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Put in a second offer on a house?


Runningmom80
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Long story short, we put in an offer on a house, and then walked away when they countered very close to asking.

 

Now they switched realtors and lowered the price. Would it be ridiculous for us to put in a slightly higher offer than our original?  (5k more, they dropped the price 5k, so it would be 10k less than asking.)  The house has been on the market since November.

 

WDYT?

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I would put in the same offer that you put in before.  If that is what the house is worth, a good realtor will advise them to take it.

 

Funny story--two years ago we put an offer in on a cabin.  The seller countered, we upped, they countered again, we finally agreed, very reluctantly, on a price that was higher than we really knew the place was worth.  They failed to maintain the place properly while it was vacant, the pipes froze, and both bathrooms flooded.  We pulled out of the deal because we felt that other things may have gone wrong as well and for a couple of other reasons. 

 

They fixed the damage and continued to show the house, all spring and summer (the prime buying season).  No firm offers.

 

Late in the summer they dropped the price below the true value.  We put another offer in, at their new asking price, and they took it.  This was at least 25-30K less than we agreed to in the spring, but it WAS their asking price.  (I think that we could have offered 10K less and eventually gotten it for that, but we didn't want to be jerks.  And at this price it was a good value, and we wanted to be DONE.)  When the appraisal came in for the mortgage, it was right at the value we thought that the house had, which was by then more than the price we were paying. 

 

It doesn't pay to list houses too high.  They sit on the market for a long time, and then people think there is something wrong with them, and often they sell below market at that point.  It sounds like that is what these people did.  Any good buyer's realtor is going to be able to see that the house was listed higher and sat on the market for quite a while.  That history will hurt the seller, unless it is a very hot local market.

 

 

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I would put in the same offer that you put in before.  If that is what the house is worth, a good realtor will advise them to take it.

 

Funny story--two years ago we put an offer in on a cabin.  The seller countered, we upped, they countered again, we finally agreed, very reluctantly, on a price that was higher than we really knew the place was worth.  They failed to maintain the place properly while it was vacant, the pipes froze, and both bathrooms flooded.  We pulled out of the deal because we felt that other things may have gone wrong as well and for a couple of other reasons. 

 

They fixed the damage and continued to show the house, all spring and summer (the prime buying season).  No firm offers.

 

Late in the summer they dropped the price below the true value.  We put another offer in, at their new asking price, and they took it.  This was at least 25-30K less than we agreed to in the spring, but it WAS their asking price.  (I think that we could have offered 10K less and eventually gotten it for that, but we didn't want to be jerks.  And at this price it was a good value, and we wanted to be DONE.)  When the appraisal came in for the mortgage, it was right at the value we thought that the house had, which was by then more than the price we were paying. 

 

It doesn't pay to list houses too high.  They sit on the market for a long time, and then people think there is something wrong with them, and often they sell below market at that point.  It sounds like that is what these people did.  Any good buyer's realtor is going to be able to see that the house was listed higher and sat on the market for quite a while.  That history will hurt the seller, unless it is a very hot local market.

Agree with the post but especially the above.  A lot of real estate agents want to list high (and many clients, too) so there is "wiggle room and negotiating room".  This has actually seemed a poor plan when we have allowed real estate agents to talk us into this.  The house sat on the market for an extended period.

 

Every time we listed just slightly below market value (and I always do my own research then compare to what the agent is saying) we ended up getting multiple offers right away and could pick and choose which one best worked for us.  In one instance they found out we had other offers within days of listing and came back with a higher offer even than what we originally asked.

 

On the flip side, we have had many times many friends who listed way high, either because they didn't do their research or they listened to poor advice from an ill prepared agent and the houses sat for a very long time.  In one instance the house sat for two years and they ended up selling for WAAAAAY below market value since they were moving.  People started thinking something was wrong with the house and didn't want to have anything to do with it.

 

All this to say I agree with the above, you might actually give them your original offer again if you think that is what the house really is worth.  I wouldn't worry about insulting them with a higher offer, though, if that is what the market seems to bear out.  Do some research of your own.  If you think maybe things have changed or the original offer was a bit low then make a new offer based on your new research.

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You should discuss this with YOUR broker,  not theirs. Let him/her advise you on whether or not to increase your original offer, up front.  IMHO, make the original offer again (which they may accept immediately) and then if they do not accept it, go up a little. The 2 Brokers will both want to make a sale and they will try to make the sale happen.GL

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Make your original offer again. That way, you can increase it by the other 5k if they counter.

 

And why would you care if they are insulted? You don't know them. They are not your friends. This is a business transaction and nothing more. The house is worth what a buyer will pay for it, and apparently people aren't exactly lining up to make offers on it. As someone already posted, the sellers may be seriously regretting not accepting the offer you made earlier, and may jump at it this time.

 

But I would stick with the original offer amount.

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