We are really interested in a home with a list price of 320k. Problem is the comps in the last 6 months indicates a price of only slightly above 300k. We are actually willing to go higher in price from a budget standpoint. But we don't want to waste our time with this if the home is likely to appraise much lower than the contract price, especially if the seller is unwilling to lower most if not all of the list price to match. This could seriously screw up our financing.
Based on the comps, we were only willing to take the risk of paying for an appraisal to the 305k-310k range. Their last counteroffer is 313k. They stated its their final list price offer. Our realtor talked to theirs about the comp prices. Her justification for their higher pricing is "house prices are on the rise". She did not really address the data. According to our data for this individual neighborhood, they have been stagnating. There is a lot of homes for sale in the neighborhood, all sitting on the market ranging from a month to over a year. Some have slashed prices. This listing is coming up on 3 weeks. No competing offers.
So the way we see it is we have 2 options. Walk right now. Or do one more last ditch offer. Match their 313k price but with the stipulation that they have to lower the list price to a maximum of 10k if the appraisal comes in lower. If it comes lower than that, we reserve the right to walk away unless and agreed resolution can be made. I figure the worse they can say is no. And after that we walk like we were thinking of doing anyways. I say this respectfully. But the way I see it, if they are so confident that their house will appraise higher despite contrary hard data, then they should put their money where their mouth is. What do u guys think?
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source https://www.reddit.com/r/RealEstate/comments/i1jpi0/homebuyer_should_we_go_ahead_and_walk_or_make_1/
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