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Depends on the market in your area. There's a very small 800 finished square feet home for sale around here for 50k... I did not get a look at the inside but the outside is in excellent shape... newer shingles, vinyl siding in good condition, just needs a washing... newer windows, good gutters, flashing, and soffits.. no real exterior maintenance to the home needed. I'm not in the mood to be a landlord though but I thought about putting in a lowball offer of 40k to see what happens. It supposedly has a half basement but there's no pictures of it... anyways it's sat on the market because it's small and has no garage, even though it has the best exterior for it's price I've come across... ever.
What is someone going to do with a home smaller than most mobile homes, with no garage but a storage shed? Rent it out, probably.
^^^ Agreed. It's VERY easy to second-guess yourself, especially in troublesome markets and you do want to sell your house without seeming too desperate. Even if you'd accepted his offer outright (was it a clean contract?) he might have gotten cold feet since you were so eager. Even if the contract was air-tight all-cash it still had an inspection contingency right? As much as I hate to sympathize with r.e. agents I don't blame this one for being blindsided in this instance.
I've never accepted a first offer, I've always countered. But then I like playing hard-to-get, which you can't always do, especially these last few years.
Does a counter-offer make the original offer expire immediately, or do you still have the option to accept it? If the latter, it seems like the rational strategy is to ALWAYS counter.
Does a counter-offer make the original offer expire immediately,
or do you still have the option to accept it?
If the latter, it seems like the rational strategy is to ALWAYS counter.
The rational strategy is to have a solid understanding of the market and where your property
sits within that market so that you can price it correctly and later distinguish a bid from a lowball.
iow: If your property is actually worth $120,000 you don't list it for $99,000.
otoh, if after X days on market without any offers the ONLY offer is 13% less than that...
> Does a counter-offer make the original offer expire immediately, or do you still have the option to accept it?
There is no textbook for accepted standards in the real estate business. The buyer can still say I'm still winning to buy at the first price or he can choose to move on. It's even more subject to behavior volatility if they are not using a buyer's broker, who might follow market convention.
Got a call a few hours before our counter expired, the buyer decided to look at a house that is "just coming on the market on Monday" before he moves forward with us.
We are beyond sad we didn't take that first offer. We are waiting to see if we get any call back/interest from this buyer. Our realtor is pretty upset, and says this isn't how this normally goes. We are wondering if this buyer will submit another offer today that is lower than his first.
What has your experience been? Have you taken first offers before?
Contact them and ask to resubmit. Your realtor saying its not how it normally goes is way off. It's real estate. Can't predict a buyer from a previous buyer. I've been submitting single offers for investment properties at prices that I think they are worth. No countering unless sellers are motivated.
Does a counter-offer make the original offer expire immediately, or do you still have the option to accept it? If the latter, it seems like the rational strategy is to ALWAYS counter.
Normally but not always, the counter takes the form of crossing out a price in the contract and substituting your new price, then initialing it. Therefore an active counter supplants any and all previous offers.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Quote:
Originally Posted by crescent22
> Does a counter-offer make the original offer expire immediately, or do you still have the option to accept it?
There is no textbook for accepted standards in the real estate business.
Actually, contract law is pretty darn specific about the nature of contracts and the standards by which the law applies no matter what business the contract may be about. Of course this might vary based on the state in which the contract is written and applicable law in that state.
There's probably hundreds of textbooks on the subject.
Does a counter-offer make the original offer expire immediately, or do you still have the option to accept it? If the latter, it seems like the rational strategy is to ALWAYS counter.
In NC, yes. The counter is a rejection of the original offer - thus killing it. The buyer can return with the same terms - or any other terms.
OP - You could have your realtor contact the buyer's agent and see if they are still interested. If they hedge, you, as the seller, can actually make an offer to the potential buyer. You could go back with the offer they made you. It really depends on whether you need to sell the house now - or can wait until another offer comes along.
Also, have your agent do a current market analysis - CMA. If it has been a while, the market could have changed and the market value of your house could very well be the price you were offered.
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