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Hello all. I just found this message board and could use some help.
We are moving to New England and found a home we would like to purchase. The list price of the home is $409K. Our agent ran comps for the home, and NO homes haves sold for this in the area - the 2 closest comps, which are 3 months old, for similiar homes are $360 and $355. The home is currently empty.
We offered $350 and they countered with $400. Now we don't know what to do - our agent explained to their agent how we arrived at our offer - and that we didn't think that the home would appraise out anywhere near their asking, then their agent kept saying why don't we offer more and if the appraisal comes back low they can then renegotiate - which seems like a waste of time (and some money) to me but our agent was advising us this morning that she thinks that is a good idea.
Please share your opinions - we do not absolutely positevely HAVE to have this house, but we do have to buy a home soon and there is very little in our price range available right now.
Hello all. I just found this message board and could use some help.
We are moving to New England and found a home we would like to purchase. The list price of the home is $409K. Our agent ran comps for the home, and NO homes haves sold for this in the area - the 2 closest comps, which are 3 months old, for similiar homes are $360 and $355. The home is currently empty.
We offered $350 and they countered with $400. Now we don't know what to do - our agent explained to their agent how we arrived at our offer - and that we didn't think that the home would appraise out anywhere near their asking, then their agent kept saying why don't we offer more and if the appraisal comes back low they can then renegotiate - which seems like a waste of time (and some money) to me but our agent was advising us this morning that she thinks that is a good idea.
Please share your opinions - we do not absolutely positevely HAVE to have this house, but we do have to buy a home soon and there is very little in our price range available right now.
Nothwithstanding the fact that I think you are patently out of your mind to buy a house that expensive.....
Offer what you think the house is worth and what you are willing to pay for it. Forget about what your real estate agent thinks. They have nothing to do with it. They are just the people who write up the paperwork, and if you base your decision on what someone else says, you will regret it.
If the house is worth $400,000 (and no houise is IMHO), then buy it. If it is not, then find something else. Tell your REALTOR to butt out.
Nothwithstanding the fact that I think you are patently out of your mind to buy a house that expensive.....
Offer what you think the house is worth and what you are willing to pay for it. Forget about what your real estate agent thinks. They have nothing to do with it. They are just the people who write up the paperwork, and if you base your decision on what someone else says, you will regret it.
If the house is worth $400,000 (and no houise is IMHO), then buy it. If it is not, then find something else. Tell your REALTOR to butt out.
20yrsinBranson
Being from Branson, Missouri, you may not be familiar with the housing market in the NE. 400k is considered lower end in a lot of places, especially in CT and MA, and even more especially in those parts of CT and MA which are in close proximity to New York City and Boston.
To the OP, really, an appraisal wouldn't hurt. Just b/c those houses sold lower, your house may have more upgrades, (not going there with some of you who will chime in about the upgrades may not be upgrades at all...blah, blah, blah). It wouldn't hurt to see what the appraiser says. How much money can it be? $350, $400?
Oh, if you're going to forget about what your realtor thinks, why have one? You can probably negotiate a lower price if you don't have representation. If you're going to have it, you must pay for it, if you're going to pay for it, then it seems silly to disregard it.
Hello all. I just found this message board and could use some help.
We are moving to New England and found a home we would like to purchase. The list price of the home is $409K. Our agent ran comps for the home, and NO homes haves sold for this in the area - the 2 closest comps, which are 3 months old, for similiar homes are $360 and $355. The home is currently empty.
We offered $350 and they countered with $400. Now we don't know what to do - our agent explained to their agent how we arrived at our offer - and that we didn't think that the home would appraise out anywhere near their asking, then their agent kept saying why don't we offer more and if the appraisal comes back low they can then renegotiate - which seems like a waste of time (and some money) to me but our agent was advising us this morning that she thinks that is a good idea.
Please share your opinions - we do not absolutely positevely HAVE to have this house, but we do have to buy a home soon and there is very little in our price range available right now.
I had this happen once with a client but they really wanted the house. We wrote up a higher offer with an addendum that if the home didn't appraise (because I was 99.9% sure it wouldn't) that the seller would automatically drop the price to appraised value or reimburse the buyer for the home inspection and appraisal ($850). We put that in the contract from the get go.
I am guessing your agent is suggesting that because it gets really hard when there isn't a lot in your price range and so if you want a house, you have to try and work with what is available to you.
I disagree that you should just discount what your agent is telling you. If you have a good relationship with your agent, just express your concerns and see what options you can come up with.
Hello all. I just found this message board and could use some help.
We are moving to New England and found a home we would like to purchase. The list price of the home is $409K. Our agent ran comps for the home, and NO homes haves sold for this in the area - the 2 closest comps, which are 3 months old, for similiar homes are $360 and $355. The home is currently empty.
