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Old 06-07-2017, 11:45 AM
 
714 posts, read 717,909 times
Reputation: 2157

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Quote:
Originally Posted by Gene Starwind View Post
Yea because everyone wants to float a second mortgage for an empty unused house until it sells

It can work if you're smart -- and realistic. I took an asset-backed loan against retirement funds to buy my new house for cash and paid off my (admittedly small) mortgage balance on the old one with a very low interest equity line on my old one. I moved first, paid the minimum on the equity line. My realtor took care of bringing in people to refinish hardwood floors and other minor fixes on the old house, priced it aggressively, sold it in 19 days and we closed 10 weeks later.


If you're going to want to hold out until you get top dollar (usually a bad idea) and you are going to have to float two high mortgages, then it's not feasible. But if any of those things is not in force, it can be workable if you are realistic.
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Old 06-07-2017, 12:51 PM
 
Location: Silicon Valley
7,631 posts, read 4,551,572 times
Reputation: 12681
Quote:
Originally Posted by retiredtxn View Post
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?
Unfortunately, you've placed yourself into a forced buying situation. If you want to move directly into a house, you may not have time to cherry pick for well priced homes.

You've placed an offer to buy. If it's been accepted, you will lose your escrow money if you don't fulfill. However your offer contract should have a stipulation in it that will protect you if you are unable to get a loan for the home. (on account of appraisal)

I wouldn't worry about the appraisal. Generally these can be stretched or contracted to fit what's needed.

If it doesn't appraise and you've used a good agent, you should be fine. For short term housing, you may need to look at renting an apartment for a short time while you continue your home search.
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Old 06-07-2017, 02:52 PM
 
17,815 posts, read 25,574,545 times
Reputation: 36267
Quote:
Originally Posted by jghorton View Post
Do you suppose the seller is thinking the same thing ....that you are willing to let the house go for $6K?
Of course not, it's "all about me" for the OP.

Quote:
Originally Posted by ringwise View Post
And by "negotiate" I'm assuming you mean "cave to your demands"?

It looks like they are being prudent, waiting to see what the actual appraisal comes in at, instead of being bullied into lowering the price because of your desire to get the price on your terms.
Exactly.

Quote:
Originally Posted by retiredtxn View Post
WOW That was rude.

We're not trying to "bully" anyone or get them to "cave to our demands". If you're a realtor, I hope you don't talk to clients like that.

Us stupid, lay, old people come here for help and guidance...not to get beat up and insulted.
No, it was the truth.

Put on your big boy pants.

If you have to be out of your house, you're going to haggle over $6,000? If you have to rent an apt or stay in a hotel you will be spending money anyway.

Talk about being "penny wise and pound foolish".
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Old 06-07-2017, 04:09 PM
 
17,422 posts, read 13,200,337 times
Reputation: 32784
Quote:
Originally Posted by retiredtxn View Post
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?
Supply and demand??

Several houses in the area that I know about sold higher than asking price due to bidding wars
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Old 06-07-2017, 05:51 PM
 
Location: Somewhere in America
15,479 posts, read 15,564,516 times
Reputation: 28462
Quote:
Originally Posted by retiredtxn View Post
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?
Why not wait until the appraisal comes in? No point in panicking since you can't do anything about it. I'd start looking into short term rentals as a back up.
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Old 06-07-2017, 05:58 PM
 
Location: DFW
40,936 posts, read 49,025,568 times
Reputation: 54962
You're in Texas? Many areas it's a hot market with a huge shortage of homes. Prices are going up weekly.

At $104 a sqft you would be silly to not make it work. Currently homes in much of DFW is $140-220 per sgft and going up.

Get over it and make the deal work.
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Old 06-07-2017, 06:01 PM
 
Location: Georgia
4,578 posts, read 5,643,202 times
Reputation: 15968
Quote:
Originally Posted by MikeJaquish View Post

One of my favorite lines:
"The first $500,000 is easy. The deal comes apart over the last $500."
Good lord, isn't THAT the truth?! SMH over some of the petty BS that people will walk away from a deal over.
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Old 06-07-2017, 07:10 PM
 
12,022 posts, read 11,522,798 times
Reputation: 11136
If 6K is 15% off the price of the house, that's a very low-priced house. How much of a house do you think the seller can afford to move into after losing 6K and seller's share of the closing costs? If I were the seller, it would be cheaper to stay where he is. This sounds like a property that's in a small rural town.
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Old 06-07-2017, 08:35 PM
 
9,694 posts, read 7,363,100 times
Reputation: 9931
Pay what they want or walk
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Old 06-08-2017, 04:40 AM
 
162 posts, read 208,307 times
Reputation: 182
Quote:
Originally Posted by veuvegirl View Post
Our market is very hot right now. We were concerned about appraisal as well. What we did was pay for an expedited appraisal that was done as soon as our offer was accepted.
How would this help? I'm just curious because we're in a similar situation. I had thought it might actually work to our benefit for the appraisal to take a bit longer because it would give some of the other houses in our neighborhood a chance to close and be used as comps.
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