I'm so sorry. Your house seems very reasonably priced; you just have a really awful economic climate to contend with. Best wishes.

Wow, that is quite an ordeal. I don't know what to say. I can't believe you got such a low offer. I guess it really depends on how desperate you are to get rid of the house. I don't think I would have negotiated with them if I were you. I know when I sold my house in Columbus I got an offer that was 10k less and was a little offended. I wish you the best of luck!

Offers like that are kind of par for the course in this market. I can't blame a buyer for trying for a lucky strike, but it is frustrating and yes, insulting. You may want to tell your realtor that you will not accept offers from buyers that are not prequalified. Other then a cash buyer, anyone that's serious about buying a home will get themseleves prequlified.

That buyers realtor is wasting their time and yours in even showing them homes over $140K if that is what they are approved for. I can see getting a home for $145K or so for $5K less....but I wouldn't have expected to get your home for that much less. Sorry it's not working out. Our first offer on our last home was $12K less and we laughed...it was a hot market and our out of state buyers obviously didn't realize it. They seemed surprised when we countered for darn near to full price.

We were insulted once by a low offer, I just wanted to reject the offer out right, my husband on the other hand wanted to know what the problem was with the buyer. Turns out it was a young couple that had the income and could qualify for a high mortgage, they were just cash poor so to speak. We ended up negotiating the price of the house up over what we were asking, but in turn we paid their closing costs. This was before 100% mortgage's were common and people actually needed a down payment. The point is, even though I was insulted, it worked out in the end to negotiate with the buyer, in your case however, it seems as if this couple is clearly looking at property that is out of their price range. Good luck, hope someone else comes along soon.

Good for you for not flat out rejecting such a silly offer. At least you know you did what you could to make it work.

There are a few things that should make you feel better that this one doesn't seem like it's going to work. I could be speculating here, but I see a couple of red flags: why did the buyers' initial letter expire? Was it because they've been looking for a house for a long time (it sounds like they want something for nothing based on their offer) or was there some change in their financial situation that required a new letter or were they not really preapproved prior to this week so were looking at homes they could not afford?

The second thing that makes me wonder is the $6000.00 in closing costs for the buyer? What does this include? You said they were doing 100% financing so I assume it doesn't include any kind of down payment. I know costs vary enormously from area to area, but the only time I would see costs that high for a buyer are when they have a low credit score, have to get a subprime loan, and pay a lot for it both in interest and costs. The most I think I've ever seen here is about $3000 (for a bad credit risk) which included all loan costs, homeowners insurance, refund for the inspection, and title company charges for an $85,000 house.

(I do recall reading recently that IN has one of the lowest average closing costs in the country though so it might not be an issue in MI.)

I'm also curious about the buyers' realtor cutting their commission? Did you actually put that into the counteroffer? I'm sure your agent will also put that into writing with you since you technically owe the entire commission to your agent, nothing to the buyers' agent.

I looked at your home pictures--obviously a lovingly cared for home. Best wishes that it finds a new owner very soon.

"I'm also curious about the buyers' realtor cutting their commission? Did you actually put that into the counteroffer? I'm sure your agent will also put that into writing with you since you technically owe the entire commission to your agent, nothing to the buyers' agent."
That would be incorrect for our listing contract, which spells out how much a co-operating broker gets paid.

nancy in mich wrote: This buyer just cannot afford the house. So no good news from here, today.

Nancy, I am so sorry. It is SUCH a let down to hear that an offer is coming in and then to hear the dreaded: "Now don't be insulted" or "We can't believe it" from the Realtor(s) right before they give you the number.

I don't think our lowball offer buyers could afford our house either but they thought they might get lucky.

I hope you get another (really good or at least acceptable) offer very soon!

"The second thing that makes me wonder is the $6000.00 in closing costs for the buyer? What does this include? You said they were doing 100% financing so I assume it doesn't include any kind of down payment. I know costs vary enormously from area to area, but the only time I would see costs that high for a buyer are when they have a low credit score, have to get a subprime loan, and pay a lot for it both in interest and costs. The most I think I've ever seen here is about $3000 (for a bad credit risk) which included all loan costs, homeowners insurance, refund for the inspection, and title company charges for an $85,000 house"

Umm...I am not a bad risk and I don't have a subprime loan. I assure you that my closing costs especially when I consider homewoners insurance are well over $6000!

kats meow--you might have noticed I also stated that this varies enormously from area to area. I also asked what this included. As I recall the home you are purchasing is at least double the price of nancy's. Even in the $400-500-600,000 I've sold I have not seen these kinds of costs. That includes the HO insurance but obviously not the downpayment.

