Negotiating a House

[Nick777]

Ok, so this isn't really a credit question, but -

I just put an offer in on a house that was listed for $234,000.   I offered $200,000 + 3% seller concessions, or $206,000. 

The seller came back with $226,980 + $7,020 concessions = $234,000.

So, there is a gap of $28,000. The most I want to pay for the house is $219,196, as it is a duplex, and this is the amount that would reach the target income level if it was rented completely (I would live in one half normally, but in case I moved out-)

So, I would have to get them to go down $14,804, and I would have to go up $13,196. 

I'm wondering if I insulted them with the offer and that's why they came back with no reduction, except seller concessions, which are standard anyway? Should I even bother dealing with this, or just find another place?  How could I get them to get to my target price? 

[Anonymous]

Do you have a real estate agent working for you (a buyer's agent)?  If so, that would be the best person to ask about negotiating tactics.  My take would be that if you know exactly what you need/want, re-counter with that.  If they accept, then great, if not, have you really lost anything compared to moving on without the re-counter offer?

[Nick777]

Yes, I have an agent, from realestate.com.  She's clearly inexperienced, and I've done 99% of the work myself. Every time I ask something, she really doesn't know what to say. So, she's pretty much useless. Very nice, but nearly useless. She gets me the MLS listing, and has the forms to fill out, but that's about it.

[Anonymous]

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@Nick777 wrote:

The seller came back with $226,980 + $7,020 concessions = $234,000.

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If they're offering $7,020 in closing costs, then that's money YOU receive. So really you're paying $219,960.

I think that's the way it works.

[Junejer]

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Nick777 wrote:

Ok, so this isn't really a credit question, but -

I just put an offer in on a house that was listed for $234,000.   I offered $200,000 + 3% seller concessions, or $206,000. 

The seller came back with $226,980 + $7,020 concessions = $234,000.

So, there is a gap of $28,000. The most I want to pay for the house is $219,196, as it is a duplex, and this is the amount that would reach the target income level if it was rented completely (I would live in one half normally, but in case I moved out-)

So, I would have to get them to go down $14,804, and I would have to go up $13,196. 

I'm wondering if I insulted them with the offer and that's why they came back with no reduction, except seller concessions, which are standard anyway? Should I even bother dealing with this, or just find another place?  How could I get them to get to my target price? 

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This is business. I understand what realtors mean when they say this, but there really isn't any such thing. It's an offer for what you are willing to pay.

[Anonymous]

Generally if you're asking for seller concessions, you'll be expected to come up a bit on price to mitigate that. You can't expect to get the house dirt cheap AND several thousand in concessions, unless you luck into a situation where the seller is desperate. That said, you could definitely counteroffer. Has your realtor checked comps to see if your offer is reasonable for the area?