Acquaintance has had a 'difficult to sell' property for sale for nearly 3 years. Had some bad offers then one offer was within $4000 and he refused!!!!!
He is miserable and desperate to sell his huge place...but due to his stubbornness, I guess, he says he has to have full asking.
I think he should have taken the offer and been glad. House is in a bad location and he'll never get back the 'over-improvement' money spent.
BTW, he's not rich, but I really don't think $4000 would alter his life that much.
So what would your limit be?
Sometimes people do not realize what hanging on for full price is actually costing them...might be much more than the 4 grand? I would certainly want to move on with my life. Maybe he really does not want to sell?
4 grand certainly seems close enough, but we don't know what percentage that is, as in is it 50 grand asking price or 200 grand asking price? Regardless, if he has been waiting 3 years for a good offer, it is probably priced too high for the market/location.
As a real estate agent, I would have been completely ticked off with my seller if they did that.
What we don't know - did he counter the offer or came back with the full price? I hope if the listing agent didn't walk after that, he/she sat down with the seller and explained how much his refusal actually cost him. Also, he needs to know that unless it is a cash offer with no contingencies the property has to appraise for the price and most people might not be willing to pay the difference out of pocket.
I hope the listing agent put in the listing that the price was firm.
I've only had one offer submitted over the years that I felt was not worth considering, but it was up to the sellers to respond.This message has been edited. Last edited by: Charming,
I'm not a realtor but it has been my experience that in a good market 97% of the asking price is always a "reasonable" offer. I would think that in a soft market that percentage could be at least 2% less at 95% of asking and still be considered extremely fair.
I would think a seller would factor how much they are potentially losing each month the property doesn't sell, with three months of expeditures being the least amount as the consideration.If your current mortgage is $1500. and you can get into a new place for $1000. in three months you've just thrown $1500 out of the window because of a short sighted financial plan.So that $4,000 reduction is potentially only a $2500 reduction.
It's a good question, too bad your friend isn't asking it.
Charles, Depends on the market and pricing. 2% - 3% is barely a dent on most homes in my area. When working with buyers I don't flinch when they suggest offering 10% - 15% below asking. Any more and I remind them of what is selling in the area and what price range they wanted to consider. Some people want to play games.
As for expenses - don't forget insurance and property taxes. One year of wind & hale, home owners and flood insurance is going to cost us more than $4000.
too many variables..mortgage amount and emotionally tied to property are a few possibility. Loved ones dying the house..
I had this situation with a seller, well actually more than a few times, but this particular seller..would not move! The buyers and I actually packed him up in his RV 3 days after closing.
He had just lost his wife that year.
I'm not sure what part of the country you are talking about but in New England, heating costs can add up too.
Is he living in it untill it sells or is it vacant. I wish him luck but at some point you just cut your losses and move on, if you aren't underwater and can't make up the difference.
The big question here is what does it cost him every month in mortgage, taxes, insurance, utilities and maintenance until he closes a sale? How long would it take for that four grand to be gone? What about 15 or 20 thousand difference two and a half years ago? It sounds like he is doing his best to lose as much money as possible over as long a period as he can.
Most of those things, utilities et al, are not extra expenses if this is not a second home as they wll also pay them on the new home, assuming it is a house they are moving into.
I suspect it is not the money that caused the rejection of the offer but something else. Maybe he is worried about where to go. Or even simply of having to pack all that stuff up. There are many things.
In the area I am familiar with offers of 10-20% below asking is normal with settlement being 5-10% below asking.
Maybe he is not ready to sell...emotionally. It's his decision.
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