Vent about Real Estate Buyers! What the heck?

[TranquilMind]

I am in receipt of a second offer on a home we have for sale.  Fantastic condition, upgraded kitchen with island, all brand new stainless appliances, French doors to large deck and private yard facing a stream, gleaming, newly installed hardwoods throughout, blah, blah, blah.  

 

 

The first offer tanked because we wouldn't provide the Buyer with the amount of two years worth of taxes at closing, as well as a huge cash closing assistance to the Buyer on top of their super low offer.  I laughed when I read the offer for the first time.  Brass ones, I tell you.  I still countered and negotiated in good faith but I would not sell for less than I purchased the property for decades ago, as well as pay all costs for the Buyer, so negotiations ceased.  They wanted us to essentially receive 10 grand less net than their low offer. 

 

 

Now we are in negotiations again with another.  AGAIN with the 4 thousand dollars in Buyer assistance so the buyer can close, as well as two years taxes prepaid by the Seller, as well as a super low purchase price.

 

 

What are these people smoking?    So frustrating.  I will get my price, though I may have to pull out of the market and go back on in springtime, which I am willing to do, but I'd prefer not to do.   But gee, when did they all want EVERYTHING? 

 

 

When we were buying, we always wrote clean offers, asking for nothing, reasonable prices, and closing within a short time, even when buying houses that needed extensive work, as well as updating.  This house needs nothing.  It is move-in ready today, unlike every house we ever bought. 

 

 

I'm in the Twilight Zone.  ;)    Just venting.  Anyone dealt with this?  Where are the normal buyers who are qualified to purchase a home without us practically doing it for them?  I know the demographics have changed, as well as the economy, but darn....

[Carrie12345]

Yikes! I'm sorry.

While all those expectations put together are insane, I do wonder what your local market is like right now.  Mine is so bad I would have trouble giving my house away.  We purchased our 3/2 for $165k 9 years ago.  2 doors down, the much newer 5/3 sold for $120k (listed at $135) a few weeks ago.  Even if I wanted to list at a 30k loss, buyers could find bigger and better than what I have to offer, and would know I was at their mercy.

 

Edited to correct the sale price I just looked up!

[Crimson Wife]

Have you gone on Zillow and Trulia to see whether your listing price is realistic given current market conditions? We found when we were househunting back in 2009 that a lot of sellers were delusional in their pricing. What the seller paid in the past or owes on the mortgage is irrelevant. Only the current market value matters.

 

We did write a clean offer with no closing assistance or prepaid taxes, but it was quite a bit lower than the listed price. The seller was sitting on an appraisal that didn't reflect the then-current market conditions. What the house appraised at several months prior was irrelevant and if the seller wanted to hold out for that, they were welcome to do so, but they'd probably wind up with even less than what we were willing to offer.

 

It's a business deal, and if you don't need to sell now, by all means pull it off the market and try again in the spring when there are likely to be more buyers.

 

ETA: The nearly-identical house across the street wound up selling 18 months later for about 20% below the original listing price for our house, and about 10% less than what we wound up paying. So if the sellers of our house *HAD* rejected our offer, they would've almost certainly gotten less.

[Momof3littles]

We had a low ball offer on the last home we sold.  We took it because the economy was tanking, the pool of buyers small, and we could get out without losing anything financially.  We were moving out of state, had a newborn, etc.  This was around 2010.  Buyers said they had maxed out what they were approved for.  We finally got the agents to get approval from their agencies to drop a percent or two off the price, because the buyer was using her mom as an agent, and I felt like they had to give somewhere.

 

TBH, I don't really regret it.  It was frustrating at the time, but we got an offer less than 2 weeks into listing, and while we could have rolled the dice, we had no idea what offers would roll in down the road since approvals were tough at that time.  We could have played hard ball and lost, or maybe another buyer was right around the corner and we would have ended up with a higher selling price.  Who knows.  I feel your pain though.  Oh, and once we accepted their offer, then the list of repairs started, and while everyone feels their house is in good repair, I promise ours was :)  It had been built by a builder for his own personal use.  The buyer's dad was a contractor, so we started getting an itemized list of things they wanted done, like several hundred dollars to install a small (like 2x2 feet piece of insulation in a crawlspace.  IMO, buyers had a list of things they wanted to do to the house and were using these items to gather themselves some cash.  Fortunately, we ended up doing most of the repairs ourselves since they were not expensive other than labor.  Buyers installed new hardwood, new pricey front door, etc. immediately after closing.  THey weren't all that cash poor, iykwim. 

 

I will say we ended up then purchasing from a FSBO seller, and were on the other side, where the homeowner had an overinflated sense of her home's worth.  She was quoting comps from similar homes that had been fully updated, or quoting what the various neighbors' houses sold for back in the peak of the market.  It was an extremely challenging situation, and I guess is fairly typical with FSBO.

