shape
carat
color
clarity

Any realtors on here? First homebuyer ques

Status
Not open for further replies. Please create a new topic or request for this thread to be opened.

janinegirly

Ideal_Rock
Joined
Sep 21, 2006
Messages
3,689
So we made a bid on a house we really like---it needs some upgrading (kitchen, bathroom and basement). However we are in the unenviable position of dealing with another interested buyer.

We put in an offer, as did this 2nd party..and the owners have countered. How can we best handle the next step? Do we really put in our best possible offer? Realtor is of course pressuring us to come back w/in 24 hours..
 

dani13

Ideal_Rock
Joined
Nov 12, 2004
Messages
6,183
Janine-

Im not a realtor, but I went through alot of haggling, etc before buying my my condo. I would say that if you and your hubby REALLY want this house, put in the best offer you guys can. Im sure PS-ers with more expertise when it comes to this will chime in (Dee Jay?) but that's just my honest opinion. BTW, where is this house? In NJ?
Best of luck, and I really hope everything works out!
2.gif
 

ChargerGrrl

Ideal_Rock
Joined
Aug 17, 2005
Messages
2,865
not a realtor either, but have a couple of homebuying transactions under my belt.

I totally agree with Dani. If you REALLY want this house then you''re going to have to put in your best offer and do it quickly!

How long has the house been on the market? Do you have any other contenders?
 

janinegirly

Ideal_Rock
Joined
Sep 21, 2006
Messages
3,689
We do like the house alot and no real other contenders right now, but we''re afraid to pay too much in a down market.
However, with this other bidder, it''s complicating things and making it like a big poker game. So i was wondering if there were any tricks to the trade or what to expect.

thanks girls
 

ChargerGrrl

Ideal_Rock
Joined
Aug 17, 2005
Messages
2,865
I totally understand about not wanting to pay top dollar in a down market. We feel the same way and plan to wait it out a bit longer. We''re in no rush to upgrade our townhouse at the moment. I know your situation is a bit different as baby is on the way.

Although generally speaking the real estate market is a bit blah, it does really depend on where you''re buying. Desirable areas will always be in demand.

I hope an expert will chime in and give you some advice. Perhaps there are some tricks to the trade!

GOOD LUCK!
 

lauralu

Brilliant_Rock
Joined
Jul 20, 2007
Messages
699
My License is on ice right now so I am not currently selling. I can tell you though...If you want it bad enough. You put your best offer in. The other party will be advised to do the same. I had a buyer once that did not want, under any circumstance to pay the full asking price....But wanted the house more than anything.

It was a multiple offer situation as well.... all were advised to counter with their best offer. Well my clients thought they could have their kids write letters and draw pictures of how much they wanted to live there and countered with a below asking price. I presented their offer and pictures from their children..

They did not get the house and they proceeded to fall apart after. Every house we looked at after that was based on the one they lost.... I did find them a house. However it was an emotional roller coaster.

The sellers. although touched obviously took the offer that was top dollar.

What is your top dollar? Only you can decide what your best offer is and hope for the best. There is no way to tell what the other offer will be....hopefully your agent has done a market on the house so you know what that type of house and all it has to offer is selling for in your market at this time. That should help you decide...You can't base your offer on what the housing market may or may not do in the future. Home prices are based on whats currently happening in the market... and again, I hope your agent is letting you know what that is and in the end the house is worth as much or as little as you are willing to pay for it...

Good Luck...I know it can be very emotionally draining.
 

iheartscience

Super_Ideal_Rock
Joined
Jan 1, 2007
Messages
12,111
I''m not a realtor, but I''ve thought about this scenario quite a bit because I''m thinking about buying a house and I tend to get VERY competitive about, well, everything. So if I were you, I would only put in your very best offer if you just MUST have the house, it''s your dream house, nothing else will do, etc. If it''s just meh to you, I wouldn''t play the multiple offer game. Good luck and keep us posted!
 

phoenixgirl

Ideal_Rock
Joined
Mar 20, 2003
Messages
3,388
Did you offer below, at, or above asking the first time? How far below asking price (if at all) was their counter?

Am I wrong that the owners cannot counter both offers at once? They can't offer both of you a price of, say, 300k, and then when you accept say, heh heh, sorry, we already sold it. Realtors, am I right?

