Sorry this is a off topic but I thought I will ask opinion of the many
home owners here.
If a house is listed at 450K and my thinking was to extend an offer at
390K with a ceiling not to exceed 425K, before I had a chance to talk
to the listing agent about our offer, she called tonight and told us
another couple had made an offer earlier today of the amount 420K and
was rejected without a counter offer.
So this put us in a difficult position. It means there is no sense to
even make an offer, if 420K was rejected most likely our max of 425K
will be rejected as well. Or should I still extend on offer according
to the original plan just in case it was a trick and there is nothing
In my part of the country it is illegal to mention what the other offer
is/was as this could be used to bump up your offer when maybe no offer was
Go with what you think is right and if you don't get it move on there are
more houses on the market than buyers right now and the next one might be
even a better bargain or better house. I have learned this from experience.
Same here. Another buyer bid 12K more on the house but the realtor
could not legally (or morally) inform me about this. I submitted my
offer as "final offer" anyway and I got the house! The reason was
that the higher offer fell through the loan process and I had the
money in hand and wanted to close in 5 days which I did. You might
offer 400K and see what happens. The thing to remember when shopping
is not to fall in love with a house and be willing to move on, that
is, if you want a good deal.
rejected without a counter often means something besides the price is the
i would give them an offer of your original 390k. with a second offer so
low, they just might be more worried about not selling the house than you
are about not getting it. at least concerned enough to give you a proper
counter offer. and as you say, it might be an agent trick. i think you
would be a fool to let that other 'offer' influence the price you are going
in fact, wait two weeks. let them sweat it out.
You need to do some work with the realtor. How much you can pay is not the
issue it is what the house is worth, how long it has been on the market and
how motivated the seller is. I myself would consider an it an insult in a
reasonable market to have someone present an offer for 60K less that asking.
Also don't forget unless you have something else in writing the realtor is
getting paid by the seller and is technically working for them. Do your
homework with comps and check any county records that are many times online
and decide. Making the 425 offer will not cost you anything and the seller
may think maybe they overpriced the home?
Do your homework online so you know as much as you can about the home and
neighborhood before you make an offer. You should not what the taxes
schools crime rate barking dogs as well as utility bills will be for the
home, and of course insurance costs. Where I live the water cost is very
high at $72.00/month before you buy a gallon of water.
If the house is priced right, lots of sellers would fell insulted
if the offer is 10%+ less than asking price.
If my neighbors houses of similar sizes and options are selling
for $400K easily, I wouldn't talk to the buyer who is offering $360K
when I put the house on market, even if he raises the offer later
and match or top the bids. I would feel lowball buyers would be
difficult to deal with down the line.
It might be different in a buyer's market, though.
John Willis wrote:
Unless you're planning on turning right around and selling the thing again,
the only thing that matters is how much YOU are willing to pay. Make
the offer you want to make. If they don't want to sell it at that price,
buy a different house.
In some states, all real estate agents represent the seller. Others have
seller and buyer agents. Before you trust your agent, find out who he
Meanwhile do whatever you were going to do. All they can do is reject it.
If they get insulted they are immature business people.
haha. before you trust ANY agent you should have your head examined.
fundamentally there is a conflict of interest. the more the house sells for
the more they get whether they are the buyers or sellers agent. its a game
of 'who do you trust' with thousands of dollars at stake. dont be a sucker.
what you SHOULD do is go down to the library, get 2 or 3 'how to buy a
house' books, and inform yourself.
Ignore the other offer, ***assuming*** you're offering low for a reason
other than playing games. In other words, is there some physical quality of
the house that makes you feel it's worth less than the asking price? If yes,
then the buyer may get other similar low bids and reconsider their asking
It sounds like you're not using a realtor to represent you. I say this
because normally, you would NEVER be talking to the seller's agent. In my
case, this would've worked against me. My house was listed at $102,500.00 in
a neighborhood where identical houses were selling all day at $97k to $100k,
depending on the usual assortment of factors. My agent knew another agent
who somehow knew that four bids from $99k to $101k had been rejected over a
period of 3 months. *AND*, the other agent knew another buyer was about to
make an offer around $98,500 on the same day I was. My agent managed to get
an appointment to make an offer 2 hours ahead of the other buyer. The
agent's scheme: He took my offer to the sellers and told them they had 30
minutes to think about it. Then, he sat in his car outside their house the
entire time. At the 29th minute, the seller's agent invited my agent in and
I got the house for $96,500.