 

I wish you the best.  I think buyers in general are often cash poor these days and worried about homes just depreciating in value or not increasing much at all in the coming years, so they are asking for anything they can to cushion that.  I am sure it is largely regional and market-dependent.  Is your agent telling you this is somewhat typical right now in your area?  I think with people worried about their equity and so forth, there is probably more of this than there was at one time.

[TranquilMind]

Have you gone on Zillow and Trulia to see whether your listing price is realistic given current market conditions? We found when we were househunting back in 2009 that a lot of sellers were delusional in their pricing. What the seller paid in the past or owes on the mortgage is irrelevant. Only the current market value matters.

 

We did write a clean offer with no closing assistance or prepaid taxes, but it was quite a bit lower than the listed price. The seller was sitting on an appraisal that didn't reflect the then-current market conditions. What the house appraised at several months prior was irrelevant and if the seller wanted to hold out for that, they were welcome to do so, but they'd probably wind up with even less than what we were willing to offer.

 

It's a business deal, and if you don't need to sell now, by all means pull it off the market and try again in the spring when there are likely to be more buyers.

 

ETA: The nearly-identical house across the street wound up selling 18 months later for about 20% below the original listing price for our house, and about 10% less than what we wound up paying. So if the sellers of our house *HAD* rejected our offer, they would've almost certainly gotten less.

Yes, I'm realistic, and even under Zillow price.  It's much less than I intended to sell for,but I've decided to do it now, so I need to be in line with neighborhood values.  The house down the street is on the market as well at 30K more, for the same house, more or less (but with dated kitchen). 

[TranquilMind]

We had a low ball offer on the last home we sold.  We took it because the economy was tanking, the pool of buyers small, and we could get out without losing anything financially.  We were moving out of state, had a newborn, etc.  This was around 2010.  Buyers said they had maxed out what they were approved for.  We finally got the agents to get approval from their agencies to drop a percent or two off the price, because the buyer was using her mom as an agent, and I felt like they had to give somewhere.

 

TBH, I don't really regret it.  It was frustrating at the time, but we got an offer less than 2 weeks into listing, and while we could have rolled the dice, we had no idea what offers would roll in down the road since approvals were tough at that time.  We could have played hard ball and lost, or maybe another buyer was right around the corner and we would have ended up with a higher selling price.  Who knows.  I feel your pain though.  Oh, and once we accepted their offer, then the list of repairs started, and while everyone feels their house is in good repair, I promise ours was :)  It had been built by a builder for his own personal use.  The buyer's dad was a contractor, so we started getting an itemized list of things they wanted done, like several hundred dollars to install a small (like 2x2 feet piece of insulation in a crawlspace.  IMO, buyers had a list of things they wanted to do to the house and were using these items to gather themselves some cash.  Fortunately, we ended up doing most of the repairs ourselves since they were not expensive other than labor.  Buyers installed new hardwood, new pricey front door, etc. immediately after closing.  THey weren't all that cash poor, iykwim. 

 

I will say we ended up then purchasing from a FSBO seller, and were on the other side, where the homeowner had an overinflated sense of her home's worth.  She was quoting comps from similar homes that had been fully updated, or quoting what the various neighbors' houses sold for back in the peak of the market.  It was an extremely challenging situation, and I guess is fairly typical with FSBO.

 

I wish you the best.  I think buyers in general are often cash poor these days and worried about homes just depreciating in value or not increasing much at all in the coming years, so they are asking for anything they can to cushion that.  I am sure it is largely regional and market-dependent.  Is your agent telling you this is somewhat typical right now in your area?  I think with people worried about their equity and so forth, there is probably more of this than there was at one time.

Wow, I'm glad you got through that.

Yes, we are only less than two weeks into the listing period, so it isn't as if our house is "stale" on the market, and still here come the lowball offers! 

 

I'm giving in on the cash up front, but will not also give on the low price.  Fair is fair. 

[poppy]

People lowball because it works, in some / many cases. I'd just decline offers you find unacceptable and not give it another thought . If you have a LOT if them and zero reasonable offers then I'd look hard at the price. Zillow is often wrong. Two weeks in is way to early to say. Good luck !!

[Momof3littles]

Wow, I'm glad you got through that.

Yes, we are only less than two weeks into the listing period, so it isn't as if our house is "stale" on the market, and still here come the lowball offers! 

 

I'm giving in on the cash up front, but will not also give on the low price.  Fair is fair. 

 

Hang in there!  Hopefully something with work out with this deal or a new, better offer will come your way very soon.  It is a stressful process, isn't it?  Uggh.