So if I'm right, then they rejected the other bid (or didn't act on it, waiting to see what you will do). So yours must have been the better offer to begin with. It sounds to me like they are using the "other bidder" to up their price when obviously the other bidder gave a worse offer. Still, that other bidder might meet their price if given a chance (if you pass yours up).

Still, I am curious as to your reasons for not accepting their counter. Are you sure you REALLY want the house? As in, ache in the pit of your stomach if you get a call saying the other bidder got the house? How would you feel if you lost it? How likely is it you can find another house like it?
 

janinegirly

Ideal_Rock
Joined
Sep 21, 2006
Messages
3,689
We offered below asking and the owners countered with an offer much higher than ours, but lower than their original asking price. We do not know what the 2nd bidder''s offer was, and I think they are obvioulsy using that to make us panic a bit. It is correct that both bidders receive the same counter number.

We do want the house--but will not fall apart if we lose it. It is a house in a very desireable neighborhood where not much inventory comes up. It has great curb appeal, back yard (tough around area where we are--near NYC--where space is tight). The timing is also great for us...we have a baby due in late Septemeber, so I can''t keep up this house search/stress much longer, but it will be even tougher after the baby is here.

On the other hand, while the house is absolutely liveable, it is not our style on the inside, so would need some upgrading (kitchen, bathroom and finishing of basement). Eventually it may require some expansion. We have a top number in our head which is still not the asking price. I suppose we will go in with that. We were hoping to buy it for a bit lower than our "top" price b/c this will mean more sacrifices with a baby on the way. However, even our top price may be beaten by this other bidder--who of course lives overseas which adds to the whole sense of mystery (ugh).

so that''s where it''s at--I''d love to hear more theories (just for fun) on what this other bidder might have come in at..and how we can work this to our advantage--if at all. Thanks!
 

lauralu

Brilliant_Rock
Joined
Jul 20, 2007
Messages
699
You cannot work this to your advantage. You are at the mercy of the sellers.
Are you asking your Realtor these questions as well?
Rarely does anyone ever get exactly what they want, Inside and out. You cannot imagine the times I have heard. If you could put this backyard into this house, Or move this house to this location, or this kitchen here and that master bath there. The house would be perfect.

My counsel is always this...what is most important to you at this point while you are wanting to buy a home. A desirable neighborhood in a down market usually EQUALS a home that will build in appreciation. One thing you were worried about. Than if you would rather move in 5 years instead of expand you could do so.

Top dollar and asking price is only relevant to your market and what it can handle and is commanding right now.

Sometimes closing is a bargaining tool as well. Sometimes if a seller needs out, they will take less to have a quick closing.

If you found a house that was beautiful on the inside but location and neighborhood was yuk....would you have made an offer on that one at this point?

it all comes down to pros and cons and what your needs are and how much you want to keep looking. Ect...Only you can decide that.

You have already said that if you lose the house, you will move on and keep looking without being too upset. That says something as well.

Good Luck! Keep us posted! :)
 

phoenixgirl

Ideal_Rock
Joined
Mar 20, 2003
Messages
3,388
You''d know better than I what comparable houses in that area are going for, but is it possible that a house that didn''t need upgrading would go for above your cap? So if the "needs improvement" list is livable, maybe this really is the right house for you at this time.

Here''s my experience in late 2006. We lived in a small (under 700 sq. ft.) condo (which I bought back when things were hot -- you had to offer over asking the day of the open house to make sure you got it), and I felt like the walls were closing in and declared that I wanted to buy a house. The next day, we went to an open house of a house like the one we later got, only it was four blocks farther than we wanted to be, and it only had one bathroom, and they had enclosed a porch to make another "room" but it really just made the windows in two important rooms face into another room. But it gave us the idea that, yes, we could live in one of these 1500 sq. feet. rowhouses built in the teens and twenties.

So then I found the listing of our house. It had been on the market for three months and had just had its price dropped by 10%. It was two blocks from our condo, had 2.5 bathrooms, and had enclosed the porch just on either side of the windows so that they still got natural light (very important to me). There were some cons -- old appliances which we replaced right away, needed paint and new fixtures, central air upstairs but only a window unit downstairs, etc.

