Overpriced house - lowball offer or wait?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We low balled after 3 months of sitting on the market, after the third price reduction. We offered what we thought the price should be and asked for closing. The sellers countered for a higher price than listed. We walked away. We found a better house that came on the market days later.

Be prepared to offend the sellers. I really didn't care they were offended because it is a business transaction. Just be prepared to move on. There are other houses on the market and more coming on line every day. It is just a house.

Was the higher price equivalent to the closing you help you needed?

BTW, if you need help with closing costs, you probably shouldn't be buying.

Sellers pay closing in this market, honey. We can afford closing costs but why would I pay it in this market?!

Are you inside the beltway with a school in the top ten rating and all 9s on great schools?

Probably not.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How do you know the house is overpriced?

OP here. Thanks to everyone for weighing in! We know that it's overpriced because there are very good comps for this neighborhood and we have taken into consideration variations in size, floorplan, finishes, etc. Our agent agrees.

So it is overpriced because you say so.
Have you also been inside those homes?
Prices do not always reflect the comps because there will be some variances. 10% variance is OK
Do you want the house or not?

Yes, we like the house and want it but not at any price. I don't understand why some people seem to be saying the price is whatever the seller says it is.

[Anonymous]

Anonymous wrote:Help me understand this. Let's say OP pays $100k more for this house rather than waiting or buying another house that's priced correctly. When it comes time to sell, won't OP walk away with $100k less?

I always hear people saying an extra $50k or $100K is nothing because the difference in your monthly payment is negligible. But what about when it's time to sell? If you borrow $100K more, then when you sell you will have $100k less in appreciation and will come away with $100k less in your pocket, right? Or am I missing something?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We low balled after 3 months of sitting on the market, after the third price reduction. We offered what we thought the price should be and asked for closing. The sellers countered for a higher price than listed. We walked away. We found a better house that came on the market days later.

Be prepared to offend the sellers. I really didn't care they were offended because it is a business transaction. Just be prepared to move on. There are other houses on the market and more coming on line every day. It is just a house.

Was the higher price equivalent to the closing you help you needed?

BTW, if you need help with closing costs, you probably shouldn't be buying.

Sellers pay closing in this market, honey. We can afford closing costs but why would I pay it in this market?!

As a seller, I would chose the person who does not ask for closing costs over the one that does. I would be worried that the one that needs the money may not have the money to close. Maybe you don't need the money, but it looks that way when you ask for closing costs. If you have the money, why wouldn't you just ask for a lower price? For the seller, it's the same money, but less insecurity.

[Anonymous]

I would make sure I had a decent second choice property lined up if I was going to offer low. We turned down an offer that was 10% under asking three years ago. But, supply was low and the buyer really didn't have other choices. They ended up with a higher-priced unit in a much worse location (like, gang central). As for us, the low offer was the only offer we got. Sucked, but rents were skyrocketing so we ended up renting the place out for a few years. Just talked to the realtor this week and she thinks market is now at the price we originally wanted. We'd be happy with 5% under that original price, but we don't regret for a minute that we refused a 10% punch in the face by a buyer who was clearly trying to take advantage of the panic in 2009.

[Anonymous]

Anonymous wrote:I would make sure I had a decent second choice property lined up if I was going to offer low. We turned down an offer that was 10% under asking three years ago. But, supply was low and the buyer really didn't have other choices. They ended up with a higher-priced unit in a much worse location (like, gang central). As for us, the low offer was the only offer we got. Sucked, but rents were skyrocketing so we ended up renting the place out for a few years. Just talked to the realtor this week and she thinks market is now at the price we originally wanted. We'd be happy with 5% under that original price, but we don't regret for a minute that we refused a 10% punch in the face by a buyer who was clearly trying to take advantage of the panic in 2009.

Great that you are happy you chose to rent and wait for the market to turn around, but why do you think, even in hindsight, that the 2009 offer was a punch in the face? If it was so unreasonable, then you would have received higher, more reasonable offers. If you had been willing to negotiate, maybe that buyer would have have met you in the middle. This kind of irrational response on the part of a seller is a perfect illustration of what OP could be up against.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We low balled after 3 months of sitting on the market, after the third price reduction. We offered what we thought the price should be and asked for closing. The sellers countered for a higher price than listed. We walked away. We found a better house that came on the market days later.

Be prepared to offend the sellers. I really didn't care they were offended because it is a business transaction. Just be prepared to move on. There are other houses on the market and more coming on line every day. It is just a house.

Was the higher price equivalent to the closing you help you needed?

BTW, if you need help with closing costs, you probably shouldn't be buying.