[Catwoman]

I think the real estate shows on HGTV have given a lot of buyers -- particularly new buyers -- a sense of entitlement that they didn't have in the past. Things like the seller begin asked to cover closing costs never happened where we live, but since they show it on HGTV, guess what? :glare:

 

I think those shows have also given new buyers incredibly unreasonable expectations of what kind of house they should be able to purchase on their budgets.

[TranquilMind]

People lowball because it works, in some / many cases. I'd just decline offers you find unacceptable and not give it another thought . If you have a LOT if them and zero reasonable offers then I'd look hard at the price. Zillow is often wrong. Two weeks in is way to early to say. Good luck !!

I find Zillow to be low in my area, generally. But in the case of the house to which I am referring, Zillow reflects a higher value than I am asking. 

 

I know it is a long haul.  With my rental houses, I have to slog through dozens of unqualified applicants to find a gem, and I always do, though it may take awhile.   I don't expect much less in the sales market.  It is still laughable and a little frustrating. 

[TranquilMind]

I think the real estate shows on HGTV have given a lot of buyers -- particularly new buyers -- a sense of entitlement that they didn't have in the past. Things like the seller begin asked to cover closing costs never happened where we live, but since they show it on HGTV, guess what? :glare:

 

I think those shows have also given new buyers incredibly unreasonable expectations of what kind of house they should be able to purchase on their budgets.

I shake my head in amazement every time I watch Househunters.  Seriously, a teacher and a social worker (for example) are trying to buy a $400,000 home.  In what universe is that possible? 

 

They don't seem to have the "starter house" mentality that we did, buying what we could afford comfortably.  They stretch ridiculously, and then expect a Seller to provide them with a bunch of cash so they can get into this unaffordable home.  I don't get it.

And of course, no house is good enough....it MUST have Stainless appliances, granite countertops, large rooms, the perfect yard, the perfect neighborhood and be in perfect condition, and the Sellers must want to sell so bad they give it away.

Crazytown. 

[Samiam]

Asking seller to pay closing costs is not a habit or trend started by a TV show. We asked that when we bought our first house, 18 years ago, as prompted by our very experience and very successful real estate agent. We, as the sellers, in turn were asked to pay the closing costs 8 years later (different agents involved as well). As far as a teacher and social worker, or,whoever looking for what you deem expensive, it's important to note the market they live in. A $400,000 house here would be a huge McMansion, but in other areas, CA comes to mind, that would be a starter house. We can assume that a buyer wouldn't be looking for a house in a price range that they weren't already approved for, nor are we aware of their whole financial picture when we watch a 30 minute show on HGTV.

[ThisIsTheDay]

I am in receipt of a second offer on a home we have for sale.  Fantastic condition, upgraded kitchen with island, all brand new stainless appliances, French doors to large deck and private yard facing a stream, gleaming, newly installed hardwoods throughout, blah, blah,

 

. . .

 

I'm in the Twilight Zone.  ;)    Just venting.  Anyone dealt with this?  Where are the normal buyers who are qualified to purchase a home without us practically doing it for them?  I know the demographics have changed, as well as the economy, but darn....

 

It's been my experience that this attitude comes from the buyers' realtor.  When we bought our current home, they'd completed $80K of renovations inside--but the large wood deck was the 30 year old original, and the driveway was cracking and lumpy. Unfortunately for the sellers, the house had been on the market for a year, and the price continued to drop accordingly.

 

Negotiating the price was tricky, as our (long time and trusted) realtor continued to encourage us to ask for stuff at closing.  We wanted a pretty clean offer, but we'd bought/sold enough to know that we could make that decision.

 

Post inspection, our realtor wanted us to ask for.every.single.thing. Most of it was really piddly stuff (and our state limits how much sellers can pay toward repairs).  We finally included a copy of the inspection and requested only two of the items, one costly, and one safety. 

 

We also had a delay at closing, and the sellers asked for us to cover the additional utility expenses (and possibly mortgage, don't remember).  Our realtor wanted us to decline, but SHEESH, it seemed like a reasonable request, and they'd been reasonable, so we paid.

 

Again, I think a lot of buyers assume their realtor knows best.  I've seen enough realtors lie for a sale (including these sellers' realtor), and I'm not intimidated.

 

I'm sorry you are going through this.  Maybe you should just reprice slightly higher, or put in your listing notes that you will NOT be paying any additional closing costs, nor will you consider any offers that include such a request.  Period.

[Seasider]

Sounds like you have a beautiful property that's making lookers want to stretch to get into!

 

I hope the right qualified buyer comes along soon.

[Crimson Wife]

People lowball because it works, in some / many cases. I'd just decline offers you find unacceptable and not give it another thought . If you have a LOT if them and zero reasonable offers then I'd look hard at the price. Zillow is often wrong. Two weeks in is way to early to say. Good luck !!

