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For comps, there really is only one property that was sold in the last 6 months that is close to this house in terms of square footage etc. That house was sold for $482k. Most of the other houses in the area have been sold for lesser (unless the owner had recently upgraded the place).
My agent mentioned that the seller was insulted. I am not sure if he made that up or the seller really was insulted. IMO, the initial offer is not a final offer and I assumed that the seller knows that. It's a way to get started with the negotiating process. Outright decline of the offer without a counter isn't something we were expecting especially given that the seller has no other offers on the table.
Decide how much you want this home and offer accordingly to how much you really want it. It sounds like you are in strong sellers market where low-balling won't get you anywhere.
From a seller's perspective: Serious buyers make strong offers to show they mean business. Bargain hunters throw out super low offers and can be expected to make the process a nightmare as they attempt to nickel and dime the seller for every perceived fault in the inspection.
If I were the seller in this circumstance I would not be insulted but would assume you were a bargain hunter fishing for a desperate seller. I would not consider your initial offer a legitimate offer and would not counter. I would instruct the realtor to tell you "If you're really interested send me a legitimate offer and I'll think about it."
We offered 10% below asking, paying cash, and got a flat no, demanding full price. We said no, thanks.
A few days later, the stock market dipped drastically, and the sellers came back with an offer of 2% below. We walked because a) we were offended they didn't come back with a reasonable discount right away, and b) we toured the house again and decided we didn't like it that much after all.
Months later, I ran into the seller. She didn't know I was the one who had offered, but recognized me from their open house. She went into a long tirade about how hard it is to sell a house, and you really need a cash buyer. Huh?
Why not just put in a serious offer and stop playing games? Of course they didn't counter your offer because it was a ridiculous offer. What's your next step? Haven't you spoken to your realtor about what your options are? If you really want the house, put in a real offer.
Everyone seems to want a bargain, and that is understandable. The less experienced buyers look at the asking price, which has probably already been established to be a fair price by the listing agent and seller, and they automatically offer a certain percentage less. That is regardless of the actual value of the place. They think "12% less than asking? That means 12% instant equity!". Hooray!
The experienced buyers look at the asking price and compare it to the value of the property--the value today and the value tomorrow. They consider how close the asking price is to the value. Is it close? What will it be worth a year from now? Five years from now? How many properties just like this one are available now or within the next few months? One? How much do I want this one? Enough to pay an extra 5% now in the anticipation that such nice places are becoming fewer or more expensive? Enough to pay the fair valuation? What would I ask for the property were it mine to sell? Mine. Somehow that adds another few per cent in value every time.
If you really like this place, make your offer based on issues like inspections and timing of the sale rather than the price. Either you can afford it or you can't. In a rising market you will make back a few per cent of the price in a year or two. In a falling market you can always wait and buy next year, unless you need or want a new place right now. But automatically offering less than asking by a magic percentage is a time waster and shows a certain amount of inexperience. IMHO.
When we sold our various houses we had some of those low offers. We weren't offended; it was really the agents time they were wasting, not ours.
OTOH, we never ignored an offer. We always responded with a lower price that was something we would accept.
Whatever we countered with was close to what we expected to get, or maybe a little less each time to placate certain personality types.
Some people seem to think negotiating means I name a price, they name a price, and then we go back and forth to meet in the middle so it results in meeting halfway or something like that. That's not how it is going to work. I know what I'm selling and what a fair price is, so the offer has to be in the ballpark to get accepted.
The thing is, you have no way to know if you're dealing with someone like me who thinks they have a fair price and doesn't care what you want to spend or what games you like to play.
Or perhaps you may be dealing with someone who really does want to haggle. Do you think their no-answer of no counter offer sounds like a haggler?
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