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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?
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.
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.
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.
Was not an option for us to slap money we didn't have down on another house before selling ours. I guess we'll just have to over-pay if that's what happens. We don't have much choice.
BTW...the title company just contacted us that they have documents for us to sign for the sale of our house. Called them and had to leave a message (lunch hour). I'm wondering if the appraisal from yesterday has been submitted and approved by buyer. We haven't heard anything and according to the contract the buyer has 5 days to respond. Curious what documents the title company would have. All this waiting drives me nuts...haha.
Typically only the buyer has access to the appraisal because you are the one who pays for it. The buyer only knows what it appraised at if you tell him. However, the bank will want to know where the extra money will come from if it appraises for less than purchase price.
***** This is how it is in my state anyway. Could be different elsewhere I suppose.
Walk away; what else can you do? A seller can ask anything he or she wants; whether or not it will appraise for that (allowing him to demand that) remains to be seen, but that's after the contract is signed.
How do you KNOW it won't appraise? If it doesn't and you are financing, they will have to negotiate or put it back on the market. And what about the inspection? How do you know what they are going to find?
We've done comps for similar square footage, year, etc. in that area and what they are selling for now. We're not expecting anything major with the inspection, BUT you never know. We'll see after that.
I'm just in frustrated, panic mode, I guess. I'm beginning to think we shouldn't have sold our house! We thought we would be able to find a house in this particular area but it's been bad timing for us.
We thought about renting but my husband (who's 76) just doesn't have the energy for more upheaval. He's been so stressed. I have to keep him calmed down.
With all due respect, it appears these issues are yours to bear, not the seller's.
Don't walk away, its 6k , I was between purchasing homes last summer and lived in an extended stay hotel for a month and a half. I paid around 1800 just for a month and that's not counting eating out and all the extras like doing laundry. You would pay 3-4k just to get into an apartment with deposit , first and last months rent , I would pay the 6k for the hassle factor alone . Good luck and be thankful that your home so quickly ~
We've done comps for similar square footage, year, etc. in that area and what they are selling for now. We're not expecting anything major with the inspection, BUT you never know. We'll see after that.
I am not an expert by any means but I would caution you to consider that price by square foot is not the only way to determine the value of a house. You may have two homes with the exact same square footage but there are many variables that will determine the value of those two homes - updates, renovations, the quality of those updates and renovations, size of the lot, features of the land it sits on, age of the heating/cooling system, the age of the roof, etc. You mention the roof is only 3 years old, that alone could drive up the value if the comps have older roofs.
Unless you're buying a cookie cutter house in a cookie cutter neighborhood, I'd not stress out on the price per square foot. Take a deep breath and just wait for the appraisal to come in before panicking.
This is what we did 2 years ago and didn't know it could be done.
Been casually looking at houses in same area for awhile but not confident I would find anything that would make me want to move. Next selling season, put house on the market with contingency "seller finds house of choice within xx number of days." Got buyer in 1 day which started the clock. Didn't find any houses and buyers were gracious enough to extend period. Found house and we did back to back closings. No double mortgages; no moving twice.
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That was rude.
