You've got a home over 500k, stepping up into the luxury market. This market has had a very tough time selling over the last 2 years. I'd do whatever I could to make this offer work because you may not get another offer at this price, and the market has steadily declined in homes over 400k. I'm not saying hand it over to them right now but negotiate hard and then make it happen and move forward.
The only gauge that you should use is the market value of your home. If you are willing to go a little bit below market value you will sell a little faster. We often see offers $20, $30 and even $50k below asking and are able to negotiate those into an acceptable range for both parties. Some buyers are just looking for a bargain and will move on (in which case it's OK to say goodbye) others have already chosen your home and are just trying to get the best deal possible. I hear a lot that we should "split the dfference" to which I say "how about we start at market value and negotiate something from there that works for both parties". Best of luck to you!
The Buyer offer you almost 91 cents on the dollar as their opening bid. Every single Seller reading this better pay attention. YOU SHOULD RESPOND TO ANY OFFER AND SPECIFCIALLY TO ANY OFFER OF 90 CENTS ON THE DOLLAR OR MORE. (Don't mean to shout but there no other way to emphasize this by using another color, or italics)
Let's get real, what were you expecting a full price offer? If you were buying would you have started higher? Ask you listing agent how many $500,000 plus homes have sold in the past 6 months and how many are currently on the market? If there's more than a 6 month supply you the Seller are in trouble.
In case any of you haven't heard, it's a buyers market, and when you go to buy you be in the same position. Regardless of the market condition's Sellers should always respond to offers even ridiculously low offers (which this is not) by instructing their agent to tell the Buyer or Buyers agents, â€œWe are reducing the price by $1000. We want to talk with you but your offer is way too low for us to respond in good faith. We want to show you we are not hung up on our asking price and will respond with a more aggressive counter when you come up into the range of $fill int the blank$.â€
In your situation I would not do this I would advise you to immediately respond by reducing your price by at least $10,000 and see what happens. With well of 20 years of experience selling real estate in different parts of the country I can assure you that 99% of the time your first offer will be your best offer. I can also swear to you I have never and I mean never seen a Seller who refused their first offer (assuming it reasonable and this is a reasonable opening offer) not regret it and ultimately sell for less.
Good Luck and do your best to make it work, in the long run you'll be happy you did.
The point is you might find that the $50K deduction taken now might be the cheaper option for you. For example, I made an offer awhile ago on a condo in FL. The seller and I were roughly $100K apart on how we valued the property; yet, I was willing to meet him halfway if he were willing to consider my terms. Plus, condos in his neighborhood were declining in value by roughly $5K per month. He rejected my offer; he still hasn't sold the property; and his property value has declined roughly $80K to $90K more since then.
Some investors (myself included) will sell a property for a 10% discount in a heartbeat if we can close that deal sooner. It's cheaper to take the hit (and less profit) now, than to wait longer and possibly take an even bigger hit. That way you can get on with your life, put that profit to work sooner, and make more money. Think of it kind of like dollar cost averaging with stocks.
Remember - it isn't where you begin, it is where you end that matters. Good luck - do your best with any bona fide offer you receive - there is no guarantee that there will be another.
Unwavering Commitment to Service
Today, 2015 we are in a Strong Sellers market with low inventory and higher prices, please contact me if you are interested in selling and did not accept this low ball offer, or counter it, back in 2011.
Say hello to my sister over there she lives really close to Platt Park. Anyway, I would have to agree with Jerry Current, you are paying a realtor good money, who you trust, whom you have faith in their expertise, and whom has your best interest. We don't know the in's and out's of your moving situatino, your motivations, your "risks" of not selling. While I am grateful for resouces like trulia, they should never replace the person you have hired.
best of luck to you, I am jealous of where you live, but too many Ruzicka's in one town wont work. LOL
Thank you Justin Ruzicka..
ps. if you have found this answer to be helpful please mark it as best answer.
Did the buyers provide reasoning/justification for their offer being 50K less than asking price. If not, your real estate professional should ask if they are basing that figure on anything in particular, such as defects in the roof, siding, foundation, or if they are just throwing a number out there. That will then give you an idea of how serious that buyer really is. My clients and I always provide reasoning if we submit an offer that is far from asking. Therefore, no one is insulted and it justifies our position. Good luck.
Wow, $50K is a lot of money, a heck of a lot more than what it would cost to have a professional help you. Like a Realtor. Hire a local professional and they can help make sure you donâ€™t leave too much, if any money on the table but at the same time sell your house, which is your desired outcome. Many times you pay NOTHING unless YOU accept an offer, depending on the agent and what you decide to do. I wouldn't go to court without an attorney because I know it would cost me more in the end, like time served & I would not buy or sell without a Realtor. I realize that my opinion is biased, but it is how I feel with many years experience in the industry.
Best of luck with your offer, if you have the equity in your house, you are part of the <30% minority in the US that does.
Tierra Antigua Realty
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
There is a lot of good advise below. What I would ask is what did your broker give you for comparable homes? While the luxury market is moving now better than it was a year ago in terms of number of months of inventory, the gap between the original listing / asking price and what a home actually sold for is -43% across the MLS for the Denver Metro area. The delta of 9.5% they are asking you to take is not that bad considering this stastitic.
The advise to counter is sound, but if you let this one go and months go by without an offer, you may be asked to take another hit later on in the process. Work out a solid pricing plan with your Realtor and if you don't negotiate this offer successfully, be prepared to do it at a later point.
Good luck with you transaction.
Thats my take.
*Review What have recent homes sold for.
*How long did those homes stay on the market.
*What % of list price did they receive.
*What is your market for your home? Is inventory increasing or decreasing?
* What homes are pending and how do they compare to your home?
*Is your home special or does it have challenges?
* What other terms in the contract do you like and dislike?
*Get in the car with your agent and look at the homes on the market which are your competition.
With all that information a clear response should present itself to you.
Do you have a listing agent that can help guide you in the right direction as far as negotiating?
I would go here first and then let us know if you still need help!
HOPEFULLY you are under contract by now!! (fingers crossed)!
Your Castle Real Estate
All depends what are the comps in your area. However getting an offer is a good thing. You can start negotiating and see how it goes. $50 K sounds a lot but if both buyer and seller are willing, they can meet half way. So, my suggestion is counter this offer and keep on negotiating.
In our market (Fairfield County, CT) $500 K is not considered luxury - its about mid level. Buyers will make offers of up to 20% off list price. Colorado may have slightly different practices in terms of how offers are handled so work with your agent on this because that professional guidance is what you are paying for!
A very fair question......ask your agent to review the most recent comps for similar area homes with you. This should shed some light on where you should focus your efforts.
If you have room, don't risk losing the buyer by not giving them a bite of the carrot. Some buyers look for a message with the seller's counter....your message should convey the fact that you are serious about selling and value their offer as a serious one, "without giving away the farm."
Let your agent take the lead on this but make sure the numbers are something you can live with.
Your agent will assist you with negotiating the best price for your home. The market value is what a Buyer is willing to pay, what the appraiser can appraise it for based on the the recent sales of relevant homes in your neighborhood. Remember that there are plenty of other homes that they can move on to...
The sales price of your home has nothing to do with what you "need" or want....
I agree with Kelly Nichols below. However, I can only assume from your inquiry that there are not many offers on the table. I may further assume your home may have been on the market for a while. I only want to add that there is time value to money. Cash now is better than cash later. Also if you have lets say a 3k per month mortgage payment; you are loosing $100 every day you delay. IF my assumptions are correct , let the Buyer land on the moon....