My property is for sale

[Don Hardcastle]

Our property is for sale. It is listed at $379,900.

2300sqft brick 3bd, 2 1/2 bath, formal dining room, and office. 9 years old. 30x50 shop 18ft tall. 12.66 acres, 1/2 acre horse paddock with run-in shed w/power. 2 wells (main well is 850ft, secondary is 450ft), central heat/air, wood burning furnace, water softener. Home warranty

The land is clear for pasture except about 2 acres.

A couple is very interested in the property. The wife loves it, the guy is a little worried about the payment (real estate agent told me this). I thought I would be a nice guy and lower the price $7000 to help with the payment.

New price $372,900. BTW, that includes a 48" HDTV w/1000watt full surround sound system.

I get a call from my realtor today saying that we have an offer. I am thinking great, got her sold.

The offer was $350,000.

I am thinking that is some bull****.

The property is valued at $425,000 or so.

So what do I do? Do I accept the offer and break even after closing (real estate commission is 6%).

Or do I counter and run the risk of losing the sale?

I retire from the Navy in 20 months. We are selling so that we can downsize, so that I can go back to school full time w/no issues.

Give me your opinions.

Don

 

[Mr Brown]

What is the market in your area doing? How is the local economy? Any major business openings/closings you are aware of?

 

[VaBusa]

Also, how long have you had it on the market? If this is a new listing, you don't need to jump on the first offer that comes along...

 

[Burger King]

Don't take it........They are just testing the waters to see how bad you want to get rid of it. I would tell them you wanted 379,200 take it or leave it and remind them it is appraised at $425,000, unless you are willing to deal just to get rid of it. Then I would counter offer $375,000. Don't go too low to fast.

 

[MrGxr]

What is the market like? Is it a buyers or sellers?

How long has your property been on the market?

How many offers have you had?

You have 20 months to get the deal going... say you want a few months without a worry... then say you have 16-17 months to sell the place. Take your time.

 

[Professor]

What does it cost you to keep it? If you owe 200K on it. You are likely paying 12k a year or more in interest, higher insurance and taxes than the home you are downsize to. Depending on your circumstances, intentions, and the local market how long it stays on the market may cost you money. Local market and time on the market can be big $$. Also how long have you had it? If less than 3 years talk to a tax advisor. Profits will be subject to some prorated taxes if less that three years.

 

[thepushercg]

i would counter the offer. granted the housing market is slowing down, but yours is in the upper range which has a large amount of buyers . there are alot of good points made by everone to take into consideration.

 

[mofuggahere]

If the wife loves it then you can a leg up on the husband. Because you know she is running her mouth about how much she loves the house. The husband wants to feel like he got a deal to protect his male ego. I would counter offer to meet in the middle of your asking price and his offer. This way you make some profit, he will feel like he got you off your original number. And most of all you will sell the house in a tough market and still have made some cash.

Or listen to these other guys they are probably smarter than i. But i know when my wife wants something i can fight it off for only so long. Now if you said the husband liked it more than the wife, there would have been real trouble.

Good luck!

 

[semi]

if the guy is like me, the first offer is always a low-ball offer just to see if the seller is in a pinch and needs to sell at the first opportunity...if you aren't in a real jam, make a counter offer (emphasizing the $425,000 appraisal) and wait to see what the prospective buyer does

 

[Mr. Anderson]

gotta remember, worst case you could rent it out to cover the mortgage when you leave the area,  don't consider a house as a cost as is it an asset.  I wouldn't sell untill you get what you want if it a reasonable offer, and since it was last valued at $425k, I would tell them thanks and for your offer but no thanks.  what have the other houses in your neighborhood sold for? I would wait for at least 6 months prior before I started getting worried about selling the house. It sounds like you have plenty of time to pick and choose for the price you want for the house.

*edit- plus 1 for the feeler with the low ball. I would do that too to see how bad you want to sell it.

 

[hayabusa626]

Like everyone is saying I would wait. Ask your realtor for advice. That's what they are there for. If you are not in a big hurry to sell the house you have plenty of time to see what other offers come by. Even if you counter do not go for less than what you need. Even if you counter and the buyer backs away you can always reoffer the original deal if you are afraid of lossing the buyer.

There are other points in the sale that you can offer the buyer like offering more money for repairs if needed or paying all closing costs.

I am not sure how the market is where you are, but hear in Florida houses have been sitting on the market for 4 + months.

 

[mjn]

How long has it been on the market? How strong IS the market where you are? they are the only folk looking at it? Maybe it's time for a new, more agressive realtor..

If it apraises for 425, that takes into account the market to a certain degree..sounds like a real lowball offer to me. Unless you are in a cash crunch, I'd say pass..

 

[Don Hardcastle]

Ok it has been on the market for about 6 weeks. The market here is sliding from a sellers to a buyers market. Right now it is about balanced. We countered at $361,500. The difference in payment between what he offered and our counter is about $70. It seems that the amount of the payment has been an issue for the potential buyer, but he has been pre-approved for the full sale price.

We will see how things go. He has until 1700 tomorrow to respond. If he accepts, then we are looking at closing on Dec 11. Merry Christmas, you have to move.

Don

 

[Wag]

If you have 20 more months, I might consider waiting. On the other hand, real estate is really dicey right now, depending on the area you're in. Still, that's a nice property.

Given what you've said, I'd counter with a price slightly below what your asking price is but not too much lower. I wouldn't meet the guy halfway.

Just some thoughts. You'll have to decide. Any other offers forthcoming at this point?

--Wag--

 

[jwcfbd]

Have you already told them you would drop it $7000? Either way $30,000 is way to low to even make a counter offer. I would tell them NO... If they want it they can make a real offer and then you can counter on that one. If your not hurting for the money and have to sell it right now then sit on and wait for a good offer. Just my $.02

 

[GSXTacy]

I hate to change the subject........but what in the hell do you do in the navy to live in a 400K house?

 

[ks-waterbug]

Hang in there Don.... They are just fishing to see where you'll go! Your second offer should land the deal but it might not be a big surprise if they try to move your bottom dollar one more time! The first time paid big dividends......

 

[MN72Busa]

Good luck with the sale Don...wishing you, and yours the very best with everything

 

[Don Hardcastle]

(GSXTacy @ Nov. 06 2006,23:12) I hate to change the subject........but what in the hell do you do in the navy to live in a 400K house?

LOL, fair question. I am a recruiter and have been in for 18 years plus a little. My wife has a very good job. The property values have gone thru the roof in that past 5 years here. We purchased the property for $182,200 in 2001.


jwcfbd, I agree that $30,000 below is way too much, but it comes out to about 6%. Most initial offers are normally about 3% below that asking price. That is where our counter offer is, 3% below the asking price. It is w/i $200 of being exactly between the $372,900 that I told him he would take and the $350,00 that he offered.

As I said the difference in payment is only $70. If he decides that is too much he wasn't very serious in the first place. I know everyone is looking to get a deal. At $361,500 which is $18,400 off the asking price this a deal considering the fair market value is between $425,00 and $435,000.

He has until 1700 today to accept, decline or counter my counter. I'll let you know.

Don

 

[Wrath]

Agreed on the counter offer & remind them you've already dropped the price once for them. Counter with a final.