So after a flurry of visits (well, two more) to beat the 7 pm submission, we now have 1 offer. (Thanks Todd, for the delusions of grandeur)
As you know, our listing price was $339,900 and the initial offer was $333,000. Once the offer was presented, the agent left us to discuss the offer. We and Nick (our agent) then reviewed the recent selling prices of the similar units and noted the pluses and minuses of each unit. All of the recently sold 2bdroom units were on the 3rd floor, as opposed to our top (forth) floor unit. The prices were all around $335,000. We are now the only remaining 2 bedroom available under 400k.
Now, when I purchased the condo, I paid a $7,000 premium to be on the top floor. Now $7,000 plus the initial offer of $333k takes us over my initial asking price of $339,900. Obviously, I can't expect to recoup full value of my premium on a counter offer.
I told Nick, that based on the other sales, a premium over $335k should be set due to the difference in floor. So I picked $337k as a fair recognition of the floor premium, and showing the buyer we are willing to compromise. It was given as a final offer. The buyer then countered at $335k.
Being true to my word we rejected their counter and $335k and asked the agent to thank the buyer for her interest. I talk with Nick to ensure my rational is clear. By accepting any offer, I am precluding any offer to do better. So although the difference is $2000, I'm sacrificing my possibility of getting my asking price or better.
$2000 extra on your mortgage amortized over 25 yrs is nothing in terms of monthly payments. Of course, the same argument can be had by the buyer... is it worth not getting the place you want for $2000. The buyer owns a house and is looking to downsize and give up the chores of home ownership, and find a pet friendly building in the neighborhood.
However, $2000 in the short term, means that Julianne and i can take a vacation before the baby is due. Or buy a new bed, or two bugaboo strollers.
Even though $2000 is less than 1% of the purchase price, the entire price is really irrelevant. I could sell at $320k within a day, so lets say 320k of the price is irrelevant, thus 2000 of 15k is now 7.5% Two thousand dollars now become a much bigger piece of the pie.
So anyways, we had left the TV on the lobby cam channel. We notice the agent is standing in the entrance on her phone. Obviously she has received further instructions. Our agent's phone rings. They have come back offering to extend the duration of the offer from 9pm that night to 11am the following morning. (tomorrow)
The offer has a clause for financing approval, but the closing date matches what we've asked for in our listing.
What do you all think ???? Should i concede on my price, or see what else my come in? It was listed on Tuesday and we've done only one open house.
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6 comments:
I think you should "fold". After all having the closing date you want is a beautiful thing...In the end I dont think you are really losing out.
I would take it. If you only got one offer after all those showings then the offer is probably fair. It may seem low based on past selling prices but that was then. You do have a bit of time to play with but if get your asking price and a later closing date then it's a wash at best. Only hold out if you think you can get significantly more...not the asking price. They always say that your first offer is usually the best offer.
i would leave this offer and wait for more... afterall, you have a good location, and as you said it yourself, your unit is now the only 2 bedroom under 400k. the extending period for their offer was just to mess you up and cloud your decision. stick with what you wanted!
Tough to say. We rejected our first offer when we sold our condo. We then got another offer within 2 days, countered on that offer and got up to 2K less then our asking price which we settled on. Our agent was fairly aggressive and was confident we could get close to or at our asking price. I say stick to the advice your agent gives you, he should know what condos are going for, how the interest is in your unit and whether he thinks you'll get up to the price you want.
You said your counter offer of $337 was you final offer. To me, they insulted you by offering you $335 after you said it was final. By countering at $335, they took the $337 off the table (learned that in Law class this term!), so I'd say, screw them...$337 is out now, price is back to $339. You have them on the hook, they won't let go...
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