When I first got into real estate I remember being told that your first offer is usually your best offer. With that in mind I always try to negotiate with every offer that comes along - no matter how ridiculous it might seem.
Last year I had three instances where good buyers had their offers fall through because sellers or their agents refused to negotiate with us. I was curious to see how those homes ended up.
1. Single Family Home in Bowie, MD
- Listed for $249,900. It was in the MLS as a 3 bedroom but the owner had converted two of the bedrooms into one big bedroom so it was actually a 2 bedroom home.
- In April 2010 my buyers came in and offered $240,000, asked for $10,000 in closing and wanted to returned to a 3 bedroom home.
- They countered at full price and said we could have EITHER $5000 in closing OR restored to a 3 bedroom.
- Since the home was being advertised as a 3 bedroom my buyers didn't even think this should have been part of the negotiation.
- We moved on put an offer on a house with the exact same floor plan where they paid $235,000 with $10,000 in closing and closed in June, 2010.
- This original home finally closed in December 2010 for $219,000.
- Originally listed for $145,000.
- My buyer offered them $147,000 and asked for $5000 in closing costs and was rejected in a multiple offer situation in October 2009.
- The contract fell through and the condo came back on the market and my buyer offered $117,000 with closing costs. His offer was accepted in April 2010.
- During the home inspection the listing agent refused to turn on the water for my buyer saying that the home was As-Is and my buyer could take it or leave it. My buyer left it because he wasn't able to inspect the plumbing system, the hot water heater, etc.
- The condo just went under contract this month and was listed for $80,910.
- Listed for $165,000. Apparent mold in the basement.
- My buyer had a 203K loan and offered $159,000 and asked for 6% closing in July 2010.
- This agent was incredibly unpleasant to deal with. He indicated that the seller (bank) would not budge from the asking price and would only pay 3% in closing costs. My buyer needed the 6% so it was a deal breaker.
- This home is currently under contract. The listing price hasn't changed but now they are offering 6% closing costs and a buyer agent bonus.
If you or someone you know would like information about buying, selling, or renting a home in Prince George's, Montgomery, Charles, Calvert, Anne Arundel, Howard, and/or Baltimore Counties please contact Dr. Stacey-Ann Baugh of Century 21 New Millennium.
Donations made to charity with every successful closing!
Dr. Stacey-Ann Baugh
Century 21 New Millennium
staceyannbaugh@gmail.com
240-481-3565 (C)
202-546-0055 (O)
FINALLY! A DOCTOR WHO MAKES HOUSE-CALLS!
Information deemed reliable but not guaranteed!
This is a great example of why sellers should seriously consider a first offer so long as it is "reasonable".
I agree - it is frustrating at times when a contract can not be reached, and as a result the seller ends up taking less down the road... or no offer at all. Good post with examples.
Featured @Club Chaos
Nothing like a true-life story to help get through someone's hard head. I may have to re-blog this later this week, since the communities are familiar to Crofton residents.
Stacey, What a great way to be able to show a seller that a thorough consideration of a strong offer is in their best interest. I bet there are a lot of homes with this same scenario. I just wonder if buyer's are waiting for the prices to drop....and if those agents are still in the business!
Bridget "Maryland Mortgage Mama" McGee