Should I counter this counter-offer?

Question

I'm on the market to buy a house. I put an offer in a house recently, and even though I gave them a pretty reasonable offer, they countered it, though for not much more ($1,500). Some people are telling me I should counter-offer their counter offer, but it seems like a petty thing to do since it's such a small amount. What should I do? Is it worth countering over?

State Eq Value: $70,400
Asking: $134,900
Offer: $128,900 + they pay closing costs
Counter-offer: $130,400 + agree to pay closing costs

I plan to live in this house.

Also, yes I am serious about buying this house. I will not die if I don't get it, but at the same time I've looked at all the other houses in my price range in this town and this is the only one that that I'm very excited about.

I'm already getting all appliances and their furniture was already moved out.

This is in a very nice, fast-growing and expensive town in Michigan. That's why we didn't attempt to low-ball them, but it is a buyer's market still.

Answer 1

Considering that we don't know where you are, nor what the market is like in your area, all our answers are shooting in the dark.

Should you have offered 10% less to begin with? In my area, you wouldn't even get a counter (assuming we'd priced the house properly to begin with), or at best, you'd get a counter at full price with no concessions, and your agent would be quietly told not to bother us again with low-ball offers.

In other areas, the sellers are hungrier, and will take whatever they're offered.

Ask your agent to do a market analysis on the house and show you how it compares to similar homes. Is the asking price reasonable and comparable with recent sales? Then getting any concession is a gain. Take it and be happy.

Is the asking price above recent sales of comparable houses? Then even your offer may be too high, and you should just walk away. There are lots of houses on the market in most areas.

Or, maybe the house was priced lower than the market, and you got them to come down a bit more because of your charming smile and your agent's dazzling presentation. If so, then say "yes" and take your success.

But none of us out here can give you that answer.

Answer 2

As one poster said, it depends on whether you are comfortable paying 243K for the house. IF you are, then go ahead and pay the amount she countered with (243K). If you're not, and want to negotiate, why don't you counter with 237K (split the difference in the two amounts). If the seller would be upside down offering you anything less than 243K, then there is an issue (unlike what another poster said). She would have to get the approval of the lien holders to take less than what is owed on the property - AND that could take a VERY long time. Also, simply because the owner originally paid 102K for the house 20 years ago (you have to add up interest to a 30 year loan which means she's probably already paid twice the original price) doesn't mean that the house isn't worth 243K or 259K. The seller is apparently willing to pay your fees and closing costs - which means you don't have to come up with any money on your part (other than the mortgage/financing) so you are already better off.

Answer 3

Counter their counter offer. I've seen deals where there have been six offers after the initial offer.

You're in a buyer's market right now; I doubt they have tons of other buyers in line. $1,500 might not seem like a lot of money but it is when your amortize it over 30 years! If you're paying the additional $1,500 out of pocket, that's money that could be spent on new paint or something for the house.

I'm guessing the closing costs are about $1,500. This is basically their way of accepting a lower offer and making it look like they're paying the closing costs. Counter again with your original offer. In this market, I'll be surprised if they pass it up.

Answer 4

Your first offer was too high, your first offer should be 10% less, today we don't see buyers, so any offers is good. Your realtor din't do her job. Without seeing the house,I can tell you, with asking price $134900.00, first offer should be $120000.00. than you can stop some were in a middle. Be sure you having a good price, after all it's your money and you are the one who will live in this house. Ask them to buy you a good rate for the mortgage, if they will pay a few points, you can get a better rate. Good Luck!

Answer 5

Are there any appliances or a swingset or something else about the house you could negotiate on? I think their counteroffer is more about ego. Both sides want to feel like they are making a deal. If you play hardball and reject their counter offer, you risk alienating them. If you are excited about the house, I think you should just go for it and not quibble over $1500. Once you make another offer, their previous offer is no longer on the table.

Answer 6

Do you seriously want the house??? Is $1500 amortized over 30 years worth haggling over? Will it put you in a tighter mortgage? How badly do you want the house, how good of a "deal" do you think you have, and will another counter be worthwhile for you?

Answer 7

It's a buyer's market. How bad do you want this particular house? They're just trying to get more out of you. Are you going to pay it or move on. Why would you care what I think? It's your money. . .My sense of humor would have me counter at $127,500 + they pay the closing costs. . .

Answer 8

Nope. If you want the house jump on it. Unless you're just buying it to "flip it" then counter with $100 more than your initial offer.

Slainte,


-D

Answer 9

that is a $1500 dollar difference, amigo. money is tight these days.

counter if you think you first offer is valid. otherwise they will know you were shooting in the dark.

Answer 10

one of two things to do...stay pat..let them sweat..or split the difference..never go to there first counter...unless this is the place your have dreams about!...Then jump for joy you bought a home of your dreams..