then, if they reject that, I would walk.
The NY Times had an article today about the low inventory and it may be nothing more than a short-term bubble. Resist the temptation to get into the land rush. That's what we're doing.
Some agents are telling us they expect more inventory on the market after next week (the holiday week). Other agents are telling us to get in now, since homes could be substantially higher next year or the year after. It sounds like the advice a lot of people got back in 2007 and we know how that turned out. Just remember that the middle class -- which fuels home sales in this country -- is still not in great shape and I don't hear anyone saying their lot will improve much in the next couple years.
Some agents are telling us they expect more inventory on the market after next week (the holiday week).
The trend is not in your favor vis à vis Long Island inventory.
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I think you will disappointed
