I got a cma off the internet for the area of a house listed for $89,900.?

Question

We offered 79,000. They countered 84,000. There have been no recent sales in the area since 2005 when one sold for 45,000, . Is it reasonable to counter $80000. Our agent happens to be the listing agent and the wife of the owner of the house. I'm just trying to get a good deal for my daughter. I feel like The seller is making a good profit at $79000. But, my daughter really wants this house, its one of the only affordable, ready to move in places we,ve seen. Although its in the next county. I really hate the unknowns in home buying.

Answer 1

I'm concerned that the agent is not really working for you. As the wife of the owner (and possibly a co-owner) how could she have your/your daughter's best interests at heart?

Maybe it's time to consult another local agent and ask him/her the questions.

On the other hand, $5k is almost 5% over your original offer, which was about 11% under asking price. . What effect will paying the extra $5k have on your daughter's finances/loan terms.

Make sure you have an appraisal contingency in the purchase contract in case the value is not equal to the purchase price. That will give you an opportunity to cancel the contract if you cannot get your loans based on value.

Good luck.

Answer 2

If your agent is the listing agent, you don't have an agent. The listing agent owes their allegiance to the seller, not you. Also the listing agent who represents the seller is also the wife of the owner, SHE IS NOT, NOT your agent. In fact she has a legal duty, besides a wifely duty, to extract the most money she can out of your pocket and transfer it to the seller's pocket.

The fact that the seller has split the difference, it means they want to make a deal. If they don't sell it to you, who and when are they going to sell it?

You are their best deal.

Offer the $80,000 and indicate that is all you're inclined to pay. But before you make the offer make yourself a little more attractive.

If you're paying cash, get a letter from your bank stating you have the funding in the bank.

If you're getting a loan, then get pre-approved by a lender who is NOT affiliated with the seller's wife and have them create a letter indicating you are pre-approved.

You want to have the seller know that if he'll accept your offer, he doesn't have to worry about you being able to come with the $$$ at the end.

Make any offer contingent on an inspection by a licensed house inspector and the house appraising for at least the agreed upon price.

Don't worry about the seller's profit or lack there of...that's his concern. And reasonable...to who?

Any price you offer above the $79,000 is just bidding against yourself. There doesn't seem to be any other takers, so stand firm. Don't let your daughter's enthusiasm rush the deal.

Be patient and get all your ducks in a row and stand firm.

Hope this helps.

Answer 3

Your best option is to request an extension of time to respond to the counter offer and seek the services of a qualified residential appraiser. It may cost you several hundred dollars, but you will have a much better guide as to the market value of the property.

The fact that another sold for $45,000 is not relevant, unless the property is comparable to the one you are attempting to purchase. Additionally, the amount of profit the seller is making is also irrelevant. Houses are not sold based upon profit to the seller, but upon market values for the given area.

Good luck.