Earlier today I presented an offer for one of my buyers on a condo just outside of our planned community.
After pulling the comparable sales in that complex and a couple of neighboring properties of the same construction we determined the asking price was higher than what it should appraise for. My clients really liked this one. It had some upgrades and 2 parking stalls that were at the same level as the condo. So after researching the numbers my clients settled on a price to offer the seller.
I submitted their offer to the listings agent. Our offer was lower than the asking price by about $12,000, but higher than any of the recent closings. Quite generous being that the prices in that complex have seen price decreases over the last six months. Other than price, our offer was clean. No concessions, no special provisions and a full pre-approval with docs with a primary local lender and well known loan officer.
I get a call back from the listing agent within a half hour of presenting the offer. Their client wants to counter offer us back up to within $5000 or asking price. The problem is we are already pushing the price and do not believe there is any hope for getting the appraisal. I asked, if it doesn't appraise will your client lower the price? The response was no, they want their number and nothing less.
With several similar units for sale, their property over priced and on the market more than 3 months; they are definitely playing a dangerous game. The prices have softened in their complex and they did not seem to get the message. If my buyers purchase another unit they will have missed an opportunity to sell this property at a strong price.
I will mention a side piece of information. This property was purchased several years ago for cash, has no mortgage and has gone up more than 250% since then. It may not be relevant for the conversation of what the home is worth, but I do find it interesting when considering their demands.