I am buying a house the seller only came down $6k off listing price?

Question

I am curently in a lease and the seller asked if we can close the end of march 3/06 verses 2/27/06. i would have to pay 1,400 to stay in the rental. is it mean for me to say no unless she will negotiate the price more? Also in NJ can she take additional bids once the attorney's decide on price and contracted dates.. It's early Jan. just not sure if I am being fair. i don't want to mean she lived there for 30 years. i know i can ask my attorney but i asking you guys ...smile

Answer 1

Once the contract is signed by both parties, it is firm. The only way to really get out is to have one party let the other party out of it or if there is a contingency in the contract (i.e. contingent on home inspection results).

I would totally do exactly what you are saying. If the contract is signed for 2/27, it's firm and you don't have to give in at all. If the contract isn't signed and the seller won't give you the date you want, I would ask for a price concession. BUT, with no contract, they can walk and you have to be prepared for that.

It is not mean...it's a business transaction! You don't want to pay $1400 more just to be "nice". Is it worth it?

Answer 2

This is a business deal so you have to leave your feelings out of it. That doesn't mean you try to trick someone, just be fair but not emotional.

I really don't have enough info. here. I know you don't want me to say you should ask an atty but you should (like legal aid if cost is a problem). Otherwise, the terms of the sale are defined by the sales agreement which should have been drawn up by the buyer, meaning you. If the seller counters your bid by lowering the price by $6k and also added that he/she could entertain additional bids, you can either accept that counter offer or accept parts of it. In other words, you can counter his/her counter offer. You do this until you reach an agreement. You might agree to the seller taking additional bids but that you have first rights. So if the seller gets a better deal, you get the right to the property first.

$6k off listing price is not very much. Sellers usually offer a bigger price reduction. What is happening here is a game of cat and mouse. The seller is trying to see what you will accept and will offer as little as possible. You are bartering. This is where an agent comes in handy. They do all of this for you.

Answer 3

Without knowing the details of the house, location, etc., it's hard to place a prediction on what would be a good strategy. So let's do this covertly... You 'could' do a search for GIS services in your area. Perhaps your city or county offers that? Some GIS has real estate information on there that has who owns what and for how much. They may also have housing descriptors, building improvements, whatever. The scale of detail differs among communities. Your community's homepage, if it has one, might have a real estate/property lookup servlet. Try and see what, if anything, is offered for your community. It can be a powerful negotiating tool Barring that, a house listed for $99,900 with you making a $97,000 offer with them paying $2,500 max on closing is a good offer. It's only a potential $5,000 difference. Between paying realtor commissions, home inspections, taxes, and other miscellany, the sellers are not going to make much profit on it. The bulk of the fees are on them in selling. The federal government regulates a wide scope of things that need to be 'just so' with a house for sale. Even more so with an FFA loan. Just because their realtor is telling you that they aren't in a hurry, don't believe it. Their realtor is trying to sell their house. Depending on what the sellers want, or hope to get, they might see this as the best offer yet and work with you. I have seen more than one offer made to me fail because they couldn't secure financing or other reasons. Is your loan application with the mortgage company solid? You know the saying, Money talks, BS walks. Your negotiation would be regarded more favorably with backing from the mortgage company. Good Luck!

Answer 4

Sticky.

A buyer doesn't have to come off their price at all. I bought a house in a similar situation. We closed on the agreed upon date, but the Seller rented the house from me for one extra month. The rent was the equivalent of my rent at the time.

You should just explain your issue and the 1400.00. Tell them if they come off the price an additional 1400.00 then it would be ok.

Keep in mind, when talking about a 30 year MTG 1400.00 isn't going to change it much, one way or the other.

Answer 5

I presume you mean you are renting a house that you have negotiated to buy. Now, they have asked you to delay the closing. If this is correct, I'd say 'happy to accommodate you, but I since I am doing that favor on your behalf, I would like confirmation that the rental fee of $1400 is waived.". (Get it in writing).

She can take all the bids she wants, but if you have a signed contract, she needs to sell it to you!

Answer 6

the end of March is a long way away to work it out. You have the right to say that that would cost you too much money and you cannot do it. She is just trying to see how much you are willing to bend and how badly you want the house.

Answer 7

i would ask her to take some off the price. why should you foot the $1400?