As we both know, South Philadelphia home values can be very different block to block. If the list was $140K, then it will be very hard to get the higher sales price past the mortgage underwriter. However, why isn't your Buyer's Agent re-negotiating the offer? You can counter by saying, "Okay, Let's split the differnce down the middle. $145 - $130 is a difference of $15K. We'll split it." So your offer goes up to $137.5K with a 6% Seler Assist. If you have to, you go up to $140K (full price) but you want 6% Seller Assist at closing.
It is hard to say if it is a good deal or not without knowing the specifics. Keep in mind that it is a BUYER'S MARKET right now. Buyers want to buy in time for the $8K tax credit and Sellers know that this is their best chance of selling, NOW before the April 30th deadline. There are plenty of good deals and even some great deals out there. Go shopping again. If you really get the vibe that this house is THE ONE, then you go back and get the deal done. You should keep in mind that a few thousand dollars difference in price will have a really small effect on your monthly mortgage payment amount. Ask your mortgage person for the specific changes in real dollars.
Good luck with everything. Please feel free to contact me if you need further assistance.
All the best,
Larry B. Lichtman
REALTOR, Property Manager
Your Real Estate Resource For Life
Direct Cell (267) 254-7994
What are the comparable sales showing? Your buyer agent should have reviewed that with you before you made your offer. The offer that you made is only for about $121,000 to the seller. Did you realize that? The seller deserves fair market value, then you can add on the concessions. It's the only fair way to go. If you want to know about values in that neighborhood, just go to http://www.carolworks4you.com and get a free market snapshot sent to your email address.
One word of caution, seller assist essentially inflates the price and in so doing stresses the appraisal - let's assume for a minute that this is a very fair deal at $145,000 with a 6% seller assist. The home must appraise for the $145,000, though the seller's net is $136,300. If the value is there to appraise at $145,000, then you should be good, if not your deal may run in to a bump.
Work through this pricing question with your agent.
Unwavering Commitment to Service
With that in mind, we cannot address whether you're getting a good deal or not. Consider this: in the hottest of markets, when there'd be five, ten, twenty offers on a property - there'd be an equal number, or more, who thought, Nah, it ain't worth it. Opinions are ubiquitous.
Your negotiation is not abnormal, and there's no "right" way to go about this. You should determine your walk-away price, and negotiate accordingly.
The answers below are all valuable, but I don't recognize these folks from our neighborhood!
Yes: your agent should have discussed these questions with you. I'm sure that he or she is still willing to do so. Please ask him or her to show you (and explain) the six most recent comparable FHA sales. Not all sales, FHA sales. This will really clarify why your offer is structured the way it is.
Good luck with your purchase, I hope you have a very smooth transaction!
215. 271. 3000 office
William Festa Realty
3001 S. Sydenham St.
Philadelphia, PA 19145
To answer your question, when a buyer wants something such as money to assist with their closing costs, you have to ask yourself, why would a seller just want to give you money? Well, they don't want to give you money but generally what happens is to get the seller to help you with your closing costs, you must offer more than what the seller is asking. See, to get something, you have to give something only now the home must appraise for the higher price and that could kill your deal if the home isn't worth the higher amount.
You should have just went in at the higher offer to start with and your Realtor should have explained this to you.
(215) 669-0589 Direct
(215) 358-1100 Office ask for Renee