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I think they should submit another offer at $520,000 just to stand their ground and show the seller that they mean business and will not increase their offer. The seller should take it or leave it. If he leaves it, then the seller should come back 6 months later with the exact same offer when the house still hasn't sold. LOL
Ditto about they should've gotten a signed contract. They get to eat the $1,000 for that mistake and there's no point in getting upset over it.
Also, from a bargaining perspective, all your parents are demonstrating is that they have no stones and will roll over and give the sellers whatever they want. They need to quit negotiating like this is the last house on earth. Clearly it isn't all that or it would've had competing offers and/or already sold. I would have them send back a counteroffer of $510,000 and just sit and wait for awhile. They can't change what the sellers are willing to do, but they can demonstrate they aren't willing to be taken to the cleaners, and if the house doesn't sell for awhile, the sellers may be more willing to negotiate.
Reason #568 to have a buyer's agent.....so you don't have to deal with the whacked out FSBO sellers.
If your parents had agreed to hire a buyers agent directly (not pay someone to do paperwork), they probably could have saved 40K.......but no, let's make sure they save that 15K.
Forget all thus stuff about an inspection. The house is listed at $500,000? Yes? The history of the price changes is irrelevant.
The parents wish to buy the house, and are willing to pay full price. So.....they accept the offered price. Their agent writes up a contract for $500,000 and the seller signs it.
That's the end of the negotiation process. Seller offered the property at 500, buyer says I'll take it.
Process the paper work and close the deal.
Any offer which the parents now make which is above 500 is stupid.
Status:
"Mike Johnson stand your ground"
(set 3 days ago)
Location: Glen Mills
938 posts, read 1,228,333 times
Reputation: 617
".....Price went down"
There are some interesting statements here. .....Property listed for 560K ......no one offered.....then went down to 500K. Was this an offering to the Public through a Multiple Listing Service or For Sale By Owner site? How do you know no one offered on the home? If these sellers were fishing for information on their home and whether a person may pay the price they asked then there is a bit of deception involved here and though you may not be able to force them to sell the house to your parents because your state might require "All contracts for the sale of Real Estate must be in writing" you may be able to recover the costs expended by taking them to small claims court. In fact a verbal contract for Real estate might even be valid in your state. A judge may rationalize that you do not get a home inspection on a house nor does someone permit an inspection of a house unless there was some prior agreement. The judge may simply ask the seller. Was there an offer made to your parents and ask the seller did you accept that offer. If they say no the natural question would be then why exactly did you allow the buyers to inspect your home? I recommend you consult an Attorney specializing in Real Estate Law and that your Realtor practice being a Realtor.
Sounds like this house wasn't listed as you mention your parents found a real estate agent and paid them to do the paperwork. If I'm wrong please correct me.
This is just one example of the many problems people deal with when looking at and trying to FSBO's and one of the reasons for the general public should stay away from them.
Anything realted to real estate is only legal when it's in writing....period!
My parents were looking at a house. The price that was listed for this house was $560,000. There was no one that offered that amount so the price went down. The price went down to $500,000. My parents offered $510,000 and they didn't respond. Then my parents offered $520,000 and they said okay we think about it and they get into discussion. The seller then asked for 530,000 and parents took a while and agreed. My parents paid for a real estate agent to do the paperwork. They then paid those house inspector to check if there was anything bad in the house or in the backyard such as if there was anything bad about it. They checked and there was nothing wrong in the house.
Thus my parents were just waiting for the seller to sign the paperwork to purchase the house. They then found out from the real estate agent that the seller of the house now increased the price from $530,000 up to $550,000. My parents are outraged as to how can the seller do this especially since my parents hired a real estate agent and also paid money to have the house inspected before making the purchase. They had previously looked at other houses and did inspections but those few times they did, they were told there were some stuff in the house that wasn't good so my parents didn't buy the house and thus they paid for those house inspections out of their own pocket which we know is a cost.
