Need your help negotiating for a house?

Question

Here is the story:

My wife and I are negotiating for a house. The house has been on the market for about 6 months. They were originally asking $179,900 when they put it on the market. They have lowered the price of the home to $169,000 in the last month or two.

With the state of the current housing market, I thought I would come in at $138,000. The seller's counteroffered $167,900 to my offer, only $2000 below asking price.

What do you think it means by this offer? What do you think I should counteroffer with to get the best deal?

Thanks for your help.

Answer 1

Remember if you counter this offer they don't have to go back to their counter.  So before you counter find out if you really want this house.  If you want it then decide what your willing to pay.  Now the seller never has to take less than what they put it up for.  So you may have to move on if you insult them with low ball offers.

Answer 2

I would offer $150,000 and go from there

Answer 3

A realtor should do a CMA on the area your buying and figure out what the $ per sq foot is going for.  Once you have that information you can start negotiating.  Just because the house was originally listed at 179K and then 167K doesnt mean its worth that much.  The house might be 200K but the sellers might have bought it for 150K so they have room to wiggle.  A realtor will be able to give you this information and with your assistance come up with a bid that will not offend anyone.  Or not waist anyones time.  Especially if you find out the house is worth way more and someone comes in with a higher bid than yours.  Now if the house is a sell down or pre-forclosure thats a different matter, again a realtor would be able to assist in gathering information and making a reasonable bid that will save you $$$$ and make the seller happy

hope this helps

adan

ps interview several realtors, some will do a cma for free.  in hopes that you refer future clients to them :)

Answer 4

Give them a counter offer of 140,000 and make it clear that it is your final offer.  This is a buyers market and in another 6 months who knows what it will be worth.  There is alot out there so don't get hung up on one property.  To get the best deal you have to do the work and be patient.

Answer 5

You are not offering enough    150k is what the seller most likely will accept.   If it were my house I would not let it go for less than 160k

last house I sold it took 11 months but I got my asking price.

Answer 6

Ask for their apraisal on the home, or get one of your own.  Also get comps for like houses in the area that have sold in the last three months.  Find out what the average price per square foot is in the area as well.  Now, do the math.

The ONLY way to negotiate for a property is to find out what the NUMBERS are.  If the NUMBERS say that the home is worth 100k, and the seller wants 150k, they are just going to have to let it sit on the market longer, continue to pay their mortgage, and become motivated to get real.  

There is a posiblity that your offer of 138k was too high, you don't know HOW thick the wool the seller is trying to pull over your eyes is until you do the numbers.  

If the numbers don't work, DON'T try to buy the home.  MOVE ON.

Answer 7

Their counteroffer means they aren't interested in playing with lowball offers, which yours was.  You need to get realistic with your offers if you want to be considered as a legitimate buyer.