crazy real estate market

[semtex]

This Monday we gave out our first offer to the house we kind of like. It has been on the market for around six months, with price cut from 750K to 625K, a 1980 split with around 2000SF. So we decided to start it from 560K, we thought that's so low. Tuesday morning, my agent called back with 600K counter offer. All advice I got is no move. This morning, agent back to me with 580K. Isnot that crazy? I am very confidant they will come to my price. But now I am kind of worry I pay too much on it.

[wabmester]

That's the sign of a good deal: when both the buyer and seller feel they're being ripped off.

[Sam]

Quote:

Originally Posted by semtex This Monday we gave out our first offer to the house we kind of like. It has been on the market for around six months, with price cut from 750K to 625K, a 1980 split with around 2000SF. So we decided to start it from 560K, we thought that's so low. Tuesday morning, my agent called back with 600K counter offer. All advice I got is no move. This morning, agent back to me with 580K. Isnot that crazy? I am very confidant they will come to my price. But now I am kind of worry I pay too much on it.

What city/state?

[semtex]

Bergen county, NJ.

[retire@40]

How did you each arrive at your prices?

[jdw_fire]

Quote:

Originally Posted by semtex But now I am kind of worry I pay too much on it.

Didn't your offer have an expiration date on it? If so it is null and void after that date and you are not obligated. However, I have seen alot of purchase offers written by realtors and they had a clause in them that said an unaccepted offer may be withdrawn at any time (even before the expiration date). So it seems to me if you think you are offering too much you can pull the offer and make a new lower offer if that is what you want to do.

[semtex]

All through verbal and email, no signiture yet.

[tryan]

Yeah, I wouldn't budge an inch ... 2 counter offers says "you're the only other player in this game!" Really want to turn-up the heat: tell'em you're about to make an offer on another property!

Someone else MIGHT enter the game ... but who cares; there's other properties out there.

Good luck!

[Nords]

Quote:

Originally Posted by semtex All through verbal and email, no signiture yet.

I think anything not in a printed & signed offer or counteroffer is just idle chatter.

You need a seller who's willing to commit.

[semtex]

I am thinking lower my original offer, but it may really piss off the seller.

In fact, my buyer agent did a terrific job to push me to the original offer. He is working for the seller, not me.

[jazz4cash]

I've noticed the riders around here (suburban DC) changing
FOR SALE
REDUCED
LEASE

[semtex]

It is not nice to take words back. But it is pretty hard to save 20K cash.

[Texas Proud]

Quote:

Originally Posted by semtex I am thinking lower my original offer, but it may really piss off the seller. In fact, my buyer agent did a terrific job to push me to the original offer. He is working for the seller, not me.

Don't know about Jersey... but in Texas the RE agent works for the selling BY LAW.. most people think they are 'independent', but they are not... if you tell your agent anything, they run and tell the seller...

as an example... you put in a bid for $500, but tell the agent you really want the property and will move to $550.. well, the seller is TOLD that information... so why accept the $500

[Spanky]

Quote:

But now I am kind of worry I pay too much on it.

You can always lower your original bid if you are concerned.

[Craig]

Also, the agent's commissions go up as your price goes up. Wacky system.

[Caroline]

Quote:

I am thinking lower my original offer, but it may really piss off the seller.

this has been on the market for six months -- on the one hand, the seller may be desperate, but on the other, he may be able to afford to wait. After the big runup, and especially after owning a house for 20-30 years, a lot of folks don't have any mortgage at all and can wait, rent, etc.

I respect the urge to get the best deal you can, but people are not entirely rational, and he may indeed get pissed and tell you to take a hike.

[honobob]

Quote:

Originally Posted by retire@40 How did you each arrive at your prices?

Did you think to have the agent provide you with a CMA? That's where I think the wheelin' and dealin' would start.

[JustCurious]

The market is not crazy.It used to be crazy, now it's returning to normal.

[honobob]

Quote:

Originally Posted by JustCurious The market is not crazy.It used to be crazy, now it's returning to normal.

Normal crazy or crazy normal?

[retire@40]

Quote:

Originally Posted by honobob Did you think to have the agent provide you with a CMA? That's where I think the wheelin' and dealin' would start.

I asked the question because it appears that many people pick either a sale amount or a buy amount without knowing why they picked it.

The real question boils down to "how do you properly value a house?"

I wouldn't rely on a CMA any more than I would rely on the city's assessed value.