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We're asking 375,900, the offer is for $300,000. Yes, it's very low. Yes, we've lowered our price several times, and at $375, we're about breaking even. But, they want to close August 1st, and are supposedly cash buyers. So, now I need to come up with a counter. The deadline in noon tomorrow.
All advice welcome!
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The deadline to accept the offer is noon tomorrow. What do the comps say and would you be able to come up with money to close?
oh yea and CONGRATS!
Second, take a deep breath and realize you have several hours to respond. I would not respond quickly. Really talk it out and like GRI said, look at the recent comps.
The deadline to COUNTER the offer is noon tomorrow.
I've given myself a mental deadline of not responding the offer until in the morning, so we can pray on it. This is the last thing tying us to our "old life". We would really like to get it behind us. Yes, we could come up with the realtor fee's, but that would be it.
<Breath, Breath, Breath>
If $375K is breaking even, then anything less would have to come out of your pocket, or your lender would have to approve a short sale.
Breaking even = Current mortgage(s) + commissions + closing costs
This is the minimum you can accept without bank approval if you don't have the cash for a lower offer.
It is hard to judge without more information but let me suggest you a scenario based on what you just wrote.
Rule of thumb is to come somewhere in between the asking price and the offer received. Having said that your Realtor ( assuming you have one) should have an open communication with the other Realtor as to how motivated the buyers are and how willing they are to come up with the offer. Also another thing to take in consideration is that the buyers may have put other offers in other properties, all of them lower than asking , and by doing so they are gambling on going forward with the one that took the offer. If that is the case you should think carefully if you are willing to let the buyer go or wait for another one with a higher offer. Hopefully you have a reputable Realtor that will guide you through this process. Good luck.
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Spoke to my agent about any comps in my area. 3 homes have sold over $350,000. 2 are not comps, they are in a gated community. The other is older but has more land. It sold at 97.5% of list price.
I realize I may have cash out of pocket at the table. It's either a gusher now, or a slow bleed. Potentially take a big hit now, or pay the same amount in little payments every month.
Beth -- let us know how it goes today.
"your Realtor ( assuming you have one) should have an open communication with the other Realtor as to how motivated the buyers are and how willing they are to come up with the offer."
As a buyer, if may agent said to the sellers that I was willing to increase my offer without explicit instructions from me they would be fired on the spot and I'd do my level best to have their license revoked. That is so far into unethical territory it borders on illegal. The price I'm willing to pay and my negotiating strategy is not something that is appropriate for my agent to share with the sellers or their agent with explicit instructions to do so.
I think you misunderstand and I think you need to climb down off your high horse. It is perfectly reasonable to expect an agent to mention a buyer or seller is willing to negotiate. This does not tip anyones hand, but it does show willingness to work with the other party.
I concur with Win. If an offer came in to me, unless it stated explicitly that it was a final offering price, I would assume negotiations were in order. If the offer was one I couldn't possibly accept, I would counter anyway.
Eric was spot on. What "Leonardo" stated was typical of one the fundamental problems with the real estate cartel. Eric was actually pretty gentle, he very easily could have mocked Leonardo for his "rule of thumb" statement also. ;)
I have a much bigger problem with his spam than worrying about whether or not an offer is negotiable. As many say "Everything is negotiable."
If a buyer's agent presents an offer that has language in it that states this is a final offering price, and that agent would indicate to the listing agent that the buyer doesn't really mean that, I think you would have a serious problem. By the same token, maybe you are correct if the agent volunteers that the offer is negotiable if he was not instructed to do so. I guess it's just me, but as I posted before, I would assume it was negotiable whether informed so or not.
To me it would be no different than the selling agent saying..." Oh, that's way above their bottom line. You don't need to offer that much." Each agent needs to keep the cards hidden.
We countered back at $370,000 as the price with a $5000 good faith deposit. We also gave them until 5 p.m. tomorrow to respond. Once I looked at the offer, the box for cash offer is checked off, so we'll see.
