So I’m in the market of buying a house and we came across a house that we liked that was well within our budget and so forth.
Before placing an offer we ask our realtor to pull up the comparables. I’d like to get a sense of how much other houses have gone for in that area, etc.
Turns out there is a 40K range and the house we want is listed at the high end. The house we want does not have a finished basement and houses with finished basements have gone for less than what this owner is offering.
We decide to offer 20K less than the asking price. This is a low ball, we will work our way up, but it’s not completely ridiculous either. This is an average of what all the other houses are going for.
Our realtor sets up the paperwork and calls the owner’s agent to make a presentation. After a couple of hours the agent responds with “the owner does not want a presentation just fax over the offer.”
So basically the owner doesn’t want to know why we’re offering what we are offering, they just want the number. We deny the request.
A few hours later the agent calls back saying the owner adamantly does not want a presentation just fax it over. So we did.
The next day we hear back from the owner with a counter offer. They dropped their initial offer by less than 5K, increased the closing date to 90 days, and said “no appliances.”
This isn’t negotiating. You are not working with us at all. I understand the dollar amount, but we asked for 60 days and appliances and you’re just not giving at all.
So after some thought, we decided to try again on the owner. We brought up our offer by 6K, increased the closing day to 75 days, and asked for half of the appliances..
At this point I don’t see what their hang up is over the appliances. They’re not new, they’re not special and any house they purchase will likely give the appliances. I’m thinking if they really want the appliances so bad, they’d drop the cost of the house, right?
WRONG! Instead of denying our offer entirely, they shot us back with the exact same offer as before. How is this negotiating? What makes you think I’ll say ‘yes’ to this? If I didn’t like the offer before, what makes you think I will like it now?
We countered with a “go f*ck yourself” – good luck selling your house. We have plenty of options and you have none. Who comes out the winner here?
No related posts.
The funny thing is, if the seller met with you face-to-face, the problems surrounding the issues with the appliances and the cost difference in other homes in the area could be discussed.
Here, it just looks like it's a lowest offer they will go to and they won't budge. Fair enough – that's their prerogative.
But at the end of the day, be realistic if you're not moving on the additionals as well, like appliances, like repairs, like finished basement, etc.
There's nothing wrong in wanting the best price possible, but keep it a little real and open to discussion as well.
<abbr>Danny Brown’s last blog post..Does Twitter Monitor Its Brand? Fake-Twitter.com Suggests No</abbr>
My wife and I spent nearly 9 months looking for a home to buy, found many over priced ones with sellers NOT wanting to budge on ANY thing. Finally, we found one – not only did the seller negotiate, he was more than willing to go WAY beyond. Initially he was going to take two of the storage sheds, then one, then one day after we purchased it, he said he didn't have it in him to move the shed, so we kept all three. Plus, all appliances. Plus he paid the the down payment. Oh, and we have nearly 2 acres of land, a horse stall/pen, 2 storage sheds, 4 bed/3bath with 1/2 finished basement. For under $150k.
Did I mention that he trimmed our horse's hooves, left all kinds of brick for us to do landscaping and gave us a price on the house that was simply amazing.
It will happen, and as long as you have your standards, your price point, features and know what you will and will not take you will find one it just takes time – which can really stink at times.
<abbr>Bill’s last blog post..Interview: Mainstream Media Using Twitter</abbr>
Priceless! (in more ways than one…pun intended!)
In any endeavor, "negotiation" is a two-way thing, period!
Best of luck with your search…Happy Looking! :~)
<abbr>Henie’s last blog post..Sunrise of the Sunset</abbr>
LOL… brilliant… summary of our pathetic experience.
LOL… brilliant… summary of our pathetic experience.
If a house is not sold I don't think either party wins. Buyers don't get the house they wanted and seller doesn't sell. Hopefully moving forward buyer will find the home they want and seller will be able to find a buyer that they can get to the closing table with.
