I finally got an offer on my house, but it is too low. What do I do?

Question

My home has been on the market for over 2 months and I finally got an offer. The "buyer" has no problem with the price, but It is her father (the accountant) that does. Our list price is $216,500 and this moron bids $202,000. I countered @ 215,000 and they offered 212,000. I told my realtor to let them know that if they won't give 214,000 then don't call back.

Was I wrong not to take the offer? The buyer is well qualified and is OK with it, but her father isnt.

I am also closing on another house this week and do need the proceeds from this one. I had to take out loans for the new mortgage and a line of credit on this home.

The reason I didn't take it was that his daughter likes the house a lot and it qualified for it. I'm sure they (she) will accept it. Our desktop appraisal was 230,000 and the house next to me sold this month for 216,000.

I don't think 214,000 is asking too much.

I did think about the consequences if I don't let it go, but I don't want to have to pay a lot of payments and interest on the "bridge loan"

Answer 1

You were not wrong to turn down the offer. You're the seller, and as which, it is your right to set the asking price, and then not settle for a penny below it if that is not your wish. From your details, it does sound like there's a bit of urgency, and the fact that this is the first offer you've received in two months might have you feeling a bit of regret. The majority of homes sell for 97% of the asking price.

If this is the first offer you've gotten, you might want to consider why. Is your agent doing a good job of advertising your home? Is he/she putting it in all available publications, web-sites, tv ads, etc with excellent photographs of the home, selling points, and is he/she including good attention grabbing descriptions? Are they doing open houses? What are they doing to create a buzz and let people know your home is out there and for sale?

If many people have come through, but this is your first offer, you might want to consider if there are some small things you can do to increase buyer appeal. Something as simple as a fresh coat of paint, a new area rug, or lighting fixtures sometimes can do wonders. Also, consider taking away clutter and personal touches, remember, when people go through your home, they have to be able to imagine themselves living in it, and feel welcome the minute they step in that door.

Is your realtor and the buyer's agents taking potential buyers through giving you feedback on what people are saying?

Also, consider not being afraid to settle for a little less. People love to bargain, they love to think they're getting a deal. If they really love the home, they will be willing to pay your bottom line. It's hard, accepting a little less than what you were hoping to get from the sale, especially because you want to see a big return from something you've invested years in. However, if you need these funds in order to move on with your next home, you might want to consider meeting them a little in the middle. They were willing to come up 10 grand from their initial offer, when you only budged a grand.

Also, try not too take it too personally if someone low balls you, it might leave you feeling bitter and turning down good deals which don't come everyday...especially from well qualified buyers. Sometimes, waiting for that perfect buyer to come around can get you into trouble. Ultimately though, you have to do what is right for you.If you really can't budge, then don't.

Best of luck to you!

Answer 2

How much is the interest on the bridge loan going to cost you if you can't sell it for another two months? Don't forget, you'll probably have an extra month or two before closing.

What if it's 4 months? 6 month? Is it more than the $4,500 difference in the counter offer? Taking a small loss to avoid a bigger one is sometimes a prudent choice.

Just for reference, that $4,500 is barely over 2% of your price. How often do you buy something at a 10% off sale?

Answer 3

There is a saying in real estate. Its the little things that make it or break it. I always suggest to look at the big picture. The offer at $212 was very reasonable. Work with your agent and see if you can get the $212 offer accepted, this may be in your best interest with your timing.

Answer 4

Ask yourself why he bid 202,000? It could be something he didn't like but I am not sure. I would counter the bid again and if they are still too low because otherwise you are taking a hit for the house. This guy seems like a prick that is stingy with his money. Good luck to you!

Answer 5

I would have taken it. You listed it at 216,500 and won't except 212,000. At least except it if they pay closings or take away some appliances or something. My first offer is always 20,000 under asking price and then we start the offer counter offer game.

Answer 6

that all depends on how many offers you are getting if this offer was the first one in weeks then maybe you should have taken it but if youre getting a couple offers a day then hold out for your asking

Answer 7

Have you tried zillow.com ? It's in interesting web site, could be helpful to you in your question. Just plug in your house address.

But in answer to your question, I'd take $212k. Why quibble over 2,000 dollars? Get it done. The housing bubble is popping nationwide as we speak anyway... or so I've read...

Answer 8

It's so close to your original list price, I would have taken it. Especially since you are definitely a "motivated seller". I hope it works out for you.

Answer 9

Try thinking with your head instead of your heart. Looks like your greed has destined you to another two months of mortage payments.

Answer 10

look at it this way, that 3,000 is gonna cost your this sale
best to TAKE IT, move on and forget about it,,,,,,,,,,unless the guys a real jerk
If the guys a real prick, then
Its not at all above ME personally to counter with $225,000
THAT will make his day :) heh