Beth -- good luck!
I'm with Rockin' -- as long as no specific details are mentioned, there should be nothing wrong with the agents discussing whether or not their clients are willing to negotiate. They should not say the buyer/seller is willing to go to X. But I'm also realistic, there's *a lot* of backroom negotiations which take place before a final deal hits the table.
Oh, heck yeah there is a lot of backroom whispering going on!! People would be stupid to think there wasn't. LOL! It's like when Hubby and I go to a car dealership. I pick out the one I want. We sit down with the sales guy. He and Hubby dicker on price. Hubby says there's no way we can afford that. I cry. Salesman goes back and gets a lower price. It's all the in the way you play the game.
Beth, I usually tell the car salesman he's being unreasonable, get ready to storm out and my husband is the reasonable one, soothes the sales guy and gets the deal done.
So, what was the counter.
Yes Win, but do you recognize that all the "backroom negotiations" taking place may be not only an ethical breach, but a legal one also?
Of course, there's often times confusion regarding who is representing who, but even when that's been firmly established, you're right, a lot of illegal activity takes place.
Personally, I wouldn't be very happy with an agent of mine disclosing anything about my intentions, motivations, or thoughts without explicit instructions to do so.
Anyway, be interesting to see if those buyers counter the counter. I don't think they will.
Duh - I answered my own question! I missed where you put what you countered! Sorry!
We got another offer today, and are off about $70K too, hope this one works out. I fear that when we counter---they will walk away....just like the one in May. Buyers don't seem to want to negotiate. This one's different, and that they put it in writing at least. Our first was a verbal.
Beth: hope your buyer comes back with a closer offer....I will pray that ours does too.
Good Luck everyone!
LUCK ALL AROUND! TO EVERYONE!
I'm not gonna stress about it. It will happen when God's good and ready for it to go to the right family.
"Yes Win, but do you recognize that all the "backroom negotiations" taking place may be not only an ethical breach, but a legal one also? Of course, there's often times confusion regarding who is representing who, but even when that's been firmly established, you're right, a lot of illegal activity takes place. Personally, I wouldn't be very happy with an agent of mine disclosing anything about my intentions, motivations, or thoughts without explicit instructions to do so. "Good luck ever proving this. It may be unethical but it goes on everyday in every line of business. I'm not some newbie -- I've bought and sold several properties and I work. There are shades of gray in real estate and there are shades of gray in business. In every business there are people who go to either extreme in the gray area. And people routinely make bad decisions which put them in positions of questionable legality. I don't condone this behavior nor do I engage in it, but honestly, put your big girl panties on and realize this behavior is going on *every* day.
Beth -- you have the right attitude: it is going to happen when it supposed to.
Good luck and I hope you are able to make the deal work.
In my place of business there is exactly zero 'grey area' in ethics. I don't care if other people accept 'backroom' or 'under the table' deals. I will not accept it, and will not tolerate anyone working for me (like my agent) accepting it.
I would assume any offer is negotiable unless explicitly marked otherwise, and I have no problem with that. That is what counter offers or face-to-face negotiations are for. What ticks me off is that at least a fair number of agents assume underhanded dealings (like discolosing a persons motivations, limits, or strategy) are just fine as long as the deal gets done and the agents get paid.
how's this for negotiating?
I have a friend
a service manager at a car dealership
his job is to sell you service
your car has a problem
you bring it in
he calls you
"we looked at it, it's going to cost you 2K"
then he doesn't say another word
he says the first one to talk,
after the message has been delivered, loses
if he is forced to break the uncomfortable silence
he says, they will not have it fixed
but if they break the uncomfortable silence
they will usually have it fixed
I always assume that anyone working for a car dealership in any capacity has been heavily brainwashed to utilize hard-core psychological techniques. I also often wonder if the little "sales tables" are bugged and/or if they are watching hub and I talk via camera feed.
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