My husband and I are trying to figure out the best way to approach this. Even our agent says it's a unique situation that he hasn't dealt with yet.
We only started searching for a new home a few months ago. We are not investors and plan on living in our next house for 10+ years. We ending up finding the "perfect" home for our current/future needs, which includes some land and nice outbuilding that my husband loves. It's a unique property so there aren't many comparable homes in the area to get an idea if it's priced correctly. The listing price is $950k. The two homes in the area that are similar both sold around $720k about a year ago.
After researching the home, we found the current owners have a bridge loan and we estimated their bank gave an appraisal of $875k four months prior. The sellers only confirmed this number after multiple counteroffers. We eventually went under contract with an $875k cash offer contingent on our own appraisal and inspection. Our appraiser came back at $790k.
We talked it over and submitted a final counteroffer at $835k, hoping they would be willing to meet in the middle. But they didn't budge from $875k. This final response to our counteroffer happened on Christmas Eve when we were dealing with family so we didn't have the opportunity to talk privately without our families interrupting. We ended up walking away, not sure if we made the right decision.
About a week later, we saw the house was under contract on a facebook post. Long story short, the buyer's agent had it scheduled to post based on our contract and forgot to take it down, so it really wasn't under contract. We originally got upset when we saw the post and talked even more about how much we loved the property and maybe we shouldn't have walked away.
So, we decided we want to approach the seller again with another offer. The home has been up for 3 months and hasn't had much interest I believe because of the price. The sellers seem dead set on getting the $875k that the bank appraised it for.
We talked about just coming back with the same offer as before $875k and contingent on inspection, but we think they'll just immediately say no. I read some posts where it's suggested that we offer more than our previous offer, but we're stretching it already at $875k.
Just looking for any advice on how to approach this.
ETA: Listing price is actually $950k, not $875k. Updated in post.
Reapproach with another offer after walking
byu/sapphireland inRealEstate
Posted by sapphireland
10 Comments
Honestly sounds like they’re being stubborn about that bank appraisal number and won’t budge until they get desperate. If it’s been sitting for 3+ months with no other serious offers, time is on your side
I’d maybe wait another month or two and then come back with your $835k offer again – by then they might be more willing to negotiate if they’re still not getting bites at $875k. Don’t go higher than what you already offered unless something has genuinely changed about the market
Walk away. Sellers delusional issues should not be yours . Ykes!
Avoid stretching yourself too much on a budget… Be careful. Be aware of your emotions.
If you come back to the table, which is fine, you’re basically commuting to the seller that you really want the property. The seller knows you want the property. They’re gonna hold out for what they want. If I’m the seller and I get a property sub to inspections, that’s kind of normal. You can always ask them for repairs, but they may come back and say no. You don’t really have anything to lose.
Seriously just have you’re buyer agent TALK to the selling agent to see if the sellers are more willing to move.
You didn’t say what state which is important here.
If you live or, buy it. If it has 3 acres of more land then that last year sales, buy it
I’m lost.
You said it’s listed for $875k, the seller wants $875k and now you are saying you plan to offer $875k with an inspection contingency. What’s the question? Why would they say no if you are offering asking price?
I’m not sure why you had an appraisal done before you had your inspections done but I guess different states work different ways. If you don’t need the financing to cover all $875k and can pay the appraisal shortfall then, again, what’s the question?
Edit – I now see it’s cash and no financing contingency or real appraisal gap…so even less of a question.
This is what I call a conversation House, have your agent talk to their agent.
See if you think placing an offer makes sense after that.
Walk away already. This was never going to happen, and you should remove yourselves from that fantasy.
There are plenty of others that are out there. This one is now “the one to beat” and I bet you will.
How cool and special is the house?
Honestly I’ve seen some pretty cool houses in the past that I wouldn’t give a single solitary care about what the appraisal came back because the property or home was so unique and special.
An example of this was a home in our neighborhood in 2010 for sale, at that time our 4/2.5/2 2,400 sq ft with a pool was top tier and similar homes were fetching $175k on the market.
A couple a few streets over bought a one story 3/2 that had about 1,800 sq ft, gutted it and completely reworked the house to a 1/1.5 with a pool house in the back that had a shower for guests and high end everything, even a dog door built into the wall that interacted with a dog collar to open and washer and dryer I a huge built in closet. They listed this house for $325k.
It was such a cool build.
We thought no way in hell, ever. It sold in 10 days for full list.
Do you essentially know every thing there is to know about this property (I would think you do). I also assume you have all the financing covered. And you l9ve the house and want it.
Maybe you should consider making a noncontingent offer. Those offers are sometimes hard for a seller to walk away from? Just a thought..