We offered $350 and they countered with $400. Now we don't know what to do - our agent explained to their agent how we arrived at our offer - and that we didn't think that the home would appraise out anywhere near their asking, then their agent kept saying why don't we offer more and if the appraisal comes back low they can then renegotiate - which seems like a waste of time (and some money) to me but our agent was advising us this morning that she thinks that is a good idea.
Please share your opinions - we do not absolutely positevely HAVE to have this house, but we do have to buy a home soon and there is very little in our price range available right now.
IMO, if you are not in a hurry, and seeing that the media is telling us that very few people are buying houses, and especially the fact that you are purchasing such a high end house (although some areas of N.E. this is considered first time home buyer price range), why not ignore anything your realtor tells you and spend the $400. to have a house appraised. Obviously only do this on a house that you absolutely love and want to buy. If a buyer brought me (I'm the Seller) an independent appraisal from a licensed certified appraiser (not one connected to a mortgage broker), that may sway me to believe my house price is too high and I just may take your offer.
I have already called an independent appraiser to appraise my house for it's value because I would never trust a realtors comps. Remember we don't have access to MLS to see if the realtor is pulling the proper comps. It's very easy to adjust comps to figure the way I, you or a realtor want them to. Long story, but when my listing agent showed me comps, I asked my cousin who had access to MLS to check her comps because I thought the price she came up with was too low. My cousin even said, "wow, the realtor dug deep into the past sold listing to find those comps!"
Look my intention is not to scare you and unlike what the other realtors think here, my intention is not to slam good realtors, but my story is true and if you want to buy this house right, don't depend on your realtor. She may be working for you .... but what if he/she isn't?
An appraisal is an opinion supported by sales data and other information like $$/sq ft, condition, functionality et cetera.
A "Competitive Market Analysis" is VERY similar , except it is done not by an appraiser, but a real estate agent. It too is based very strongly on recent sales data. Its goal is to help both buyers and sellers determine the proper price for a home.
Similarly a "Broker Price Opinion" is based on the trend of recent prices, unique features that the home has (or lacks...) and other adjustments.
I would NOT suggest on Appraisal. They cost money. The other two are FREE. AND you would NOT be allowed to use that appraisal for your lender -- YOU'D PAY DOUBLE!!!!
Anytime a seller's agent counters at full price this is the car lot equivalent of "Didn't you read the Orange Numbers Painted on the front window, bud?" -- essentially a challenge to say "you want, but I can wait".
I have no idea how "hot" your particular market is, but if your seller's agent knows something that your buyer's agent does not, or vice verse, only ONE of them is correct...
My advice is to completely discuss everything together and then take your interests forward to discuss with the realtor, and not the other way around. No disrespect at all, to anyone. My intentions are only to have the buyers decide on all aspects of the contract that suit them and then have representation to go forward.
If you are pretty sure this is the house for you and you're going to go forward with it, the $350-$400 is a good idea because you'll receive an amazing analysis of the house as it compares to others that are similar. I was floored by ours - alot of work goes into those things and when you receive it, it is very detailed and worth every penny. I guess an appraisal can guide your offer, but I dont know?
I think a combination of our gut feeling on the home's value (value to US) along with paying close attention to the homes in the area and what they've sold for, etc, brought us to our end price, and we are satisfied with the price. Our agent had wanted us to start negotiations with the price we ended up settling on - which we still dont understand, with as much experience as she has. On her behalf, one never knows what another individual is going to do or what their motivations are, and so maybe we had good fortune and the seller's did something outside of the norm. People are people and cant be counted on to act identical given the same circumstances! :-)
I had this happen once with a client but they really wanted the house. We wrote up a higher offer with an addendum that if the home didn't appraise (because I was 99.9% sure it wouldn't) that the seller would automatically drop the price to appraised value or reimburse the buyer for the home inspection and appraisal ($850). We put that in the contract from the get go.
I am guessing your agent is suggesting that because it gets really hard when there isn't a lot in your price range and so if you want a house, you have to try and work with what is available to you.
I disagree that you should just discount what your agent is telling you. If you have a good relationship with your agent, just express your concerns and see what options you can come up with.
I have never personally done this, as I have met several agents who are not real good with 'splaining details to their clients, and they'd probably think it was a "can't lose" for 'em.
I do think Silverfall's suggestion IS a fair addendum precisely because EITHER side could "lose" when the appraisal comes back...
Writing it so there is a way to recoup the cost might be worth the risk!
Originally Posted by Silverfall I had this happen once with a client but they really wanted the house. We wrote up a higher offer with an addendum that if the home didn't appraise (because I was 99.9% sure it wouldn't) that the seller would automatically drop the price to appraised value or reimburse the buyer for the home inspection and appraisal ($850). We put that in the contract from the get go.
IMHO silverfall gave you good advice- IF you are determined to get that house.
As a seller, I wouldn't sign that, though. That's just me. If you want to peek, you pay.
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Good advice!
