If the home is worth $10,000 more to you and this is as far as you are comfortably willing to go you may want to write "best and final" and have your agent provide justification for your price. Leanne is right, you chose your agent and they should have the best solution for you with your interests in mind. I wouldn't recommend contacting the owner directly. Good luck to you!
Keller Williams Realty
I agree with totally with Grant. I'm almost certain that your agent has a good grasp on the details of your situation. For instance, what your needs and wants are; resources and purchasing power you posess; value and condition of the home you are negotiating for; etc. Your agent will have trustworthy and sound advice on the negotiation.
I would not attempt to question the owner, if I were you...
If you would like to make sure you are being advised, well, then you should ask for a meeting with your agent and the OP (top broker in your agent's office).
All the best and good luck with your deal,
I think too many buyers have "HGTVitis" where they see buyers on shows (and I love HGTV, by the way) offering low ball bids and then want closing costs on top of it and expect sellers to accept it. All home sellers are expected to be desperate and will sell their home at any price. Not true. Thankfully I am not desperate and could stay in my home another year if needed.
I countered and we will see what happens. Just disgusts me that I get lowballed, asked to cover all closing costs and then they are also getting my tax dollars through this first time homebuyer's thing. Some people really have nerve! But I have to admit I am not your average buyer or seller. I have throughly researched the comps and know its appraised value.
I am thankful that I am in the situation I am because I know many are not and are worried about short sales and foreclosures.
Some great answers below. Forget everything else, the question is "WHAT IS THIS PROPERTY WORTH TO YOU". If there is indeed such difference then either you are trying to low ball the seller or the seller thinks he's got 'Taj Mahal". Either way you are quite far away depending on the price you are dealing with. Is this a 200k property or a $3 mill property. In a $3mil sale $50,000 is not that significant and in a 200k sale even 10k is super significant.
I am sure you know the answer deep inside. What the heck we are havin a field day here. i am sure you have done your homework and if not then you need some serious help. Hope you have an Agent representing you and if one is then i hope you will trust the Agent to do his fiduciary duty.
certified Distressed Property Expert
I have often had my clients write "best and final" on an offer, only to have the seller write another counter offer at a higher price. Sellers tend to see t as a negotiation strategy, and not take it seriously.
The gap you talk about can only be affected by MONEY or TIME. Market value, (what a home is truly worth) is the amount that a willing buyer will buy and a willing seller will sell, without duress or pressure. At this moment in time, there is a GAP between your idea of value, and the seller's. That gap may be affected by TIME, as either you, or the seller, change your idea of the value. You may need to wait the seller out.
Decide what your idea of market value is, and do your best. Then wait. If someone else buys the property, you did your best, and couldn't agree on market value. Time to move on.
Best of luck,
Deborah Bremner, CSP, SFR, HRS, CRS
Certified Short Sale Professional
Certified Home Retention Specialist
Blogging at: http://TheBremnerGroup.com/blog
You have to ask yourself "what is the home worth to me". Your agent should know what the homes market value is so it will appraise and you can get a loan. Other then that factor you simply need to ask yourself what am I Willing to pay for it. In this market where inventory is low, I would recommend that you don't play around too much if you really want the home. If it is ok to not get it then low ball. Otherwise you may regret playing a game for what could be just a few hundred dollars a month.
But by all means have your agent check the values of comparable properties and make an educated decision based on those numbers.
You are not privy to any competing counter offers UNLESS the seller feels the need to divulge them--however if that were to take place, one might consider the source and remember that the seller wants to net as much as they can.
Best of luck.
If you are in a market that is still declining, you can reduce your price under the comparable sales by some.
If you are trying to come in real low for a deal, realize that not all sellers are in a position to be low balled. However, if they have equity, maybe they can (or perhaps they can take some of their equity later).
Perhaps they have underlying mortgages and they may need to pull some equity (if any) to move on. You or your agent may want to see if you can get existing loan information from a title company. How long have the sellers been carrying a mortgage? Can you closely guess at what they might still owe? Are they upside down and asking too much in order to pay off the mort. companies? If there is no room in the equity for a seller to take a low ball offer, you're probably wasting your time.