Cindy in C-ville Posted July 28, 2011 Share Posted July 28, 2011 it is WAY low. And I mean WAY low. It's below what we paid for it in 2002 and we did major upgrades - hardwood floors, recessed lighting, finished basement, new kitchen countertops, etc. We talk with our realtor tomorrow about how to proceed. Any advice? Quote Link to comment Share on other sites More sharing options...
Tanya in KS Posted July 28, 2011 Share Posted July 28, 2011 How desperate are you to get out of it? With this market, you may sit on it for a LONG time & it is a buyers markey. We just sold our house (I Hope). We lost all our equity in it, we made NO money off of it BUT it is GONE. No more two mortgages. So how desperate are you??? That is the question.... Quote Link to comment Share on other sites More sharing options...
OrganicAnn Posted July 28, 2011 Share Posted July 28, 2011 Usually a first offer is just that a first offer. If you assume that you will meet somewhere in the middle between the two prices, you might be happier. In normal real estate markets, you would signal how desperate or nonchalant you are by how much or little you counter. But these are not normal times. Quote Link to comment Share on other sites More sharing options...
Live2Ride Posted July 28, 2011 Share Posted July 28, 2011 I'm sorry tha you got such a low offer...almost like a slap in the face huh...it's hard in this market because things aren't moving, but there are a few people looking and because the market is so bad they are able to take advantage of that...it stinks. :grouphug: Quote Link to comment Share on other sites More sharing options...
JFSinIL Posted July 28, 2011 Share Posted July 28, 2011 (edited) You don't get back 100% of most improvements/up-grades. What have similar-sized homes sold for in your area? Folks are going to make offers based on those numbers - not your upgrades, unfortunately. That is just the way it is at present. My kid sister in S. California can never sell/move w/o a loss - their house is worth less in the current market than the mortgage they took out back 20-some years ago. Over $100,000 less. The house across the street sold last month for HALF what folks paid for it two years ago. The last folks had walked away from their mortgage/house so it was fore-closed and sold at a loss to the bank. We have a lot of foreclosed houses here - I see folks trying to sell for, say, $180,000 and the house is next to a fore-closed home, same size, offered for half that amount (or less.) Not a good situation. Edited July 28, 2011 by JFSinIL Quote Link to comment Share on other sites More sharing options...
Ottakee Posted July 28, 2011 Share Posted July 28, 2011 Like others said, depends on your situation. My sister had a house that they rejected a low offer on and then ended up sitting on the house (2 mortgages) for 2 years and ended up selling for less than the 1st offer after all. If you aren't needing to sell, they counter higher. If you really do need to sell, then don't wait too long. Another story. We just purchased a home a few weeks ago. We had one in mind that we WERE going to buy. THAT was THE house. We put in a very fair offer (esp. considering the market) and it was rejected and she countered quite high. While were were thinking on it we went to see 3 other homes--one that night and 2 the next morning (all NEW listings within the past 2-3 days) and ended up buying a different house by noon the next day. We were her 1 and only potential buyer and now she has no others. It IS a tough market and I wouldn't want you to loose out with a low offer but on the other hand, it might be the only offer you may have for a LONG time. Quote Link to comment Share on other sites More sharing options...
mrs.m Posted July 28, 2011 Share Posted July 28, 2011 (edited) We got an offer that was too low when we sold our house last Spring. The realtor said that is very common in this market. People are putting out feelers for desperation and some sales have gone through. We countered. We came down about $1000. That told them that we were serious and if they aren't they need to move on. We eventually reached a reasonable number and it wasn't the typical meet in the middle number, it was more in our favor than we thought it would be after such a stinky offer. Edited July 28, 2011 by jannylynn I seriously should proof read before posting. :p Quote Link to comment Share on other sites More sharing options...
Margo out of lurking Posted July 28, 2011 Share Posted July 28, 2011 .. Quote Link to comment Share on other sites More sharing options...
cdrumm4448 Posted July 28, 2011 Share Posted July 28, 2011 Houses sell based on price and condition, and it's worth what a buyer wants to pay. (Based on 10 years as a RE Broker.) Quote Link to comment Share on other sites More sharing options...
gardening momma Posted July 28, 2011 Share Posted July 28, 2011 If we tried to sell our house now, it would sell (if it sold at all) for about $30k less than we paid almost 6 years ago. There's a house we are interested in that is overpriced by about $50k because of upgrades to the kitchen. I say it's overpriced because the house is valued at much less, plus there's no way they can expect to get remodeling costs back in this economy. (and we'd need the price to come down even more for us to be able to afford it since our house is worth less too) Quote Link to comment Share on other sites More sharing options...
kalanamak Posted July 28, 2011 Share Posted July 28, 2011 We got an offer that was too low when we sold our house last Spring. The realtor said that is very common in this market. People are putting out feelers for desperation and some sales have gone through. We countered back. We came down about $1000. That told them that we were serious and if they aren't they need to move on. We eventually reached a reasonable number and it wasn't the typical meet in the middle number, it was more in our favor than we thought it would be after such a stinky offer. :iagree:, only I "didn't respond" except to decline the first three offers (from the same person). Quote Link to comment Share on other sites More sharing options...
