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I was on the other side as a buyer. We did some negotiation and then the seller said they had another offer and asked for my best and final. I gave them a final offer, but then they came back with a counter. I was not under pressure to buy and I told my agent I was asked for best and final, I gave it and I was going to stick. The difference was only $2,000, but, it kind of annoyed me that they would ask for a final offer and still try to negotiate. They came back and accepted my offer. I was told that the other offer they had was higher then mine, but that the buyers would not be able to close as fast as I could....maybe it had a contingency, not really sure. So, it all comes down to who is the most anxious to close the deal. After the inspection, I got the price down another $2,000.
OP, another option is to negotiate with your buyers to rent the house back from them for 30 days to allow you a bit more time to nail down a new home sale.
I agree with HokieFan that you can't determine value by price per square foot when houses aren't cookie cutter. Otherwise, appraisers would be out of business.
We're in a time crunch. We sold our house (in 7 days!) and want to buy in a specific area. Unfortunately, we're either too late or sellers are asking way too much.
Wait. Didn't you sell your house CONDITIONED on you buying a replacement one?
The first thing to understand is that real estate is not sold by the pound, gallon or square foot. Stop comparing that which is not comparable simply because Zillow or some other disinterested third party makes it easy.
We made an offer $6,000 under asking because of the price per square foot in that area is only around $90 and they are asking $104. They rejected our offer, so we offered full price. We know the appraisal won't come in any way near what they are asking. What to do then??? We have no idea. Walk away...again??
I don't understand the mentality of people that won't negotiate. I realize everyone wants to make a profit, but it seems to me that you can either be stubborn and hold firm to your price or you can negotiate and sell and move on.
Am I wrong in my way of thinking?
Check your contract. Georgia contracts have a clause that, if the home does not appraise for the sales price, the parties can then re-negotiate to reach an agreed-upon price:
1. Seller lowers price to meet appraised value
2. Buyer raises price to meet appraised value
3. Buyer and seller agree to meet somewhere in the middle between appraised value and sales price
3. Buyer and Seller agree to walk away, and buyer receives earnest money back.
Also, you don't know what the appraiser will do. You are familiar with the local market. So is the appraiser (hopefully). If the finishes in this home are superior to other comps, you might find that the appraisal comes in at sales price.
People choose not to negotiate for various reasons. The seller may be underwater on the sale, and may not be able to bring money to the table. The seller may be overcommitted on their next purchase, and need every penny of the sale. The seller may just be stubborn. They may be seeing anything they give up to be money they don't have available for retirement. Maybe their ego is on the line -- neighbors have told them "You'll never get that price," and they are thinking, "Wanna bet?!" Or maybe they really don't want to sell -- that sometimes happens with couples -- one doesn't want to sell, and insists on an artificially high price ("Well, ok, but I won't sell unless we get $X amount of money.") You asked for reasons. I didn't say they necessarily made sense. Not everyone approaches these transactions coolly and without emotional baggage. And some Type A people consider negotiation to be a sign of weakness.
We're in a time crunch. We sold our house (in 7 days!) and want to buy in a specific area. Unfortunately, we're either too late or sellers are asking way too much.
We just had the appraisal on our house we're selling and closing is scheduled for June 29th. We had a house to buy but when the inspection was done, it turned out to be too many issues that we would have had to fork out of our pocket. The seller was asking too much to begin with and we offered $10,000 under and they accepted, but after the inspection, we would have had to reinvest $15,000-$18,000 into it. We backed away and cancelled the contract.
So, we were on the hunt for another house and the listings have been scarce in the area we want. We found a house that is smaller than what we want, but it has been updated with several things, including the kitchen and a new roof 3 years ago.
We made an offer $6,000 under asking because of the price per square foot in that area is only around $90 and they are asking $104. They rejected our offer, so we offered full price. We know the appraisal won't come in any way near what they are asking. What to do then??? We have no idea. Walk away...again??
I don't understand the mentality of people that won't negotiate. I realize everyone wants to make a profit, but it seems to me that you can either be stubborn and hold firm to your price or you can negotiate and sell and move on.
Am I wrong in my way of thinking?
I'd recommend that you just walk. And I agree, I don't understand that mentality either. We once capitulated to every demand our non-negotiable seller ever made and we were sorry that we did.
The whole house was a mistake. He was a royal pain to deal with from contract to closing. He even asked if he and his wife and grown kids could stay in the house two extra nights after closing.
OP, another option is to negotiate with your buyers to rent the house back from them for 30 days to allow you a bit more time to nail down a new home sale.
I agree with HokieFan that you can't determine value by price per square foot when houses aren't cookie cutter. Otherwise, appraisers would be out of business.
We did this on our last sale.
We were building, so had a solid move-in date on the house to which we were moving. Our house on the market sold quickly and we rented from the new owner for six weeks at an above-market rental rate. When we made that offer, the buyer did not balk at all and it was written into the deal.
Saved use two moves or trying to deal with a second mortgage.
We're in a time crunch. We sold our house (in 7 days!) and want to buy in a specific area. Unfortunately, we're either too late or sellers are asking way too much.
We just had the appraisal on our house we're selling and closing is scheduled for June 29th. We had a house to buy but when the inspection was done, it turned out to be too many issues that we would have had to fork out of our pocket. The seller was asking too much to begin with and we offered $10,000 under and they accepted, but after the inspection, we would have had to reinvest $15,000-$18,000 into it. We backed away and cancelled the contract.
So, we were on the hunt for another house and the listings have been scarce in the area we want. We found a house that is smaller than what we want, but it has been updated with several things, including the kitchen and a new roof 3 years ago.
We made an offer $6,000 under asking because of the price per square foot in that area is only around $90 and they are asking $104. They rejected our offer, so we offered full price. We know the appraisal won't come in any way near what they are asking. What to do then??? We have no idea. Walk away...again??
I don't understand the mentality of people that won't negotiate. I realize everyone wants to make a profit, but it seems to me that you can either be stubborn and hold firm to your price or you can negotiate and sell and move on.
Am I wrong in my way of thinking?
Are you willing to proceed if you are wrong on the potential appraisal, and the appraisal comes back at contract price?
Are you intent on procuring housing or on controlling both sides of a transaction?
If the former, make your decisions based on the value you see and the data available.
If the latter, the forum cannot help you.
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