That being said negotiations in the current real estate market in many areas is unlike any other times. Working with a professional and listening to their suggestions could be key to finding the home of your dreams. Best of luck to you!
thanks Nannette – honestly I wasn't all that hooked on the house. It wasn't "the house of my dreams" or anything. A lot of work would have had to be done and since the owner has no interest in doing anything before she sells, she's going to have a difficult time getting a buyer.
I've already seen three houses since that I like better and am willing to throw down the money.
The whole situation just makes me laugh. This is the time of the buyer, the seller really needs to think long and hard about what they want.
<abbr>Jac Star’s last blog post..The Power of Negotiation</abbr>
If a house is not sold I don’t think either party wins. Buyers don’t get the house they wanted and seller doesn’t sell. Hopefully moving forward buyer will find the home they want and seller will be able to find a buyer that they can get to the closing table with.
That being said negotiations in the current real estate market in many areas is unlike any other times. Working with a professional and listening to their suggestions could be key to finding the home of your dreams. Best of luck to you!
thanks Nannette – honestly I wasn't all that hooked on the house. It wasn't "the house of my dreams" or anything. A lot of work would have had to be done and since the owner has no interest in doing anything before she sells, she's going to have a difficult time getting a buyer.
I've already seen three houses since that I like better and am willing to throw down the money.
The whole situation just makes me laugh. This is the time of the buyer, the seller really needs to think long and hard about what they want.
<abbr>Jac Star’s last blog post..The Power of Negotiation</abbr>
The funny thing is, if the seller met with you face-to-face, the problems surrounding the issues with the appliances and the cost difference in other homes in the area could be discussed.
Here, it just looks like it's a lowest offer they will go to and they won't budge. Fair enough – that's their prerogative.
But at the end of the day, be realistic if you're not moving on the additionals as well, like appliances, like repairs, like finished basement, etc.
There's nothing wrong in wanting the best price possible, but keep it a little real and open to discussion as well.
<abbr>Danny Brown’s last blog post..Does Twitter Monitor Its Brand? Fake-Twitter.com Suggests No</abbr>
Hi Jac
My mom has done real estate for about 30 years and done fairly well working with both sellers and buyers. What she has noticed is that over the years, and not sure if this is endemic of millenials, is that negotiations are non-existent. What you described is dead on. To me what is ridiculous is that this is such an enormous and emotional endeavor and reducing communications to fax only engenders miscommunication and latent hostility.
Hi Jac
My mom has done real estate for about 30 years and done fairly well working with both sellers and buyers. What she has noticed is that over the years, and not sure if this is endemic of millenials, is that negotiations are non-existent. What you described is dead on. To me what is ridiculous is that this is such an enormous and emotional endeavor and reducing communications to fax only engenders miscommunication and latent hostility.
My wife and I spent nearly 9 months looking for a home to buy, found many over priced ones with sellers NOT wanting to budge on ANY thing. Finally, we found one – not only did the seller negotiate, he was more than willing to go WAY beyond. Initially he was going to take two of the storage sheds, then one, then one day after we purchased it, he said he didn't have it in him to move the shed, so we kept all three. Plus, all appliances. Plus he paid the the down payment. Oh, and we have nearly 2 acres of land, a horse stall/pen, 2 storage sheds, 4 bed/3bath with 1/2 finished basement. For under $150k.
Did I mention that he trimmed our horse's hooves, left all kinds of brick for us to do landscaping and gave us a price on the house that was simply amazing.
It will happen, and as long as you have your standards, your price point, features and know what you will and will not take you will find one it just takes time – which can really stink at times.
<abbr>Bill’s last blog post..Interview: Mainstream Media Using Twitter</abbr>
Priceless! (in more ways than one…pun intended!)
In any endeavor, "negotiation" is a two-way thing, period!
Best of luck with your search…Happy Looking! :~)
<abbr>Henie’s last blog post..Sunrise of the Sunset</abbr>
Yeah no thanks. WHO takes appliances with them?!