Since we hadn''t even planned to buy a house, we offered 10% under the newly reduced asking price. This was when the bubble was just bursting. Our friend paid 12% more than we did only a few months before this for the house six doors down (with a smaller lot). I honestly think that since it was all so sudden, we were almost hoping we wouldn''t get it by offering so low. The seller met us in the middle (a big reduction for her), and we realized that if she dropped so far so fast, she must be desperate to sell, so we countered at another $5k below that, and she accepted. It was when we countered and were waiting to hear that I suddenly realized how much I wanted the house. Before that I don''t think I knew. If'' I''d known how upset I would have been not to get it, I wouldn''t have tried for that extra $5k.

We love our house so much. I''ve watched Realtor.com like a hawk since then, and I have never seen a house in our price range with everything our house has, especially location and parking. Yes, there are blocks and blocks of nearly identical houses, but this one is just perfect for us. Since everything is definitely livable, it''s fun to do those projects one by one to make it all the more yours.

So are houses out there with updated kitchens and baths and finished basements selling in your price range? If they''re not, then I''d offer as much as you can comfortably and keep your fingers crossed about this house.

Good luck!
 

janinegirly

Ideal_Rock
Joined
Sep 21, 2006
Messages
3,689
Thanks for the posts. Just to clarify, we do really want this house but are conservative/practical so won''t spend above our budget (or carry a mortgage we can''t afford), so it kind of limits us.

Still we are going in with the top number we can afford..although I don''t know exact # just a range that I told DH I was comfortable with. Today has been crawling, and I called DH for an update but he sounds stressed and doesn''t want to discuss numbers on a work phone. He said the mysterious other foriegn bidder''s number is in and everyone is waiting on us, but DH is delaying until he is ready. Still it''ll be over in 24 hrs. So hard waiting even though it''s not long.

I will def keep you posted...
 

saltymuffin

Shiny_Rock
Joined
Aug 24, 2007
Messages
225
Did they actually make a real, formal counter offer? If so, then if you accept, they can''t sell it to anyone else. Is that number well above what you want to pay? Or did they just make a verbal counter, indicating the amount they would like to get?

When we bought our place, we had searched for months, and were living in temporary accomodations without our furniture. We really wanted to move. There was nothing available in our desired area in our price range. Homes just weren''t being listed, and the ones on the market had been sitting for months - for good reason, they all wanted way too much for the work needed. We made offers on a couple of places and were outbid by 10-20k. When ours came up, we went to see it the same day and made an offer immediately after. The house was very fairly priced. Not a super deal, but fair market value. We chose to offer 3k over asking, and gave them only 24hours to respond (they had asked for 48). It wasn''t our dream house, but we knew how rare an affordable place like that was in the area we wanted to live. We knew there would be multiple offers. Despite the fact they had asked for 48hours to respond, they did accept our offer. (How could they not?) We feel the extra 3k was well spent, it saved us from a multiple offer situation (at the last second there was talk of another offer coming in, but I think they had to respond to us before they got it). Since then we haven''t seen anything we would want to buy, so are even more glad that we offered that bit more.

Now I am NOT saying to spend more than you can afford. And I am not saying to pay more than a house is worth. But for us, paying that extra 1% really paid off. When it gets down to the nittly gritty, don''t quibble over 1k. You want to loose a bidding war by thousands of dollars, not hundreds. We never regretted loosing a place my lots of $, but loosing a place you want by a couple hundred would be heart breaking.
 

janinegirly

Ideal_Rock
Joined
Sep 21, 2006
Messages
3,689
Well, DH put in an offer that was close but still not our "top number" (quite gutsy of him and I wasn''t expecting it) and they came back and lowered their counter. I''m confused where the 2nd bidder is in this process, perhaps his number was close to ours. So now ball is back in our court. We are about 10K off from seller''s number so it''s still a large amount, but maybe not large enough for the stress of haggling.

