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My wife and I saw this home for $385k newly listed. First open house it had received 4 offers 1 if them ours.we submitted our highest and best offer for 397 minus 5k in closing and we ended up not winning the bid A week has gone by and my realtor called me today and said that the first buyer had decided not to move forward due to concerns for inspection finding mice droppings and oil tank being patched. I was 2nd on the highest and best not sure what the other 2 offers were I’m thinking they were low due to sellers saying they are going to list house back on if we choose not to accept. My wife and I love the house but we are not in a bidding war and he highest person is no longer in the picture why should I be paying $7k over asking.
Question is should we stick to our highest and best offer or resubmit and send just full asking ? We dont want to lose the house over 7k but I feel $385 is is perfect I would love to save 7k but don’t want the buyers to say never mind they will list it. Oya and my realtor thinks we should stick with the 397 minus 5k in closing and not offer any lower and thinks it will go over asking if relisted.
Another thing to add is the sellers have a found a home that they are purchasing but they can’t do anything until there house goes on P&S
I'm no expert but this is really interesting. Yours at (net) $392 apparently was the second-highest. And if you don't accept, they're going to relist, which sounds like the other offers weren't at full-asking, maybe? So now that you know there's mice (eeek) and this other problem with the oil tank, why would you want to still pay $7K over asking? And why does your agent think that if they re-list it, they'll get over-listing, when they only got two before and now the mice/tank problems are known?
How do you feel about the price, knowing what you now know? I would tend to just offer $385 at this point (or $390 with $5K closing if that works better), with the rationale that your offer has changed in light of the problems. And you don't know what other problems an inspection will reveal yet? It would seem that they would/should take a full-price offer rather than start over again with a listing, and maybe wind up getting even less.
"Highest and Best" is a call for the best offer you would make.
IF you "don't want to lose the house over $7,000," you likely haven't made your "highest and best" offer.
Dump "feelings," as no one can guide you there.
Determine from market data what your maximum offer would be, whether the house is really worth it to you, and make your true best offer or ride out your last "best" offer.
I've been through this with a foreclosure. 5 freaking times they came back with "submit your highest and best" BS. The first time we gave nothing. The second time $1000. The third, fourth and fifth time, $1 each. I still regret that $1000 decision (it was advised), not because the money hurt to lose but on basic principle.
Forget the "losing the house" angle, just put it out of your head. What's the property Really worth to you, in the condition it's in? Is it still your initial offer? Less given the new findings? At what price would you be comfortable with the sale... not happy over a good price, just comfortable that you got what you paid for.
Now, consider that the Sellers are also fretting. They, similarly, don't want to lose out on a salve over a measly $7k. That's not even 2% of your offer price. They have ALREADY lost out on one sale, that's an emotional toll taken. This really comes down to a battle of wits, who can hold out the longest. Are the sellers going to let a "sure thing" slip by to take another chance? What if your offer turns out to the be the highest they receive and they eventually sell for $10k less than your offer? These are things they're going to be thinking about. Chances are, they have plans on hold till the house sells... or they may be facing leaving the house vacant/trying to rent it if it doesn't sell.
Unless the property has some feature that simply can not be found elsewhere, I'd say to just stick to your initial offer OR modify it to reflect the issues found (though, that can be done after your own inspection, which is probably a better tactic).
I would question why and how the oil tank was "patched". I would say that is not normal. Is it an above ground tank or below ground? (I assume it's above ground.) Was the patch required due to a puncture or from deteriorating metal? If the latter, I would be more concerned. You may need to have someone reinspect the tank to determine its true condition. How large is the tank and what would it cost to replace it? What you find out about the oil tank should help guide your decision. No one here can really say whether the house is worth a certain price.
Two things - you don't say city/state, so it's hard to evaluate the rodent problem. If it was Washington, DC, why would you think one home wouldn't have that problem? Even in the high rent areas, almost everyone has a pest contract.
Do some quick work and research patching oil tanks. Is it a hazard? How long can they hold? Is another leak imminent? You have a unique advantage of knowing the two largest defects without spending $500. Get the cost to replace the tank.
Once you have your answer, it comes down to, would you be upset if this home "got away?" There's so much additional info needed, online advice could actually be harmful in your case due to not knowing all of the facts. For example, does your agent think the listing agent underpriced the home to generate buzz about the property (This is why experience matters more than rebates)? What do the comps say? Are they asking you to strike the appraisal clause? How much are you putting down (percentage)? There's nothing saying you can't say we will hold at original offer. If they re-list, you can always make another, higher offer, but I would put a sunset clause on it, "offer withdrawn as of 6 PM on this date." They will milk every dime if they think they can yank your chain. Also, don't respond with lightening speed. Make sure your responses are measured and well thought out.
(If they don't strike the appraisal clause, the appraisal will keep the sales price in check - but know that the appraisal is there really to protect the lender's collateral equity interest).
You know what I think after 30 years of buying, fixing and reselling houses? The "buy of a lifetime" house that you "just can't live without" comes up all the time, IF you are looking for it.
I would NEVER pay over asking for a house, move on to looking for a better one that will work out for you. Don't become "don't wanter's" right after overpaying and buying a house you think you "can't live without". It's not a good mental position to be in.
It's not like "asking price" is some objective measurement of a house's value. What is it worth to you? If it's not worth net 392K then walk away. Don't get hung up on whatever number happened to be on a listing. Not saying it's the case here, but in some cases, people deliberately lowball to trigger a bidding war - it doesn't mean the house is only worth that lowball number.
OP, you need to reach deep down and remove the emotional attachment you have invested in this house. It has to come down to weather it’s worth it or not in dollars. You also need to be realistic and expect to have to have that oil tank replaced, and those things are not cheap. There’s a reason why it has a patch on it- it costs a lot of money to replace!
As a matter of principal had I received a request for my best and final offer I would tell them I’m no longer interested until the issues found during the inspection are resolved to my satisfaction. I never let sellers dictate what I’m comfortable with, that’s for me to decide.
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