The Trials of Buying a House

Thursday, 18 March 2010
This is how I felt around 11:00am PAC today:  ARGGGGGGGG!

My fabulous real estate agent called me to say, "Um, the seller didn't really say much about the offer."  He was trying to let me down easy.  We put an offer on a nice little 3 bedroom $15k under the asking price and the seller didn't even counter.  Ouch.  He looked at all of the paperwork we prepared, faxed back and forth, spent time examining and flipped us the bird.  Big time.

What do you do?  I feel like just moving on to the next property.  There seem to be so many nice houses on the market.  Does a buyer want to work with a seller who won't even play the negotiation game?  Was my offer just too low?  We found out the purchase price in 2009 was about 45k less than he's asking for it now.  Yes, he's trying to earn a profit but come on!  How much rehab can a person do on a small house?  Greed might force players to the back of the line.  On the other hand, Kingsley and I like the house and my agent also thinks it's a good property.

Any advice for the newbies?  Go back with my best offer or move on?

10 comments

LizP said...

Remember free advice is worth what you pay for it :-) but here goes ... don't get emotionally involved in the process. Unless this is your DREAM house and you HAVE to have it just move on. Maybe the owner thinks he can stick it to some west coaster???

Crystal Young said...

I spent a year looking for the right house at the right price. I made 3 or 4 offers with no takers. Never be so desperate to have a house that you end up overlooking things that are important or end up paying more that you can afford. Walk talk is sometimes a good motivator. The first house you see/make an offer on, is rarely ever the one you actually buy.

Anonymous said...

Move on. If you aren't even in the same ball park, you never will be. And once he perceives you "low-balling" him, things will only go downhill.

It is a buyer's market. You will find another house.

CC

Chris F. said...

The process of buying a house is similar to buying car. Do you absolutely have to buy this house? With it being a buyer's market, you have more options available if you aren't set on this one. See about other houses in the area that are for sale if you can't work out an acceptable agreement on this one. If he is just trying to milk the process, then perhaps it is best to move on.

Tim F. said...

Move on. The message is, there is another home out there that is better for the two of you. If this seller doesn't want to work with you then what else will come up during the inspections and closings? As you said, it is a buyers market, so go out there and enjoy the fact that you have options to look at other homes and not desperate for this one home. It'll all work out, just take a deep breath and start surfing the listings.

Anonymous said...

Strategy Time - Move on, but never give up on the ideal house - if this is the case. Find out more about the seller - do they live in the house, are they investors, do they own multiple houses (if yes to the last two items, then they are business people and cash flow is critical), how long has the house been on the market, what upgrades have they done to warrant a $45k increase??? All this your realtor can help you with because this is public info. You can find out yourself at knox property appraisal site - google. One thing is for sure, property has not inceased since 2009...starting to level out they say. I have never used a realtor and bought land out of state doing so by researching the property. However, I understand why most do...especially if you are moving from out of town. Feel good about your offer. Always easier to close the gap by starting low than go the other way! Go back after a few days/weeks, never get excited too quick - that only cost you $$$. Heck, I offered $60k below asking price before and smiled doing so...eventually found what I wanted.

Anonymous said...

BTW, we offered $400 on the house we are renting, and the owners scoffed. That was 2 years ago when the house was listed for $479. They have it on the market again -for 399. Could have saved them a lot of mortgage payments...

CC

Ted Stryk said...

A lot of it depends on the buyer. For example, two of my neighbors tried to sell their houses in the past year. One wanted to be closer to work, the other closer to family (both of these moves would have saved approximately 20 minutes drive time). Since their reasons were not financial or due to any major need for relocation, they were in no way interested in any offer that was less than the asking price, because the need to relocate was not pressing.

Denae said...

This is why I adore having a blog! Thank you all for the wonderful advice and for weighing in. Yes, there are some manuals on "How to Buy a House" but they aren't as helpful as having friends share experiences. We went back in with a raise of $5k but after that...I'm ready to move on.

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