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Thanks. I should have mentioned that $380k was our 3rd offer/counter.
Then you are way too low for the comps they got from the multiple Realtors that did a market analysis...If you want the house you will have no choice than to go higher...They are emotionless about the house that is true and they will be willing to sit on the house for a long time....Another tip is once you do make a deal and do your Home Inspection Relo companies are very willing to fix problems because if they don't they know they will have to disclose the problems you find if you back out. They don't want to be sued and are usually way more willing to negotiate with you after you make a deal than a traditional seller.
If you really want the house we are coming into the buying season with spring and if the house is reasonably priced they will more than likely get another buyer soon and they know it....Every day as spring approaches more and more buyers come into the market looking for a house.
Thanks so much for all of the great feedback. I guess the biggest evidence that the house is overpriced is that it hasn't sold yet (after close to 2 years on the market). The comps. are tough, since there haven't been many recent sales of comparable houses in the area, and those that have sold are very different from eachother in terms of what they have to offer (e.g. pool, extensive bar, etc.)
If we were to submit another offer (that's slightly higher) any suggestions on when might be a good time to do that (e.g. 30 days after it relisted with improvements)?
Thanks so much for all of the great feedback. I guess the biggest evidence that the house is overpriced is that it hasn't sold yet (after close to 2 years on the market). The comps. are tough, since there haven't been many recent sales of comparable houses in the area, and those that have sold are very different from eachother in terms of what they have to offer (e.g. pool, extensive bar, etc.)
If we were to submit another offer (that's slightly higher) any suggestions on when might be a good time to do that (e.g. 30 days after it relisted with improvements)?
I understand you're trying to leverage an additional 30 days on the market as a reason for putting in another lower offer. However, there's no guarantee that home will not get an offer from another party within those 30 days. If you really want the house, don't wait and do your best to negotiate within your comfort zone.
About 1.5 months ago, my husband and I made an offer on a house that is a relocation property, and has been on the market for close to 2 years. After going thru the house very thoroughly, we offered what we felt it was worth, however, we could not come to terms with the relo. company (current list price=$435k, our final offer=$380k, they came down to $410k). They have since taken the house off the market to do some cosmetic work (costing $5-7k), and then relisted it for the same price about a month ago (did not: change agents, reset DOM, or post list pictures of the update).
The weekend after it relisted, they held an open house, and the "fill in" realtor running the open house told us to "keep checking back" because the house is a relo. property, and they have been trying to get the company to lower the price, but that since it's a relo. prop. it's a "numbers game". (We did not tell her we had already been thru it, or made an offer, etc.)
We would really like to get this house, but feel strongly that it's not worth more than our offer (+ $$ for update made), especially considering some of the necessary updates it still needs, the fact that it's been on the market so long, schools aren't great, it doesnt have appliances, etc...any ideas on what we should do next? I can't help but feel like there's something that I'm overlooking, or a "strategy" we should try, especially since it continues to sit, vacant. Any ideas would be greatly appreciated. Thanks in advance.
Personally my only strategy would be to look for another home.
From what I understand companies are not in business to lose money and they will more than likely not come down on the price no matter how long it has been on the market.
On the market for two years? It has cost the relo company at least 30 grand in taxes, insurance and maintenance. Perhaps more depending on your location.
Obviously the offered price is not correct, or the house would have sold.
Now, it is an unlived in dog that has sat vacant for a LONG period of time.
At this point you are dealing with pride and emotion. You have to get the relo company to feel like they have "won". Really, what is the difference between 380 and 390 in the grand scheme of things? Go to 385, keep things in motion, and be prepared to go to 390 and get a deal done. At some point there are humans in the process. The relo company has a realtor; after going back and forth 20 times he or she is going to be anxious and likely will tell the seller to move it and get it done!
You just have to persevere, as until now, you are dealing with a faceless entity.
About 1.5 months ago, my husband and I made an offer on a house that is a relocation property, and has been on the market for close to 2 years. After going thru the house very thoroughly, we offered what we felt it was worth, however, we could not come to terms with the relo. company (current list price=$435k, our final offer=$380k, they came down to $410k). They have since taken the house off the market to do some cosmetic work (costing $5-7k), and then relisted it for the same price about a month ago (did not: change agents, reset DOM, or post list pictures of the update).
The weekend after it relisted, they held an open house, and the "fill in" realtor running the open house told us to "keep checking back" because the house is a relo. property, and they have been trying to get the company to lower the price, but that since it's a relo. prop. it's a "numbers game". (We did not tell her we had already been thru it, or made an offer, etc.)
We would really like to get this house, but feel strongly that it's not worth more than our offer (+ $$ for update made), especially considering some of the necessary updates it still needs, the fact that it's been on the market so long, schools aren't great, it doesnt have appliances, etc...any ideas on what we should do next? I can't help but feel like there's something that I'm overlooking, or a "strategy" we should try, especially since it continues to sit, vacant. Any ideas would be greatly appreciated. Thanks in advance.
You talk about what you "feel" the house is worth. You mean what the house is worth to you.
The house is worth what the market will bear, which may not be what it's worth to you.
This is a seller's market right now in many areas of the country. Additionally, the seller doesn't need to sell, apparently. So they can wait. The difference between what you want to pay and what they want to get is a big chunk of change that they are willing to wait for.
The seller probably knows what houses in the area go for, by square foot. Have you done a market analysis like that in that area? The fact that the house hasn't sold yet has no bearing to YOU on what the house is worth, if they don't need to sell it right now.
It sounds to me like maybe you can't afford the house and are expecting them to come down because that's all you are willing to pay. They've answered you and said, "We're not willing to come down that much."
If I were you, I'd move on to another house, or increase your offer on this one. Or go back next year to see if they're more willing to negotiate if they haven't sold it yet.
If it has not been climate controlled for that entire time, there could be mold issues (walls, carpet).
ANY appliances or electronic systems that exist (PC boards/internal controls) could be damaged.
There could be damage from vandalism or pests.
There could be issues with pipes (gas, water and sewer)
Deferred maintenance is a real concern.
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