Post # 1
Last night my husband and I put a bid on a home. Our first home. Very exciting. We are expecting to go back and forth a little on the price. So I’m just wondering for those who have purchased homes, how many times did you go back and forth before settling on a price/terms & conditions? Did anyone have to walk away?
Post # 3
Its hugely variable based on the local market conditions and how much below (or above) asking price you bid. If you are right around the asking price, they may just out right accept.
If you are much below it it will depend on how far they come down in the first counter offer. If they only come down a little, then you could be negotiating for a few go rounds, if they drop significantly as a sign of goodwill and you are willing to meet them then you can either accept of counter one more time much closer to their offer and they will accept.
Post # 4
We are currently in a market that was going into bidding wars all summer and fall. So there were many homes that we countered on 7-10 times. We ended up walking away from all 5 homes we offered. The prices either a) got to high or b) they wouldn’t negotiate. A lot of people value their home at being worth more than it is because of memories. Plus, all sellers want to get maximum value while all buyers want to get a deal. lol. This causes some issues.
We just bought our new home a few weeks ago and they accepted our inital offer. Once we had the inspection done we found multiple expensive issues that needed to be worked on so we altered our agreement. At that time they countered and we accepted. We also just sold our home. The new owners came in 10 thousand under, and then that night (when we were going to counter) someone came in at asking. We gave the other buyer a chance to offer, and he offered 5 thousand more, etc. So the buyer of our home countered 4 times in total. The other offered 3 times.
It totally depends on the markets in your area. Bidding wars usually involve a TON of bidding! If you went too low they will probably just ignore you; unless they’ve had zero interest. In a standard sale the most I’ve heard of is 3 times. (From my friends)
By the way: GOOD LUCK!! Buying a home is an amazing feeling.
Post # 5
- Wedding: August 2013 - Rocky Mountains USA
It’s extremely dependent on how reasonable their asking price is, and what the market is like in your town for houses of that size / condition / price range.
We just bought our first house in May. We put an offer on another house first, at full price, because it was a killer deal and had just been listed. (And because the market for houses at our price range that are nice and in a good location is somewhat limited / competitive.) We weren’t quite pre-approved yet, so they went with another full price offer. 🙁
But then we saw another house we loved that had just gone on the market, also for quite a good price. We again offered full price and the offer was accepted. We ended up getting $2,000 towards our closing cost from the sellers (after a lot of strong-arming by our realtor) after the results of the inspection. $2000 was fairly significant as the selling price was only $129,000.
So anyway, in our case there wasn’t much negotiating since the asking prices were so good to begin with, and we needed to give a very strong offer.
Good luck!! It’s so fun (and a lot of work) to be a homeowner!
Post # 6
Congrats to you! That is so exciting. Of course it depends a lot on the market, on your bid, and on the asking price. We purchased our home after two offers from each side. The number we ended up paying was exactly the middle between list price and our first offer. Our particular property was priced pretty fairly and our offers were pretty realistic, so it wasn’t really an issue and we never felt that we would have to walk away.
Post # 7
There really was no negotiating for us. Here, it’s still an aggressive market, so you just put in the highest bid you can and hope for the best! Homes are going for way above asking (up to $100,000 or more) so we put in our bid and crossed our fingers…we got our townhouse after an all-cash buyer changed their minds.
Post # 8
Offer from us, countered by seller, countered by us, counter by seller, we accepted. 4x? It wasnt even much, there was our original offer, his counter was + 9k, then we went -4k on his, and he went +2k on that.. we were just trying to squeeze what we could from each other.. him because he was already losing money on the sale, and us because we were well over the conventional mortgage amound so whatever we coudlnt get him down was coming out of our pocket, not just getting rolled into the mortgage. At the end, we just wanted it done, and didnt want another half way meeting for a 1000 bucks difference.
Post # 9
Our house was worth more based on the appraisal than they were asking for and it was a short sale. We were afraid both banks (because they had two mortgages) would turn it down if we didn’t offer the asking price, although there is a chance they would turn it down anyway. We offered $4,000 less than the asking price plus the seller paying closing costs. They counter offered the full asking price and offered to pay closing costs and we accepted. After about 4 months both banks okayed the short sale. We are so happy with our decision!
Post # 10
When I bought our home, we knew we were up against another bidder so we made sure our offer was fair. The house was listed at 179,9 and we offered 175 with the sellers paying $5k in closing costs. They countered that they can either take 175 or 179 with 5 in closing. We countered again at 175 but only $3 in closing and since we had preapproval already from our lender, our offer was accepted. I believe the other bidders were waiting on preapproval and that made the difference between getting our house or missing out.
Post # 11
Our house was listed for $349,000
We put in a bid for $340,000 with $7500 seller contribution
They came back and said that the seller needed to net at least $345,000, so we could either offer $352,500 with $7500 seller contribution or we could offer $345,000 and pay our own closing costs. That was their bottom line offer.
We chose to up our offer to $345,000 and cover our own closing costs (so that we weren’t paying interest on our closing costs by rolling them into the loan).
That was it.
ETA: After inspections were done, we asked them to fix a couple minor plumbing and electrical issues… but then the Radon test came back high, so instead, we asked them to remediate the Radon issue and, in return, we dropped our request for them to fix the electric/plumbing stuff (very minor – loose light switch; not-working diverter)
They also need to fix some warped boards in the fence to meet HOA standards.
When all is said and done, I think we got an OK deal. Not an amazing deal, but an OK one.
Post # 12
- Wedding: August 2013 - Rocky Mountains USA
Oh and I’ll just add, I read some advice somewhere that really helped me. It was something along the lines of, figure out what your budget it. And then figure out how much you can go above that, so that you don’t regret losing the house over a measly $X,000 dollars. Remember that when it’s rolled into a mortgage, an extra $2-5,000 will hardly make a difference in your monthly payment. Don’t get so caught up in “winning” that you lose the house and regret it. On the flip side, there’s obviously a point where it’s just not worth it / you can’t afford it.
@crayfish: 100k above asking price?! Holy shit!
Post # 14
Thanks so much for all of your stories, input, and advice!!! I feel good and prepared now.
Post # 15
@lolot: Yeah….it’s ridiculous. We paid $40k over asking and consider it a steal. It’s very low inventory, and with homes starting at $500k for a crappy 2-bedroom…things quickly escalate.
Post # 16
We must have gone back and forth at least 3-4 times. We ended up paying 97% of asking price. No one else had put in an offer, so our inital offer was conservative.