Here is a link to the survey I mentioned regarding closing costs.

Here is a link that might be useful: Nationwide closing cost averages

"we are already priced at $5000 below what the house across the street sold for in October, and we have 500 more sq ft, 40 ft more frontage and all new paint and refinished oak floors."

Any idea why the buyers bought your neighbor's house instead of yours?

ff - three car, tall mechanic's garage with illegal furnace and urinal on a smaller lot that needed less maintenance and a half-finished (but old and wood paneled)basement! The guy wanted the garage and the house was secondary. Still, though, it is a comp for us because all the houses on our street are essentially the same house, just differing in kitchen size and additions. Ours is the only one with an attached garage, thus the only one with the bonus room.

I understand that the buyer knew she could not afford our house and was just taking a chance that we would be desperate enough. Her realtor did not want to put the bid in.

I don't know why he is showing her homes so far above her price. I wonder if she is the young girl I had some through when I was FSBO.

Thanks all, for the support.

The nationwide average on closing costs was based upon a $200,000 loan. A lot of these will vary with the size of the loan.

I will say that I have bought several houses in my life and my closing costs (especially if including a prepaid like insurance) have been well above the numbers you suggest would show being a subprime borrowed. I assure you that I am not a subprime borrower.

Oh, berniek, I forgot to answer your post. Our agreement with our agent is for 5.5%, 2.5% to him and 3% to the buyer's agent. It is stated in the listing that we are paying 3%, I just figured that if we were all taking hits, I'd try to spread the pain around. The agent and buyer could refuse that part, I figured.

One thing I've learned selling by owner is that a lot of people come through the house who really have no intention of buying at this time or simply can't afford it and are trying to get a lucky deal. I saw a couple take a flyer on our house, then we got a phone call a few seconds later from their car. They said they were relocating to the Chicago area from California and wanted to buy in our town. Could they see the house right away? Sounded good to us, so we cleaned up quickly and they came through. They loved the house, then announced that they really don't plan on buying anything until next May, when their daughter graduates from eighth grade. Hopes dashed once again, and I felt like saying, "Then why waste our time now? We can't wait that long." But, you never know, I guess, and I simply smiled and said, "Oh, okay." :-) We also got a lowball offer from another couple--it's very frustrating.

I am sorry that your offer was so off the mark....so completely frustrating.

Your kitchen is so nice, and the right buyer will come along for you. Hopefully sooner than later.

Good luck, Nancy. I hope that market picks up soon.

It sounds like the negotiations are over. I am so sorry. I can't imagine having two homes to deal with. Hopefully the market will pick back up. I wish you the best of luck.

Does their offer have an expiration? If it does not, you might not want to reject the offer outright... I mean, in a worst case scenario, $140K might start to look pretty good after sitting on the market another 6 to 12 months...

mfbenson,
It could, but as DH says,we could pay the mortgages and utilities on that house for another year for the $15,000 below asking and the $6000 she wants us to pay in her closing costs. I might consider one of those, but not both. A low, low sale and giving her $6000 to close is just too much.

We have had more showings in the past three weeks than in the three previous months, so the market just may be picking up, like the newspapers say it is. At least the lookers at this time of the year are serious about buying.

We remain open to all options, within reason.

Keep your chin up girl!
Kathy G in MI (who is still holding her breath on our closing)

I'll hold my breath for you, too Kathy. Dec 15, right?

Hoping Dec. 15, haven't had a solid date set yet. Still holding my breath.
Kathy G in MI

I agree that an offer that amounts to 134K is too low, even considering the market. But since you got that offer, you may well get one for maybe 10K more and one like that would be worth considering.

My husband's secretary recently sold her house in Sterling Heights for 150K. It sold within two weeks. It sounds like it's similar to yours. I'm guessing that 150K may be the tipping point for a lot of buyers. From what I've heard, there are far more buyers in the starter house price range than for the more expensive houses.

I hope you get some good news soon.