Thanks for letting me vent it out on this thread
emsmile.gif
 

janinegirly

Ideal_Rock
Joined
Sep 21, 2006
Messages
3,689
in case anyone is following, we got the house! we split the difference with the seller, so got it a bit lower than our highest offer (which we had in our heads) and also below asking (owners came down 3 times). Apparently they preferred our terms to the other bidder (we met their wishlist outside of price). Of course there is 3 day review period, inspection, etc etc, so not done deal, but still thought i''d share so let''s hope it stays smooth from her on out!

i guess it''s good that we held our ground and did not panic and offer what we couldnt'' afford. We thought the owner had all the power but in the end they really wanted us so made some amends. Still we have our work cut out for us!

Dani: sorry i didn''t answer your question earlier...didn''t want to jinx things, but yes it''s in NJ --in Summit. It''s a pricey area, but we felt it was worth it in the long run with good schools, lots of families, and also a short commute to NYC. We''re not officially closing till December though (our "terms") since I want to have the baby and be settled a bit before moving and also this gives us some time to fix the house up (or at least start planning for it) first as well.
 

phoenixgirl

Ideal_Rock
Joined
Mar 20, 2003
Messages
3,388
Congratulations! That''s so exciting!
 

jcrow

Ideal_Rock
Joined
Aug 8, 2005
Messages
7,395
eeks!! congrats!
i''m sending you lots of fairy dust your way for a the inspection, etc.
 

ChargerGrrl

Ideal_Rock
Joined
Aug 17, 2005
Messages
2,865
CONGRATS Janine and family!
 

dani13

Ideal_Rock
Joined
Nov 12, 2004
Messages
6,183
Congratulations, Janine!!! Summit is a wonderful area...you are going to love it there! Best of luck and let us know how everything goes!!!
36.gif
 

robbie3982

Ideal_Rock
Joined
Jun 28, 2006
Messages
3,960
Congrats!!!
 

Aloros

Brilliant_Rock
Joined
May 2, 2006
Messages
947
Congrats!! Glad you got the house that you wanted!
9.gif
 

blushingbride

Brilliant_Rock
Joined
Nov 10, 2006
Messages
1,653
YAY janinegirly!!!
36.gif
I''m soooo excited for you! I''ve been away on vacation so, I almost missed this thread. You definitely need to let me know what you think of Summit. We''ve narrowed down our towns to Westfield, Summit, Chatham and Short Hills...which is all basically the same area. What other areas did you look at and why did you finally pick Summit?

CONGRATULATIONS!!!
5.gif
 

janinegirly

Ideal_Rock
Joined
Sep 21, 2006
Messages
3,689
hi blushing and welcome back!!

we are still in attorney review, so it could still fall through (I hope I''m not jinxing it by talking about it..), but figure I can share it here.
anyway, we decided on summit because it is an established town (will hold it''s value) and has a wall street community, lots of kids, good schools,etc. Those towns you mention also fall into that category though, so it might come down to which town you connect with in the end.
Also, a short commute was v. important to us, and summit has an express train of 35 minutes, plus parking for residents. Our future home (fingers crossed all goes smoothly) is also in solid neighborhood, only a few minutes drive to town (ie station) and stores and of course not too far from Short Hills Mall! The house does need some touch ups (to suit our taste), but we were fine with that since DH seems to have an eye for it.

We won''t move till end of the year (I still want to have the baby here in nyc and not deal with moving, prepping home right before or right after the baby''s here).
Anyway, keep me posted on your search--if we end up in the same area we''ll have to hang out! Especially if you have a LO by then!
emsmile.gif
 

blushingbride

Brilliant_Rock
Joined
Nov 10, 2006
Messages
1,653
Date: 7/21/2008 11:44:26 AM
Author: janinegirly
hi blushing and welcome back!!

we are still in attorney review, so it could still fall through (I hope I''m not jinxing it by talking about it..), but figure I can share it here.
anyway, we decided on summit because it is an established town (will hold it''s value) and has a wall street community, lots of kids, good schools,etc. Those towns you mention also fall into that category though, so it might come down to which town you connect with in the end.
Also, a short commute was v. important to us, and summit has an express train of 35 minutes, plus parking for residents. Our future home (fingers crossed all goes smoothly) is also in solid neighborhood, only a few minutes drive to town (ie station) and stores and of course not too far from Short Hills Mall! The house does need some touch ups (to suit our taste), but we were fine with that since DH seems to have an eye for it.

