Home Buying in Dayton>Question Details

Gary, Both Buyer and Seller in Dayton, OH

Did we negotiate right?

Asked by Gary, Dayton, OH Wed Oct 22, 2008

So, my wife and I decided to bid on a home. The home was listed at 214,900. We knew that it was originally listed at 237,00 in the early summer, then 230,000 for the mid summer through mid September. We were repeatedly informed that the sellers just wanted an offer...any offer. "They're very desperate..." So, we decided to offer 200,000 and they pay 4000 in closing costs. (a low ball? yes, but also they're first contract in quite some time) We just got their counter. These desperate people who just wanted to unload countered at 214,000 and took some of the appliances off the sale (1500 worth of washer and dryer)!!!! I was pretty floored. They essentially raised the price. So, we talked it over for all of 15 minutes, called the realtor and told her we'd go to 207,000 and that we weren't interested in a counter. So, I'm wondering if we made the right move by going to the midpoint and saying take it or leave it? What would you have done or advised?

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Christina Cavins - Realtor’s answer
Gary,

I'm curious, did you get the house? I'm wondering if you ever received a market analysis because the home might be worth $220,000 or worse - $190,000? If $207,000 was your firm and final offer, how do you know they wouldn't sell for $205,000? I probably would've advised my clients to creep into that $207,000 price, but alls well that ends well! So how did it end up?

Christina Asad Edwards, REALTOR
2006 & 2007 Sales Masters Top Agent
Christina.AsadEdwards@RealLiving.com
http://www.teamedwards.info
mobile or text 937-205-4741
office 937-573-0082
fax 937-433-3561
Real Living Realty - #1 in OHIO!
Realty, Mortgage, Title, Relocation
0 votes Thank Flag Link Tue Dec 9, 2008
Hi Gary,

Where you working with a Buyer's Agent? If you were making offers through the sellers agent you were at a disadvantage. (If so I would be interested in hearing about your conversations with the sellers agent). A Buyer's Agent works for your best interest and should have advised you through the process. I'm interested to know what the agent told you. Where you given a Consumer Guide To Agency Relationship?

For information about Buyer Agency/Representation (which is at no cost to the buyer) visit this page on our website... http://www.miamivalleydreamhomes.com/buyer-representation.asp

What the other agents have said about the comparables and a CMA are correct. Maybe the sellers were not willing to sell the house for less than they owe on the property.

We would be happy to discuss this situation with you. Just call, email, or text.
0 votes Thank Flag Link Sun Nov 2, 2008
Hi Gary!

It depends on what the market analysis looks like. Are homes with similar square footage in the same neighborhood selling for that price or lower? That determines the price the home is worth and the offer that should be made. I never allow my clients to make an offer without seeing a market analysis first. Please let me know if you have any other questions.

Christina Asad Edwards, REALTOR
2006 & 2007 Sales Masters Top Agent
Christina.AsadEdwards@RealLiving.com
http://www.teamedwards.info
mobile or text 937-205-4741
office 937-573-0082
Real Living Realty - #1 in OHIO!
Realty, Mortgage, Title, Relocation
0 votes Thank Flag Link Fri Oct 24, 2008
Gary,

Buyers, sellers, agents, and others often lose sight of the fact that a property value is driven by the buyer. Regardless of what the property it is only worth as much as a buyer is willing to pay for it.

Having access to the recently sold comps is a very helpful strategy and will help you see where the market value was at that point it time. During a period of troubled economy, when sellers are desperate, during a time when foreclosures and short sales are everywhere, and property values are dropping radically, a fair offer is often difficult to see.

The fact remains, these factors need to not only need to be understood and accepted by the buyer but the seller as well.

You have made no mistake by holding with what you feel is the right price to pay for you........

The reality also is that the seller has a "buyer" and is now in a positiion to either climb on board by accepting your offer or miss the boat. This is a buyer's market.................

Good luck,
The "Eckler Team"
0 votes Thank Flag Link Thu Oct 23, 2008
Your Realtor should have prepared a Comparative Market Analysis (CMA) to give you an idea of the property's current market value.

That being said, negotiations should be a win-win for both the buyer and seller. Your initial offer was $196,000 ($200,000 - $4,000 for seller assist), which is $18,000 less than their asking price. They countered. You then countered with a take it or leave it offer of $7900 less than their asking price. It could be that the current asking price of $214,900 is already below the property's market value. You might have cut the negotiations short. Only time will tell.
0 votes Thank Flag Link Thu Oct 23, 2008
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