Q: My husband and I are house hunting and have seen a home we love from the outside. We called the listing agent to set up a showing and he said, ?Just so you know, the owner is not willing to budge on the price.? The house has been on the market a little over six months and is priced higher than the comps (comps are in the $350K area, owner wants $450K). We have a Realtor who will be representing us and he?s great, but I just wondered, if we love the place and decide we want to make an offer, what are the best incentives we can add to a lower-price offer to get the seller to ?budge? and consider (and accept) a lower price?
?Indigo, Davidson, NC
A: In the end there are only a couple of things that matter to a seller. First and foremost is what they are putting in their pocket. I knew one seller that waited five years until the market finally caught up to his price. I never even talked to the guy about listing, because he wanted so much. About six or seven other agents had his home listed over that time period, but only the last one got paid. I just suggest making your best offer, and move on. Oh, the second thing sellers like is an easy closing, so make the offer as-is and get your inspections and financing tied up as quickly as possible.
David Welch is a Realtor? with RE/MAX 200 Realty in Winter Park, FL.
A: Unfortunately, you have fallen in love with the exterior of a home owned by unrealistic and unmotivated sellers. The whole issue could be killed by your seeing the interior. Should the inside be a turn-on as well, the best you can do is offer fair market value, UNLESS: A) Your offer is cash and you choose to pay more than f.m.v ? or ? B) If you?re mortgaging the purchase, your lender won?t allow you to pay more than f.m.v. If you choose B): keep the contract ?clean?, unencumbered by contingencies (other than financing), ask the Sellers for a closing date that pleases them and perhaps suggest an ?As Is? offer that relieves them of any liability for repairs. Depending on what your contract stipulates, there should be a way out of the contract for you during the inspection period, if the inspections show anything you don?t choose to handle.
Jackie Davis is a Realtor? with American Realty & Inv., ERA in Inverness, FL.
A: You should rely on your agent as much as possible. He has worked with the other agent, probably. He has faced this before. But, as an exclusive buyers agent, I only help folks buy homes so I see this problem a lot. If the sellers do not have to move, they will not be incented to take less than they want. If the sellers have that much ?into? the home, they will not want to take less. Comps are what we buyers use, but sellers always have a reason why their house is better than the comps. One technique I find helpful is to present a very reasonable offer with a cover letter (or in person if possible) extolling the virtues of the home and saying how wonderful it is but expressing concern that the appraisal process might hamper the realization of the price. I then provide comps, excellent evidence of financial strength, and end by saying: ?We realize we may not be the right buyer for your lovely home, but we would certainly love to be the new owner.? That last point makes the sellers think twice about who WOULD be the right buyer. Best of luck to you.
Linda Walters is a Realtor? with Sage Realty LLC in Wayne, PA.
A: It sounds as though the incentive that this seller is looking for is a high price. The problem is that, even if you offer the price he wants, the house may not appraise. If the seller will not budge on price, you could be out the inspection and appraisal fees with nothing to show for it. Try offering fair market value. Some sellers price their home high hoping to find ?the greater fool,? yet they know what the fair market value is and will sell for that if it is offered. Ask your Realtor to find out if the seller has any other ?hot buttons,? such as timing, rent-back, etc. The old adage in real estate is, ?you name the price, and I?ll name the terms.? If the seller is hard to work with and wants both, you will probably be better off looking for a different home, but you will know that you have given this one your best shot.
Phil Lunnon is a Realtor? with Lunnon Realty in Lakewood, CO.
A: Dear NC buyer, Other then an ?all cash? sale,with no contingencies, there are other things a seller likes to see one is that the financing is solid on the buyer?s loan and that the sale will close escrow without problems. The seller will want to see a stable work history and excellent credit, along with a substantial down payment as well. If you can provide assurance in those areas it will help.
Dorene Slavitz is a Realtor? with The Real Estate Group in Culver City, CA and Torrance, CA.
A: * Shortened Inspection and Appraisal Deadlines; * High Earnest Money Deposit; and * Refrain from asking for extras (like a Home Warranty).
Then?
I would send in the following along with your offer: * Pre-Approval Letter (vs. a Pre-Qual Letter), verifying that your lender has received and reviewed all of your financials; * Proof of Funds for your down payment; and * A list of Sold comps in the range of your offer.
Hope you get it :)!
Alisa Bair is a Realtor? with Equity Real Estate in Midvale, UT.
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