i'd slow down the whole process until 12/15, and see what these others might bid...It is not like the offer you have is something you'd take promptly anyway..But i'd also be savvy enough as not to lose the offer either..It is a fine line you need to walk, but it should be relatively easy to accomplish..good luck

Your situation can probably be encapsulated in the saying of the bird in the hand being worth two in the bush... but that being said I would, in your situation, try to stall with something... it's really just two weeks or so. Take a 'vacation' perhaps?

I agree the 15th is right around the corner.
Rosa

You mentioned that the offer on the table is $100K below your asking price. But what is it as a percentage of your asking price? It's 95% of a $2 million asking price, but 50% of a $200K asking price--those are very different.

In any case, holding off a couple weeks seems like a good idea. Is there an expiration date on the written offer?

also, are the people with the defnite offer, still at $100k less than asking? That's huge, even if you are dealing w/ a $600k house.

Why so much less? Slowing market, mispriced in the first place...

But if you've taken 8 months to get any offer at all, it sure would be frustrating to lose one.

If you DID lose the "bird in the hand" and the one in the bushes never came out, how bad would that be?

In our case, our mantra is "no offer at all is better than a bad offer." We don't *have* to move, much as we'd like to. And we'd rather not move than end up borrowing $30k more than we planned.

Its actually 106K less than our asking price of $995. (About 11% less). Our price was reduced twice since last April and now is below the assessed (and appraised) value of our house. Needless to say the market is not so great in our area and antiques are not moving around here--everyone wants a new McMansion. These folks have been trying to strong arm us into signing the offer asap. They say if we don't sign by tomorrow, they will withdraw the offer. I also found out they have a history of low balling two other homes in the neighborhood prior to us with similar tactics. We do need to move as we are currently carrying two homes. The other family would also want a long closing (spring) so that they have time to sell their home (not contingent at least). We could continue to carry the two houses but what's the point of waiting for a better offer in hopefully a better market this spring when we have to carry the house all winter. Ughh!

Have you countered their written offer yet? That's the first step I would take, that buys a few days in negotiations. If they're offering less than you are willing to let the house go for and won't come up to a price you both deem to be agreeable then you need to find out now and move on. It sounds like however, that you're willing to take their price only if the other couple doesn't come through with a higher offer. Reality is that the other couple hasn't made you a written offer and there is a great chance they're not going to make a written offer, someone saying they are going to make an offer is not the same as making an offer, I wouldn't trust it. Are the finances of the first offer in order? Do you think the deal will come to a close or is that sketchy as well. We once accepted a lower offer on a home because the person with the higher offer had sketchy at best finances, we preferred the sure thing close.

Cordovamom offers good advice. Where are you, and what is your market like? I have to say that if you have sat for eight months after two price reductions, your house is probably overpriced. Only a small number of people can afford million dollar houses, and they have a lot of choices. Unless there is something unique about your property, you should take the first realistic offer that comes along.

how is 11% off asking price a lowball offer considering the house has been on market for 8 months wihtout a single offer?

Well if you are fine with the 100K lower and don't want them to beat you up at inspection time you can counter with that and say you are not fixing any inspection items. Of course this may backfire on you too.

Also if you sign with the first one now and they have an inspection (usually within 10 days of offer) you could write the contract so that you could pull out if they try to re-negotiate after inspection like you suspect. I would think that happens around the Dec 15th period so that would be another way to stall it by allowing you to pull out after the inspection if any negotiating is going on. I mean if you got an offer around that time too as a back-up you could always use that to say no you're not fixing anything to the first buyers and then it is up to them to leave or stay.

Whatever you do I wish you Good Luck!

I think that I would be inclined to accept the low offer and encourage the 2nd buyers to make a back up offer. Have your agent explain to theirs (the 2nd buyers) that the 1st buyers have been a bit difficult and are demanding an answer now, so you can't wait until the 15th for them to make an offer, but would love a back up, in case the difficult buyers back out.

When we purchased our house we obtained it for 100K less than the original asking price (but it had been reduced some). The sellers let us inspect it but would not be responsible for any repairs. The inspection didn't turn up anything major and everybody was happy.

Thanks everyone for some great advice. For the person who doesn't think that 11% is that much off--unfortunately we are in the NE and prices are dropping fast. We had already reduced the house 200K in the past few months--100K a month after listing and another 100K in last month. The house is not overpriced. Its appeal is with a very small market (it is a 1700's colonial among newer and much more expensive home and as such you probably couldn't give it away to some people.)