 

Yes, this. Don't take it personally. The more you can look at it like a business deal, the better it will be for your mental health.

[Crimson Wife]

Asking seller to pay closing costs is not a habit or trend started by a TV show. We asked that when we bought our first house, 18 years ago, as prompted by our very experience and very successful real estate agent. We, as the sellers, in turn were asked to pay the closing costs 8 years later (different agents involved as well). 

 

We found that realtors preferred a higher offer price with seller-paid closing costs to a lower "clean" offer. They get a higher commission that way.

 

It was kind of annoying because it resulted in us paying a higher property tax bill than if we'd had the clean offer accepted (since our county bases the tax bill on the official selling price). Our effective price after seller-paid closing costs was $X38k but the official selling price was listed at $X52k.

[Catwoman]

Asking seller to pay closing costs is not a habit or trend started by a TV show. We asked that when we bought our first house, 18 years ago, as prompted by our very experience and very successful real estate agent. We, as the sellers, in turn were asked to pay the closing costs 8 years later (different agents involved as well). As far as a teacher and social worker, or,whoever looking for what you deem expensive, it's important to note the market they live in. A $400,000 house here would be a huge McMansion, but in other areas, CA comes to mind, that would be a starter house. We can assume that a buyer wouldn't be looking for a house in a price range that they weren't already approved for, nor are we aware of their whole financial picture when we watch a 30 minute show on HGTV.

I didn't say the closing cost trend was started by HGTV. I said that it didn't happen where I live until then. Obviously, it was happening somewhere or it wouldn't have been mentioned on those shows.

 

Also, I assume that TranquilMind was talking about particular shows, so if she says a teacher and a social worker were looking at fancy $400,000 homes, I would assume she didn't mean that they were small starter homes.

[TranquilMind]

Asking seller to pay closing costs is not a habit or trend started by a TV show. We asked that when we bought our first house, 18 years ago, as prompted by our very experience and very successful real estate agent. We, as the sellers, in turn were asked to pay the closing costs 8 years later (different agents involved as well). As far as a teacher and social worker, or,whoever looking for what you deem expensive, it's important to note the market they live in. A $400,000 house here would be a huge McMansion, but in other areas, CA comes to mind, that would be a starter house. We can assume that a buyer wouldn't be looking for a house in a price range that they weren't already approved for, nor are we aware of their whole financial picture when we watch a 30 minute show on HGTV.

My personal experience belies that assumption that Buyers are qualified and stay in their price range.  I've had many offers from unqualified buyers who could not perform over the years.  Nice people, but badly advised by inexperienced agents to ask for the moon.  It might work with some, but it won't work here. 

 

I am not in a highly priced area like California either, but I do realize that a starter home in those markets is exceedingly high priced.    I personally can't imagine going to a Seller and stating that I wanted to buy their house, but I wanted the seller to provide all the cash I need to get in as well as give me a huge discount on the already reasonable price.

Perhaps I am a real estate anachronism.  But clean deals carry the day.   

[Audrey]

I think the real estate shows on HGTV have given a lot of buyers -- particularly new buyers -- a sense of entitlement that they didn't have in the past. Things like the seller begin asked to cover closing costs never happened where we live, but since they show it on HGTV, guess what? :glare:

 

I think those shows have also given new buyers incredibly unreasonable expectations of what kind of house they should be able to purchase on their budgets.

 

This deserves more attention than just a 'like,' so I'm reposting that I agree 100%. 

 

And, adding that house buying/selling isn't the only unrealistic expectation that HGTV and the like propagate.   :glare:

[Catwoman]

I shake my head in amazement every time I watch Househunters. Seriously, a teacher and a social worker (for example) are trying to buy a $400,000 home. In what universe is that possible?

 

They don't seem to have the "starter house" mentality that we did, buying what we could afford comfortably. They stretch ridiculously, and then expect a Seller to provide them with a bunch of cash so they can get into this unaffordable home. I don't get it.

And of course, no house is good enough....it MUST have Stainless appliances, granite countertops, large rooms, the perfect yard, the perfect neighborhood and be in perfect condition, and the Sellers must want to sell so bad they give it away.

Crazytown.

Don't forget, "But this room won't work for our dd. It's blue and our dd wants a pink room!!!" :rolleyes:

 

If your only complaint about a house is that you don't like the paint colors, quit whining and consider yourself lucky!

[TranquilMind]

We found that realtors preferred a higher offer price with seller-paid closing costs to a lower "clean" offer. They get a higher commission that way.

