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I am unhappy with the price on signed contract.What should I do?

I signded a contract yestoday and I have 10 days to think about if move on or realease.I am unhappy with the price but my huasband think the seller are very hard to deal with and he want to settle things down quickly..The listing price is 489K.The first time we made an offer of 460K but seller rejected.They said our pre-Q letter was too weak.My agent told us he thought the main reason for them maybe they didn't like the price.So we made an offer of 480K with 3%closing cost.They countered our offer at the last minute 482K with no closing cost .They even won't leave the refrigerator for us which they should leave.Their agent said they will only leave the refrigerator at full price.They only give us 1$ discount.My angent said typically 5%.I want to know.do most buys get 3% closing cost?My husband believe the house price will rise in next few years,is it true?.This property is in smithfield,va.How is the house marketing in this area?Can I still ask for 3% closing cost in next 10 days?There's one similar sqt house sold at May this year for 430K. but the inteiors are different.This 489K one is more luxury.But does a luxuy inteior house  really worth to pay 50K than othe similar sqt house?Maybe 60k more they may get the 3% closing cost.
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September 14 2013 - US
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It's irrelevant to the sellers whether they pay closing costs or not. All they are looking at is the net return to them at closing.

The refrigerator is a red herring. Unless it is built in, it is considered personal property. Even though everything is negotiable, the sellers may prefer to take it with them.

The key question you should vou asking is are you in a buyers market or a sellers market. Most areas are in a sellers market right now. In a sellers market, the seller calls the shots. If you are not prepared to pay what they want, the sellers know that somebody else will.

Another key question is how long has the home been for sale. If it is fairly new to the market, the seller won't want to do much negotiation on price.

Regardless of all this, it sounds like you and your husband are not on the same page here. You really need to agree on what you are prepared to pay for the home before signing any contract. And if you can't reach agreement with these sellers, you just have to find another home to buy.
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September 14 2013
The house is new to the market. The seller is less willing to capitulate.

There are two ways to handle closing costs.  Ask the seller to pay them which reduces the sellers net - or add them on top of the offer amount and include them in your financing.  In my state this is called seller assist. 

If the house is 100K and you roll in 6% in closing costs your loan is going to be for 106K.  At closing 106K (proceeds from the loan) show up on the sellers side of the HUD.  When the credits are given - the seller is allowing a 6,000 of the loan proceeds to go over on your side and reduce your closing costs.  You are in essence borrowing your closing costs and the seller is assisting.

The down side is the house has to appraise at 106.  Many sellers are worried the house will not appraise high enough to allow you to roll in your closing costs.  Other sellers do not want to budge an inch on price.

I disagree that the agent has little to do with whether or not the seller will offer closing costs.  If the seller does not comprehend the concept of "seller assist" they may in fact feel they are paying your closing costs when in fact you are borrowing them.  The agent needs to diagram it for them to so they understand.

It is a sellers market.  A home priced right will sell more quickly and with less price reduction than a home which is over priced.  Only in a very few markets are we seeing multiple offers or offers greater than asking.

 If this house is significantly higher in price than the comps, I'd be concerned that it won't appraise.  Finishing does not add significantly to the value.    The interior accoutrements do not add that much value. 

If I were your buyers agent I'd tell you to drop back 10 and punt. Prices may increase in the next few years but not enough to justify paying 50K too much.  Walk away and watch this property for 30 days.
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September 14 2013
Zillow prices are meaningless. Sometimes high, sometimes low but often miles out and never accurate.

You should get your agent to produce a detailed market analysis based on recent sales of similar properties and taking market trends into considerations - Pending sales are often the most meaningful.

This is something I do for all of my buyers and something any professional agent should do as a matter of course.
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September 14 2013
Profile picture for user9093667
I'm not an agent - I'm a buyer who was looking in the Los Angeles area for 14 months.  The agent has nothing to do with whether the seller is willing to offer closing costs - only the seller can decide that, and if they don't want to, nothing you do can make them do so except a higher offer.  Some sellers are willing to take that little bit less, more around here are not. 

The bottom line - if the seller isn't willing to give in on anything, do you want the house?  They are under no obligation to negotiate at all, and many where we've been looking won't give an inch.  So you can only decide if you want the house enough to pay what they want without the fridge and without the closing costs. 

BTW, maybe things are different where you are - here the buyer's agent should write what property is to be included in the sale.  Then in the counter, the seller's agent will change that list depending on what the seller is willing to include.  That way, there's no question of what comes with the home.
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September 14 2013
Profile picture for user4890021
The appraisal from my agent is 470K~480k.The zillow appraisal is 454K.I've serched houses for over half years.It meets most my needs.I will be happy to pay around 460K for this.It is 3666 sqt all brick,custome built in 2005 with many upgrades inside..0.43 arce gentle sloped yard(look smaller than this in person)which I dislike.I want flat larger yard for kids.So I feel 460K is a reasonable price.
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September 14 2013
Sounds like you and your husband may not agree. Time to have a discussion with him about what you want and what you are willing to pay. 

I don't understand the 5% thing that your Realtor talked about. Every property is different, so generalizations like that just muddy the waters in my opinion. 