AuntieM Posted July 28, 2011 Share Posted July 28, 2011 My dear, it is an offer. Rejoice! Massage that baby all you can to see if you can reach an agreement that is satisfactory (and by satisfactory I mean taking into account how long it's been on the market, how much other traffic you've had, understanding that you don't typically get upgrades recompensed at 100%, etc) for both parties. FWIW, if the offer is truly way below market value, I'm pretty sure your prospective buyer expects a counteroffer. Our agent told us that the market is full of lowballs these days. That doesn't mean you have to actually sell super low. But if you think these folks are sincerely interested, and they have attached financing preapproval proof to their offer, try to work something out. A bird in the hand and all that.... Certainly you and your dh know your bottom line, right? Don't tell that number to your realtor, but try to go throughthe counteroffer process to see if these people are seriously interested. That's just my pair o'pennies. Quote Link to comment Share on other sites More sharing options...
Meriwether Posted July 28, 2011 Share Posted July 28, 2011 I would counteroffer slightly but not give a lot this first go 'round. My sister sold a house this past spring. They sold it 10 days after listing for 99% of their listing price. The person who bought first offered about 80% of the listing price because they hoped my sister would have to sell. The guy was really difficult to work with and ended up making many offers in those 10 days, but he did come up (his wife really wanted the house). We firmly believe it was an answer to many prayers to sell so quickly. I think most people would give a lowball offer in this market to test the waters. Quote Link to comment Share on other sites More sharing options...
Dobela Posted July 28, 2011 Share Posted July 28, 2011 When we were house hunting last year we put in some pretty low offers. It was not meant to insult the homeowner. We were on a limited budget and after having looked at a hundred properties (not an exaggeration), tax information, assessed values, comps, and so on sometimes we just knew that the house would not appraise for the asking price - which meant we wouldn't be able to get a mortgage. All of the houses are either now rental property or are still for sale because no one else made acceptable offers. Some houses move fairly quickly here - mostly thru one agent that really takes time to set the price where it will sell. Other agents will just list at what you want without telling you that it is too high. Counter offer, do that $1000. Think about how long it has been onthe market. As your realtor to give you comps. Maybe the offer is right on with the homes similar to your that have sold. Maybe it isn't. Quote Link to comment Share on other sites More sharing options...
QueenCat Posted July 28, 2011 Share Posted July 28, 2011 Since your house has been on the market for a while, I'd ask your Realtor for current comps before countering. What you put into it, and what you paid, unfortunately, have nothing to do with it's actual value. Quote Link to comment Share on other sites More sharing options...
Mosaicmind Posted July 28, 2011 Share Posted July 28, 2011 We have had our house on the market off and on for over 2 years. After a year we got an offer that was so low we would have had to pay our realtor $8000 just to sell our home. We don't have it on the market right now because we have been making small improvements on it here and there. It has been frustrating to say the least because my husband works in another state during the week while we live here. Thankfully we don't have 2 mortgage payments, that would never happen with us anyway. Now, we are probably going to sell our home on our own because we really can't afford to have a realtor sell it for us. They take too much commission for us to use a realtor so there is not way to use a realtor. Quote Link to comment Share on other sites More sharing options...
Liz CA Posted July 28, 2011 Share Posted July 28, 2011 Perhaps they are assuming it is a distress sale and want to see how low you will go. Counter offer closer to what your original price was but a little lower. Have you made up your mind what your rock bottom price is? Do you have to sell now or are you just trying to see what happens? Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted July 28, 2011 Share Posted July 28, 2011 (edited) You don't get back 100% of most improvements/up-grades. What have similar-sized homes sold for in your area? Folks are going to make offers based on those numbers The last folks had walked away from their mortgage/house so it was fore-closed and sold at a loss to the bank. We have a lot of foreclosed houses here - . :iagree:my brother is in this situation, and learned a short sale doesn't stay on your credit rating as long as a foreclosure. something to consider depending upon the market. Edited July 28, 2011 by gardenmom5 Quote Link to comment Share on other sites More sharing options...
