Negotiation buying a house

[sv2007]

Please stick to topic guys.


Lot of good pointers. We're not a first time home buyer. At the same time, we don't want to be in the bidding war either. We already put forth our MAX price target for the house. We have an agent that I've known for 25 years. She was our realtor when we bought our home we currently living and my parents as well.


This home is on our top list: We will be visiting the agent during open house to get a feel and sense about the home. The agent wants to talk with us. The seller don't want Investor buyer since the neighborhood is mostly owners.

1st home:

http://www.metrolistpro.com/homes/6/2/9324-NEWINGTON-WAY-ELK-GROVE-CA-95758/16032512

This is the 3rd home we like.

http://www.metrolistpro.com/homes/6/2/9365-LA-TONIS-WAY-ELK-GROVE-CA-95758/16044345

We got few more houses to look at this weekend that we like/want to visit. Hopefully if it works out, we may have to offer several bids (at least 3) after this weekend based on location relative to kids school/near highway/parks/church/shopping center.

BTW: I found out the co-worker live next door 1st home. They been there for 13 years. The agent will be talking with her to find out what type of buyer we are.

A couple of things:

1. If seller is putting restrictions on the sell to owners, then maybe they can also be influenced by an emotional letter from you listing the reasons why you love their house and why it'll get well taken care (because you love it so much). Frankly, I don't buy this; BUT you may be dealing with first time sellers, which can be swayed by these things.

2. If you truely love the house, then tell your agent about it and develop a plan. You may want to strengthen your offer by including a preapproval (costs nothing to you) and a very large deposit (which you'll be able to get back if you back out. There are so many ways to back out; talk to you agent about it if you are concerned)

3. Keep in mind that it is ok to overpay for a house that you truely like. Live is too short not to enjoy it. You'll never find it again (at least not emotionally). I passed on a house that I truely liked (but wife didn't like all that much); I still kind of miss it; should have bought it. (Wife and I sometimes buy houses separately. Sometimes sight unseen for one of us.)

Well, anyway, those are some more advice.

[sv2007]

Oh, one more thing, I'm not too far from you (about 1 hr drive) and I drive pass your location a lot last winter (maximizing my season lift ticket).

Do you know the neighboorhoods well? I assume you live nearby since you're using the same agent you used years ago.

What does your agent say about your chances of getting it at your MAX offer?
Does your agent specialize in the neighboorhoods that you are looking into?

If your chances are high and you really, really want this house, then I'd move some more money into savings (maybe borrow from parents) before hand in case there's a counter. Sometimes even just a few thousand (like $5k) can mean getting it or not. Since you've offered your MAX, you should get some more money in case you want to go slightly higher. This isn't a bidding war; I mean what is $5k compared to $350k right?

[tripods68]

A couple of things:

1. If seller is putting restrictions on the sell to owners, then maybe they can also be influenced by an emotional letter from you listing the reasons why you love their house and why it'll get well taken care (because you love it so much). Frankly, I don't buy this; BUT you may be dealing with first time sellers, which can be swayed by these things.

2. If you truely love the house, then tell your agent about it and develop a plan. You may want to strengthen your offer by including a preapproval (costs nothing to you) and a very large deposit (which you'll be able to get back if you back out. There are so many ways to back out; talk to you agent about it if you are concerned)

3. Keep in mind that it is ok to overpay for a house that you truely like. Live is too short not to enjoy it. You'll never find it again (at least not emotionally). I passed on a house that I truely liked (but wife didn't like all that much); I still kind of miss it; should have bought it. (Wife and I sometimes buy houses separately. Sometimes sight unseen for one of us.)

Well, anyway, those are some more advice.

We are trying to avoid the 'love this house' and be objective as much as possible without clouding our judgment. All too many times, it doesn't end well and often get frustrated.

All good points. I think we will make a strong offer. We already have the prequalification letter, and the deposit with the offer. We are not asking seller's credit. We won't be overbidding but we want to be competitive. We want room to negotiate if they countered our offer in case they want more money.

[sv2007]

We are trying to avoid the 'love this house' and be objective as much as possible without clouding our judgment. All too many times, it doesn't end well and often get frustrated..

This is the best way to buy a house; remove that emotional attachment and view it as a financial one. This will help you think about the big picture in RE: future appreciation.

Just curious, how did you come up with your offer price?

[sv2007]

Oh, get a pre-approval instead of pre-qual. It is a little more work, but it will carry more weight than other people's pre-quals to the seller.

[DaveInPgh]

You just said " I am basing my posts on the proper education and handling transactions as both types of agents and as a buyer and seller on multiple properties of my own. " in a few posts up. You should make up your mind on which way to tell your story.

I've asked texas hustler once if he was a realtor because in TX to manage other people property you must be one. I've seen a lot; it is up to you to take or leave the advice.

Seriously, you won't go far in life with whatever you know based on your posts and it shows.

Again, your ignorance is just confusing you further. I did not contradict myself in anything I said. What you quoted is exactly the truth. In that statement I did not specify if I was a Realtor because it really isn't relevant. Again, a Realtor is a salesperson that belongs to NAR. You must be a licensed salesperson to act as an agent in a real estate transaction. You do not need to be a Realtor. Try to comprehend what is clearly being stated to you.

And you just make yourself look like an ass telling someone they won't go far in life. What exactly is going far to you? Might not be the same for me, or anyone else reading your nonsense.

