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Thanks for such great feedback on my other threads. I have one last advice request. We are possibly about to go into contract on a home, however in the interest of keeping an open mind & not regretting anything in case the deal doesn't work out, we are trying to make a last minute decision...
There was a house we were looking at initially that we really liked but the seller was definitely asking a good 15k over what the house is worth (final asking price-listed price was even higher).
Other issues were: he stalled incredibly during price negotiations. It was pretty obvious he kept waiting out each weekend for more offers & it took a full month to get to his final asking price even though we made it clear we were approved & ready to close (the home is empty so he is not needing to stall to move out). We walked away-that was 1.5 months ago. His agent keeps calling our agent to see if we will still accept his final asking price-answer was no, he wouldn't budge 4k even though our final was still too high in our & agent's opinion. Also, there MIGHT be a C/O issue (ugh again with the C/O's).
The thing is, even though his final is above what the house is worth, I have to admit this house has everything we are looking for. We aren't in LOVE with any house-its a matter of logic for us-sq. ft, # rooms, layout, price, location. Of course, this house isn't 100% perfect, but its the closest for us so far & I keep wishing he would just be reasonable even though we are almost in contract with another property. However, knowing how difficult this guy was, the too-high price, & possible CO issue I am not sure if we should just stay away or not. I'm trying not to be emotional about it. Any thoughts?
That and you'd lose the house you're about to close on, and no doubt something will come up on the other one, and you already know what the response will be from the seller - things get messy and then you have no house at all.
If you're worried about price, put in a contingecy about appraisal. It might be automatic in your contract. Tell the seller (his agent) up front that you'll agree to the price as long as it appraises. If the house doesn't appraise, you want it lowered to appraised value.
How much house are we talking about? Is the house worth $100k? $300k? $600k $1 million?
Here in San Francisco $15k is a drop in the bucket, it's 1.5% of a million dollar home. No one would walk away based on a mere $15k difference. However, in some other parts of the country, $15k could be the whole down payment.
How much house are we talking about? Is the house worth $100k? $300k? $600k $1 million?
Here in San Francisco $15k is a drop in the bucket, it's 1.5% of a million dollar home. No one would walk away based on a mere $15k difference. However, in some other parts of the country, $15k could be the whole down payment.
So context is needed.
House is listed at 469k, final asking was 452k, comps are actually close to 415-420k.
440k is being generous in my agent's & our opinion but we still offered 445k.
Very rarely will a house in the area go for over 420k.
Yeah, between all the advice here to stay away I think we will stick with our current option. It's just a shame but I'll let it go. Thanks everyone, needed a reality check
House is listed at 469k, final asking was 452k, comps are actually close to 415-420k.
440k is being generous in my agent's & our opinion but we still offered 445k.
Very rarely will a house in the area go for over 420k.
There must be something about that house that is unique and better than other comparable houses or else we wouldn't be having this discussion. For me, I'd do some math and see if what's unique about the house is worth the extra bucks.
To me, it depends on what I like about the house that makes it so special; if it's in a really great location (like back to a lake or right next to a huge park, etc) that very few houses in the area have, or it has a great floor plan, or it has an unusually large lot, etc; features that are very difficult to mimic on another house and are very important to me, then I would bite the bullet and pay the extra bucks.
But if I like it because of the upgraded kitchen, or the paint color, or some other simple to duplicate features; then I'd just walk away.
Also, I'd factor the real estate trend - is it trending up or down and how steep. In some hot markets, that extra $15k will be earned back in a few months.
At the end of the day, only you can answer these questions.
To me, it depends on what I like about the house that makes it so special; if it's in a really great location (like back to a lake or right next to a huge park, etc) that very few houses in the area have, or it has a great floor plan, or it has an unusually large lot, etc; features that are very difficult to mimic on another house and are very important to me, then I would bite the bullet and pay the extra bucks.
But if I like it because of the upgraded kitchen, or the paint color, or some other simple to duplicate features; then I'd just walk away.
Also, I'd factor the real estate trend - is it trending up or down and how steep. In some hot markets, that extra $15k will be earned back in a few months.
Just for completion sake, it was more the layout & the rooms on the lot size. The house we are going to contract on is in a comparable area (same zip code) & actually has 200 more sq ft lot size, but the layout of the yard & basement kept us going back to the other house, as well as an already expanded 2nd floor, which we will be doing on the second home if we buy it. Second home will need some renovation & adjustments to "fix" the layout & update it but it is 100k less. I can say with confidence that the market is at the least not going up in this zip. Yes, the first house is more updated but it is definitely simply cosmetic, not something we can't do on the second home, it will just take some time. I think just the fact that the house feels more completed made it more attractive.
The only views both homes have is of the neighbors
I really appreciate your insight, it is helping me sort out what the issues are indeed.
I really appreciate your insight, it is helping me sort out what the issues are indeed.
Happy to help. From what you described, stay with the current contract, it sounds like a no-brainer. Besides, I think it's better for you to do the renovation under your watch because you can add your person touches to things instead of inheriting someone else's taste. Just my 2 cents.
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