Why on earth would you move up closing and then allow them 21 days to stay? Why not move closing back 3 weeks after your original date?
There are too many dumb and desperate buyers in this buyer's market. They are screwing up this once in a decade period for everyone else by creating a faux seller's market.
Pay the seller's $100,000 for the house and allow them to live in it rent free for 3 months. After all of that give them a thank you gift when they finally move out. I just want to save you the effort of the next question by giving you the answer in advance.Trying to buy house. listed price 99900 offered 97000 w/seller paying closing w/cap of 2500 what do you think?
I would be concerned about the sellers living in your house for 21 days after closing. Will they be paying rent and insurance? What happens if something breaks, or there is damage? Make sure you get something in writing about who is responsible for what during that 21 days.
what do i think........ a house for under 100k is amazing in the US
whats the sf%26gt;?
you should be able to get it... you could have offered like 94 and probably still would have gotten it...
Good Luck
If you have the time, that is a good start. This way, if there is haggling, I say go for it! Good luck!
I think that is VERY reasonable. If they don't take it, then they really aren't in a hurry to sell, or just stupid. In fact, they should take it for 95,000.
If they risk losing the sale for $750, they are kind of insane in this market...
If the agent is doing the tough-guy ';they're not in a rush to sell'; bit, why is he wasting time and money marketing that listing? He's either desperate for business or feeding you a line so that his seller makes out a bit better. What he's really doing in my opinion, is scaring you off.
I think you'll get the home at your latest offer no sweat.
Sounds like a good deal to me. Go for it! Wish I could find a deal like that in KS.
Without knowing the details of the house, location, etc., it's hard to place a prediction on what would be a good strategy.
So let's do this covertly...
You 'could' do a search for GIS services in your area. Perhaps your city or county offers that? Some GIS has real estate information on there that has who owns what and for how much. They may also have housing descriptors, building improvements, whatever. The scale of detail differs among communities. Your community's homepage, if it has one, might have a real estate/property lookup servlet. Try and see what, if anything, is offered for your community. It can be a powerful negotiating tool
Barring that, a house listed for $99,900 with you making a $97,000 offer with them paying $2,500 max on closing is a good offer. It's only a potential $5,000 difference. Between paying realtor commissions, home inspections, taxes, and other miscellany, the sellers are not going to make much profit on it. The bulk of the fees are on them in selling. The federal government regulates a wide scope of things that need to be 'just so' with a house for sale. Even more so with an FFA loan. Just because their realtor is telling you that they aren't in a hurry, don't believe it. Their realtor is trying to sell their house.
Depending on what the sellers want, or hope to get, they might see this as the best offer yet and work with you. I have seen more than one offer made to me fail because they couldn't secure financing or other reasons. Is your loan application with the mortgage company solid? You know the saying, Money talks, BS walks. Your negotiation would be regarded more favorably with backing from the mortgage company.
Good Luck!
that sounds good to Me. what state do you live in. In California the prices are so high that you pay over 300 grand for a house.
Always keep in mind that negotiation in Real Estate is just like playing high stakes poker.You know what you hold in your hand and try to bluff the seller into being anxious,Making him think if they don't give in you might walk away and go buy something else.The seller knows what they hold and try to bluff you into paying them more than you want for fear of not getting the home.I can sit there cold and collected while my wife is falling apart ready to have a nervous breakdown.In to days market you can probably get what you want as long as whomever is playing your hand has your best interest at heart,and knows how to play the game.
It doesn't matter what the listing price is. Sellers don't determine the price, buyers do. The fair market value of a house is determined by what a ready, willing and able buyer pays for it on the open market.
Given the fact that it has been sitting on the market since last November and you are willing to pay $94,500 (+2,500 seller credit), then I'd say you are paying, and the seller is getting (if accepted), a fair price.
Perception is more powerful than reality. You are willing to pay $97,000 (minus 2,500 which will be credited to you by the seller to cover your closing costs) because you percieve it to be a fair price. If you beleive it is, then it is!
On a separate note, if you were my client I'd suggest that you offer a little less than you are willing to pay for it (given the current market conditions and, especially, the fact that the house has been sitting on the market for more than six months). I'd submit the offer with compelling supporting evidence and cover letter explaining why your offer must be considered to be a fair one. One of the following three things can happen in that situation:
1) They will accept it; or
2) They will counter offer; or
3) Your offer will be rejected;
If scenario (1) happens...FANTASTIC, you will have gotten a bargain (value is in the eye of the beholder)
Scenario 2 - If they counter, it may still be less than what you are currently willing to pay for it. If not, you can counter their counter.
Scenario 3 - If your offer is rejected it will not prevent you from submitting another one.
I hope this helps.
Good luck,
TheREMpro
http://www.realtycounselors.com
Disclaimer: The information provided herein is solely for educational purposes. Nothing here shall be construed as legal, tax or any other professional advice.
Response to you additional information: Your addendum and my answer must have crossed one another. Anyway, please note the following additional information and amendments:
When you close prior to seller's move and enter into a rent-back situation, you and the seller/tenant create different contractual obligations and duties. You become a buyer/landlord and the other party becomes a seller/tenant. You get yourself a landlord/tenant situation with its potential headaches. What happens if the seller/tenant doesn't move out after 21 days? I don't know what the law is in Indiana but in California you would have to bring an ';unlawful detainer'; action against your tenants to evict them. What happens if the property is not deliverd to you in the same condition as it was promised or described in the purchase agreement? These are issues that you must consider beforehand.
Moreover, you'd also want to inform your insurance company about the rent-back situation since the homeowner's policy you will be obtaining will not be a landlord's policy most likely. Your simple homeowner's liability coverage may not cover any liability claims by your tenants. Check with your insurance company.
These are some of the potential risks you will be taking when you enter into a rent-back situation.
If I were you, I'd try to avoid it. But if you must do it, ask for more money in addition to the prorated PITI (Principal, Interest, Taxes and Insurance) and the seller credit. Ask for security deposit (which will be returned to them) and some premium over and above the PITI and seller credit to make it worthwhile for you to assume the potential risks.
My two cents...But my best answer: Consult with a lawyer.
TheREMpro
http://realtycounselors.com
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