We offered $79,000 on a house listed for $89,900 last night. They came back today with a counter of $84,000.?

Question

According to my research they bought the house 2 years ago for $50,000 and put maybe $3,000 in it. Please advise on counter offering process and hw much to counteroffer. Its in a desolate kind of area in south Jersey.Thanks

Answer 1

Most markets in the nation are not really "booming" right now, if there aren't any other offers on the house, then counter again, come up a little on price if you really like the home,, squibbling over $3-4K isn't going to make a huge impact in the long run.

Counter again at $82K & say "This is Firm"

Check on comparable sales in the area (if any) if there have been no recent sales in the past 6mos. over $80K stay firm on your $79K & explain that to them. or have your agent negotiate harder for you.


Good luck.

Answer 2

I'm a Real Estate agent in the Cincinnati area. When I deal with a buyer, 9 times out of 10 I can count on them asking me what the seller paid for it. Every time I get that question, I cringe. In my opinion, how much they paid for it should not have any relavence on what your offer is. What is important is how much the property is worth. For this, you need a Realtor to do a CMA (Comparative Market Analysis). Some people simply refer to this as a comp. They will see what comprable homes in the area have sold for over the last 6 months. Not what homes are listed for, but what actual homes have SOLD for.

Back to your example, they could have purchased the property below market value a number of ways.

1) Preforclosure
2) Couple divorcing and looking to liquidate
3) Death and the widow/widower would rather liquidate quickly than deal with selling for top dollar
4) Family friend or relative
5) Plain old luck

JUST BECAUSE THEY GOT A GREAT DEAL DOES NOT MEAN THAT THEY HAVE TO PASS THAT GREAT DEAL ONTO YOU. It would be nice, but not realistic.

Knowing that they paid $50,000 and only put $3,000 into it does show you that they have some negotiating room (unless they have taken out a second mortgage on the property). Are they willing to negotiate? Depends on the market. Here the market is pretty flat. A seller needs to be flexable if they want to sell their home. On the flip side, I just listed a rental property that I own. I listed it rather high because there is not much available in this homes price range. I can list it high and sit on it. I do not have to be flexable.

I don't feel comfortable advising you how much to counter without seeing comps or at least knowing anything about the area.....but I will. They seemed to meet you half way which seems fair. If you are looking to squeeze a little more out of them, accept their offer if they pay closing costs. That will save you a couple grand. If closing costs are not an issue, come back at $82,500. But the best advice is to get a Real Estate agent if you do not already have one. Make them do their job, not simply submit offers.

Answer 3

It sounds like they've either done this before or for a living if the house was originally 50k. Find a fixer upper that a realtor or private owner wants to get rid of, remodel, and sell for a profit. Getting back to your question...I would first check if anyone else is making an offer on the house, just to see if you have any competition. If no one else is bidding, then your the only game in town and that gives you an edge. I would counter 79,500 or no more than 80,000. Odds are they are looking at between 82-83 settling price. Never counter too high because theyre just gona come back with something a little higher. If they wont bargain with you, theres always another house, trust me. But if you have your heart set on this one, then you might have to pay a few thousand more. My father, brother and I have been into buying, remod, and renting homes for many years so we've bid on quite a few houses. This is just my experience though, I know its not perfect but I hope it was helpful. Good luck^^

Answer 4

James is right. What a seller bought the home for has nothing to do with the market value right now. You also have to take into considerations the expenses of selling, commissions closing cost, title, ect...They have met you in the middle. If the CMA shows that the home is worth the money, then take it. Unless you are willing to give up the home over $5,000.

Answer 5

The purchase price which the sellers paid for the property when they bought it is quite irrelevant to the current market value of the property. Without knowing any history, perhaps these sellers purchased the property at a distressed price from a relative, who considered the sale price a gift ?

You need to observe current market values and respond to their counteroffer without regard to what they have paid for the property.

Answer 6

Justin, you may have lost the domicile in a count of in some unspecified time sooner or later. in actuality if on the day that you've been writing the provision they could have common someones furnish and they could be starting up the escrow procedure. in case your authentic sources broking service seems up the MLS # it is going to pop up stating no matter if it truly is lively, pending (that you dont want) or expired. I unquestionably have lost a pair of bargains because my purchasers does no longer pull the set off in to signing the settlement until eventually 2 days later. by technique of then the domicile became already in escrow.

Answer 7

If they dropped over $5000 off the initail price, chances are they are they might not go much lower. At least they didn't say final offer at $84 000.There's no hurt in trying for $81 000.

Answer 8

well you can chance losing the house if you want your $79K as a final offer or take the $84K.
$50K a few years ago means they can very well sell it for double that since 2 years have past...
I actually want to see this house... NY prices are $500,000 and up and you are talking about less the $100,000.
If you don't want the house please email me so I can see if I would like the house..
Kate

Answer 9

If you are interested in the house stick to the offer of $79,000 and if they agree you should go for it. But, if they dont then you may agree with them, but persuade them first.

Answer 10

It seems like a good counter offer to me. I'd take it. You really low-balled them, and they met you half way, so it seems very reasonable.