Poll

What should I do about the offer I received on my condo?

Accept it as-is
0 (0%)
Counter at $2,000 less than list but pay closing costs
1 (9.1%)
Counter at $5,000 less than list, don't pay closing costs
4 (36.4%)
Wait for a better offer
5 (45.5%)
Do something else (comment below)
1 (9.1%)

Total Members Voted: 11

Author Topic: Help - Should I accept this offer?  (Read 2975 times)

merula

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Help - Should I accept this offer?
« on: April 15, 2016, 08:10:52 AM »
I'm selling my condo, and I just got my first offer. It's for $5,000 less than list, plus the buyer wants me to pay closing costs of $4,300. My place been on the market for 17 days and had 15 showings. Of the showing agents who have left feedback on the pricing, about 2/3 have said it's priced at market and 1/3 have said above market.

I'm inclined to wait to see if there's another offer, particularly as I have some showings scheduled today, but my realtor suggested countering with a price $3,000 higher but agreeing to pay the closing costs.

I've read that when real estate agents sell their own property, they keep it on market longer and ultimately sell for more than they recommend to their clients, because a $5,000 difference in sale price only means $150 more for the agent at 3% commission, while it means probably more like $4,000 to the seller.

The condo market in my area isn't great, and I was anticipating spending 30-60 days on the market. But I have two small children, so not having to keep the place spotless has some definite value too.

ShoulderThingThatGoesUp

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Re: Help - Should I accept this offer?
« Reply #1 on: April 15, 2016, 08:12:01 AM »
We need the context of list price. Are we talking a $300,000 condo or a $70,000 one?

merula

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Re: Help - Should I accept this offer?
« Reply #2 on: April 15, 2016, 08:12:56 AM »
$150,000.

jwright

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Re: Help - Should I accept this offer?
« Reply #3 on: April 15, 2016, 08:32:16 AM »
It doesn't sound like a great offer, but in my area the condo market is much worse than SFH.  I'd be inclined to counter with just the closing costs concession.  A counter of any kind will buy some time while you have showings today. Depends on your comfort level.

Megma

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Re: Help - Should I accept this offer?
« Reply #4 on: April 15, 2016, 02:21:01 PM »
If it was me, I would counter. The offer is not so low that you might not be able to get them up to something acceptable to you (they're 9,300 below LP now, not so bad). You might have to go back and forth a few times, also if the negotiation takes 7-10 days, it gives more time for someone else to make an offer too, which is good for you of course.

I would hold firm on the sale price but offer maybe 3,000 toward closing. They probably don't have the cash needed to close if they asked for that much. It can't hurt to see if they will come up a little.

Did they ask for any other small things that don't cost you money (specific closing date/time frame or home warranty, etc)? You could consider giving one of those too to show you are flexible.

Also, don't forget, after the inspection they will probably have a list of repairs they want made which will cost you a little bit too.

merula

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Re: Help - Should I accept this offer?
« Reply #5 on: April 18, 2016, 12:02:26 PM »
Thanks everyone! I ended up countering for ~$2,000 less than list plus paying their closing, so all-in about $6,000 less than list, and they accepted. I do think that they don't have the cash for closing costs, since their agent told mine they have "limited finances" and they're only putting 10% down. I just hope that the financing doesn't fall through because of this.

But I found a place to buy and put in an offer today. Fingers crossed on that front.

Megma

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Re: Help - Should I accept this offer?
« Reply #6 on: April 18, 2016, 02:48:19 PM »
Good luck Merula! I'm glad to hear you got them up a little more and found a new place for yourself.

Sadly, 10% is probably more than most people put down but the agent saying they have "limited finances" is a little scary! :-)

merula

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Re: Help - Should I accept this offer?
« Reply #7 on: April 18, 2016, 03:13:12 PM »
I think the "limited finances" thing was a negotiation tactic. Like, "if we tell the seller you're poor, they'll just accept this offer because it's the best you can do."

At least, that's what I'm telling myself to retain hope in humanity.

merula

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Re: Help - Should I accept this offer?
« Reply #8 on: April 19, 2016, 10:03:20 AM »
So, I didn't get the place I wanted. 7 offers, and mine was contingent on the closing of my condo.

I can't say I'm not disappointed, but I did make the decision to keep the contingency instead of taking the risk of being on two mortgages at the same time. I'm not sure that was the right decision, but here we are.

K-ice

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Re: Help - Should I accept this offer?
« Reply #9 on: April 30, 2016, 07:50:26 AM »
I'm just curious for an update.

Did your place sell?
Have you found a new place yet?


merula

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Re: Help - Should I accept this offer?
« Reply #10 on: May 01, 2016, 10:33:47 AM »
My place hasn't sold. The prospective buyer balked at some condo association stuff. I think the reasons she gave were short-sighted, but then I can't in good conscience recommend the association to anyone because of one completely crazy owner, so maybe she caught on to that early?

I've found a house I really like, and it's well under my budget while having virtually everything I was looking for. I'm debating putting a non-contingent offer on it. I can afford both mortgages from a cashflow perspective, and the lenders I've talked to say that even with both my debt-to-income ratio is acceptable.

If my condo sells relatively quickly and this house I like ends up being a good deal relative to any others that might come on the market , then that's a good deal. But I can't predict either of those.

Any thoughts/advice?

SwordGuy

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Re: Help - Should I accept this offer?
« Reply #11 on: May 01, 2016, 06:13:14 PM »
Most people really have trouble covering the cash requirements of buying a home.  So covering the closing costs can directly increase the number of people who can buy your home.

If the appraisal will cover it, and you think they are serious buyers, you could raise the price a couple thousand over listing price but  cover the full closing costs.   They are still getting a couple thousand off the price and their immediate cash needs are less.

(Or go for the offer in hand if you need less hassle in your life more than a few grand.  That's what I did with my mom's house.)

merula

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Re: Help - Should I accept this offer?
« Reply #12 on: June 02, 2016, 12:49:55 PM »
Update and more questions:

I've now been on the market for two months, without selling, and I'm starting to get worried. At around the one-month mark (just after the initial offer was cancelled), my realtor pulled the listing and put it back on the market for $3,000 less. Last week, we dropped it another $2,000. (Current price is $145k.)

The competition for condos in the neighborhood is limited:
-Slightly larger, basement unit, $144,500, 65 days on market
-Slightly larger, $165,000, 65 days on market
-50% larger, much newer building, $225,000, 5 days on market

After this, everything else is 2+ miles away, much closer to downtown and much more expensive. Like, $250k for a 2 bed, 1 bath.

I feel OK about my pricing in a vacuum. I'm well priced to comps, cheaper than anything else nearby, and a neighbor's unit sold for $145k just last fall. But when I think about how many showings we've had (30+) and the three times that someone has provided feedback of "Very interested, loved it, may write offer" and then nothing happens, I feel like I must be doing something wrong.

So, experienced RE professionals and/or general advice givers, what should I do?