Making offer on house just listed - need advice (1 Viewer)

[jvdesigns2002]

Seems like this thread has somewhat derailed into "is it worth having a realtor or an agent?".   While I generally hate supporting derailing a thread--I will comment that I have purchased 4 investment properties in the last 4.5  years.   I purchased the first two properties in Las Vegas using a realtor that I literally found using google.  I had called and left messages at 6 different real estate agencies saying that I was in the market to look at potentially strong rental properties to invest in--and only one person called me back.  He ended up handling two of my acquisitions and was absolutely wonderful. He deserved every penny of commission he made and more.  Unfortunately--he ended up moving away before I was in the market for my next two properties--but he did recommend me to another realtor that was still in the Vegas area.  This second realtor was also amazing and did a wonderful job leading me to two more investment properties--and also helped me win a bidding war in a property that had ended up getting over 20 offers.  I can tell you personally that my experience with realtors has been nothing but positive. I can also tell you that I personally work in a business where the theme of "let the experts be the experts" is 10000% true.  Earlier in this thread somebody made a comment to the effect of "and I should pay a realtor this much in commission for maybe 10 hours of work"--but that comment places zero value on the many years of experience that many realtors have.   With that being said--I'm not saying that all of them are great. I'm sure there are plenty of bad ones--just like there are plenty of bad mechanics, lawyers, doctors, janitors, waiters--and any other profession out there. 

 

[matuski]

Ima go have another beer.

Good luck to the OP.  

 

[gbill2004]

As an update to my situation: I presented an offer of $410k yesterday (listed is $430k), and also added that I wanted the washer & drier included along with a few other items that weren't included in the sellers inclusions.  They countered me at $425k, and will include the washer and dryer etc.  So depending how you look at it, you could see it as the sellers coming down to $423 if you figure the washer and dryer are worth $2k. 

My goal was to settle at $420k, but I can see why the sellers aren't moving much since the house has been on the market 2 days and they haven't had their open house yet.  If I want the house, it's my as long as I accept by 1:00pm today.  Other option is I gamble and wait to see if it doesn't sell and maybe the sellers lower their price.  Thing is the sellers are willing to wait until June of next year which is the move-in date of their new house they are building.

Thinking I'll accept...not worth losing over $3k.  I might be over paying by ~10k, but we do really like the house and we've been looking at houses now for ~6 months and have looked at probably close to 100 houses.  Thoughts?

 

[T J]

As an update to my situation: I presented an offer of $410k yesterday (listed is $430k), and also added that I wanted the washer & drier included along with a few other items that weren't included in the sellers inclusions.  They countered me at $425k, and will include the washer and dryer etc.  So depending how you look at it, you could see it as the sellers coming down to $423 if you figure the washer and dryer are worth $2k. 

My goal was to settle at $420k, but I can see why the sellers aren't moving much since the house has been on the market 2 days and they haven't had their open house yet.  If I want the house, it's my as long as I accept by 1:00pm today.  Other option is I gamble and wait to see if it doesn't sell and maybe the sellers lower their price.  Thing is the sellers are willing to wait until June of next year which is the move-in date of their new house they are building.

Thinking I'll accept...not worth losing over $3k.  I might be over paying by ~10k, but we do really like the house and we've been looking at houses now for ~6 months and have looked at probably close to 100 houses.  Thoughts?

Pull the trigger. 

 

[fantasycurse42]

Why?  There's a home shortage in the US.  Are you Canadians having a problem making bacon?

While this is true, the bidding wars are slowing down here. Price appreciation is expected to slow between summer of 16 & 17 as well. The 10 year treasury yield is well off its July lows, but the 30 year mortgage rates (which typically moves in tandem with the 10 year treasury) hasn't moved as much as it should, that's not a red flag, but maybe an orange flag possibly signaling demand for the product issues. On a more local level in NYC, the super expensive stuff is sitting on the market for much longer than in years past, the super wealthy usually get the call before we do.

With that being said, of the top 35 metros in the US, Indianapolis is the only one that didn't appreciate over the last year, so still moving in the right direction - just some things for US buyers to be cognizant of.

Of course everything is local to your market, so an agent is important if you don't have the resources/time to do a ton of your own DD.

 

[fantasycurse42]

If you REALLY want the house, you're arguing over a few grand, just accept - You could counter at like 3-4K below what he offered, and he'd prob accept on the same logic, but obviously some risk there.

