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.
crazy real estate market
- Thread starter semtex
- Start date
wabmester
Thinks s/he gets paid by the post
- Joined
- Dec 6, 2003
- Messages
- 4,459
That's the sign of a good deal: when both the buyer and seller feel they're being ripped off. 
retire@40
Thinks s/he gets paid by the post
- Joined
- Feb 16, 2004
- Messages
- 2,670
How did you each arrive at your prices?
semtex said:
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seen alot of purchase offers written by realtors and they had a clause in them that said an unaccepted offer may be withdrawn at any time (even before the expiration date).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.
tryan
Thinks s/he gets paid by the post
- Joined
- Mar 25, 2005
- Messages
- 2,604
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!
Someone else MIGHT enter the game ... but who cares; there's other properties out there.
Good luck!
jazz4cash
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I've noticed the riders around here (suburban DC) changing
FOR SALE
REDUCED
LEASE
FOR SALE
REDUCED
LEASE
Texas Proud
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 16, 2005
- Messages
- 17,299
semtex said:
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
Thinks s/he gets paid by the post
You can always lower your original bid if you are concerned.
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
Thinks s/he gets paid by the post
- Joined
- May 8, 2006
- Messages
- 1,036
retire@40 said:
Did you think to have the agent provide you with a CMA? That's where I think the wheelin' and dealin' would start.
JustCurious
Thinks s/he gets paid by the post
- Joined
- Sep 20, 2006
- Messages
- 1,396
The market is not crazy.It used to be crazy, now it's returning to normal.
honobob
Thinks s/he gets paid by the post
- Joined
- May 8, 2006
- Messages
- 1,036
JustCurious said:
Normal crazy or crazy normal?
retire@40
Thinks s/he gets paid by the post
- Joined
- Feb 16, 2004
- Messages
- 2,670
honobob said:
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.
REWahoo
Give me a museum and I'll fill it. (Picasso) Give
semtex said:What's CMA?
Comparable Market Analysis (CMA)--A comparison of the prices of similar houses in the same general area.
I did some analysis myself.
All data from zillows
Got 7 house sold at same area, same school. Calcalate avg dollar/sf of house, avg dollar/sf of land. My conclusion is 580K will give me a little below average. considering this house is built at 80s and has renovation at 2005, all other 7 built at late 60s. So my conclusion is 580K not a bad deal.
But now the price like a free fall. I am kind of worry maybe I missed something.
All data from zillows
Got 7 house sold at same area, same school. Calcalate avg dollar/sf of house, avg dollar/sf of land. My conclusion is 580K will give me a little below average. considering this house is built at 80s and has renovation at 2005, all other 7 built at late 60s. So my conclusion is 580K not a bad deal.
But now the price like a free fall. I am kind of worry maybe I missed something.
semtex said:
I guess this is "stating the obvious", but you are aware that real estate prices in your area may be flat or decline for the next few years. In other words, this 580K house may only be "worth" $480K in a few years. It would only take a 5% decline each year for 3 years in a row.
Or it might be worth $680K... Who knows?!
jazz4cash
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
zillow zestimate?............ouch. Be careful as thier data can be very abstract/outdated/etc. I remember I had an "armchair appraisal" for a refi. That's what I call it when the appraiser pulls data from public sources. That's basically how zillow works. The appraisal came in low in my opinion so I drove around to see all the comps. One had sq footage listed wrong....it was obvious just driving by it was smaller than our house, but the county had it with more sq ft. Another house with same lot size as ours, but it was severely sloped. CMA with best available sales data is better and in this market that would probably give an optimistic value.
