- 5 years ago
I don’t know about real estate rules or what happens in these situations (it’s our first time buying a home, and this is only our second offer, the first one the seller backed out of selling the house completely), but I became so dissapointed and I feel it’s unfair after our realtor told us that the seller might not even give us a chance to counter offer even though we’re giving them exactly what they asked for. I get that they’re making profit, but how are we supposed to know what to offer then when we already gave them what they’re asking for plus we’re covering all the closing costs?!
We were the first to make an offer, and now after us they have 5 offers so far and 2 on the way. They will be making the decision on Friday. I asked our realtor if any of the offers are over asking, or if we will be given a chance to better the highest offer since we were the first, but she said the seller’s agent wont respond questions about price, and that giving us a chance is totally up to the seller because he can either counter everyone or just choose one offer. I UNDERSTAND that process, I’m just looking for advice or other people’s personal experiences in this situation. When you have this information, do you amend your original offer and straight-up offer the most you’re willing to pay for that home even if you might over-pay for it? Or do you wait until they decide and hope they counter you? Do most sellers counter? The owner was an old lady that recently passed away in December, so possibly one of her out of town/state sons is selling it. We submitted our first offer with a short letter and photo of ourselves too, giving them the asking price, and offering for us to cover all closing costs.
We really like it. It’s not perfect, it has a strong smoke smell so we will have to replace the carpet and clean+paint the walls etc. But for the most part it doesn’t seem to need work done aside from that. Out of all the 6 homes in the past 2 months we have seen so far, this is the one we like the most in regards to space, price, and location (the second best location we like). The backyard is amazing, doesn’t need work done at all. The sides of the house are way too close to the neighbors, so we don’t have a view and the only livingroom front window is small, doesn’t have a garage, but we’re ok with all of those things because it has a lot of space inside and looks very well-kept.
We were so happy because at this price our mortgage would be $1500 and the home is priced extremely fairly for what homes in the area have sold for late last year, BUT since right now it’s 100% sellers market in this city, a lot of the homes that are currently available are priced higher (and have been selling for those prices), so compared to those homes this one is definetly cheap, that’s why we made the offer the same day we saw it, and probably why everyone else is making offers. I just don’t know if they’re also offering asking price, or how much more because there are no other homes in similar condition that are currently for sale or that have sold in the past 3 months to compare it to. Currently there’s only one other home in the same neighborhood, it’s a newer year and has one more room, but it’s in pretty bad shape (needs a big cleaning inside and out, carpet replacement, and complete backyard makeover. And it’s $45k over the home we put an offer for.
Have you been in this situation before, and what did you do or how did it work out? Is there some type of guideline or rule of thumb for upping your offer completely in the dark? Does a higher deposit influence more? The only “tip” I have so far is to add something like $599 in addition to our whole number offer, so if we want to offer $350,000, to make it $350,599 in case someone offered $350k we have a small advantage.