Buying a house - Counter offer ideas?

Question

I put a bid on a house and the seller countered. The seller didn't really come back with much of a counter. It looks like they just shifted money around in different areas. What are some good ideas on coming back with a counter-counter but still give the impression that I am serious about buying the house? I don't want to get the short end of the stick. Here is the scenario:

House listed for $300k. I offered $285k. County market value $294k. I offered to pay closing costs and eliminated the request for the repairs to be done (about $3-5k worth). The seller came back with an offer of $297k but wants 1% in earnest money - which is the the 1% that they lowered the house by and offered to pay $1k in closing. They also want to close in 30 days which will be hard for me to do because I was scheduled to be out of town that week, so I pushed it out to 45 days. Isn't this reasonable?

I am thinking that the seller isn't serious. Should I walk away?

Answer 1

I wouldn't walk away.... you seem to be confused about some things. First off, earnest money is YOURS. YOU keep it-- it is credited towards your closing costs or whatever at closing. Its like, a "good faith symbol"....it does not become the seller's. It gets deposited in escrow upon acceptance-- in YOUR side of escrow, not theirs. So they have dropped from 300K to 296 (if that includes them paying 1K of your closing costs.)

You dont "offer to pay closing costs" if you're talking about your own costs. Those are yours. If you offered to pay there's, thats kind of silly-- because there's is just paid via their profits, so you should have just upped your offer intstead of offering to pay their closing costs.

You're going to have to counter to change the closing date. I once did a closing when i was out of town, and there were extra fees in order to overnight stuff back and forth, and it was just hard. So, counter iwth the date pushed back, and maybe offer $295K plus them paying $1k.....kind of meeting in the middle.

if the house has been on the market more than like 30-60 days, you've got more wiggle room. Typically, 75% of their buyers will see it int he first month. So barter more if its been out longer...but if its a brand new listing.... be careful not to lose it.

Answer 2

The seller is serious.

Earnest money is held in escrow, and applied to the purchase price. Customary amounts vary across the country. You don't get the money back until it becomes part of the payment, or the contract falls apart.

Which closing costs are typically paid by the seller or buyer vary as well.

Make list of where the money is going and see what the 'true price' is.

As for closing, if they can't wait two more weeks, they better hope they have a hot property in a moving market.

Answer 3

Amanda is mostly right. However, you have no way of knowing how much they owe on the house. If you counter too low, they may refuse. Sometimes people list low to attract buyers and have very little "wiggle room". Your offer is only $15,000 below listing, but when I sold last year I could not have gone more than $5,000 below listing (commissions will kill the seller on a house in that price range).

I am guessing that you might not get this house for less than $295k and a 1 year home warranty.

Answer 4

The seller looks serious. It costs money to leave the property in escrow if you can't perform. I don't like 45 day escrows and I won't allow my clients to accept them without a better reason than "I'm going to be out of town that week." What is more important than a $300,000 transaction?

You can sign documents anywhere in the US, or at US embassies abroad. You can get the transaction done early if your loan officer isn't a total incompetent, liar, or both. Purchase loans should be done in 2-3 weeks most of the time. If they're not done in 30, that loan officer is playing games.

Now, with that said, get yourself a good buyer's agent. You need one.

Answer 5

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