patrick.net

Blessing in disguise or just another bump in the road:

2 other offers besides ours on the overpriced house. All 3 offers were within 5K of each other, and all 3 offers were 60-65K LESS than asking.

Seller rejected all 3 offers. Apparently even her listing agent is irritated, because he knows that the house won't sell for anything close to what she wants. The only way that house will sell for list is if someone comes in with all cash, cuz no way it will appraise.

Maybe if it's still listed in 2 months we'll give it another go.

If you believe the hype, there should be a bidding war going on!

Good luck! Here's to hoping it's a blessing!

(Let us know what happens to the property, and to your status!)

The bidding wars on the low end (300-500K) here in the city are only for homes that can be fixed and flipped or homes that may have rental income if they can be divvied up into many small rooms for multiple Chinese families.

A small house that won't sell for more even if it's fixed up won't get overbid.

In the over 600K range, it's folks who want to live in the house.

E-man says

Here is my suggestion. Say the property is worth $600k, and the owner is wishing for $665k. I suggest you offer to buy it as a FSBO. Cut out both agents would save the seller about $35k in commission, which brings the bottom line number to $630k. Meet her 1/2 way from the comps and offer $615k. That's about 2.5% higher than the comps.

That's probably not practical now that an agent has been retained.

When I sold a home using an agent (part of the relocation package deal - the company would pay for all selling costs and gross-up to cover the tax bill on the reimbursement, but only if I used their preferred agency) her boilerplate contract said she got paid if the house sold before it expired after xx - xxx days (if not renewed).

Selling that property as a FSBO after engaging the agent without paying her would have required taking it off the market, eating x months of mortgages + taxes, and closing the deal x months later.

This is fucking ridiculous. Since when should the government be providing assistance for people to be buying $600K+ homes?

Since they zoned the land to artificially prop up prices.

Make your offer a STRONG offer, but not through the offer price.
I use only two contingencies: 17 day rescission period and loan appraisal/funding.
I would pencil in "AS-IS" and not mention anything about pest reports, house inspection reports or roof inspections.
These reports if in the offer may be reviewed by the loan officer/underwriting and kill the deal (even for one broken window). Instead of the contingencies...just use these two above.

In reality have your best inspectors lined up--PAID BY YOU---and reports ONLY TO YOU. Have them start inspections immediately during the rescission period. The seller will keep their mouths shut UNLESS THEY KNOW OF SERIOUS hidden defects that could kill the deal....such as HUD section 1 or section 2 pest reports.

YOU have the decision to make---HOLD OR FOLD ---- BUY OR RESCIND your offer---you have that 10-17 day period. Once its over--- your earnest deposit is at risk of you walk instead of continue with the purchase.

YOU CAN GET a HUGE price discount with a motivated seller or bank. It just takes brass huevos at this time!

But you can save tens of thousands of dollars...based on REQUIREMENTS OF THE SELLER.

The most important variable in real estate OCCURS IN BUYING, NOT SELLING!

NEVER have an emotional attachment to a house.

Make your highest offer if you want the house. If it's not accepted
WALK AWAY. Your not there to make the seller money.

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.

1sfrenter says

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.