 

[pollardsvision]

Yep, sounds like you know what you want here, gbill. You want the house and are tired of looking. It sounds like getting the home you want, and maybe more importantly, being closer to done with this damn process, is probably more valuable to you than saving a few racks. 

Go on and sign that contract, have a couple of Molson's, maybe get a blue dot from the ol' lady, and enjoy one of the last few Sundays before you're buried in snow for the next 6 months.

 

[Zegras11]

 

[cstu]

As an update to my situation: I presented an offer of $410k yesterday (listed is $430k), and also added that I wanted the washer & drier included along with a few other items that weren't included in the sellers inclusions.  They countered me at $425k, and will include the washer and dryer etc.  So depending how you look at it, you could see it as the sellers coming down to $423 if you figure the washer and dryer are worth $2k. 

My goal was to settle at $420k, but I can see why the sellers aren't moving much since the house has been on the market 2 days and they haven't had their open house yet.  If I want the house, it's my as long as I accept by 1:00pm today.  Other option is I gamble and wait to see if it doesn't sell and maybe the sellers lower their price.  Thing is the sellers are willing to wait until June of next year which is the move-in date of their new house they are building.

Thinking I'll accept...not worth losing over $3k.  I might be over paying by ~10k, but we do really like the house and we've been looking at houses now for ~6 months and have looked at probably close to 100 houses.  Thoughts?

I would accept.  If Canadian real estate is like the U.S. you still have room to negotiate after the inspection is done.

 

[Zegras11]

If you are going to accept counter, sign it ASAP.  He could get another offer by 1pm and accept it and it would not matter if you signed counter if they signed a new offer before you sign counter. 

 

[Johnny Rock]

My advice in the other thread still stands. 

 

[Abraham]

Accept. $3k is about $6 a month on the payment.  

 

[Nugget]

Accept. $3k is about $6 a month on the payment.  

What is $3k as a percentage of your cumulative income over the next 30 years?  Buy the house. 

 

[gbill2004]

As an update...we settled on $424,900, with them including the washer and dryer, which wasn't initially included. Offer has been accepted, pending me obtaining financing and the home inspection.

House was only on the market one day so couldn't really expect them to negotiate too much. We are very happy.

 

[pantherclub]

As an update...we settled on $424,900, with them including the washer and dryer, which wasn't initially included. Offer has been accepted, pending me obtaining financing and the home inspection.

House was only on the market one day so couldn't really expect them to negotiate too much. We are very happy.

How much earnest money did you put down?

 

[gbill2004]

How much earnest money did you put down?

Like as a deposit?  I provided a deposit of $5,000. 

 

[Baloney Sandwich]

As an update...we settled on $424,900, with them including the washer and dryer, which wasn't initially included. Offer has been accepted, pending me obtaining financing and the home inspection.

House was only on the market one day so couldn't really expect them to negotiate too much. We are very happy.

Great job getting them to come down $100!

Just kidding, congrats on the new purchase.

 

[gbill2004]

Great job getting them to come down $100!

Just kidding, congrats on the new purchase.

Asking price was $430,000.  They came down $5,000 and also included the newer washer and dryer. 

 

[Ditkaless Wonders]

Asking price was $430,000.  They came down $5,000 and also included the newer washer and dryer. 

Since you are happy, and frankly that should be the only thing that matters and I hope continued reading of this thread does not change your happiness as the naysayers inevitably weigh in, I am happy for you.  I hope the matter moves forward smoothly to a successful conclusion.

Perhaps the other discussion, the discussion on the utility and value of traditional real estate firms can be moved to its own thread.  Me, I have always been fascinated by the audacity of the traditional model.  I am seeing multiple firms moving in with a variety of flat fee models and I do think that is the future.

 

[BassNBrew]

Any offer should be pending inspection.  Never know what will be found!

Not to mention... no bathroom in the basement?!  Odd.  I would find that to be a pain in the ### having to trek my ### upstairs everytime to take a piss.

That's what the drain or sump pump is for.

 

[gbill2004]

Since you are happy, and frankly that should be the only thing that matters and I hope continued reading of this thread does not change your happiness as the naysayers inevitably weigh in, I am happy for you.  I hope the matter moves forward smoothly to a successful conclusion.

Perhaps the other discussion, the discussion on the utility and value of traditional real estate firms can be moved to its own thread.  Me, I have always been fascinated by the audacity of the traditional model.  I am seeing multiple firms moving in with a variety of flat fee models and I do think that is the future.

