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Old 12-07-2008, 10:00 AM
 
3,584 posts, read 6,482,081 times
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Home sellers continue to act irrationally. I'm down in the Orlando area and still looking to purchase a home. I'm looking into the Lake Mary (Heathrow) area.

Home I was looking for was listed for 750K (the owners had purchased in 2002 for 575K) I offered 705K, while they would not go below 730K. Turns out they found a potential buyer for 725K. However, last week I learned that that potential buyer could not get the financing rates they wanted. They only were putting 10% down and turns out the mortgage rates they were receiving were very high (even with the decreasing interest rates nationally) because the banks were not going to take risks with non-comforming loans.

I told the owners real estate agent, I have the 20-30% downpayment, more than enough income (even including my home that I still have in Maryland plus the potential Florida home), my monthly expenses including both mortgages to income ratio is less than 25% and that's excluding my rental income that I'm currently getting on that Maryland home.

These owners were quite stupid and greedy. They were going to clear at least a 80-100K profit even after real estate commissions with my 705K offer. But they went with the 725K offer hoping to yield an additional 20K in profit.

In this real estate market especially with the depressed economy (especially in Central Florida where unemployment is higher than the national average). I would have jumped the best offer from the potential buyers most likely to complete the deal.

So that house for sale still sits empty (the owners had moved out in August), day 120 and counting. The owners had recountered to 720K. Too bad for them, I've lost interest in their home.
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Old 12-07-2008, 10:44 AM
 
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If you've lost interest in the home so soon it sounds like you made a stupid decision to offer what you did. You were just lucky the dumb seller saved you from your own mistake.
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Old 12-07-2008, 10:51 AM
 
Location: Hernando County, FL
8,488 posts, read 19,421,585 times
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I can guarantee 99% of the population would have take the offer for $20K more.
It has nothing to do with greed, just common sense.
There was no way to know that the other buyer would not secure acceptable financing and $72,500 down is not a small down.
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Old 12-07-2008, 10:54 AM
 
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Not really, I've just found a better deal on a short sale a couple of weeks ago and waiting for the bank to get back to me. For me, it's primarily about location.

I can live in almost any home. I don't have any emotional attachment to a home like most people. If that previous home buyer would have agreed, I would have been perfectly happy living in it.
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Old 12-07-2008, 10:54 AM
 
Location: Austin
14,694 posts, read 8,967,520 times
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In 1996, we offered $270 for a house listed for $325 in a wonderful neighborhood but was in very bad cosmetic condition, empty, and had been on the market for 6 months with no offers. The owners countered with $310. We said no thank you and didn't want to insult anyone. We did want to keep the door open and be courteous to the sellers because we loved the house. We asked our agent to ask the seller's agent to call us if the sellers ever changed their mind and we would continue looking.

Three months later the seller's agent called our agent and offered us the house for $275. We happily accepted their belated counter offer. We closed three weeks later.

Patience truly was a virtue in our case. We were, however, the only offer for the house during the nine months it was on the market.

Last edited by texan2yankee; 12-07-2008 at 11:18 AM.. Reason: add more information
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Old 12-07-2008, 11:00 AM
 
1,151 posts, read 2,847,209 times
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Quote:
Originally Posted by aneftp View Post
Not really, I've just found a better deal on a short sale a couple of weeks ago and waiting for the bank to get back to me. For me, it's primarily about location.

I can live in almost any home. I don't have any emotional attachment to a home like most people. If that previous home buyer would have agreed, I would have been perfectly happy living in it.
I know you don't want to feel like you made a bad decision, but if the short sale is a better deal, then you are lucky the seller saved you from yourself.
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Old 12-07-2008, 11:03 AM
 
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,409,176 times
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Quote:
Originally Posted by Mike Peterson View Post
I can guarantee 99% of the population would have take the offer for $20K more.
It has nothing to do with greed, just common sense.
There was no way to know that the other buyer would not secure acceptable financing and $72,500 down is not a small down.
I know I would've accepted it, too. That's not dumb or greedy to accept the better offer. It's just business after all.

Sounds like the OP is just miffed because his offer was initially rejected and since he felt rejected, he must now reject their counter to validate himself. I doubt he truly was interested in the house to begin with. Could've been just fishin'....
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Old 12-07-2008, 11:29 AM
 
48,507 posts, read 91,417,153 times
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I agree the best offer is always the one you accept. Sometimes it doesn't work out and sometime it does. taht is business.What you ran into was a owenr that didn;'t ned to sellt eh house immediately proably and you bought from one that did need to sell badly.Short sales can be a indication that the loactioin is not as good as a more stable one in the end.
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Old 12-07-2008, 12:30 PM
 
3,584 posts, read 6,482,081 times
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Quote:
Originally Posted by texdav View Post
I agree the best offer is always the one you accept. Sometimes it doesn't work out and sometime it does. taht is business.What you ran into was a owenr that didn;'t ned to sellt eh house immediately proably and you bought from one that did need to sell badly.Short sales can be a indication that the loactioin is not as good as a more stable one in the end.
The short sale is in the same zip code, same neighborhood, same schools system. Heathrow is probably one of the best neighborhoods in the Orlando area. A famous golfer (Not Tiger Woods!) lives down the street along with a former pitcher for the Boston Red Sox. This neighborhood is holding up pretty well in terms of home values, except the home owners of the short sale I'm doing probably did a cash out re-finance and now are in trouble.

I know I have to be patient with Short sales.
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Old 12-07-2008, 12:56 PM
 
Location: Barrington
61,405 posts, read 42,080,617 times
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Where did the owners go? Are they current on the mortgage? Is this a corporate relocation? How much is this costing them each month, out of pocket, to maintain a vacant home?

If the short sale does not work out, consider going back and offering $675K and wait for a counter.
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