Home Selling in Gresham>Question Details

Mike, Both Buyer and Seller in Gresham, OR

Offer on our house but - buyers having trouble comming up with additional 8K

Asked by Mike, Gresham, OR Mon Jun 23, 2008

My wife and I had an offer on our house, we countered, and the home buyer is having trouble comming up with
the additional 8k. We are not going to adjust the price for them, we allready did that with the counter offer. What options are there?...........because after all 8k is not that much money.

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12
J R’s answer
YOu say 8K is not that much money, but you are not willing to come down 8K. Why not? Because it's a lot of money? It's probably even more money for the buyer who already has to come up with whatever the rest of the purchase price is. And you know what? It isn't a lot of money to move on with your life. If people are lined up at your door waiting to buy, by all means, don't adjust the price. But if your home is one of the possibly thousands for sale in your MLS area..... don't be looking back months from now, when you are offered LESS and say "I should have taken 8K less back in June." Serously.
3 votes Thank Flag Link Tue Jun 24, 2008
Hi - does the $8,000 difference have to do with the purchase price or the buyer's funds needed to close? If it has to do with the purchase price - he may be maxed out on what he can spend so even though the $8,000 may not seem like much - it can be a big difference in qualifying for a loan approval and he just might not have any more to offer. If it's only a matter of needing funds to close - then the answers from Tom and Dirk are your best bet.

The kind of funny part is your comment about the 8k not being that much money - if that were the case then you could accept that offer. :) I've been negotiating an offer for one of my buyers on a home she is trying to buy - we are within about $3,000 of reaching an agreement but haven't gotten there yet. From my buyer's standpoint - the $3,000 is more than she feels the home is worth so in our case it's not a lack of funds, but not wanting to spend more for a home than it's worth and end up with an upside-down value like so many home owners out there right now. We are working with a great listing agent and great sellers and we've all been doing alot of serious looking at competitor homes and working together to meet an appropriate price and I am confident that we will get there soon.

I wish you the best of luck in making your transaction work for all!

Kelly Gebler
Real Estate Broker/Loan Officer
Commonwealth Real Estate & Demark Financial Serivces
2 votes Thank Flag Link Mon Jun 23, 2008
Mike, thanks for the update on your problem. You didn't say the price but the higher the price the harder it is to sell today. Look at comps. It sounds like the buyer needs to talk with your agents lender. Just because your house is priced close to the market or what you think the market is, my question is how long has your house been on the market and how many showing have you had and are the showing increasing or decreasing? If you have been on the market more than 4 months I would take the offer. Our real marketing time is 9+ months if you agents pulls past history of sales. If your agent really compared past sales history on each sale you will probably see that the homes that sold took over 9 months and came off the price more than 15% or more. If you don't take the rduced offer and waited 4 months then the offer today is the same as what the mortgage payment you made for the last 4 months not to mention the potential increase in interest rate payment which I think is a large issue in 4 months from now than losing $8,000. Add $300 a month to your next payment and see how far $8000 goes. Depending where you are moving to you might save more on the next house. If you are down sizing or not buying another house you are in a thougher spot mentally. I have seen super priced homes that have been on the market for 9 months or more and I connot believe that they have not had an offer? Good Luck

Tom Inglesby, Broker
RE/MAX Equity Group Inc
503-495-5416
0 votes Thank Flag Link Tue Jun 24, 2008
Hi again Mike - does the buyer have their own Realtor? If not and your Realtor is able to help guide them through the loan process - I'd be happy to take a look at their basic info and check with some of the banks I work with to see what other options for loans are out there. I am dual licensed as both a Realtor & Loan Officer so understand how all parts of the transaction work and might be able to come up with some options. You can either have the buyer contact me directly or they can log onto my website and fill out a loan application with some basic info and I'd be happy to play around with it to see what I can do. My Mortgage website address is: http://www.LetUsGuideYouHome.com
0 votes Thank Flag Link Tue Jun 24, 2008
What was your listing price?
0 votes Thank Flag Link Tue Jun 24, 2008
Just saw your update - if the Buyer is maxed out on the loan and they do not have more funds available to close, that'll remove that option from the mix...
0 votes Thank Flag Link Tue Jun 24, 2008
So split the difference - see if your Buyer can come up with 4k and you drop your price 4k. At least you can move on with your plans. One problem with tacking on 8k to the purchase price is ... in this declining market - what if the property fails to appraise for the adjusted price? You'll be back at square one with a sale-fail.

We haven't seen the bottom of this market yet... IMHO...

Look at the MLS - 1) less than 10% of properties are closing each month. 2) there's approximately one years worth of inventory in the Portland MLS, 3) the sales price as a % of listing price has dramatically dropped the last three months, 4) we're seeing price reductions of 5-10% on many properties...

Best of Luck!

Chris
0 votes Thank Flag Link Tue Jun 24, 2008
More information- Our house is priced very appropriatly for the market. Our agent worked long and hard to convince us that we needed to price our house correctly. Our counter offer met the offer half way....we conceded 8k. The buyers are working with some type of loan that won't allow us to take a note, and their mortgage person wont budge on the max loan amount. That is to say we cant raise the price 8k and pay 8k. Our realator is convinced that they need to see her mortgage broker because apparently their Ratios are really good. She passed the information on to the buyer but they will have to trust her. Maybe they will do it, but maybe not. I am just making sure that all the bases are covered here.
0 votes Thank Flag Link Tue Jun 24, 2008
Mke
I am curious, what did your Realtor say? You are at the end of the spring buying season. I would tell your Realtor to find a way to make it work.
Keith
0 votes Thank Flag Link Tue Jun 24, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
I have to agree with Kelly below... If you want to sell your home and 8K isn't that much money...then take the deal and get your home sold. Is it worth losing a buyer over it? Or would you rather take the (small) hit and move on?

if I can be of any further assistance, please don't hesitate to contact me at http://www.HernandoLuxuryHomes.com - I'm happy to help!

Thanks,

-Josh
0 votes Thank Flag Link Mon Jun 23, 2008
I agree with Dirk, to raise the price and pay for it out of the proceeds. You didn't say what your agent said because I would think they would have said the same thing? But some time raising the price on the house, the huse will not appraise if the house has been on the market for an extended period of time. How long has the houe been on the market so is the offer fair or not what you were thinking? Depends on the price range and area but it you have a buyer I would work with them. Could you take a note for the down payment over a number of years? Try and see what the lender has to say. Good luck.

Tom Inglesby, Broker
RE/MAX Equity Group Inc
ABR,CRS,CLHMS
503-495-5416
0 votes Thank Flag Link Mon Jun 23, 2008
Mike;

Raise your purchase price $8K and pay $8K. It is pretty simple but not always allowed by various lenders but seeing that you already cam down once I would say just go back up and pay these costs.

If they really want the home they will do it.

If you guys can not figure out to do that you probably are loosing this guy. Buyers are flighty and they will just walk away right now anytime they want.

#1 Goal.... make the sale and do not be stubborn. Both sides stand to loose.

Best wishes to you;

Dirk Knudsen
Re\Max Metro
#1 Rated Re\Max team in Oregon
Re\max Hall of Fame
Web Reference: http://www.nwhomecenter.com
0 votes Thank Flag Link Mon Jun 23, 2008
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