<abbr>Pixie’s last blog post..Some Girls Bite By Chloe Neill Review</abbr>
lol – i bet these people are hoping to buy a house with a crawl space to store all the shite they bring with them
cuz everyone needs an extra TWO fridges, stove, waster and dryer
in fact i wouldn't be surprised if they took the built in dishwasher as well
<abbr>Jac Star’s last blog post..The Power of Negotiation</abbr>
No shit! When S got the cottage 2 years ago, the people who owned it left us EVERYTHING right down to bed frames and dressers. So I can't see anyone lugging out a fridge unless its brand new. Ghetto Fab.
<abbr>Pixie’s last blog post..Some Girls Bite By Chloe Neill Review</abbr>
Yeah no thanks. WHO takes appliances with them?!
<abbr>Pixie’s last blog post..Some Girls Bite By Chloe Neill Review</abbr>
lol – i bet these people are hoping to buy a house with a crawl space to store all the shite they bring with them
cuz everyone needs an extra TWO fridges, stove, waster and dryer
in fact i wouldn't be surprised if they took the built in dishwasher as well
<abbr>Jac Star’s last blog post..The Power of Negotiation</abbr>
No shit! When S got the cottage 2 years ago, the people who owned it left us EVERYTHING right down to bed frames and dressers. So I can't see anyone lugging out a fridge unless its brand new. Ghetto Fab.
<abbr>Pixie’s last blog post..Some Girls Bite By Chloe Neill Review</abbr>
Wow…
One of my neighbours was trying to sell their house for $500K. They didn't sell it for four years because they wouldn't budge on the price. I'm no expert, but I'm pretty certain it was not worth that much. It took 5 years and two attempts for them to finally learn that being rigid likely won't help.
If they could figure it out, then I hold hope for the majority of sellers out there. You'll certainly find someone who eventually understands this seemingly foreign concept of negotiation.
<abbr>PurplePeopleEater’s last blog post..Don't Sweat the Small Stuff…And Trust Me, This is Small Stuff</abbr>
Wow…
One of my neighbours was trying to sell their house for $500K. They didn't sell it for four years because they wouldn't budge on the price. I'm no expert, but I'm pretty certain it was not worth that much. It took 5 years and two attempts for them to finally learn that being rigid likely won't help.
If they could figure it out, then I hold hope for the majority of sellers out there. You'll certainly find someone who eventually understands this seemingly foreign concept of negotiation.
<abbr>PurplePeopleEater’s last blog post..Don't Sweat the Small Stuff…And Trust Me, This is Small Stuff</abbr>
My sympathies with your situation. I've been there too! I believe that price adjustments over 10% are frustrating to all parties and usually result in failure. Consider sending in a friend to explain the, say 25%, downward adjustment, incite the frustration, and get rejected. AFTERWARDS, you can reinforce the opinion that the property needs an adjustment by making your 80% offer. Frankly, an unsold property benefits no one.
My sympathies with your situation. I’ve been there too! I believe that price adjustments over 10% are frustrating to all parties and usually result in failure. Consider sending in a friend to explain the, say 25%, downward adjustment, incite the frustration, and get rejected. AFTERWARDS, you can reinforce the opinion that the property needs an adjustment by making your 80% offer. Frankly, an unsold property benefits no one.
Bill, it sounds like you got a wonderful deal, but to be honest, stories like yours often lead buyers to nothing but frustration. Do people sometimes ask for the moon and get it? Sure. Is it typical? Not even remotely. And odds are good that you accepted some things that another buyer wouldn't. Maybe the house was older, needed some landscaping or wasn't close to amenities. I'm really happy that you got a great deal, don't get me wrong. But for anyone else who is holding out for the same kind of treatment, be prepared to wait and be prepared to compromise. If you specifically want a newer home in a specific neighborhood with particular amenities…it may not come along at all. If you are open to different possibilities, getting the moon is more likely, but still far from a sure thing.
