Aggressive Offer Rejected
My husband and I need advice on a house. We made an aggressive offer of $550k on a single family semi-detached house asking for $659k in Madison (really Sheepshead Bay), Brooklyn. I included a note to the seller explaining how we reached our number. The comps in the neighborhood are around $590k to $630k (much…
My husband and I need advice on a house. We made an aggressive offer of $550k on a single family semi-detached house asking for $659k in Madison (really Sheepshead Bay), Brooklyn. I included a note to the seller explaining how we reached our number. The comps in the neighborhood are around $590k to $630k (much larger lot), house next door and nearly identical sold for $600k in 2006 and construction costs to update the house (i.e. kitchen, 2 1/2 bathrooms, etc.) is at least $50k. The seller said that the price difference was too big.
The seller has lowered her asking price a few times in the last several months. She started in the 700k’s (way over priced). We thought that she was motivated to sell but now, we are not sure.
What should we do? Should we make another offer of maybe $585k? That is the max because we won’t have enough money left to renovate.
Any advice would be much appreciated. Thank you.
if they were willing to consider $585k, they would have countered with a price in that vicinity (maybe $600-610k). unless this is your dream home, you should probably move on.
oh pfff, “offended them”. Give me a break.
they don’t have to sell at your price.
you don’t have to buy at theirs.
and so the ruthlessly efficient housing market stumbles towards a new equilibrium.
fwiw, im on the sellers side. they will win this stare-down.
The first rule of buying real estate is that you don’t negotiate with yourself. If your bid was not countered you need to move on.
I am on the sellers side here.
You offended them by offering the NEW lowest comp price by 7%!!
Cost of updating the house only matter if they are below the other comps. If their bathrooms and kitchen is on par with the comps then you really can’t add the $50K factor you want to spend. If that is the case, to the seller you are just low balling them.
Yes, SIB, trust hannible on this.
Wait a little longer be patient. You call your offer aggreasive? That is not even angry. Trust me the market is going to go down by at least 50 percent. How fast this happens I don’t know for sure.
I agree with werner. You should wait a few months before raising your offer…and when you do, offer 565.
On a different note, I live in madison and love the area. Very quite and still not far from the city. with the new coney island being planned, you will be in the middle of everything.
……….best of luck
If you really want the house, you should counter with a final, higher offer, but do it politely and let the seller know that you’ll honor that offer in the near future, should they decide to wait for something better. That might be the hook you need.
What you don’t want to do is have them come back to you in 6 months, and you tell them that 550 is your new counter. No need to disturb the real estate gods.