Haggling process question:

infantsorrow · August 2012

How many times can the offer/counteroffer go back and forth? We are on our second house bid. We bid alot lower than their unrealistic asking price. They countered 5K less than asking. We went up 25K; its our best and final offer and still quite a bit more than the value of the house. Nonetheless, they are stuck on their asking price and only dropped 5K more. We're pulling our offer, but I'm wondering how much further this could have gone/what others' experiences are.

I just feel so frustrated, disappointed, and even a little angry (there were other stipulations they sent back in the contract that made it seem like they were hostile in their counteroffer--it was very strange). Thanks for your stories. I'm feeling so down...

GeorgiaRiah · August 2012

When I bought my house we went back and forth about 6 times. You can haggle as long as want. I just kept going until I got what I wanted. It just keeps going until someone backs out or you both accept. There is no limit to it.

vpine · August 2012

Is it possible for you to request decent amount of closing costs for them to cover, home warranty for them to cover and portion of your home owner's association fees too ? Maybe then it will balance out?

Amberley18 · August 2012

I think you were right to walk. If you are coming up 25K and they are only conceding $5k at a time, it isn't worth the hassel.

Out of curriousity, how much below asking did you initially offer?

Also, you say their original price was unrealistic. Is this based on comps?

lil_jen051708 · August 2012

Like others mentioned, it can go back and forth until someone accepts or someone backs out (or lets the offer expire). Some sellers are really attached to their home and maybe they don't have to sell or maybe they are just a little crazy. Either someone else crazy will pay near their asking price or it won't sell.

Also, remember the house will need to appraise for the sales price or your mortgage financing not work out. No bank will lend more than the house is worth and you'll need a downpayment still. I assume the 'value of the house' you mentioned above is a value based on sold comps? If the house doesn't appraise for the sales price you have two options: Pay cash for the difference OR the sellers will reduce their sales price (which doesn't sound like it'd really happen).

infantsorrow · August 2012

We offered $50K below their intial asking price. This is based on comps, taking into consideration the extensive repairs that would need to be made immediately. We provided the data, including info on comps when we made the offer. After their initial counter, we came up by 24K based on some other factors, inc. the fact that if we don't move, we'll be renting for another year--so, not necessarily because we suddenly saw so much more value in the actual home. Their second counter was for only 5K less than before.

Then, their counter contract reduced the number of days we could have an inspector through and then respond to issues, reduced the amt for the one year warranty. Honestly, it seemed like an angry response on their part, but it makes me worry that the visible damage might be more extensive and they're trying to dump their house on us and run.

I'm pretty sure we're their first offer, and they think they'll be raking them in soon. According to neighbors, they can't wait too long, though. They had another home built and are paying two mortgages now.

LoveKiss · August 2012

If you really like the house, walk away. let it sit on the market for another 30 days, and then re-offer for the same amount as your 1st counter-offer (so $25k less than current offewr price) and see what happens at that point. If they think they are reasonably priced and expect offers to just come rolling in, you need to let time and current market conditions convince them that they are out of touch with reality.