Also, its good to bear in mind that not every seller is a happy one. Even if it isn't a short sale, they may be unable to negotiate due to the amount they owe, or might be leaving a home they put their heart and soul into because the payments are eating them alive. A good reason not to listen to your presentation is because it doesn't matter. If they can't recoup $X, they can't or won't sell, no matter what your reasons.
on that last note – it makes sense, but then why sell? especially in this time when it's a buyer's market?
you know? can't have it both ways – either sell your home and be willing to negotiate a little, or wait it out. perhaps the market will be in your favour in a few years?
or if it's a money issue, then wouldn't these people be more flexible with the appliances?
no matter how good all of the reasons for or against negotiating, this one particular case is just not good…
<abbr>Jac Star’s last blog post..A Bit of Everything</abbr>
Bill, it sounds like you got a wonderful deal, but to be honest, stories like yours often lead buyers to nothing but frustration. Do people sometimes ask for the moon and get it? Sure. Is it typical? Not even remotely. And odds are good that you accepted some things that another buyer wouldn’t. Maybe the house was older, needed some landscaping or wasn’t close to amenities. I’m really happy that you got a great deal, don’t get me wrong. But for anyone else who is holding out for the same kind of treatment, be prepared to wait and be prepared to compromise. If you specifically want a newer home in a specific neighborhood with particular amenities…it may not come along at all. If you are open to different possibilities, getting the moon is more likely, but still far from a sure thing.
Also, its good to bear in mind that not every seller is a happy one. Even if it isn’t a short sale, they may be unable to negotiate due to the amount they owe, or might be leaving a home they put their heart and soul into because the payments are eating them alive. A good reason not to listen to your presentation is because it doesn’t matter. If they can’t recoup $X, they can’t or won’t sell, no matter what your reasons.
on that last note – it makes sense, but then why sell? especially in this time when it's a buyer's market?
you know? can't have it both ways – either sell your home and be willing to negotiate a little, or wait it out. perhaps the market will be in your favour in a few years?
or if it's a money issue, then wouldn't these people be more flexible with the appliances?
no matter how good all of the reasons for or against negotiating, this one particular case is just not good…
<abbr>Jac Star’s last blog post..A Bit of Everything</abbr>
The owner does not have to sell to you, just because you appear to be such a brilliant "negotiator" who gave up and resorted to childish tactics after two rounds of negotiation. If you don't think that much of the appliances why do you wan them? If you are ever in the market for my house don't bother negotiating cuz I won't sell it to you anyway.
the owner does not have to sell, the buyer does not have to buy. works both ways. My point in my brilliant post on brilliant negotiation is that if you are not offering a full service you shouldn't charge full price.i'm glad that we didn't get stuck in an unfinished house with no appliances, because now we have the best house ever.i don't plan on moving to Utah any time soon, but i'll make sure to bypass your house should i ever be in the market of buying.thanks for stopping by
the owner does not have to sell, the buyer does not have to buy. works both ways. My point in my brilliant post on brilliant negotiation is that if you are not offering a full service you shouldn't charge full price.i'm glad that we didn't get stuck in an unfinished house with no appliances, because now we have the best house ever.i don't plan on moving to Utah any time soon, but i'll make sure to bypass your house should i ever be in the market of buying.thanks for stopping by
The owner does not have to sell to you, just because you appear to be such a brilliant "negotiator" who gave up and resorted to childish tactics after two rounds of negotiation. If you don't think that much of the appliances why do you wan them? If you are ever in the market for my house don't bother negotiating cuz I won't sell it to you anyway.
the owner does not have to sell, the buyer does not have to buy. works both ways. My point in my brilliant post on brilliant negotiation is that if you are not offering a full service you shouldn't charge full price.i'm glad that we didn't get stuck in an unfinished house with no appliances, because now we have the best house ever.i don't plan on moving to Utah any time soon, but i'll make sure to bypass your house should i ever be in the market of buying.thanks for stopping by