Zillow Advice: Buying Process - Reduce offer on short sale with recent lower comps?

Yes, ask for a price reduction. ...

Thu, 18 Jun 2009 05:03:00 GMT

Yes, ask for a price reduction. You really have nothing to lose...especially in this type of economy. On top of that, you are no longer obligated to purchase the house after the contract/closing date expires. My husband and I just closed on a house last week. The sellers missed the original closing date because they could not get all their paperwork finalized. We asked for a 30K price reduction or we would walk away. Of course they initially said no, but accepted our price reduction after the weekend. They didn't think we were serious about walking away until we actually signed the earnest money release form. Remember that it is a buyer's market, and it's your money; you are the ones responsible for paying the mortgage. It's hard for many people to get a loan due to lender's increase restrictions and necessary down payment (it's difficult for the average families to get PMI). For the most part, the Realtors will only care about their commissions; thus, they want you to offer a higher purchasing price. To give you a specific example, we purchased our house 100K less than what the previous seller bought it for in 2001. In addition, we bought the house for about 170K less than the county's property tax assesor's appraisal. We are paying for the appraisal's worth of tax, but we will be able to sell it for much more in the future. This is not a million-dollar house either; it's just an appraisal price of 350K. Of course, you also have to weigh-in on how desperate you really want this particular townhouse. Good Luck!

If the appraisal comes back ...

Thu, 18 Jun 2009 04:46:00 GMT

If the appraisal comes back at $250k what will you do? It could happen(who knows?). You could submit an amendment to the sales price for $220k or so and give them three days to think it over? I wouldn't match sold comps in this market I'd go lower just like prices are. Just my opinion.

Right now, based on all asking ...

Thu, 18 Jun 2009 04:28:00 GMT

Right now, based on all asking prices and sales of this community, we feel like $225k-$230k is fair for this house, but we want to find the best way to reach that point. More than $250k and we'll definitely walk no matter what the appraisal is. Of course if it drags on for months and months, who knows what a fair price will be. Should we submit a new offer or wait to get an appraisal? The seller's lender completed their BPO last week, but we haven't heard anything back from them yet and don't expect to before the end of the 45 day period (this weekend).