creekland Posted July 28, 2011 Share Posted July 28, 2011 If you don't need to sell, just turn it down. If they're interested, they'll come back with a higher offer. If you need to sell, ask your realtor for nearby comps to your place to see if it's really a low offer or not - then counter at what the price should be based on today's sales. Many times (but not always) super low offers are from dealers looking to flip properties. There are individuals and firms that do this. Yesterday I was looking through one of June's newspapers in the real estate section where they list all real estate transactions around here. There was one firm that bought a house for $97,000+ and sold it for $150,000 all in the same week's listings. It was the exact same house (they list them by address). Granted there are taxes and closing costs involved - maybe even a new coat of paint, but they made a tidy profit. I feel for the original seller. Quote Link to comment Share on other sites More sharing options...
nono Posted July 28, 2011 Share Posted July 28, 2011 If you sit on it for 3 years and it's no longer your primary, then the upside is an offer at or near your purchase price will mean no capital gains...factor that into your long-term plan. (silver lining) It's hard to know when to hold and when to cut your losses. :grouphug: Quote Link to comment Share on other sites More sharing options...
ChrissySC Posted July 28, 2011 Share Posted July 28, 2011 Consider too that there is a difference between upgrades and upkeep. While you may have put a more current flooring or even changed the flooring, it is still expected upkeep and maintenance. Quote Link to comment Share on other sites More sharing options...
Cindy in C-ville Posted July 28, 2011 Author Share Posted July 28, 2011 Consider too that there is a difference between upgrades and upkeep. While you may have put a more current flooring or even changed the flooring, it is still expected upkeep and maintenance. Good point, Chrissy. The nasty blue carpet absolutely had to come out. We didn't have to put in hardwood floors. We could have just replaced the carpet. But we did. Certainly added to the beauty, but apparently not to the value! We actually are in "short sell." This is our first offer, so we'll see what the bank says they'll accept. We think it's too low for the bank, but honestly, if they'll accept it, I'm ready to walk. It's just discouraging to see the home that you love get sold for so little... Quote Link to comment Share on other sites More sharing options...
ma23peas Posted July 28, 2011 Share Posted July 28, 2011 I was going to make suggestions but did not realize it was in short sell...I don't know much about that but I believe you're right that it's up to the bank. It is disheartening...we made improvements to our home (actually built it and added them in the construction process, tornado shelter-came in handy for them this Spring I bet!- Marvin windows etc.) and we sold it for 20% below appraised value (even when the appraisal was already lowered due to market conditions)..but it was nice to get it sold! You also asked about budgeting, I'll just post here...we sat down and accounted for every penny spent...we realized if we stuck to a budget (meaning he gets $50 a month to eat out at lunch or he can take his lunch) and the only expenditures he/I get are gas for the cars...the rest goes in cash envelopes for food/clothes/school expenses....then we actually have money left over to pay down our debt we incurred from having 2 house payments for 31 months...it works, it's hard but it's fun to get creative with change we find around the house....and now the kids are in on it...we started taking seriously reselling our curricula, items we have around the house that were never used and all that goes into a paypal which we will use for Christmas/birthdays...if we have money great, if not we won't spend it...we should be out of debt in 3 years...whew! Just in time for college to start for our first born! :) Quote Link to comment Share on other sites More sharing options...
DawnM Posted July 28, 2011 Share Posted July 28, 2011 Capital Gains on home sales have been gone for a long time unless you gain more than $250K for a single and $500K for married. Dawn If you sit on it for 3 years and it's no longer your primary, then the upside is an offer at or near your purchase price will mean no capital gains...factor that into your long-term plan. (silver lining) It's hard to know when to hold and when to cut your losses. :grouphug: Quote Link to comment Share on other sites More sharing options...
LuvToRead Posted July 28, 2011 Share Posted July 28, 2011 (edited) Capital Gains on home sales have been gone for a long time unless you gain more than $250K for a single and $500K for married. Dawn This only applies to primary residences. Depending on how long they have been out may make a difference. Edited July 28, 2011 by LuvToRead Quote Link to comment Share on other sites More sharing options...
DawnM Posted July 28, 2011 Share Posted July 28, 2011 Right.....I guess I read that wrong....I thought she was saying it would be better to wait. Dawn This only applies to primary residences. Depending on how long they have been out may make a difference. Quote Link to comment Share on other sites More sharing options...
JFSinIL Posted July 28, 2011 Share Posted July 28, 2011 Since your house has been on the market for a while, I'd ask your Realtor for current comps before countering. What you put into it, and what you paid, unfortunately, have nothing to do with it's actual value. EXACTLY!!!!! Quote Link to comment Share on other sites More sharing options...
nono Posted July 28, 2011 Share Posted July 28, 2011 Right.....I guess I read that wrong....I thought she was saying it would be better to wait. Dawn We're all on the same page. I wasn't sure if the home has been vacant for awhile. :) Quote Link to comment Share on other sites More sharing options...
