Question Details

Andrea, Home Buyer in Orlando, FL

So I made an offer on a home, 8k less then asking price.The seller comes back countering only a 1k less then he was asking. I cant afford any more.

Asked by Andrea, Orlando, FL Wed Sep 22, 2010

What should I do???

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BEST ANSWER
You can send an offer and declare it "final and best offer". The seller knows that thers is no negotiation, he/she accepts the offer or rejects it.
1 vote Thank Flag Link Wed Sep 22, 2010
I guess you will need to find another house. Just because you can't afford more, doesn't mean the seller has to accomodate you.
1 vote Thank Flag Link Thu Sep 23, 2010
Andrea

You've got some great answers already, but make sure if you declare final and best offer you do not state why it is your final and best. Too often I've seen this situation where the buyer discloses how much they are approved for and it burns them later in one way or another (offer on another home, things come up where negotiation comes back into play, etc.). That's information that needs to stay with you and/or your agent.

Good luck and thanks for asking
1 vote Thank Flag Link Wed Sep 22, 2010
If this is the case, then offer what you can afford as your final and best and allow the chips to fall as they will. The negotiating process is just that - a volley between two parties and at any point, you can stop.

Always better to stop wehn you reach your limit. I would say in a general sense, having only $7,000 between you and the seller seems like a deal that would be a shame to not seal. Good luck to you!

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Wed Sep 22, 2010
We are seeing a lot of foreclosures in the area do this same thing. If it is a bank they are normally required to counter several times before coming to an agreement. If you do not like the countering process you can always submit your highest and best offer at the beginning and make them aware that this is a highest and best offer. Good luck!!
0 votes Thank Flag Link Thu Sep 23, 2010
FSBO Success has answered succinctly - I award you a thumbs up. Perhaps not what you want to hear, but the seller can say "no" just as you can to the counter. I think what the seller has said to you, at least in this round is "no, but I would like to make this work" ...that is what I would take away from his counter.

If you have some more room, then make a move. If not, hold steady and if you don't succeed, move on.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Thu Sep 23, 2010
Counter with your initial offer again, or possibly with a lower price. Another alternative is to counter with a different price and terms.
0 votes Thank Flag Link Wed Sep 22, 2010
If the seller is not willing to accept what you are offering- they can refuse . They do not have to take what you can afford. You may need to look at homes you can afford and the sellers will be hoping that someone makes a higher offer.
The sellers may not be able to take less- depending on what they owe and if they do not want to try a Short Sale!
Web Reference: http://topbrainerdagent.com
0 votes Thank Flag Link Wed Sep 22, 2010
Rubby,
Why are you appearing as Andrea? Is this on the $40,000 property another agent mentioned in another question? Sellers have limits just like you do. 20% is a huge amount for someone to drop at any price. Since you have so much cash, consider a loan. Keep your money in the bank and take advantage of the low rates.
0 votes Thank Flag Link Wed Sep 22, 2010
Hi Andrea,
If you're working with an agent, speak to your agent about what your options are.
If you're not working with an agent speak to your mortgage broker in regard to the different loan programs out there that can make the property affordable. If it's an all cash deal the seller might be able to hold a small mortgage on the property. Come back with another counter offer or be prepared to walk if the seller does not come down in price. You also need to know what the fair market value is for houses in that particular area. Is the seller above, below or at fair market value.
I've enclosed a link to an article that might be of help to you.
http://articles.moneycentral.msn.com/Banking/HomebuyingGuide…
I hope this helps somewhat.
Warmest regards,
Carolyn
0 votes Thank Flag Link Wed Sep 22, 2010
Hi Ive should of mentioned no loan cash deal.
0 votes Thank Flag Link Wed Sep 22, 2010
I should have stated in my reply earlier I am not a real estate agent and not an expert in negotiation with home purchases. I wanted to give you my 2 cents with the 6 years of experience I have.

@ Monir - your suggestion regarding having the seller to take a 'back note' will not fly if she is using conventional financing. Investors/lenders no longer allow what we called in the industry as 'seller carried notes '
0 votes Thank Flag Link Wed Sep 22, 2010
Be ready to walk away if you cannot afford the home. Otherwise ask for a seller concession, which could help bridge this gap while allowing the seller to save face. Another option is to ask the seller to take back a note, making the seller the finance the home. You could negotiate an interest rate lower than the bank can offer you in some cases. Another option is to explore aggressively the range of FHA options available to you, or down payment assistance such as the Nehemiah program, which may allow you to connect the dots. Another option: offer a "best and final offer" of $7000 less than asking and stick there -- and add a time limit of two weeks for the offer in order to give the seller another way to save face. If the seller gets desperate to sell, you may get lucky.
0 votes Thank Flag Link Wed Sep 22, 2010
Hi Andrea,

Not sure what your question is? However, I would contact your lender and see if they can get you a lower interest rate...this has been a great week for rates and they are close to all time lows? With a lower interest rate you could qualify for a a higher purchase price if that is the issue? If the problem is that you cannot afford the higher purchase price talk with your buying agent. Typically and especially in this environment realtors will do what they can to get a deal done. They may be able to reduce they fees on both ends of the transaction(both buying and selling agent). In this real estate environment you have the advantage as sales are down and inventory is increasing.

Take with your agent and see what they suggest. I hope my input helps stir you in the right direction. Good luck with your home purchase.

Sincerely,

Merritt Noel
Senior Loan Officer
American Liberty Mortgage, Inc.
1932 W. 33rd Ave.
Denver, CO 80220
0 votes Thank Flag Link Wed Sep 22, 2010
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