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Found a house we would like to make a bid on, however recent comps for the area are about $35,000 less than the asking price and making an offer in line with these comps would mean the sellers would take a loss on the home about equivalent to the realtor fees (they have only owned it for 3 years and it is worth about what they paid for it back then).
Thus the dilemma of the current market it seems, hate to "lowball" the current owners, but we aren't willing to overpay. Just my 2 cents....as much as it is a buyer's market - sellers seem to be in denial about the true market value of their homes.
I don't really think it is a dilemma. You can felt bad for the sellers, but you wouldn't pay $50,000 for a car worth $30,000 just because you felt bad for the owner.
I don't really think it is a dilemma. You can felt bad for the sellers, but you wouldn't pay $50,000 for a car worth $30,000 just because you felt bad for the owner.
You need to be wise with your money.
Yes we won't overpay, but I guess I'm saying that it is difficult to find a home that is priced correctly - it seems it takes being on the market a long time before the buyers are willing to make the necessary price adjustments.
That's the seller's problem for overpaying when they bought. Today you pay what's in line for the current market conditions. Ten to one they are needing to get out of this house because they are over extended and need to save their credit rating and get into something they can afford.
It never hurts to lowball and see what happens. If the seller is motivated, they will counter offer, or maybe even be happy to take your offer. Try it.
Yes we won't overpay, but I guess I'm saying that it is difficult to find a home that is priced correctly - it seems it takes being on the market a long time before the buyers are willing to make the necessary price adjustments.
I agree that this is a problem. Thankfully there is enough inventory that you can move onto the next house. One of my clients rejected a low offer and then 6 weeks later rethought his position. I called the agent back and the buyer's hadn't found another place they liked as much so we took the original offer and closed.
Sometimes you gotta throw it out there and see what happens. Sometimes walking away and being patient pays off.
Some people are able to come to the table with money. Make the offer.
I'm wondering how they are thinking the property would appraise if what you are saying is correct about the comps.
Me, I'm getting a little tired of buyers still putting in offers 10-20% below asking when the property really already is at the comp level. In my area, many properties have already reduced and sellers are just now starting to hold tight. It's an interesting turn of events. Will it stay that way? I have no idea...they held tight last year, then started selling off and now are holding tight again.
Found a house we would like to make a bid on, however recent comps for the area are about $35,000 less than the asking price and making an offer in line with these comps would mean the sellers would take a loss on the home about equivalent to the realtor fees (they have only owned it for 3 years and it is worth about what they paid for it back then).
Thus the dilemma of the current market it seems, hate to "lowball" the current owners, but we aren't willing to overpay. Just my 2 cents....as much as it is a buyer's market - sellers seem to be in denial about the true market value of their homes.
I don't see the dilemma, you should offer for what it is worth in todays market. It is not your fault they are putting their home up for sale when the market is down. Only a fool would offer more than what it is worth. Warren buffet has so much more money than all of us and he won't pay more than what is reasonable and probable even will try to get it for less. I would do the same, try lower and otherwise there are more homes on the market, or just wait.
The latest news is that in May and June more mortgage rates will reset and more mortgages will default.
When you make the offer, give justification behind it. Give them the comps you pulled; then maybe they will be more level headed when they look at your offer.
I am having the same problem in my area, delusional sellers refusing to accept current market conditions. Buying a property at the current comp price is a gamble given that the market may continue to go down, paying anything more is insane. I have made cash offers with no contingencies backed by recent sales data on houses that have been on the market 250+ days, only to have the sellers counter firm at full price which is 20-25% higher than anything sold in the last year. I have had a few sellers get insulted and upset and refuse to even negotiate. Needless to say, I move on to the next house, it is not worth my time to deal with people that really are not interested in selling their house at today's prices. I really don't know what these sellers are thinking, even if they find a sucker, if financing is involved the whole deal would fall apart prior to closing when the appraisal comes in much lower and the buyer walks away.
The more properties that I see, the more I become convinced that sellers and their realtors are still refusing to face facts and price accordingly. With sellers desperately clinging to their imaginary gains, I think it will be a long time before the market reaches bottom. Why would you even list and show your house if you refuse to sell at the current market price?
Obviously you have not been reading the posts here on buying.
1. The Market is the Market. It's now in the favor of Buyers.
2. Your first and only concern is YOU. The Sellers are not concerned with you and shouldn't be. You put in your BID they either decline, accept or counter.
3. Dont be emotionally attached to this house! If the sellers dont want to sell nothing can make them sell. The value of the home can be what the comps are IF they truely want to sell or it can be more sentimetal if they dont want to sell at market prices. Time MAY wear them down, hell it may not.
As a buyer I know that I'm not entitled to any home just because of the comps. I think thats where buyers make mistakes. If a seller doesn't want to sell they won't. Start looking at the comps!
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