[DaveInPgh]

tripods68, it wasn't my intention to hijack your thread, but I must say I am baffled as to why you would listen to anything coming out of his mouth. He is giving you inaccurate information.

[tripods68]

This is the best way to buy a house; remove that emotional attachment and view it as a financial one. This will help you think about the big picture in RE: future appreciation.

Just curious, how did you come up with your offer price?

We started on the Asking Price. Other will probably bid lower.

We have the approval letter. I think the seller wants all bid with pre-approval letter attached. They are not requiring deposit...but we're thinking we should add it just in case.

[tripods68]

tripods68, it wasn't my intention to hijack your thread, but I must say I am baffled as to why you would listen to anything coming out of his mouth. He is giving you inaccurate information.

I'm not ignoring your suggestion. You have made some good points. I'm eliminating information that don't apply in our case (from everyone suggestion here), but at the same time, I'm not trying to be "referee" who's got the best idea here or we have not thought of yet. Garbage in, garage out.

We have an agent who is experienced and confident she will do us right like have in the past.

[snafu]

Thank yu for posting the two listings. How do municipal taxes relate to other homes with similar land size and similar sf dwelling?

If you've made an offer and given 'Earnest' money, is it easy to withdraw the offer if you're still looking and see something you like better? Did you include a weasel clause?.

Are you put off by the Italy ploy? Sounds like a set-up hoping for a bidding war full of emotion to boost selling price well beyond listing price.

Is Listing #1 a 'flip?' What date did current owner buy?


Listing # 2 shows HOA. What specific benefits do you get for that fee?

[tripods68]

Thank yu for posting the two listings. How do municipal taxes relate to other homes with similar land size and similar sf dwelling?

If you've made an offer and given 'Earnest' money, is it easy to withdraw the offer if you're still looking and see something you like better? Did you include a weasel clause?.


Are you put off by the Italy ploy? Sounds like a set-up hoping for a bidding war full of emotion to boost selling price well beyond listing price.

Is Listing #1 a 'flip?' What date did current owner buy?


Listing # 2 shows HOA. What specific benefits do you get for that fee?

That could be the case, but it is what is it. As long we can make an offer, past home inspection, etc it doesn't matter I don't think. The agent will contact the seller as soon they get multiple offers anyway.

We have to include our offers that "we are doing multiple offers (address /property included)" as part of the disclosures per our agent. It's very common thing to do during seller's market. It's gives us the benefit to bid on multiple houses we like in case sellers 1 or 2 homes reject our offers.

1st home was a rental for a while. The owner's daughter actually lives 3 houses down the street. We were told the Owner is 80+ years old so they like to sell it now.

HOA is for keeping the neighborhood/lawn care/maybe security. It's a factor to consider but it's not a back breaker with us. It's not first option.

[DaveInPgh]

This is the best way to buy a house; remove that emotional attachment and view it as a financial one. This will help you think about the big picture in RE: future appreciation.

In a post before this one you mentioned missing a house that you "truely" liked that you never actually bought or lived in. You went on to say that it is okay to pay for a house you "truely" like and you won't find it again (at least not emotionally).

Then you followed it with the above quote saying the best way is to remove emotional attachment and view it as a financial one. Just another example of you contradicting yourself with the babble coming out of your rear.

Do you "truely" feel like you are making a positive contribution to this topic?

I "truely" don't feel like you are.

[LivingAlmostLarge]

What happened? So the first house you offered $397k? And the second house you offered $382k? What are you looking for? Are both home close by?

I agree the refusing to look at offers for 2 weeks sounds like they are hoping for more offers. Did you put in a 24 hours clause? I know friends who did that and landed a house for asking price because of it. The sellers didn't want to risk it so they took the offer.

What is your realtor telling you about the homes and potential offers? Realtors can play you even if they are your agent.

A friend recently bought a house for $5k above list price after 24 days on the market. No other offers and they are regretting it. Their realtor pressured them into offering and rather than going low and moving up they went in high in a "hot" market. These same people fortunately lost on a property that went $100k over asking they almost bought.

And my recent experiences have on supported it.

[DaveInPgh]

LivingAlmostLarge provided some examples of how an agent can play you even if you think they are on your side. When you have a profession driven by commission, there are always going to be bad apples.

That being said, if you have a Buyer's Agency agreement with the salesperson, you at least have something in writing stating the agent will work in the buyer's best interest. I personally would not use an agent for buying a house without that agreement in place. Many agents will want to lock you in for a certain time period, but you can negotiate that to meet your needs.

Also, I would expect a buyer's agent to provide me with Comps for any house I was putting an offer on. Comparable properties that were recently sold to support what they feel the property should sell for.

On many of occasions, I have had an agent tell me that a property was overpriced and ADVISED me not to offer more than what the Comps suggested the property was worth.

[tripods68]

A quick update:

We made 3 offers on several homes this weekend with 24 hour response clause answer by tomorrow (Monday 6 pm).

1) home we are bidding 10K above asking (389,000) - This house come with 1/3 acre lot backyard. Potentially we could parcel this lot for sale in the future, or built in-laws quarters. We won't be bidding anything higher than 10K max.

2) $100 above asking (Original asking 399,900)

3) Full Asking Price (Original asking 365,000) This come with solar panel lease.


We loss on La Tonis Way as it sold Friday night, an hour after we visited the home. We knew the house would sell right a way even without holding an OPEN HOUSE.

Let the waiting game begin!