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Which brings me around to this: why are people buying homes in cash and then mortgaging them?
It's exactly as you saw in your own situation, sellers prefer cash offers. If someone has the cash, why not pay the cash and then turn around later and put the mortgage on it? Many people turn around and mortgage it to have the tax deductions and various write offs. Plus, the cash can earn more in some type of other investment.
So...we wanted to buy a house, but were outbid last year. It sold for $450k. The owner is now relocating, doing a FSBO, and is asking $589k with a straight face. It is exactly how he bought it last year, down to the paint. What do you do with sellers like this? Wait for them to fail and then deal with a broker? These are tract houses. Most recent sale, across the street, had an additional 250 sq ft and just sold last month for $469k. I've always been a realistic FSBO, but this guy is why agents are needed. I figure even when he lists it, the poor agent is going to have to list it at the price this owner sets. Should I just forget this one?
In this case, the "market" determines the price. And some idiot out there is going to buy it. Doesn't matter if they're no upgrade.
Happens all the time. I've seen a couple in Orange County. Not years later, just months later. And I look at the pricing history and just laugh at it while crying inside.
Kind of like stocks where I told myself "I should have bought it at this price". Look at the price now.
And yes, forget the house. You won't be happy if you bought it at the inflated value. And price won't go down until the crash.
Well, the high price isn't subjective...it's a fact.
absent an appraisal, you've still got only your "opinion". And an appraisal is still only a professional "opinion"; the seller and a buyer may yet get together at a price different than an appraisal.
No deal gets made until a buyer and seller agree upon a price. That's what makes the market. Your offer ... which you think was "overmarket" didn't buy this house, did it?
Of course I don't have to pay his price. This is America.
and you didn't get that other house bought, either. Apparently the sellers didn't like your offer, even though it was for a higher price. The details of your deal apparently weren't offset by your higher price point offer.
Maybe your contingency purchase offer on this house also doesn't satisfy the seller, either. If you believe that he is being candid with you about his finances or motivations, you could be very wrong. He's only got one house to sell and only needs one qualified buyer at his price. Apparently, he may not be as desperate to sell as you think he is.
Blankety blank? BS? Ok.
You're the one who labeled him as "offended" from your offer.
But this is the buyer who beat you out on this house the last time it was on the market. Assigning emotions to a deal may be your game, but it may just not be his.
If he was as truly desperate to sell the house as you assert, and he had a motivated buyer (you) on his doorstep, he'd have countered with what he wanted to sell the house at. As you would say ... it doesn't hurt to ask (make an offer) ... but that's a two-way street. And it's unlikely he knows your financial situation, right?
What counts is he still owns the house and you don't, no matter how much you want to buy it at a price less than he wants to sell it at.
No, they pay in cash so that they can win the deal... and typically do it at a lower cost... which is exactly what happened in your case. Happens all the time.
Sounds like he wanted to do a mortgage up front, but when you bid high, he changed to cash, and "won"
It's exactly as you saw in your own situation, sellers prefer cash offers. If someone has the cash, why not pay the cash and then turn around later and put the mortgage on it? Many people turn around and mortgage it to have the tax deductions and various write offs. Plus, the cash can earn more in some type of other investment.
You're the one who labeled him as "offended" from your offer.
But this is the buyer who beat you out on this house the last time it was on the market. Assigning emotions to a deal may be your game, but it may just not be his.
If he was as truly desperate to sell the house as you assert, and he had a motivated buyer (you) on his doorstep, he'd have countered with what he wanted to sell the house at. As you would say ... it doesn't hurt to ask (make an offer) ... but that's a two-way street. And it's unlikely he knows your financial situation, right?
What counts is he still owns the house and you don't, no matter how much you want to buy it at a price less than he wants to sell it at.
I think we both got emotional. I was upset I lost it. He was offended and told me he refused to counter my offer (which was well above market).
Yep, he still owns it. I don't.
Idk if you read what I've said, but he's come right out and told me that he "needs" to sell. His exact words were," I need to be sold yesterday." Again, he and I are very cordial with each other, and we know we are doing the real estate dance.
I'm going to have to sit this dance out, though. He's not going to get asking, and we offered way too much to him based purely on emotions. Plus the house won't appraise, I know that for a fact. So, it's just a lose/lose.
Thx for talking to me, everyone. It helped me separate my emotions from the financial reality!!
You're the one who labeled him as "offended" from your offer.
But this is the buyer who beat you out on this house the last time it was on the market. Assigning emotions to a deal may be your game, but it may just not be his.
If he was as truly desperate to sell the house as you assert, and he had a motivated buyer (you) on his doorstep, he'd have countered with what he wanted to sell the house at. As you would say ... it doesn't hurt to ask (make an offer) ... but that's a two-way street. And it's unlikely he knows your financial situation, right?
What counts is he still owns the house and you don't, no matter how much you want to buy it at a price less than he wants to sell it at.
You know, everybody says this, that it doesn't hurt to ask, but that is not always true. Sellers can simply refuse to consider any offer from you after you 'hurt their feelings' with a low offer or derogatory comment about their property. Or they can raise their counter offers to make up for their hurt feelings.
It's like how everyone always says it doesn't hurt to ask your credit card companies for a lower interest rate. They can only say no, right? I had a family member take that advice with her Capital One credit card and the person she talked to from the company said she couldn't reduce her interest rate, but to 'help her pay off her bill more quickly' she was going to reduce her credit line! They internally reduced her credit line not only by over $10,000, to the balance she owed at the time (she used it a buffer for her business), but each month when she made a payment they continued to reduce her credit limit to match the current balance. Basically they 'unofficially' closed her account, until she reached whatever useless residual credit limit they lowered her account to.
You know, everybody says this, that it doesn't hurt to ask, but that is not always true. Sellers can simply refuse to consider any offer from you after you 'hurt their feelings' with a low offer or derogatory comment about their property. Or they can raise their counter offers to make up for their hurt feelings.
What you're really pointing out is that there's a lot of folk who cannot separate their emotions from a financial deal.
This is why and where a real estate agent acting on your behalf may be a benefit to many people. If they are skilled in the arts of negotiation, they can present offers without offense and seek out true price and deal details discovery on behalf of their client.
What you're really pointing out is that there's a lot of folk who cannot separate their emotions from a financial deal.
This is why and where a real estate agent acting on your behalf may be a benefit to many people. If they are skilled in the arts of negotiation, they can present offers without offense and seek out true price and deal details discovery on behalf of their client.
I once bought a FSBO. I will never do that again.
I only deal with buyer brokers, specifically brokers who do not sell or take listings - all they do is rep buyers.
What you're really pointing out is that there's a lot of folk who cannot separate their emotions from a financial deal.
This is why and where a real estate agent acting on your behalf may be a benefit to many people. If they are skilled in the arts of negotiation, they can present offers without offense and seek out true price and deal details discovery on behalf of their client.
Yes. Agents--good agents--are very necessary. I will always sell my homes FSBO because I'm pragmatic, priced right, etc. And I love selling to a buyer who has an agent. But, for most FSBOs, they're just not realistic, and need agent representation.
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