We just heard back from the broker and now the buyer is requesting a closing date in June. That kind of negates a quick closing and saving money on carrying costs over the winter--back to the drawing board.

Wow, sounds like either way you are stuck. You could accept it and put on a kick out clause. Meaning, you still show the house. If you receive another offer that is better, than they can either beat their offer or get out. I don't know if you use these clauses in NY though.

I am sorry, but if you have been on the market for 8 months your house is simply too expensive. As you said, people who can buy at 1M apparently prefer something newer. You apparently don't have a house that is worth as much as you want.

I was in a similar situation (not price wise but had one so-so offer and another interested family who might have offered more) and tried to stall for 24 hours with the effect that the so-so offer was withdrawn. Interestingly, in that discussion thread, qdognj's comment was that this was my fault, I should not have stalled (to quote: "I disagree, i'd pull my offer if you strung me out"). Now he suggests that you stall for more than two weeks ?!?!

ok, time to defend myself,lol..

Interestingly, in that discussion thread, qdognj's comment was that this was my fault, I should not have stalled (to quote: "I disagree, i'd pull my offer if you strung me out"). Now he suggests that you stall for more than two weeks ?!?!

1st, the offer this person has is not a definite, as offers and counter offers have gone on for over a month.2nd, when the original post was made it said 100k low-ball,not knowing from what price point that was from when i made my comment,i stated to hold off..Now subsequently, it is now known the 100k is from a almost 1 million $$$,so the offer ,imho, is a fair one, and if all other hurdles are overcome, i'd take it asap...
Does that clarify things jrldh?

"...everyone wants a new mcmansion"

Counter with a 1% increase and get it done.

Its actually 106K less than our asking price of $995. (About 11% less). Our price was reduced twice since last April and now is below the assessed (and appraised) value of our house.

I'm a bit confused. Is the offer 106K below the current asking price of $995K? Or is the offer 106K below the ORIGINAL asking price of $995K (before the price drops)? If the latter, then what's the current asking price?
In any case, if the house has been on the market 8 months without a nibble and this is your first firm offer, an 89% percent offer isn't bad. As a matter of fact, it sounds
about right.

Counter if you want to keep the conversation going. Staying firm at $995K probably isn't a good idea.

jy md: "if the house has been on the market 8 months without a nibble and this is your first firm offer, an 89% percent offer isn't bad. As a matter of fact, it sounds
about right."

Agree. Having this new info changes things and my reply. Now the bird in the hand looks even fatter. I suggest you try a small jump, say 3%, and if they stand firm, swallow your pride and start plucking feathers. Much as I hate to see prices being dropped, this home has all the signs of being overpriced (based on your info so far). The fact that they 'lowballed' two other homes (in whose opinion?) should not color your perception, and it certainly won't change reality.

It sounds to me like the offer is 25% below the original asking price.

Is the market in the NE that bad or was the house way overpriced to begin with?

What kind of deposit do you get in your area? Because even if you can live with 995k, it's going to be six months before you can get your hands on any of it. What if they start to play games?

I'd be tempted to take the house off the market until after the holidays and re-list. If the market in your area has already dropped 20-25% I'd be tempted to take my chances that it won't drop further and at least try for some buyers who are willing to close sooner.

But really there's not a lot of info here to go on.

I think all homes in the NE are overpriced (I live there). In the OP's defense, the market is not just slow, its dead here. I mentioned this in another thread but my inlaws had their home on the market (started at 800k at the height of the market) went down approx $50K twice to $699K. House sold at $605. House was priced right based on comps, but not for the market.

Anyway OP - I would counter the first offer to see if they'll move and I'd ask for an earlier closing. From my in-laws experience, they didn't take the $605 offer at first (buyers didn't want to budge). After a couple of weeks of realizing that they were paying for an empty house (house on the market for 8 months too), they took the offer. It ended up saving them boatloads.

The house has been sitting on market for 8 months with no offers means that it is overpriced. You may not like it but that seems to be the right assessment. Every house regardless of the condition/age will sell if the price is right.