 

It was kind of annoying because it resulted in us paying a higher property tax bill than if we'd had the clean offer accepted (since our county bases the tax bill on the official selling price). Our effective price after seller-paid closing costs was $X38k but the official selling price was listed at $X52k.

Of course Realtors prefer the higher price!  ;) 

You do not have to comply. I would object strenuously if it raised the property taxes like that.  That's a pretty large discrepancy to me.   

[TranquilMind]

Don't forget, "But this room won't work for our dd. It's blue and our dd wants a pink room!!!" :rolleyes:

 

If your only complaint about a house is that you don't like the paint colors, quit whining and consider yourself lucky!

No kidding.  I seriously just got an Inspection response on a house that indicated that we should replace batteries and light bulbs, and an older style range outlet (when you can easily purchase a cord for it today at Lowes) in a 70 year old house.  Like, seriously??  Do that yourself, pal.   That isn't a "defect". 

 

Why don't I just buy you a brand new house?  I'm sure then you would complain about the white paint.  ;)

[Carrie12345]

I shake my head in amazement every time I watch Househunters.  Seriously, a teacher and a social worker (for example) are trying to buy a $400,000 home.  In what universe is that possible? 

 

They don't seem to have the "starter house" mentality that we did, buying what we could afford comfortably.  They stretch ridiculously, and then expect a Seller to provide them with a bunch of cash so they can get into this unaffordable home.  I don't get it.

And of course, no house is good enough....it MUST have Stainless appliances, granite countertops, large rooms, the perfect yard, the perfect neighborhood and be in perfect condition, and the Sellers must want to sell so bad they give it away.

Crazytown. 

 

Just a small point, first time home buyers today might be scared off of the "starter house" mentality.  I know I am, even though I already bought my house. The craziness of the market makes our starter house our all-foreseeable-future house.  That was never the plan.

[Crimson Wife]

Of course Realtors prefer the higher price!  ;)

You do not have to comply. I would object strenuously if it raised the property taxes like that.  That's a pretty large discrepancy to me.   

 

We actually had signed cancellation paperwork after the inspection revealed major hidden issues so this was a last-minute scrambling by the two agents to keep the deal from falling apart. Everyone gave a little bit (seller, us, and the agents) and the deal went through.

 

We're in CA so the price difference wasn't remotely as big in percentage terms as in absolute dollar terms. If someone had told me as a kid that I'd be living in a house that cost as much as ours did, I would've pictured a mansion on a large lot rather than a normal-sized home on 1/5 of an acre. Prices are crazy out here!

[sbgrace]

I haven't read all your replies, but can share our relatively recent selling experience. We also got a few very low offers. We got another offer close to asking, but with a contingency that they sell their home first. We had buyers who made a decent offer, but couldn't get financing. Long story short, we finally accepted a lower than market value, though over our original purchase price, offer just to sell rather than wait for spring.

 

Our agent told us up front that many buyers in our area and price range were going to ask for closing costs and similar help in their offers. She advised us to skip some planned updates for that reason. Make sure your agent has given you a realistic picture of the present market in your area.

[TranquilMind]

I haven't read all your replies, but can share our relatively recent selling experience. We also got a few very low offers. We got another offer close to asking, but with a contingency that they sell their home first. We had buyers who made a decent offer, but couldn't get financing. Long story short, we finally accepted a lower than market value, though over our original purchase price, offer just to sell rather than wait for spring.

 

Our agent told us up front that many buyers in our area and price range were going to ask for closing costs and similar help in their offers. She advised us to skip some planned updates for that reason. Make sure your agent has given you a realistic picture of the present market in your area.

I seem to be hitting the trifecta....Buyers want 1) a laughably low price, 2) Thousands in closing costs from us so they don't have to pay anything at closing, and 3) Everything brand new and perfect - all upgrades completed -  in a 70 year old house.   None of this "you can upgrade it later" mentality for these buyers! 

 

;) 

 

I just wouldn't have the guts to do that today. 

[TranquilMind]

We actually had signed cancellation paperwork after the inspection revealed major hidden issues so this was a last-minute scrambling by the two agents to keep the deal from falling apart. Everyone gave a little bit (seller, us, and the agents) and the deal went through.

 

We're in CA so the price difference wasn't remotely as big in percentage terms as in absolute dollar terms. If someone had told me as a kid that I'd be living in a house that cost as much as ours did, I would've pictured a mansion on a large lot rather than a normal-sized home on 1/5 of an acre. Prices are crazy out here!

Curious, if you don't mind sharing? What were your major hidden issues? 

[Crimson Wife]

Just a small point, first time home buyers today might be scared off of the "starter house" mentality.  I know I am, even though I already bought my house. The craziness of the market makes our starter house our all-foreseeable-future house.  That was never the plan.