Sellers pay closing in this market, honey. We can afford closing costs but why would I pay it in this market?!

You must be looking very downmarket, darling. In no desirable markets are sellers paying closing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We low balled after 3 months of sitting on the market, after the third price reduction. We offered what we thought the price should be and asked for closing. The sellers countered for a higher price than listed. We walked away. We found a better house that came on the market days later.

Be prepared to offend the sellers. I really didn't care they were offended because it is a business transaction. Just be prepared to move on. There are other houses on the market and more coming on line every day. It is just a house.

Was the higher price equivalent to the closing you help you needed?

BTW, if you need help with closing costs, you probably shouldn't be buying.

Sellers pay closing in this market, honey. We can afford closing costs but why would I pay it in this market?!

As a seller, I would chose the person who does not ask for closing costs over the one that does. I would be worried that the one that needs the money may not have the money to close. Maybe you don't need the money, but it looks that way when you ask for closing costs. If you have the money, why wouldn't you just ask for a lower price? For the seller, it's the same money, but less insecurity.

I offered lower selling price AND closing costs. It is a negotiation, correct? Your assumptions about my financial state is interesting. People with money didn't get that way by spending freely and paying retail. I also LOVE negotiating. Love it! I wish I wish now I could have made it a career. Perhaps you don't like negotiating? I think people are WAY too emotional about houses.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We low balled after 3 months of sitting on the market, after the third price reduction. We offered what we thought the price should be and asked for closing. The sellers countered for a higher price than listed. We walked away. We found a better house that came on the market days later.

Be prepared to offend the sellers. I really didn't care they were offended because it is a business transaction. Just be prepared to move on. There are other houses on the market and more coming on line every day. It is just a house.

Was the higher price equivalent to the closing you help you needed?

BTW, if you need help with closing costs, you probably shouldn't be buying.

Sellers pay closing in this market, honey. We can afford closing costs but why would I pay it in this market?!

You must be looking very downmarket, darling. In no desirable markets are sellers paying closing.

Sorry, this is incorrect. Just bought a house and sellers are paying closing. In NW DC, too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't think the Reston house is overpriced. Forrest Edge is a STEM and AAP school. Look at the square footage as well. It may not sell as quickly this time of year but it will sell.

What if your child is not AAP? Look at the scores and demographics of the non-AAP population. And of Langston Hughes and South Lakes. AAP at Langston Hughes is a joke and becoming worse every year.

Postage stamp lot, cheap construction, low end finishes. People looking to spend close to a million dollars in the far out suburbs are going to be expecting a little more bang for the buck especially in a less than stellar school district. For this price you could get a similar house on an acre and Oakton schools.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Help me understand this. Let's say OP pays $100k more for this house rather than waiting or buying another house that's priced correctly. When it comes time to sell, won't OP walk away with $100k less?

I always hear people saying an extra $50k or $100K is nothing because the difference in your monthly payment is negligible. But what about when it's time to sell? If you borrow $100K more, then when you sell you will have $100k less in appreciation and will come away with $100k less in your pocket, right? Or am I missing something?

The difference in your mortgage payment of $50-100K is not negligible to most people. It easily equals several hundred dollars a month. Some of us budget and dont want throw money away, even if we have it.

[Anonymous]

In response to 20:48 (who I think is the op), the price isn't ultimately what the seller says it is. Rather, it's ultimately what someone is willing to pay (and what the seller agrees to). Just bc you dont like the price doesn't necessarily mean someone else won't be willing to pay it. Our entire neighborhood essentially thought our neighbor overpriced their house But they ended up getting just $10k less than their asking price. We were shocked. And the house needs to be updated. And we aren't even in the Best neighborhood on the planet. But someone came along within a couple weeks and bought it. So never say never.

[Anonymous]

We made a lowball offer on our current house after doing some pretty serious research about what we thought it was worth. We decided it was overpriced, and we offered about $60k below asking. The sellers countered so we came up about $5k and told them that was it. They countered again but we stood firm. They walked away.

About four weeks later they came back to us and asked if the offer was till good. We made the deal and we've been there 2 years.

However, we were awfully sure that (a) the house wasn't worth more to us than what we offered and (b) we weren't going to die if we lost it. Also, it needed work and it was the middle of winter, so we knew the house wasn't going anywhere fast.

Good luck!

[Anonymous]

10:33 here. Forgot to add that we made them pay closing too!! (They hated us by the end of the deal, I think). This was all in MoCo, btw.

[Anonymous]

Sorry this is 2012 not 2009-10 bottom of the market buyer's market its now a seller's market.