Here is one approach that may help sell the house in a rapidly declining market...It seems that you are still some how comparing the received offer with the original list price of 8 months ago. If the market is really dropping fast than you and your realtor really needs to stay on top of the recent SOLD comps. Given there is plenty of new consturction in the price range, the best approach would be to aggresively market your house i.e. start with listing your house at 95% of the latest SOLD comps and see if showcasing your house as a "bargain" generates any interest. You may have to do this exercise every month in a buyers market.

If the peak has passed in your local market and the trend is downward then the best approach is to stay ahead of the curve rather than following it all the way down.

Regardless of market condition, having a house for sale for such long time can be really stressful at times. I really hope that you find a buyer soon. Good luck with the sale.

Posted by lil-sister (gw:lil-sister) on Wed, Nov 29, 06 at 14:30

Its actually 106K less than our asking price of $995. (About 11% less). Our price was reduced twice since last April and now is below the assessed (and appraised) value of our house. Needless to say the market is not so great in our area and antiques are not moving around here--everyone wants a new McMansion. These folks have been trying to strong arm us into signing the offer asap. They say if we don't sign by tomorrow, they will withdraw the offer. I also found out they have a history of low balling two other homes in the neighborhood prior to us with similar tactics. We do need to move as we are currently carrying two homes. The other family would also want a long closing (spring) so that they have time to sell their home (not contingent at least). We could continue to carry the two houses but what's the point of waiting for a better offer in hopefully a better market this spring when we have to carry the house all winter. Ughh!

Posted by lil-sister (gw:lil-sister) on Wed, Nov 29, 06 at 12:57

I need some help here. Our house has been on the market for 8 mos. and we finally got a written low ball offer-- we've been negoitating with this buyer for over a month. They've offered over 100K less than our asking price. Here's the problem--we have another interested buyer that brought a contractor through and wants to make an offer (they are from our town and want to remain here). The broker said they'd like to make an offer but it can't happen untill Dec. 15 when they find out a financial issue which would dictate how much they can offer (end of year bonus?) The broker indicated they would offer substantially more than these other folks. Not knowing if this is a sure thing has me sitting on edge trying to decide how to stall these other folks. They have been very difficult to deal with and am not sure they won't try to beat us up even more with a home inspection (our home is an antique and will need some work). Any advice you guys could give me would be appreciated and tired of the selling game. Thanks.

If I'm understanding the numbers, the current asking price (after previous price drops) is $995K and they have offered $106K less, or $889K. I'd counter at $900K "as is" (i.e., no repairs at inspection) and see what happens. I'd also include an earlier closing in the counter.

I don't understand the idea of closing in June. What they're saying is, in effect, 'we want to buy this house now, but we don't want to pay for it until june.'

If they don't want the house until june, they have no business house-hunting now. If they want to wait to move in, fine--but buy the house now and you can move in whenever the heck you want.

I wouldn't accept an offer w/ a closing 7 months away.

A lot can happen in 7 months. Perhaps your buyers will have financial difficulties and won't even qualify to buy your house in 7 months??!! Then you'd have "reserved" your home and missed out on other buyers for a bit of earnest money. Wouldn't be worth it to me.

If you have equity and can sell for less, I'd try to meet them in the middle somewhere price wise, and do a max of 90 day closing. If they are really serious about wanting your house, they will figure out a way to meet your request of a quicker closer.

I tend to agree with poster above... they have no business house hunting if they don't want a house until June. Casually looking at Open Houses would be fine, but tying up your house for that long seems to me to be a huge risk. I'm just not a gambler, and I wouldn't agree to a closing so far out. Maybe they're just trying to see if you are a desperate seller??

I say be a bit flexible on the price (think of all the headache it could save you to unload this house), but be firm on a closing date. Let them know you mean business, and aren't desperate enough to play foolish games.

I think when a house comes "too easy" a buyer begins to wonder what is wrong with the house. You have a quality home for sale. Make them happy by giving them a discount, but don't look desperate by meeting that ridiculous closing request. I think the price reduction will make them happy, and the closing date sooner will help ease your pain of the price reduction. That's my .02. :o)

Oh.. and just let the other interested party offer a back-up offer. Who knows if they will have second thoughts and even give you an offer. Work with the one you have on the table until it becomes clear that it will/won't be a deal.

Good luck! We're rooting for you, lil-sister.

I wouldn't accept a closing 7 months away unless the escrow was enough to cover carrying costs until then plus having the sale price be high enough to be what I want to sell for plus seven months of carrying costs.