 

We skipped the whole "starter house" stage because it took us so long to get DH's student loans paid off and a down payment saved up that we were in our mid-30's with 3 kids by the time we could afford to buy. The lot is the biggest driver of prices in our neck of the woods, so a tiny starter house doesn't actually cost that much less than a 3-4 BR medium-sized house.

 

In our neighborhood, the cheapest 2 BR "starter house" is listed at $458/s.f., while the 3-4 BR medium-sized houses are listed at around $310-$350/s.f.

[Crimson Wife]

Curious, if you don't mind sharing? What were your major hidden issues? 

 

The roof was leaking and as it was the original one from when the house was built in the '80's, it couldn't just be patched but had to totally be replaced. Also, the siding was warping and it needed to be replaced. The furnace was on its last legs and we were told 3-5 years before it would need to be replaced (it died almost exactly 3 years to the day we were told that). None of these things SHOULD have been a surprise to the seller but the house was advertised as "move-in condition" when it actually wasn't.

[TranquilMind]

The roof was leaking and as it was the original one from when the house was built in the '80's, it couldn't just be patched but had to totally be replaced. Also, the siding was warping and it needed to be replaced. The furnace was on its last legs and we were told 3-5 years before it would need to be replaced (it died almost exactly 3 years to the day we were told that). None of these things SHOULD have been a surprise to the seller but the house was advertised as "move-in condition" when it actually wasn't.

A functional furnace with 3-5 years of life remaining is not a defect, and as a Seller, I would not replace that for a Buyer either, honestly.  A functional furnace that is merely older does not mean the house is not in move-in condition.  Of course, if the furnace was no longer functional or the heat exchanger was cracked, then it would be a habitability issue, rendering it outside of "move-in" condition.  Siding warping sounds like a builder problem that was unaddressed.  Siding should not do that, ever.  I'd have that repaired. 

 

I agree that a currently leaking roof is a problem that needs repair or replacement.  Roofs can be good for 30-50 years though, if they are shingles rated for that lifespan.  Of course, I don't know what is on your roof.  

 

There does seem to be some misunderstanding among Buyers that "move-in condition" means "brand new" or close to new, with a guaranteed long lifespan.  Not necessarily.  It just means everything is functional at this time.  Your furnace could die tomorrow (with the cheap junk they make today) or in 15 years.  You just never know these days. 

 

In my last house, I had a dishwasher that was still working after 50 years.  FIFTY YEARS!  It was a marvel, but loud.  I didn't ask for replacement; it was a working appliance.  I did eventually replace it because it sounded like a plane taking off on the tarmac though.  ;)   We couldn't even hear the TV.  Ha ha.    They sure don't make things like they used to.   

[TranquilMind]

We skipped the whole "starter house" stage because it took us so long to get DH's student loans paid off and a down payment saved up that we were in our mid-30's with 3 kids by the time we could afford to buy. The lot is the biggest driver of prices in our neck of the woods, so a tiny starter house doesn't actually cost that much less than a 3-4 BR medium-sized house.

 

In our neighborhood, the cheapest 2 BR "starter house" is listed at $458/s.f., while the 3-4 BR medium-sized houses are listed at around $310-$350/s.f.

That makes sense to me. 

 

My parents bought their first house for $4000.  Can you believe it?  They were able to move up to a second house that costs a whopping $7000, about 15 years into their marriage. 

 

It's crazy today.  $458 per square foot is insane. 

[creekland]

Just a thought... many people are "in" the real estate market now and know what places should cost.  To make a buck, they tend to be quick with low ball offers hoping someone will say yes.  The others are those who want to buy higher than they can afford, so make a quick low ball offer hoping it gets accepted.

 

Waiting, if not in a terrible market, can be worthwhile.

 

Around here I've noticed a lot more "sold" and "under contract" signs out there than "for sale" signs.  We also recently had a tenant leave a rental house we owned as they bought their own house.  I just listed the rental on Craigslist yesterday - and one e-mail I received today wanted to know if we would sell it instead.

 

Pending your location, the market may be picking up a bit - I suspect due to the anticipated higher interest rates right around the corner when the Fed quits buying bonds...

[lynn]

We received an offer like that they actually offered $10,000 over but, but...wait for it  wanted it all back for closing and anything left over would pretty much go in their pocket or to pay points to lower their loan.  This was during the housing bubble so we did not even bother to counter they were not happy not to get a counter but we were already dealing with dueling(?) offers that were much cleaner.

[HSmomof2]

We've been on the market 6 weeks with a contingent offer about to expire. I'd be happy to get an offer at all, so we could at least negotiate. We've lowered our price some, and our agent, along with 9 other agents that have looked say it's priced well for the market in our area. Had 16 showings but no offers. Frustrating to say the least....especially when we're so close to losing the house we want to buy. Feedback from those that have looked are that they want something bigger, something newer, a different configuration of the yard....all things we can do nothing about. Much different selling/buying experience than we had in the late 90's----3 full price offers on a tiny rambler the first day it was on the market.

