Advice on offer

[Anonymous]

Ok so we found a nice house 1 original owner for 44 years. The house is not updated at all but has all original kitchen, floors and bathrooms. They added a family room and a 4th bedroom in 1986 that was permitted. The house is in estate right now and are asking above market value. We offered below the asking price of $360k based on the comps per square foot but did offer a fair price of $345k which is on the high end of the square footage in the area and most houses have been updated. Now here is the tricky part. The house has been on the market for over a month and a half now. Supposedly there have been no offers. There was an open house this past Saturday and we went to see it Sunday. No one put an offer on the house after the open house and we liked the house so we did. Now we get an email from the agent telling our agent that it was a busy weekend/busy open house and multiple inquiries on the property. The estate owners have reviewed the offer but are going to reject and give us a counter offer but he will have it for us ASAP. I’m trying to figure out if his trying to get more for the house by using this “multiple inquiries” tactic. I know there’s no way to tell but I’m set that I won’t pay more than what the house is worth and being that it needs major updating I’m not even sure if I should entertain their counter offer if it is a ridiculous amount. The house is perfect for my family I won’t lie but I won’t over pay for a house that needs at least $50k-$60k in renovations either. What do you guys think?

[Anonymous]

Sounds like a valid seller's agent tactic. If I were you, I'd be like "okay, that's fine, thanks." In a perfect wordld-  They will contact you in 2 days to tell you that the previous offer fell through and if you were still interested, and at that point you offer even LESS than what you offered.  

[NC_Mtg_Loaner]

It is unethical for an Agent to lie about "additional offers".

[JVille]

They do exaggerate and the said “multiple inquiries “ not offers. Say thanks and wait and see what happens on this property.

[Anonymous]

That’s what I was feeling when he sent that message. Like why all of a sudden they have multiple inquiries on the home but you want your clients to get back to you on a counter offer ASAP. It makes no sense to me but I’m not willing to pay a ton of money for a house we will need to invest money in the remodelling. Thank you for the advice.

[CreditInspired]

There probably were multiple inquiries like:
1. How old is the HVAC system?
2. Will the Seller pay closing costs?
3. How soon can buyers close?
4. Since an estate sale, how many people have to review/approve sales contract?

Inquiries are just that—questions. Not offers. Now, in your offer, did you have contingent on home inspection? Hopefully you did because that gives you a bargaining chip on repairs.

Also, there need be no worry about paying more for a house than it’s worth because an appraisal will be done. Even if you offered $360K (which I wouldn’t since your offer is higher than comps for the area), it has to appraise at that or higher. If it appraises lower, either seller has to drop price or you walk because your financing is contingent on home appraising at or above sales price.

Does your offer ask for closing cost? If
no and the counter comes back at $360K, recounter with $15K closing, still keeping in mind that house still has to appraise.

GL2U

[Anonymous]

We offer $345k with 3% closing. I’m still waiting to see the counter offer. We don’t think it will appraise at what they are asking for. Depending on the counter I’m going to write on there about the inspection. I’ll keep this post updated.