Strategy for buying an overpriced house/getting offer accepted?
invite response
2012 May 20, 7:28am 38,327 views 42 comments
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1sfrenter
2012 Jun 9, 2:25pm
Seller on this house has lowered their price, but only by 15K. We have put in 2 offers, both rejected. So now we just wait, cuz the house isn't going to sell at the list price.
Found another house we really like, also crazily overpriced. Seller hasn't paid his mortgage in 6 months and the list price is over 100K too high, per comps.
He already took (sold) all the appliances and apparently is going to foreclose if he doesn't get his fantasy asking price. Won't consider a lower price or a short sale (says the listing agent), he would just rather jingle mail. House has been vacant for at least 6 months.
I am trying to find out how much he owes, so I can at least make an offer for that amount.
I researched the seller - the guy is on the planning committee for the city government in another town/city. The whole thing is so irritatingly skeevy. I dunno, maybe he owes the same amount as his ridiculous asking price.
None of this would even be worth my time if inventory wasn't so crazy low and if we weren't competing with the all cash investors and flippers.
GraooGra
2012 Jun 10, 1:11am
None of this would even be worth my time if inventory wasn't so crazy low and if we weren't competing with the all cash investors and flippers.
Can you wait at least 3 more months? We are in this same situation like yours, except that 'down payment' assistance which ineterst me very much. Somone told us to stay put until after the summer where something in the banking law would change. Then they start throwing away all squatters and cleaning their inventory.
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We've been outbid on 4 different offers by all-cash buyers and flippers. We found a house this weekend that we like but it is insanely overpriced. The seller is in a bad situation financially and somehow convinced the listing agent to price the house at fantasy level.
It's a small house so it's possible it won't catch the eye of flippers or investors. The identical house down the street (in way better shape) just sold last month for $65K LESS than the asking price of the house we like. That's the only comp on the block. Same size, same view, same year, etc.
Because of the low inventory and the infestors and cash from China we have have not been able to get any of our offers even looked at. But assuming no one swoops in with a ridiculous offer in the next week (and houses here have been pending within 1-2 weeks) I am wondering what might be the best strategy to at least get us in a negotiating position.
It won't appraise at list or anywhere near it. I won't buy it anywhere near what it's listed for.
I'd be curious to get some crowd-sourced thoughts from y'all, and it will be interesting to see what my agent suggest when I see her tomorrow. The RE market is changing so quickly that at this point I think all angles should be considered.
1. Offer what the identical house on the block that sold last month went for ($65K less than lost)
2. Offer a mid-point between comps and list, and hope to work the price down after our offer gets accepted (inspection and appraisal)
3. Offer close to seller's fantasy price and hope to work the price down after our offer gets accepted (inspection and appraisal)
**Don't tell me to wait: PITI on this house -if it sells for even 35K less than asking - would be $500 less per month than my rent and we need a place to live**