My questions are
1. Since the seller never signed anything, I understand they do not have to sell the house. But has anyone here purchased a house or know of anyone who has where they had it inspected and had a real estate agent do the paperwork then agree to buy, only to have the seller increase the price?
2. My parents are upset that they actually bidded more for the house than the other potential buyers. At first 510,000 was offered but they didn't respond. Then 520,000 was offered from parents and they said they wanted 530,000. My parents eventually said okay to that. Then paid for house inspecting and real estate agent. This cost them $1000 total. Do they have any chance of getting either the house inspecting or real estate agent fees back? My parents are upset because they told the seller okay we are going to have an inspector inspect the house then and since they allowed it, we assumed we were going to purchase the house at 530,000. I mean if they told us to not pay for a house inspection because they are not 100 percent sure if they are selling the house, then obviously my parents aren't going to pay to have it inspected and thus wouldn't be upset like they are now.
3. How unethical is what the seller doing? It doesn't make sense how you were offered a price, you didn't accept the first one at 510k. Then we offered 520k and then they said make it 530k and my parents finally agreed. Then did all the paperwork and inspecting and now seller wants 550k. Does anyone know why a seller who do this the last minute? Is it because they thought my parents were willing to pay 530k so they thought it was easy and then now make it 550k? The thing is no one even wanted to buy the house at 560k. It was only when the price was dropped to 500k, they got offers. And once my parents offered 520k, others couldn't negotiate no more.
4. I know that if they put the house back at 560k, not much people will be interested in this house. We are also certain no one would offer 530k like us as well for it. So are they basically just doing this to test buyers?
5. When my parents look at other houses, i guess the number 1 thing to do is make sure have the seller sign a contract that they will be selling us the house if we tell them we are paying the money to inspect the house and a real estate agent? Basically what they do is call a real estate agent then look inside the house and then if they like it, they discuss the price and then if the seller and us agree in the amount, then my parents would pay for the house inspection. Otherwise they go and check another place.
I would tell your parents to withdraw your current offer and make it good for only 24 hours, if they are risk averse, tell them the current offer is withdrawn in 24 hours if they don't go into contract.
1. The house was listed 1 or 2 days and my parents called the agent so they could look at the house and then offered the price. The thing with these homes are that once you have it listed and you don't call them fast, other buyers will be very quick to call and then you cannot see the house anymore. So my parents called them and offered them a price and then eventually others couldn't contact the seller about the house anymore b/c my parents spoke to the agent/them.
2. My parents are not going to give more than the 530,000 that they offered after the seller wanted 530,000 after my parents offered 510,000 and then 520,000. Note the 510,000 offer, they did not want so parents said 520,000 so they then spoke.
3. This is in NY. Someone asked this question and yes its in NY. This seller posted the house in newspaper ad so yes it was a public offer. I know no one offered on the home because no one would buy the house at 560k. And since my parents contacted them, they told me no one else could contact the seller anymore since my parents were talking to them. I also not familiar with how the agent works etc but i just know my parents spoke to a realtor who then shows them the house of the seller.
4. We are pretty sure no one would buy the house at 560k. Even at 550k, we doubt anyone would buy this offer.
5. The house is a bit overpriced. However, the reason why my parents offered 510,000, then 520,000 and then agreed on 530,000 because they have spent so many years looking for a house. Yes YEARS and they could never buy one because there was always a problem. Such as the house looked good in outside, but the inside had a ton of repairs that need to be made. Or there is something they don't like such as a tree or poll right outside the house. My parents don't like this because if there is ever a storm, the poll or tree or land right on the house. There was another house they saw and liked but then when they had it inspected, there were these insects that were there and they told my parents its not a good idea to buy it.
6. As of right now, the seller is only willing to sell it for $550,000. Basically 0 chance seller sells it for 530,000. They don't care my parents are not going to buy it for 530,000. They will look for another buyer but i doubt anyone will pay 550,000 because that is overpriced for that specific house. Again my parents are willing to pay more b/c they spent YEARS looking at houses already. I mean they would look at houses for many months, then stop then do it again for a few months.
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".....Price went down"