K-FL Posted July 28, 2011 Share Posted July 28, 2011 We actually are in "short sell." This is our first offer, so we'll see what the bank says they'll accept. We think it's too low for the bank, but honestly, if they'll accept it, I'm ready to walk. It's just discouraging to see the home that you love get sold for so little... From experience: If you're in a short sale, it doesn't really matter what you think. The bank is acting as the owner, you're just a tenant. Have your agent submit the offer to the bank. They get to make all decisions. If the buyer is serious, and the agents really think it's too low an offer he'll need to make it higher. Quote Link to comment Share on other sites More sharing options...
Dobela Posted July 28, 2011 Share Posted July 28, 2011 From experience: If you're in a short sale, it doesn't really matter what you think. The bank is acting as the owner, you're just a tenant. Have your agent submit the offer to the bank. They get to make all decisions. If the buyer is serious, and the agents really think it's too low an offer he'll need to make it higher. I hate tht you are in a short sale. We tried very hard twice to buy a house that was short sale and the bank was impossible. We also know realtors that won't show a short sale here unless they have to because banks are beyond difficult. I really hope this works out well for you. Quote Link to comment Share on other sites More sharing options...
Audrey Posted July 28, 2011 Share Posted July 28, 2011 No advice. It is a buyer's market in a huge way. I don't think it's realistic to hope to get what you paid for any house anymore. It's not unreasonable, just unrealistic in this economic climate. Quote Link to comment Share on other sites More sharing options...
Cindy in C-ville Posted July 28, 2011 Author Share Posted July 28, 2011 Thanks for all the empathy and advice, ladies. I don't really understand the whole short sell process, so that's why I didn't mention it. We'll see what happens! Quote Link to comment Share on other sites More sharing options...
i.love.lucy Posted July 28, 2011 Share Posted July 28, 2011 From experience: If you're in a short sale, it doesn't really matter what you think. The bank is acting as the owner, you're just a tenant. Have your agent submit the offer to the bank. They get to make all decisions. If the buyer is serious, and the agents really think it's too low an offer he'll need to make it higher. :iagree: The up side is that you will know what the bank is willing to take. They may reject the offer but will usually counter, and that becomes your bottom line for all future offers. If these buyers go away at least you know what the magic number is. We sold ours in a short sale last year. We used a realtor that specializes in it, so he was very adept at the system, what to say, what not to say, how to market it,etc. It took about 4 months for the offer, and then another 4 months for closing, but the buyers stuck it out. Bless their hearts, they really wanted that house. Then we had a nightmare with roof repairs. We knew it needed a new roof but didn't have the deductible to do it ourselves. We had to go round and round to get the mortgage approved by agreeing that they'd do the roof repair with someone who would wait until closing to get paid. It was complicated, but it got done. Watch out for some of those repairs you mentioned to possibly spoil the deal. Lenders don't like to lend on houses with that kind of stuff going on. Quote Link to comment Share on other sites More sharing options...
sassenach Posted July 28, 2011 Share Posted July 28, 2011 Thanks for all the empathy and advice, ladies. I don't really understand the whole short sell process, so that's why I didn't mention it. We'll see what happens! Hopefully it has been explained to you that you will have to pay federal taxes on the difference between what the house sells for and what you owe the bank on it. Basically, any forgiven debt is considered income. Quote Link to comment Share on other sites More sharing options...
Brigitte Posted July 28, 2011 Share Posted July 28, 2011 We got an offer that was too low when we sold our house last Spring. The realtor said that is very common in this market. People are putting out feelers for desperation and some sales have gone through. We countered. We came down about $1000. That told them that we were serious and if they aren't they need to move on. We eventually reached a reasonable number and it wasn't the typical meet in the middle number, it was more in our favor than we thought it would be after such a stinky offer. :iagree: Do not be insulted or take it personally. This is a business transaction. Counter their offer with something, even if you don't come down much. Quote Link to comment Share on other sites More sharing options...
golfcartmama Posted July 28, 2011 Share Posted July 28, 2011 I don't know the laws in your state at all, but if we were going to lose a lot and had to leave, I would do a "Deed in Lieu". Is that possible for you? It actually according to 2 banks I know in this state said that it looks better on your credit report than either a short sale or foreclosure. Like I said, I don't know all of your details but may be something to consider. Quote Link to comment Share on other sites More sharing options...
Mosaicmind Posted July 29, 2011 Share Posted July 29, 2011 We would never agree to do a short sale due to all the problems associated with others we have heard about, i.e. 3yrs on your credit report, bank decides what they will take for the house, you pay for all repairs that need to be done before closing, no money to put into another house, ect..... We did find out today that someone wants to look at our home and it's not even on the market again. I don't know if this is God's mercy but I am praying that these people want our home and we can finally move after doing this for over 2 years. Quote Link to comment Share on other sites More sharing options...
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