Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
There is a newly-listed home I like in a resort community in California. Real estate is notoriously pricey here, though prices have fallen quite a bit from the boom of 8 years ago.
Two weeks ago I put an offer on a 1968 built home listed for $539,000. I put the offer in the second day the home was listed. A pre-approval letter was attached. The home is only 1300 square feet and the comps in the the area are much lower. My buyers agent did a market analysis and most homes of that vintage with more square feet generally sell for around $450,000, some lower than that. The home I bid on is turn key however and beautifully remodeled.
My agent advised my first offer should be $475,000. The owner countered at $536,000. So we countered back with $485,000, which again is more than comps support.
The owner won't even respond or counter offer. He told the listing agent he won't even consider looking at any bids under $500,000. He is a multi millionaire and this is not his primary residence. He's in no hurry to sell and announced he will only sell to the "right buyer." He put in a lot of money to remodel the house and it was even featured in some local magazine, something bragged about in the listing.
I do want this house and am trying not to personalize this, but I am miffed that any offer would be arrogantly dismissed out of hand. No one else has made an offer and at the brokers Open House, the brokers told the listing agent the home is beautiful but overpriced.
What strategy should I adopt? Just walk away or wait him out? I am willing to pay up to $505,000 and will overpay to live in a beautiful neighborhood in a highly desirable community.
Advice is welcomed on how to deal with this stubborn seller. Thanks, everyone.
I loved a house that was priced at $300k. The comps and condition of the house were closer to a $240k value. I offered $260k and they never responded. As far as I know, they still have not sold the house and that was three years ago.
The house is in my price range. This is a second home purchase for me and I can afford it easily, I just don't want to overpay when the house won't appraise at his asking price. Your advice on throwing him my best offer is a good one, however, I just might have to do this.
The person most willing and able to walk away has the power in the negotiation. Right now, that is the seller. He has very little incentive to work with you. If I were the buyer in this scenario, I'd look elsewhere.
My listing agent (and two other agents) were the ones that all suggested a $475,000 opening offer. The seller has his price grossly inflated, as the comps show clearly. He will never get $539,000 for the house. He's asking $400 a square foot in a market where homes sell for $325 a square foot. My offer was substantially higher than 11 other comps within a mile radius of the house which all sold for $450,000 or below. I don't know why this is being called a low ball offer.
There is no one who offers their best price the first time around. The first offer is an invitation to dance. And no offer on a home should be insulting when the buyer is financially qualified to purchase the home and has the proof provided.
....What strategy should I adopt? Just walk away or wait him out? I am willing to pay up to $505,000 and will overpay to live in a beautiful neighborhood in a highly desirable community.
Advice is welcomed on how to deal with this stubborn seller. Thanks, everyone.
If you really want it badly, then give the seller your best offer. If he doesn't take it walk away.
I was in the position once where I was moving to another country, and had a beautifully remodelled home with fantastic views to sell. Fairly quickly a couple saw it and made an very low offer. I said no, and thought they were jerks. They came back and upped their offer, but not close to what I considered a reasonable price for me to come down to. I refused them, and told the agent no more BSing with these wankers, move on.
And I left the country, with the house unsold. I had no compelling need to sell, and had no intention of diddling around with bargain hunters. They did come back with virtually the same offer after six months, evidently feeling I must be desperate.
I told the agent: The house is not for sale to them at any price. Ever, and tell them that.
I sold it at close to my price. People who don't have to sell, have no reason to do much bargaining.
You low balled a home that had been on the market 2 days
No wonder the Seller doesn't even consider you serious. His list price is fairly close to what he wants and he's not real negotiable right now.
Go find a home that's in your price range.
Edit: Give him your best offer. If it's not good enough for either of you, walk away.
This. If he doesnt absolutely have to sell you are wasting your time playing hardball. If you want your best chance at the house, give your highest offer possible. If he turns it down walk away
I agree with you, Ulysses, but it doesn't matter...
If the seller doesn't want to be reasonable in his pricing, you can't make him.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
You are in a weak bargaining position.
I agree with you, Ulysses, but it doesn't matter...
