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Received counter offer...Seller is sticking to the Listing Price!
Hello Nesties,
So we finally heard back from the the seller's agent and he's sticking to the asking price of $325K! Also, the seller included comps so that we could see why they're asking for $325K, but they weren't really comps! The house we're interested is less that 1100 square feet of living space, less than 5200 square feet of lot space, 3 bedrooms, 1 bath, a two car garage and a backyard that needs to be fenced by the potential buyer. He included comps that were 3 bedrooms, 2 baths, over 1250 square feet of living space, over 6000 square feet of lot space and 2 of them had a den/family room and a fireplace. How are those comps??? We vamped our offer price from $290K to $300K and included comps in the area. The average of 6 comparables within a 1 mile radius of the house we're interested in was $298K. We're wiling to go up to $308K, which is only 5% less than the asking price. Have any of you been in a similar counter offer situation? I know we have to do what's right for us, and we will, but it helps to see what other first time home buyers have done. Thanks for reading and replying!
Re: Received counter offer...Seller is sticking to the Listing Price!
Hmm that's bizarre. Their agent should know that those aren't truly comps.
We didn't have issues like that with the offer, but we did with getting them to do things following the inspection. They countered back saying they would do everything but one thing, and we said, no, you're going to do that too... and then they did. There were a few things we didn't even put on the inspection addendum.
Try to hold your own. Or you could always just go with the full price and have it underappraise. It sounds to me like it will. Hopefully they'll drop the price then, but even so they won't have to. Ours underappraised by $20k and we only got the price dropped 12k.
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It's possible that the list price is the seller's bottom line and they can't afford to let the house go for less than that.
I'd submit a counteroffer and include the comps you feel are accurate; explain what you just told us - similar square footage, lot size, bedrooms and bathrooms. How recently did the sold ones close? With a first counter like that, you probably won't get them to come down more than a couple thousand dollars.
What is the average percent off list price recent comps have been selling for?
Try not to get all worked up. It's a negotiation, nothing personal. And they don't know you're willing to go up to $308K. The sellers want as much money as they can get. Especially if their home is new to the market, they may be looking to hold out for a higher price.
As nsfw said, list could be their bottom line for many reasons (not being able or WILLING to take less). The seller is not being unreasonable...he is just being firm in his price. It is not personal. It is a business transaction.
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But it is unreasonable to expect to get more for a house then its worth. Just because you owe X on the house doesn't mean you are going to get it.
BFP #3 2.15.11 EDD 10.27.11. DD born 10.29.11
Betas @9dpo = 23 Betas @12dpo= 128.5 Betas @17dpo= 1075 Betas @21dpo =5800s
@6w hb 114 bpm! @8w4d hb 178 bpm! @12w hb 169 bpm! @18w hb 150 bpm!
You may have the opinion that he is being unreasonable, but he is entitled to his opinion that his house is worth the asking price. Personally, I think Coach purses are "unreasonable" in their price--but that is my opinion. Others will gladly fork over the $$.
Again, this is a business transaction. He does NOT have to change his price to suit the buyer. If a buyer doesn't like the price, then they have the choice to walk away.
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Someone commented that their REA should know those aren't comps and the REA may very well have told the seller that, however, they are required to submit offers/counters how the seller/buyer wants. Our sellers (the husband specifically) were constantly going against the advice of their REA. She actually apologized to my agent because he was being so difficult and demanding things that she told him just weren't possible (3 day window for inspections and appraisals).
So offer what's best for you and if they don't accept it, that's all you can do.
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Well obviously others aren't gladly willing to fork over the money or else the house would be sold already.
I don't understand why you keep saying its a business transaction. Thank you, Captain Obvious. Of course he doesn't have to change his price, but then he runs the risk that his house isn't going to sell. The OP has every right to wonder what the heck this seller is thinking trying to get more money then the house is worth (according to comps).
BFP #3 2.15.11 EDD 10.27.11. DD born 10.29.11
Betas @9dpo = 23 Betas @12dpo= 128.5 Betas @17dpo= 1075 Betas @21dpo =5800s
@6w hb 114 bpm! @8w4d hb 178 bpm! @12w hb 169 bpm! @18w hb 150 bpm!
However you decide to counter, make sure you include an appraisal contingency so that if they house does not appraise for the sale price, either the seller drops the sale price to match the appraisal or you can walk away without penalty.
And snark was necessary?
Why is the seller's mindset even relevant? It doesn't matter why he wants the price he is asking--he has countered with the price he is willing to accept and it is obvious that he is going to stand firm. If the buyer does not agree that it is a fair price, then look for another house.
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Thinking of doing cosmetic updates to a dated home? These were our costs.
And OP, just a general nest hint, it's always a good idea to link to your original post. People are getting really worked up here in part because they don't know this is a flipper and don't know the backstory.
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Thinking of doing cosmetic updates to a dated home? These were our costs.
Yeah the OP changes my opinion slightly. I'd be annoyed.
Looking at TH's math on that thread, I wonder if he over-invested for the neighborhood.
Thanks! I think I stopped getting emotionally attached a few days ago. We started looking at other houes to try to get our mind off of this one but we still keep coming back to this house! This Friday it would be on the market for 3 weeks and I'm pretty sure it'll get to 30 days. You're right! I'll let this guys simmer and see that the house is overpriced and maybe he'll be willing to settle for 5-8% less than his asking price. Thanks!!
We're gonna hang in a little bit longer. According to the comps and the renovations done on the house we feel and our realtor feels that the house is worth a MAX of $308K. Once we get to that amount and he declines...we walk away. Thanks!
I have no idea how do do that....
The comp homes found were sold within the last 6-7 months, the homes sold between 5-15% less than the listing price. Right...they DO NOT know that we're willing to to $308K. The house has only been on the market for almost 3 weeks so I'll see where it'll be at when the 30 days approach.
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STOP SPAMMING THE BOARDS.
Correct. These homes were sold within the past 6-7 months between 5-15% less than the listing price.
Another thing to consider is if you know the neighborhood well enough to confirm that your comps are good. 1-mile away in my neighborhood could be on a major street where houses are selling for 25% less than even one-block over, so it's good to revisit the comp locations you are using and make sure that they are on similar sized streets and with similar residential areas - you could also be looking at one that is zoned for both residential/business and on the edge of a residential area that will sell much lower than in the middle of a residential area.
So keep that in mind when talking to your REA about comps - they often will try to pull the lowest as the seller and the highest as the buyer, but the reality is what you're willing to pay. Good luck.
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