Home Buying in 90003>Question Details

rssraj, Home Buyer in 11375

Normal vs Final offer

Asked by rssraj, 11375 Sat Jul 7, 2012


I'm about to bid on a house. I know the best price I can offer on it and was tilting towards simply offering a single 'final offer' instead of the usual negotiations that take place. I actually had a friend do an appraisal and am offering 2% more than the appraisal. Are there any drawbacks to this and is it very unusual?


Help the community by answering this question:


Your agent should help position your offer and all the terms as strong and why the Seller should take the "bird in the hand". Positioned well it should signal that you will be as decisive and matter of fact through escrow.

Lenders generally do not offer any sort of grace amount with appraisals. You will have to come up with the difference or negotiate it.

Good luck
1 vote Thank Flag Link Sat Jul 7, 2012
Cash deal?

if you need to finance it that extra 2% may need to be brought to closing in cash.

Good Luck
0 votes Thank Flag Link Mon Aug 27, 2012
Hello, I would recommend to leave a little room, most agents will counteroffer somewhat, unless it is a full price offer all cash. Do you have a buyers agent representing you? If not, I highly recommend it! They can assist you with all this as well as provide you with the local comparable sold properties to better help you establish your initial offering price. Also, a buyers agent doesn't cost you anything as their commission is paid by the seller of the property you are buying and it is always best to have someone representing you, especially during the negotiations and inspections.

Good luck!
Heather Paul, Realtor
Coldwell Banker
0 votes Thank Flag Link Tue Jul 10, 2012
It's worth a try. You're doing this without an agent? Then I would go with what you think is right.

Good luck.
0 votes Thank Flag Link Sun Jul 8, 2012
You looking yourself into possibly not getting the property, if you dont leave yourself room to for counter offers, then you might loose the option to leave room on other bargaining chips.
You might want to recosider your strategy on this offer you want write. Perhaps, getting an agent to represent you might help you more cleaverly pull off this deal for yourself.
Best of luck to you.


Neal Grusky
DRE# 01890580
Hpremiere Properties
Real Estate and Financing
10940 Wilshire Blvd. Suite 1600,
LA, CA 90024 | Office:
(800) 652-1768
0 votes Thank Flag Link Sun Jul 8, 2012
Regular sale:
Find out from listing agent whether they have offers or not and what is the motivation of the seller.
1) If there are no offers and seller is highly motivated, present your offer lower than listing price and subject to appraisal value with better terms.
2) If there are offers, present a clean offer at listing price and subject to appraisal value.
0 votes Thank Flag Link Sat Jul 7, 2012
No it's a regular property (not bank owned)
0 votes Thank Flag Link Sat Jul 7, 2012
Perhaps it is a bank owned property. Usually, such is the case with lender/sellers requesting buyers' highest and best. As a broker associate with a REO real estate company, I suggest your best and final the first time around -single final offer- as you may not get a second chance. If you are faced with multiple offers on any property no matter who the seller, your best and final is always a better choice. Be prepared to pay the difference, in cash, if the appraisal falls short of the sales price. If you're getting financing, always protect yourself by checking the appraisal as a contingency in your offer.
0 votes Thank Flag Link Sat Jul 7, 2012
I got a full desk appraisal done and provided the licensed appraiser with pictures of the property. I didn't rely on a broker to advise me of the price

Vicky & Kathleen - you both suggest 'other things can be negotiated'. What exactly are you referring to? In this part of town, no sellers help out with closing costs. Anything else?
0 votes Thank Flag Link Sat Jul 7, 2012
By making your best offer first, you risk never knowing if you could have gotten a better deal. By making a lower offer first, you risk the seller just rejecting your offer and going with another offer; knowing all the while that you would have/could have offered more. How important is it to you?

I also warn that you should not present anything as a FINAL offer because while you may not be negotiable on your price, you may be negotiable on other things... As a prior poster said - your agent will work with you to present your offer in the best light, and should communicate where you have flexibility and where you dont - according to your instructions.

I once had mutliple offers on a property, and communicated that to both agents. One agent, when asked if he wished to make changes to his offer in light of the 2nd offer we had, replied "no. Do your job. Present it as is." My sellers went with the other offer - it was better, plus the other agent was nicer. It was an easy choice. Until after we were ratified and the buyers called me and said their agent spoke out of turn, that they would offer significantly more and really wanted the house. UGH! Nothing I could do at that point. SIX MONTHS LATER those buyers have not found another home that suits their needs like the one I had listed..... they wish they'd presented their best offer first.

Anyway....I am curious about the appraisal comment... I wonder if this is a real appaisal or an opinion of value or what...but appraisals are influenced by individuals and their opinions and once a contract is in place, an appraiser is supposed to find comps to support the contract price.... so with such a small variable, I think it's entirely possible the banks appraisal will support the contract. Even so, know that the banks appraisal is pretty much what sticks and your loan will be a percentage of the appraised value - anything above that is your responsibility to make up - or, of course, you could (for example) decide to pay PMI or look at an alternate loan program - your lender is who is responsible for helping you to review options.
0 votes Thank Flag Link Sat Jul 7, 2012
kathleen - for the items you list, isn't that typically always covered by the buyer as part of closing costs? In my area, sellers usually don't help out with closing costs in a home in this price range

I do agree with negotiations if inspections shows problems or when appraisal comes lower
0 votes Thank Flag Link Sat Jul 7, 2012
Hi Rssraj:

Yes, you can bid as a FINAL OFFER based on price, however, there are additional terms and costs that will be negotiated like the escrow, title and termite company, title insurance, escrow costs, termite, natural hazard disclosure report, home warranty, city and county transfer taxes, and more. Even if you offer your FINAL price, there most likely will be a counter offer and negotiations.

Right now in this market, inventory is very low and if a property is priced appropriately, it will sell within the first few weeks, will have multiple offers and will sell over the asking price. If the property is overpriced, it will sit on the market for a longer period of time.

The seller will not only look at the sales price, they will look at their bottom NET and for the strongest buyers. So when making an offer, consider making every potential cost, price and term your best.

Good luck.

All the best,

Kat Becker, Realtor
Estates, Residential, Commercial
Prudential California Realty
0 votes Thank Flag Link Sat Jul 7, 2012
I can't say for sure because I'm not a lender but if you are putting 20% of the 425,000 down which would mean financing $340,000 then you shouldn't have a problem but only your lender can tell you for sure.
0 votes Thank Flag Link Sat Jul 7, 2012
Are lenders typically lenient with a small difference in appraisal? This is a 425k home and if the appraisal comes at 418k, would the lender cover the whole 425k? Of course with 20% down

0 votes Thank Flag Link Sat Jul 7, 2012
I don't know about the market in your area but in my area if you find a house that you really want it is usually best to make your first offer as strong as you can because if the home is priced right someone else may offer full asking price or even more than asking price. If you are going to be using a loan for the purchase make sure that the home will appraise at or above your offer because your lender most likely won't give you a 400,000 loan to buy a 300,000 house.
0 votes Thank Flag Link Sat Jul 7, 2012
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