I'm interested in purchasing a house that has been on the market for 3 months or so they say...

Question

The initial listing price was $329,000. The current listing price is $297000.

The seller states that since she has dropped the price once, she is not willing to drop the price too much. She is only willing to drop the price by only $10,000. I suspect the price was dropped because she was having a hard time selling. And since the price was decreased three months ago, there have been several showing but not one listing. I am the first offer that has come through since the price reduction.

If the seller was weary about negotiating the price, then she should have never reduced her price, right?!

My offer is approx $20K from the new price. I think this is reasonable.

Also, I'm realizing that even if I can afford to make monthly payments, doesn't necessarily mean I should if it would mean I would be stretching myself financially.

Its heartbreaking but I have to be realistic and not a statistic of the current and state of the real estate market.

Your thoughts and advice would be wonderful and helpful.

Answer 1

Just remember this quote "Something is only worth what someone else is willing to pay for it."  Any offer in a bad market should not be an insult.  The market is created only based on sale prices not list prices.  I think you are being totally reasonable.

Answer 2

It's stupid to overextend yourself. . . . that's how people end up in the situation of the seller of the house you're looking at.  If you are stretching yourself, that's not a good buy for you.  Look for a house you can afford without overextending yourself, get in a lower price range.  First there's Principal, Interest, Taxes, Insurance, then there's maintenance and decorating and repairs and furnishing and upgrading.  Houses cost money, and right now housing prices are stable or declining in most parts of the country.  How long can you pay the mortgage if you lose your job, get hospitalized or disabled?  What if you need a new car or a new stove or refrigerator or furnace or central a/c?

Your situation is irrelevant to the Seller's price.  All the comments are irrelevant.  You need to look at what comparable homes are going for in the area.  That determines whether the house is a good buy, not the asking price, not the price reduction, not your offered price.

Answer 3

Your offer is not insulting and in this market, I would think the seller would consider it.  Our house had been on the market for over a year - the seller had been asking too much.  We made a reasonable offer along with offering to split the closing costs.  Best wishes to you.

Answer 4

Offer what you want, but do not be surprised if you are not accepted.

Your offer is essentially 255k for her, after her expenses.   She was counting on 279 with the 297k price tag.   She may not be able to afford to sell to you, she simply owes more then that on the property.

Since you are realistic you can see that this deal may not work out simply because it is too low.

If this is pushing your budget you should be looking at home that cost less.

Answer 5

If the seller has a mortgage there may not be much negotiating room left after the price reduction.

If you feel that it would be stretching your finances you should look for something less expensive.  There are many hidden costs with owning a home and you need to be in a position to cover those costs, not just your mortgage.

Answer 6

I know other people are going to say the same thing...but just offer what you want, and she will counter offer if she doesn't like it.  We buy and sell real estate all the time, and it also sometimes helps if you have no contingencies, other than financing of course.  That would mean no house inspections, radon tests, bug inspections etc...  Sometimes risky, but people are much more willing to deal in that case.  Sorry I can't be more helpful.

Answer 7

Weather your price is reasonable or not would depend on the spec's from other houses similar in the area that have sold...the current market value.  Check these numbers and go from there.  Just because the owner dropped the price doesn't mean she should be willing to drop it more and just because they don't want to drop it more doesn't mean they shouldn't have dropped it in the first place.  It is their house and if they can afford to hold on for a more lucrative offer then perhaps they will.

And no...if you are stretching yourself to the wire to make the mortgage payments then don't do it...look for a lower priced house.  You have to remember repairs etc that  come up and there is always other factors of your life that  will require money...you don't want to get yourself over your head and then lose your shirt.