This is not to say all agents have sources of information, or the balls to
pull this off, but it might be worth hiring someone with some experience.
| Sorry this is a off topic but I thought I will ask opinion of the many
| home owners here.
| If a house is listed at 450K and my thinking was to extend an offer at
| 390K with a ceiling not to exceed 425K, before I had a chance to talk
| to the listing agent about our offer, she called tonight and told us
| another couple had made an offer earlier today of the amount 420K and
| was rejected without a counter offer.
| So this put us in a difficult position.
Most likely that is the intent, regardless of whether the other offer
actually exists. It seems odd (though of course nothing is impossible)
that the seller would decline to even counter such an offer unless there
is something besides the price to worry about (e.g., some completely
| It means there is no sense to
| even make an offer,
If it made sense before you received this additional (possibly spurious)
information it still makes sense. Regardless of what agents say, I doubt
any seller really resents having an (additional) offer on the table. If
the other offer was legitimate your offer might give the seller additional
reason to think that the asking price is too high.
| if 420K was rejected most likely our max of 425K
| will be rejected as well. Or should I still extend on offer according
| to the original plan just in case it was a trick and there is nothing
| to lose?
Go with your original plan to offer $390k. I'm not sure what you mean
about the ceiling of $425k. If you actually put that in the offer then
the seller is going to take $425k as their starting point for a counter
offer. Stick to a single number. And remember that contrary to popular
wisdom you _can_ bid against yourself. Even if the seller rejects your
offer with no counter offer there is nothing to stop you from making a
new offer at a higher price. Just don't do this too many times. :)
Also, keep in mind that sometimes the best response to a counter offer
is, ``no.'' I think some sellers will keep countering as long as you
are willing to play since they know that they can always go back to
your previous offer which you will likely honor.
Once upon a time I was going to make an offer of about 10% less than
an asking price. The agent told me that I might insult the sellers
and that if that happened they would never sell to me "at any price."
I told her that I wouldn't want that to happen, so I didn't make the
offer. About a year later I had cause to look at the same house, now
for sale directly by the owners at an asking price which I think was
pretty close to what I had been going to offer. Unfortunately, by
that time I had been spoiled by some of the other properties I had seen
(not being in a hurry is both a blessing and a curse) and the original
house no longer seemed that appealing. I did mention my experience to
the sellers and I got the impression that similar events caused them to
dump the agent.
First, remember that realtors, even ones who you hire, almost always
work on commission. That means it is their job to make the price as large
as possible. They do not have the buyers best interest at heart. Some will
out and out lie, many will bent the truth. Don't believe what you were
Second, have you done your homework? What is that home really worth?
You can hire someone to appraise it, or in many places you can get a good
idea by doing some research on your own.
Many counties have web pages where they list the tax value of homes and
the price and date of the last sale. Check out that home and other homes in
the area. You are looking for recent sales of like size and condition
Last I suggest that you fine an attorney before you sign anything. They
are working for you not the seller. You want to make sure the paperwork is
not a problem.
i used to work with appraisers. they look at a 1-2 page sheet listing the
generic facts about the house (square footage, bedrooms, bathrooms, etc..),
they drive by and look at it, and put a price on it. in many cases a crappy
house appraises as much as a good house if the agent cant see the problems
from the street.
the other problem is that an official appraisal is almost certain to fudge
it on the high side because the system works on the basis that the value of
real estate goes up. there is huge pressure to make sure houses are not
valued too low by the banks, the agents, and the tax system. appraisals are
designed by nature to give you the impression you arent getting screwed.
they do not represent reality.
the thing to go by is comps. what have comparable houses in the area
actually sold for recently. houses (like all things) are worth exactly what
someone will give you for it right now. all else is moot.
On 8 Dec 2004 19:52:48 -0800, firstname.lastname@example.org scribbled this
Go ahead and make your offer. Keep it simple. And remember, the key to
making any deal is to be willing to walk away. Eventually you will
make the deal you want!:~)
(Remove the Primes before e-mailing me)
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