Thanks.  I'm aware I may have overpaid $5-10k, but I'm okay with that in getting the house we really wanted.  I had to pay close to listed price, in light of the home only being on the market one day. 

 

[Ditkaless Wonders]

Thanks.  I'm aware I may have overpaid $5-10k, but I'm okay with that in getting the house we really wanted.  I had to pay close to listed price, in light of the home only being on the market one day. 

I think you need to focus on the fact that you might have avoided a bidding war. It is possible you did not overpay at all and actually saved more than that by your aggressive pursuit of the home you wanted.

 

[gbill2004]

I think you need to focus on the fact that you might have avoided a bidding war. It is possible you did not overpay at all and actually saved more than that by your aggressive pursuit of the home you wanted.

Thanks.  I did an analysis of comparables in the same area, and we paid the exact average on a per square foot basis of what other homes recently sold for. 

 

[Rick James]

The low-end market has been priced out damn near everywhere. A single person making $50-70k cannot buy a home in any decently sized city unless you want to live in a terrible area.

You're forgetting the third option-- buy what you want outside of the city and spend 2 hours of your day in a car

 

[ChiefD]

 Offer has been accepted, pending me obtaining financing 

Interesting they accepted your offer without you having been pre-approved.

Here in KC, sellers won't even entertain an offer as serious unless the buyer submits a pre-approval letter from the bank. Is that normal practice in Canada?

 

[Cliff Clavin]

Interesting they accepted your offer without you having been pre-approved.

Here in KC, sellers won't even entertain an offer as serious unless the buyer submits a pre-approval letter from the bank. Is that normal practice in Canada?

Must be different here. You can get pre-approved but it doesn't mean anything until the bank looks at the property. All offers are subject to financing. After making the offer, you have to take the letter of offer, listing, survey, etc to the bank for it to be fully approved. 

They could give you a letter saying "you're pre-approved!" but they won't allow you to spend that money on a home they don't deem reasonable (ie spend $1M on a $200K house)... so any purchase would still be subject to financing. 

 

[ChiefD]

Must be different here. You can get pre-approved but it doesn't mean anything until the bank looks at the property. All offers are subject to financing. After making the offer, you have to take the letter of offer, listing, survey, etc to the bank for it to be fully approved. 

They could give you a letter saying "you're pre-approved!" but they won't allow you to spend that money on a home they don't deem reasonable (ie spend $1M on a $200K house)... so any purchase would still be subject to financing. 

Yeah, it still goes through the appraisal and underwriting process here even if you have a pre-approval letter. The letter usually dictates the terms for the buyer, meaning they are approved for up to xxx.xx dollars for a home.

 

[Cliff Clavin]

Yeah, it still goes through the appraisal and underwriting process here even if you have a pre-approval letter. The letter usually dictates the terms for the buyer, meaning they are approved for up to xxx.xx dollars for a home.

Seems like a fairly meaningless step for the vast majority of buyers IMO. Also, I'd rather the seller doesn't know how much I have to spend.

 

[Zegras11]

Seems like a fairly meaningless step for the vast majority of buyers IMO. Also, I'd rather the seller doesn't know how much I have to spend.

I get them from the lender for my buyers and only have them put our offer price on them

 

[jon_mx]

Thanks.  I'm aware I may have overpaid $5-10k, but I'm okay with that in getting the house we really wanted.  I had to pay close to listed price, in light of the home only being on the market one day. 

I am not sure on a $400K home even a trained professional appraiser has better than a +/-5% of what the true value is.  If the property has some features you particularly enjoy, you did not overpay. 

 

[cstu]

I am not sure on a $400K home even a trained professional appraiser has better than a +/-5% of what the true value is.  If the property has some features you particularly enjoy, you did not overpay. 

As an appraiser myself,

 

[gbill2004]

Must be different here. You can get pre-approved but it doesn't mean anything until the bank looks at the property. All offers are subject to financing. After making the offer, you have to take the letter of offer, listing, survey, etc to the bank for it to be fully approved. 

They could give you a letter saying "you're pre-approved!" but they won't allow you to spend that money on a home they don't deem reasonable (ie spend $1M on a $200K house)... so any purchase would still be subject to financing. 

Exactly this.  I am pre-approved but still need to get the actual mortgage.