Home Buying in Burbank>Question Details

Burbank Buyer, Home Seller in Burbank, CA

Should I make a THIRD offer?

Asked by Burbank Buyer, Burbank, CA Thu May 7, 2009

I would appreciate any and all advice PLEASE!

I made an offer on a property about 6 months ago. Property had only been on the market for a week. Price was 300k. After agonizing over all the comps and getting CMAs from two different Realtors, it was concluded that the house is actually only worth about 200k (asking price is 300k). My Realtor suggested I offer 190k. I did not want to lowball that badly, so I offered 220k. Sellers countered with 275k. Negotiations ended. I did not want to pay above 220k. The house is a fixer from the 60s in need of total rehab; it is the exact opposite of “turnkey”.

About a month later house still had not sold, so I offered 220k again. Sellers countered with 275k. I went up to 225k. Sellers did not budge. They also refuse to pay for any closing costs, etc. (I should also mention that the sellers rent this house out; it is not their primary residence).

Well, now it’s six months later. The house is still for sale at the original price. I would have thou

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Dear Burbank Buyer, based on your statement, "After agonizing over all the comps and getting CMAs from two different Realtors, it was concluded that the house is actually only worth about 200k" I would say you are probably right, they do not want to sell. Perhaps the home is a "family inheritance" and the kids are holding out for the price they feel is appropriate. Well they can hold out until the cows come home but they will never sell it for 100K over market. You might want to test the waters with another offer but if they still refuse to be reasonable you have little choice but to either walk or keep it on your radar for awhile to see if the sellers become more realistic.
Good luck!
1 vote Thank Flag Link Thu May 7, 2009
There is clearly a lack of motivation on the part of the seller. Any offer you present, if possible, should be supported by favorible comparisons. Your agent will be able to provide you with this information.

Consider presenting a third offer that leaves it open until you identify and go to contract on another property. It's important that this seller knows you are serious but ready to move on at this point. Make it clear this is the last time you will be bothering him with a purchase offer.

Good luck
0 votes Thank Flag Link Fri May 8, 2009
You may be right. They may be difficult during the inpsection process.

The first thought that comes to mind, besides thinking that you are dealing with an unrealistic seller who doesn't want to sell, is the possibility that they owe more than it's worth and maybe it hasn't become a short sale because they are still able to make their payments. Have your agent check how much they owe (if they haven't already done so).

Another idea is to have your agent contact an appraiser and ask for a free "value check." If that number also comes in around $200k -$220k, present the appraisers findings to the listing agent. Then ask the listing agent to present the info to the sellers or have them call an appraiser they know to do a value check. The numbers will be similar.

The seller may be more willing to consider a valuation from a neutral 3rd party (appraiser).



Tom Goeders, Realtor, SRES
Keller Williams Realty
http://www.TomGoeders.com
tomgoeders@kw.com
(818) 378-7602
0 votes Thank Flag Link Thu May 7, 2009
They rent it out. The sellers do not live there.
0 votes Thank Flag Link Thu May 7, 2009
I would ask your Realtor to find out where they are moving and when they need to be there.

The toughest seller is one who does not need to sell.
0 votes Thank Flag Link Thu May 7, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
GREAT QUESTION:

Keep in mind the seller does not walk off with the $225K they have to pay agent fees, closing cost, insurance, taxes at times can't low price due to overhead just sale a home. Many dont take that inconsideration. Although it requires work if lease can keep renting the property.

National Featured Realtor and Consultant, Mortgage Loan Officer, Lecturer regarding Credit Repair
Lynn911
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Thu May 7, 2009
If the house has been on the market this long and they haven’t reduced the price, they probably have a reason or are just hard headed. There is a house down the road from me that has been on the market for over 700 days at 115k and haven’t reduced the price at all. I think it was an inherited property so the current owners don’t really care if it sits.
0 votes Thank Flag Link Thu May 7, 2009
I would have thought that by now, the sellers would have come back to me begging me to buy their little cape cod. They haven’t. You may think it’s time to forget about that house and move on. This is what my Realtor (whom I love) advises. But I am very picky and looking in a very specific area and NOTHING else comes close to this house in terms of lot size and street/neighborhood quality (the actual house is a dark and dank shack in need of total rehab, as I said).

My question is: Do I make another offer? If so, WHEN? Do you think these people are really interested in selling? What do I want? I want them to sell me the house for a little above its market value.

By the way, the way these people are acting also makes me think they will be difficult during the inspection process; do you agree?

Thanks
0 votes Thank Flag Link Thu May 7, 2009
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