"The deal of a lifetime happens about every other week" - Robert Ringer
If you want to meet them half way you are probably going to have to come up a little more than 15k. I would respond to there offer. The deal is dead if you don't so it's a ball in the air!Your offer of 70k below was a low ball offer (good work) now keep going until you stop where you can go and it's your best and final.
In short, a properly priced home still moves quickly and reasonably close to the asking price (but that makes sense if it was well priced). Badly prices properties languish on the market and their price drops over time. The report contains several charts that clearly demonstrate the statistics.
That being said, every property is different and every seller is different. Check the comps and make your offer accordingly.
What you've got to do is determine: (1) the real value of the house, and (2) what you can reasonably afford to pay. The lower of those two numbers is the maximum you can or should pay...not a penny more. Then you decide how much you really want the house; the more you want it, the higher your offer can be...but still not one penny more than the lower of those two, earlier numbers. And if you can only go up another $10,000 or $15,000, there you have your ceiling.
Hope that helps.
You need to have your agent look at recent sales and determine if the seller has a realistic price or if you have a realistic offer.
JD "Dan" Weisenburger, GRI
Vanguard Realty, Inc., GMAC Real Estate
As far as insulting them, it is probably too late to worry about that at this point! They were probably insulted with the first offer and that may be why they only came down $10k...you can always submit your highest and best and then walk away if that is not good enough.
All the best to you!
Have you considered asking the sellers to pay for points to buydown your interest rate on the loan you would use to buy the home with. You could offer slightly more than you have so far and ask that the sellers pay for 2-4 points towards closing One point on a loan of $500,000 would cost the seller $5,000, two points is $10,000 etc. Since 1 point is about a 1/4 % difference in your interest rate, you could get a better/cheaper loan. This tactic could make it more affordable for you to buy the property, even if you didn't get it for the price you wanted.
If you go to the site shown below, you can see an article about seller incentives. You might get other ideas on what else you could ask for. Please feel free to call me if you have questions. 619.507.5688
I'm curious to know what happened. Did you end up getting the house? Counter offers can be tricky because you never know who is on the other end receiving it. Some are people who really want to sell and others become very upset if they feel an offer has belittled their home. A lot of emotions go along with selling.
So, I wanted to know what you did and if it worked.
Your question is a good one and I appreciate your barganing prowess.
Though choosing a future home is an emotional process, it is important to look at the real and probable value of a home. In other words, how fairly-priced was the home to begin with? Many sellers are recognizing the raging buyers' market we are in and price their property aggressively and accordingly.
These homes may need little if any negotiation.
Other properties have sellers who still imagine we are in the market of two years ago. Market realities are unwelcome in this environment.
Our best advice is to independently determine the fair market value of a property within the context of current market conditions--and to construct your offer accordingly.
I think as a buyer you need to decide how much you are willing to pay and make the offer accordingly. Whether it is 10,000 or 15,000 more that your current offer. I would explain this to your agent so they understand that this is your max, that way they can tell the other agent. This sometimes helps with the seller realizing that this is all you are going to offer and if they are really movitvated, they might just re-think what they are willing to take.
Hope this helps...
Cindy Greenwald Prudential CA Realty 619-971-4584
Make sure you know the true value of the home, otherwise, you are wasting everyone's time. If you really don't love the home then maybe you should look at others out there. Your realtor should be able to tell you if the home is listed too high. If it is, then decide what price you would like to pay. It looks like the seller is not willing to go $80,000 below asking. So, you need to decide to come up to their asking price or someone else may.
Joan Patterson, B.A., G.R.I., Realtor, License #01431647
Keller Williams Realty
That being said... if you are buying 2-3 million dollar property there may be more room to negotiate... but I still don't see the 12%. There have been 28 sales over $1 million and a total of 66 sales all in the past 3 months... so that is still a good market.
Without knowing any details about the house you are looking to buy it appears your 12% is out of line. Unless the sellers are way out of whack. If you have an agent, they can prepare for you a detail market analysis for your specific purchase. I always prepare a market analysis for all my buyers in all markets prior to ever writing an offer. If you don't have an agent and you can try this site: http://www.zillow.com/. It will give you a ball park idea but not as accurate as a realtor can be.
Good luck with your home search. If I can be of further help, call me at 858-565-7777.
Have your agent knock on a couple of doors next door, he might just find a seller in the midst of a quick sale. You will be surprised to find how many sellers are waiting in wings to strategically position their listings for spring and summer rush..
I have 3 pocket listings in Carmel Valley just waiting to hit the market... Gated, pool and next to preserve.
If the seller is stuck on their price you should increase the offer another $10K and if that is not acceptable to the seller then you should move on.
There are plenty of sellers who will want to work with you.
I have been a realtor in San Diego for the past 34 years and I always tell buyers that they should make their offer on what makes sense to them and be willing to compromise if it is the home that they want and it it properly priced.
Don't hesitate to call me at 619 300-5008 or visit my web site mariliacathcart.com if I can further assist you.