The spike on a graph is like a skyscraper - check out the article link to my site - there's a very good display for you to check out -
plus FORECLOSURES haven't really fully come to fruition.
i say - if the offer has GOOD TERMS - i.e. they match your needs like flexibility for closing, if buyers don't need to sell anything (in this market that's worth 10k right there), etc.
it also comes down to you - what's your situation - do really really want to sell? on scale of 1 to 10 where are you - 1 being don't have to sell at all and you don't care or 10 you MUST SELL.
if you're a 6 or higher - you may consider a very generous counter offer.
DO NOT think or put your money on the amrket "picking back up in a year" - the real estate market is a LONG TERM investment - it's not the stock market - homeowners have lost equity and it's not just going to come back overnight and DEFINITELY not going to get back to 2005 prices for quite some time.
And i'm not basing my opinion on my "gut" - it's based on what I read, see and hear from EXPERTS in the economy, both nationally and locally.
$4 gas prices (and rising) isn't helping
high taxes - not helping
media - not helping
if you have someone with GOOD TERMS offering you about $25,000 less than your asking - and you're at a 6 or more on that scale - take it and run!
Also - you should consult a full-time realtor (preferably me) :) to look at home values in your area and discuss other factors.
Can you hold out a year? Long Island real estate has never stayed low bid for long. That's history! I'm not a real estate person.
Do you need to get out now? Then, sure, take what you can get and move on. God, I'd love to see our family move on. But we can wait it out, a bit.
Do you see where at closing, you might need to drop even below the $372,000 should surprises pop up? Be ready for that.
With all that in mind, go ahead and make a counter. A Counter Offer with some of this things in mind. You might end up settling on $372 at closing. But then again, you might do so happily having a few rent-free summer months before you move. Where you are moving, are they a summer tourist place? Do you have a place to go, or will you need to rent at high summer prices before you finally settle?
Lot of variables. Take a few days of deliberations. It is never good to move to fast. Not weeks, though.
Right now, the only affirmed thing you have is your binding contract for is to sell your house at $399, 900. Maybe you should split the difference of $27,000 in their offer, and counter with --consider this a blessing if I get it right, you're making me do math do realize that I'm not numerically gifted---$385,950---$13,950 off.
An offer is only good to you if it serves your purpose and gets you where you want to go when you want to go. Ask yourself, will I be happier not taking the offer?
There are multiple issue to consider when you get an offer, it is not just about the money. Not to say that the is not important but to best make deal you need to know all the facts, such as the 372k is this cash or mortgage?, are they looking for a sellers consession? are they looking to close quickly or in 8 months?
so to best help I would say ask the Realtor lisitng the house as well bring the Deal to your Attorney and review the deals up and downs to ensure you are getting what you need too. The bottom line is the market is a bit tighter this year then last and if you have a truly good deal then take the money and go for keep it on the market can cost you in the end if there are no other offers down the road. Good Luck!
I have been an appraiser on Long Island for 17 years and also an investor in several states. I also know more than a few people that had offers 10% less than their list prices and didn't sell only to regret it later when they wound up selling for 15-20% less. Please take my advice. Maybe counter offer a little higher ( not much as your don't want to scare them away) and take the deal and run. You may never see another offer that high. Do no listen to anyone who says the market will recover shortly. Even if we were at the bottom, which looking at the pending foreclosure and inventory statistics seems unlikely, it will be many years before prices increase. Remember, in the last cycle it was 10 years before people who bought at the peak got back to even. There is no way this time will be different unless worse.