We won''t move till end of the year (I still want to have the baby here in nyc and not deal with moving, prepping home right before or right after the baby''s here).
Anyway, keep me posted on your search--if we end up in the same area we''ll have to hang out! Especially if you have a LO by then!
emsmile.gif
Thanks so much for sharing esp. about the express train! I had no idea about that. Do you mind me asking about the taxes in that area? I know nowhere is safe in Jersey as far as taxes are concerned, but just curious. Sounds wonderful and I wish you, DH and little bean all the best in your new home! Fingers crossed everything goes smoothly for you guys.

I''ll definitley keep you posted on our move the ''burbs too. Our plan is to stay in the city another 2 years or so until DH finishes his latest project (we are actually moving to a new builiding in our current neighborhood this Friday). We plan on this being our last move in the city and our next move will be to the ''burbs!

We bought a condo a few months ago as an investment property which we upgraded and rented out. We were planning on selling it and using the profit as our down payment for a house, but looks like we are probably going to keep it. So, we need to save again before we move.
 

janinegirly

Ideal_Rock
Joined
Sep 21, 2006
Messages
3,689
I think taxes in all 3 towns are pretty comparable (Summit, Westfield, Chatham,etc). It''s high everywhere in NJ (like you said), but seem to be lower than Princeton area for some reason (I think you were looking there as well). The best thing is to start looking on line for your range (size and price) and see how taxes look to get a rough idea.

Chatham and other towns on the summit train line are also very good commutes. Westfield has a slight issue in that you have to switch at Newark, and well, we weren''t too excited about that, but there are buses too--and lots of people do it.

Oh, you have 2 more years..oh well, I was hoping you''d move sooner so we could compare notes
emteeth.gif
. Good luck on TTC, i have a feeling you''ll be successful soon and maybe that''ll make you move to the burbs a bit sooner! I love the City, but our apt is too small and daycare is too pricey,etc etc.
 

blushingbride

Brilliant_Rock
Joined
Nov 10, 2006
Messages
1,653
OK, thanks...I figured it was basically all the same. But, it''s that way too in West Chester and Long Island so, you can''t win no matter which way you go.

I know..I would love to be moving sooner too, but the condo we bought was an unexpected decision (although I''m glad we made the investment) and just need to wait for hubby''s job to wind down after this new project.

I heard there''s an adjustment period of about 6 months when moving from the city to the ''burbs...I''m sure it''s going to be an adjustment for both of us, but I''m excited to "take the plunge."

Keep us posted on how things go - I''ll be really interested in hearing about your opinions, etc.
 

curlygirl

Ideal_Rock
Joined
Apr 9, 2005
Messages
2,637
Holy crap, janine, I just saw this post. CONGRATULATIONS, although I don''t want to jinx it!! I really hope it all works out for you, I know this is something that you have wanted to do and your timing couldn''t be better. Please keep us posted on everything. So excited for you!!
36.gif
 

janinegirly

Ideal_Rock
Joined
Sep 21, 2006
Messages
3,689
Thanks Curly!! I''m sad to leave the City but also excited for a new phase. We''ll be here for several more months, but long term, our place is too small and daycare is too $$. We''ll just rent out our current place, so not totally cutting ties.
Summit is only a 1/2 hour train into Penn and apparently full of NYC transplants/commuters, so hoping for not too much culture shock!
emsmile.gif


We''re through attorney review so now things look pretty solid unless for some reason we see something we don''t like from here on out (inspection,etc).

Thanks again and good to see you back, lovvvvve the picture of Lily in PR. And nice to know someone who travels with a LO and preggos! I hope to travel a lot with my LO...
 

akw94

Brilliant_Rock
Joined
Feb 10, 2006
Messages
1,937
Hi Janine,
Congrats on getting the house! You''ll find that there is an adjustment w/moving to the burbs but it is worth it. When I moved out of the city, I did it for my son. I am SO happy I made that decision. I saw the changes in him pretty quick. He loved living in the neighborhood near his school, seeing his friends around the area, walking to school (as he got older), having friends over, going to play basketball.. it made a huge difference in him. I think it''s worth it! Good luck w/all the closing issues.
 
Status
Not open for further replies. Please create a new topic or request for this thread to be opened.
Be a part of the community Get 3 HCA Results
Top