[gardenmom5]

:grouphug:

we're in a seller's market here.  a well priced home will sell within a week for above list.  in some areas, bidding wars are common.

[TranquilMind]

It's been my experience that this attitude comes from the buyers' realtor.  When we bought our current home, they'd completed $80K of renovations inside--but the large wood deck was the 30 year old original, and the driveway was cracking and lumpy. Unfortunately for the sellers, the house had been on the market for a year, and the price continued to drop accordingly.

 

Negotiating the price was tricky, as our (long time and trusted) realtor continued to encourage us to ask for stuff at closing.  We wanted a pretty clean offer, but we'd bought/sold enough to know that we could make that decision.

 

Post inspection, our realtor wanted us to ask for.every.single.thing. Most of it was really piddly stuff (and our state limits how much sellers can pay toward repairs).  We finally included a copy of the inspection and requested only two of the items, one costly, and one safety. 

 

We also had a delay at closing, and the sellers asked for us to cover the additional utility expenses (and possibly mortgage, don't remember).  Our realtor wanted us to decline, but SHEESH, it seemed like a reasonable request, and they'd been reasonable, so we paid.

 

Again, I think a lot of buyers assume their realtor knows best.  I've seen enough realtors lie for a sale (including these sellers' realtor), and I'm not intimidated.

 

I'm sorry you are going through this.  Maybe you should just reprice slightly higher, or put in your listing notes that you will NOT be paying any additional closing costs, nor will you consider any offers that include such a request.  Period.

I laughed out loud on some of the demands I received from a recent Inspection report.  As you say, they asked for every single piddly thing you can imagine, even to the replacement of a bathroom fan that was perfectly functional but didn't draw enough air (About $14 at Lowes - do it yourself!) and even light bulb replacements!  Seriously?  We were asked to replace a range outlet with a more current model, even though the existing model works and you can buy cords for them.  People are nuts.  I've purchased homes with actually nonfunctioning systems, and repaired them.  I've purchased homes from estates with knee deep trash and junk in the basement and clothes still in the closet. 

 

I didn't require someone to come over and remove these items for me; I did it myself. 

 

I could not have made my position clearer as to not doing further upgrades and I had already prepared the Recission, should we need to use it.  I'm not playing around with people who want me to replace light bulbs for them. 

[TranquilMind]

:grouphug:

we're in a seller's market here.  a well priced home will sell within a week for above list.  in some areas, bidding wars are common.

Envious!  That's just not happening here.  Qualified buyers seem to be few and far between.  Lots of lookers; few actual buyers. 

[TranquilMind]

We've been on the market 6 weeks with a contingent offer about to expire. I'd be happy to get an offer at all, so we could at least negotiate. We've lowered our price some, and our agent, along with 9 other agents that have looked say it's priced well for the market in our area. Had 16 showings but no offers. Frustrating to say the least....especially when we're so close to losing the house we want to buy. Feedback from those that have looked are that they want something bigger, something newer, a different configuration of the yard....all things we can do nothing about. Much different selling/buying experience than we had in the late 90's----3 full price offers on a tiny rambler the first day it was on the market.

That's very frustrating!  I'm sorry, and yes, I remember those days when you would have had three offers by noon.  In fact, I am currently living in a house that had three offers by noon of the first day on the market. 

 

It took more showings than you describe to get offers.  Not because of the house itself, but because there are so few qualified buyers out there in the price range.    No house is perfect.  They ALWAYS say "rooms too small/big/ wide/narrow" or something, when sometimes it just means, "It didn't speak to me" or even, "I don't really have the funds to buy". 

[rebbyribs]

`

 

Sorry - just reading and didn't intend to post anything.  Baby foot typing.  :-)

[idnib]

I find Zillow to be low in my area, generally. But in the case of the house to which I am referring, Zillow reflects a higher value than I am asking. 

 

Zillow publishes their stats on how accurate they are for different regions.

[Crimson Wife]

 There does seem to be some misunderstanding among Buyers that "move-in condition" means "brand new" or close to new, with a guaranteed long lifespan.  Not necessarily.  It just means everything is functional at this time.  Your furnace could die tomorrow (with the cheap junk they make today) or in 15 years.  You just never know these days. 

 

If you're going to claim that your house is in "move-in condition" that should NOT mean $50+k total repairs/replacement of essential parts of the house in the next 0-3 years IMHO. It doesn't have to be new, but it should mean that I don't have to spend huge sums of money keeping it habitable.

