On Saturday, we put in our first offer for a house that’ll be a potential bidding war. It’s the first day it’s on the market and listed for $635k. Our realtor suggested to offer $640k and we crunched numbers with our mortgage broker. We’re putting $19,200 down and closing costs/attorney etc is $16,800. Rate we were given is 6.5%. It sucks bc when we got our pre approval letter we were given a 5.8% rate. We were told not to do sellers concession since it’s a bidding war.
****update as of today after speaking to my realtor. she advised there is 5 offers for the house all close in price range. She said the sellers had “suggestions” for a stronger offer/bid on the house. The sellers are suggesting buyers to waive the home inspection, appraise gap – if the house doesn’t appraise well, buyers will have to pay it, and a lease back to the seller. This house is contingent and my realtor advised since we rent and aren’t in a rush, it’s somewhat an advantage. Idk why we couldn’t push the closing date back instead of them renting from us? We said absolutely not to all of those suggestions…. I would never waive a home inspection lol makes me wonder what they’re hiding? I have a bad taste in my mouth now and feel like the sellers might be a pain in the ass. We have to do best and final offer by 12pm tomorrow. We’ll probably do $650k without agreeing to their suggestions. Doubt we’ll get it but has anyone else dealt with “suggestions” like this?! I’m kind of floored by these suggestions lol****
Put an offer in on a house on 4/11, 5 offers, last and final due tomorrow by 12pm. Sellers have “suggestions”.
byu/Annied93 inRealEstate
Posted by Annied93
6 Comments
They want the rent back so they can use the proceeds from their current home to buy the new one and they can’t do that until after they sell.
We don’t know anything about your market. We don’t know how much this is the nature of this seller or that it is a sellers market. There are many markets where they are still competitive enough that people have to waive inspections to get the house. You are wise not to do so. The other concern is that it sounds like you really don’t have any wiggle room and no matter how good an inspector is. There are always surprises and things always break. The question is, can you really afford this house?
As I say, there are things we don’t know-we don’t know how often a house like this comes along and what the comos are and what they usually go for. In other words, is it a place where you can feel like there will be other options and just pass on this.
But even if not, I question if you can actually afford this house comfortably and whether you need to revisit your budget and requirements for a house to do this in a wise way.
These things become normal in a seller’s market … but they’re unpopular the rest of the time exactly because they’re ridiculous disadvantages for the buyer. I don’t think anyone else will be interested in their suggestions either, at least not unless your area has a serious shortage of inventory or unless that price is incredible.
Happens all the time in my market (I’m an agent). Some agents will be very explicit in saying what terms the seller will accept. I actually appreciate this when working with buyers – it gives them a clear picture of what the successful offers will look like and they can decide if they want to participate or not.
While your market seems more expensive, those are all normal lately if it’s considered a sellers market. I would just urge caution if you’re getting to the upper end of your budget especially if you’re waiving inspections and taking on extra liabilities. My friend bought a house and waived inspections and now they are dealing with tens of thousands of dollars in foundation repairs.
Then move on from the house? Pretty straight forward