If you are financing, you shouldn't overpay for the house because you will get an appraisal. If you are paying cash, get an appraisal, too. Your agent should have pulled comps for you to show you if this is the "deal" you are looking for. It may not be and then it is time to move on like others have suggested. But if you really like the house, it meets all/most of your criteria and the price comps out, then are you sure that you just aren't unhappy because the seller "won"? 
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September 14 2013
Profile picture for user4890021
Yes,I want to know if it is buyer's market or seller's market in smithfield area,va
This community will held the home parade next month.So it is more popular than before.
This house is new on market now about 20 days.But I find that it was listed for 650K in 2008 never sold.Then it was listed 500K for half year 2012 still not sold.It is new on market this year listed for 489k.

They rejected our first offer and countered our second offer at last minute(5:00pm is deadline their agent e-mailed at 5;03)so it made my husband really anxious so he just want to settle this down quickly.I said I need to see this property again before signed.We went there with our agent yesterday but the seller's agent was there waiiting for us.I told her  I need to think about it and prefer to counter on Monday.She said sellers may withdraw their counter offer at anytime.So.......
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September 14 2013
If you are not happy now, you may not be happy later, something to think about. 
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September 14 2013
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They did make it clear what kind appliances they will leave.The refrigerator was included.
It is a new refrigetor not the one in pics.Maybe they just bought it so they want to take it
.My agent said he never see a seller like this.they should leave it because they made it clear on papers and online.Sellers said they took it because the price is 7K below the full price.I saw some houses sold more than 40k belowthe asking price but it doesn't mean sellers can take things which worth 40K away(maybe the whole kichen cabinetry)
It is unreasonable.I can buy a new one easily.I just feel the sellers are so tough and unfriendly.

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September 14 2013
Profile picture for wetdawgs
It is a seller's market at the moment.   If gives you less room to negotiate.

If you and your husband don't want this house and don't think it is worth what is being asked, that's fine, cancel your offer within the window allowed in the contract.  If you do want the house, it is a negotiation between the buyers (you and your husband) and the seller. 

Some agents do suggest asking for closing costs.  It really doesn't matter at this stage,  you simply know that the offer as written was rejected.   Therefore you have to go forward with the realities and not the dreams.

You don't want to do business this way, so time to move on. 



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September 14 2013
Profile picture for user4890021
Why can't ask for closing cost on 480k purchase.I will never use a buyer's agent like you.I have a friend he got 3%closing cost in 472k purchase just half year ago.Some bulders they give closing cost asistence in any kind of purchase.It's my 3rd time house purchase.I ask for this everytime.One is 280k,the other is 369K.My agent think it is standard.
Acctually it's my agent's suggestion.I asked him 470K with no closing cost or 480K with closing cost.He said he think 480K is better.I am a little regret to use him honestly.
I never write an offer I can't afford.The sellers are smarter than you thought.They never deal with buyers who can't afford.I just need to make sure if it is a good deal.I won't pay 500K for a 400K house.Like these sellers they paid 560K on this house but sold for 482K -7%,maybe around 450K, It is terrible,isn't it?I don;t want to do business in this way.
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September 14 2013
It really boils down to what YOU really want at the end of the day.  How much is the refrigerator worth?  I work with clients all the time that are really hung up about personal items (like a refrigerator), and they become bitter negotiating points that could potentially cause a buyer to lose a home they would otherwise be happy with.  Do you think you can find another refrigerator cheaper than what it would cost to build that into the sale?  The sellers seem a bit staunch in their position (they should be happy they received an offer) so keep keep prospecting in the meantime.  I won't tell you what to do as far as backing out of the contract, but what I will say is pay attention to the drop dead date and "trust your gut".  For more helpful tips, please visit my website [Deleted by Zillow moderator. Please see our Good Neighbor Policy.].  Best of luck!
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September 14 2013
I agree with Dawgs on this one. An offer with seller paying closing costs is a lower offer because the sellers look at the bottom line. Asking for 3% closing costs on a $480k purchase makes me scratch my head in wonder. Maybe you should be buying a little lower price with no closing costs being asked for. Around my area 99% of all sales do not include any closing costs what so ever. I have not written one with it in over 10 years.

It sounds to me like you might need to walk away and rethink the whole thing. There is NO WAY anyone can predict if the property will go up in value, it should but how long will it take?

I have friends in Smithfield and it has some very nice areas on the water there.

tim
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September 14 2013
Profile picture for wetdawgs
It sounds like you, your husband and agent need some serious discussions.   If you are not  happy with the price,  you and your husband need to resolve this with your agent (and should do so before countering their counter - if you plan to do so).   Only you can decide the cost value to you of a luxury interior. 

Are you aware that a $480 k offer with 3% closing costs is really only a $465.6 k offer?   Most buyers do not get 3% closing costs.  My humble opinion is that if the buyer isn't ready to pay the closing costs, they aren't ready to buy. 

There is no obligation to leave appliances if it has been made clear upfront.   In fact, do you really wish to finance the refrigerator over 30 years (or the term of your mortgage)?


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September 14 2013
 
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