[Lanny]

People who want to sell something (a house or a car or whatever) often believe it is worth more than it is worth to a qualified buyer.. Qualified buyers (those with the credit or cash needed so they can actually complete a purchase) set the actual value. In a Sellers market (usually NYC, Boston. Washington, DC, San Francisco, etc.) the Sellers have more control. In more normal areas, unless there is a scarcity of housing (North Dakota because of the Petroleum boom, etc.) the Buyers can offer what they want to offer. If the Seller is motivated to sell, they will accept a qualified offer. If the Seller can wait, they can put their property onto the market again in the Spring of 2015. Most people with children in brick and mortar schools have already made their moves for 2014.

[umsami]

We were looking to buy a house in a neighborhood we were renting.  An 80-something year old woman had just bought the home six months ago, got a bad diagnosis, and was moving back up North.   Her price was completely reasonable, actually a good deal.  it was like new… beautiful pool.  DH and I were talking, and two of the bedrooms were really small, so we were kind of hesitating.  She wanted $340k….and we were thinking of offering 320K, but we felt guilty over that.   In the week or so that we hesitated, somebody came in, offered her 290k (way below market based on what I've seen) and she took it.  It never would have even occurred to me to go that low.  Maybe offer 300k and end up at 320….but in the 200s? No way.

 

I was really surprised.  

 

Speaking with our realtor, she told us that most homes are selling for 15-20k below asking price, but she can tell us based on the neighborhood.  

 

Thing is…as DH says…there is a lot of building going on in the area, and a lot of people want a new home.  I feel bad for some of the sellers, because I have looked at simply gorgeous homes, but they are not worth what they are asking in today's market.  Many of them purchased them before the bubble and paid way too much.  The same home in the neighborhood where the older lady lived was selling for 500k new in 2007.  There are a lot of people underwater on their mortgages and they don't know what to do.

[LucyStoner]

In some places, $400k IS a starter home.

[Catwoman]

In some places, $400k IS a starter home.

It's definitely a starter home where I live, and not a particularly nice one.

[TammyS]

It's definitely a starter home where I live, and not a particularly nice one.

 

Wow.  Where I live $400K is a McMansion (or, my dream) a nice 2300sft farmhouse on 20 acres.

 

[Catwoman]

Wow. Where I live $400K is a McMansion (or, my dream) a nice 2300sft farmhouse on 20 acres.

 

I would love it if it was that way where I live!!!

[TammyS]

OP, I'm sorry you are having such a hard time.  Everything is regional and variable.  Where I live $4K seller credit is pretty much standard, right now (as opposed to 2006 when sellers could just name a price and get it by day's end).  Houses are moving slowly and prices are stagnant. 

 

You'll live a much happier life as a seller if you just consider it business and not a personal affront.  If you are certain that your ideas are reasonable for your location, then just peruse the offers that come in and reject those that don't suit you until you get what you want.  Don't give the rejected offers a single thought after you toss them.  The low-ballers, credit askers, stuff demanders aren't trying to insult you.  They are just trying to get the best deal for themselves that they can, just like everyone does and should. 

[TammyS]

I would love it if it was that way where I live!!!

 

We bought a 1972 rancher last summer (best interest rate evah! 3.25%!!) on 3 acres for $104,000, with $4K seller credit.  No serious problems, but in dire need of updating and having deferred maintenance taken care of.  We didn't ask for any serious repairs (just a couple of breakers needed to be added to box because of some previous shoddy additions), though she ended up having to put in a new drainfield after it was discovered that her (deceased) husband had located a very large concrete floor shed on top of the old one.  Probably it would have gone on working just fine, but the mortgage company insisted.

 

Our transaction was pretty typical to this area.

 

[OneStepAtATime]

Market here is not terribly volatile but even here things have changed.  Buyers are asking for full closing costs and it is pretty standard now.  And no one seems to be a handyman anymore.  They don't want to have to fix a thing.   :tongue_smilie: Not anything at all.

 

And there are lots of houses are just sitting, too.  One house in our neighborhood has been on the market for over a year and another has been on the market for at least 5 months.

 

 I know one thing that helped us was when I drove around and actually walked through other houses we would be in direct competition with, trying to compare and contrast with an objective eye.  And I took everything my Realtor said with a grain of salt, much as I liked her.  She wanted to overprice our house so there would be "negotiating room".  I had found though, that with past sales, if I slightly underpriced for the market (after actually seeing our competition and realistically pricing the house), I got a lot more serious offers because people were in competition with each other for what they perceived as a good bargain.   We got full price offers that way.  Sounds like you have done quite a bit of research already though, and your market may be very different.  Not sure our experience would apply at all.

 

Hugs, OP.  Sorry things are not going well.   I know this is frustrating.