We offered 290K.
Realtor believed it was a good offer.
It was declined a day and a half later.
Today (realtor was trying to convince the seller for 2 days) she came back saying she is willing to sell it for 315K.
She is being very emotional about it.
She originally listed it at 359K (which had no basis in reality).
We are not taking it. We can afford it, but I don't believe this is the right price. I looked up records of sales in that building and they are are nowhere near that figure. They were not that high even in 2006.
I don't know if I am doing the right thing - I really like the apartment.
But I don't want to overpay by a lot.
Update on the apartment
November 7th, 2009 at 04:19 am
November 7th, 2009 at 10:05 am 1257588306
November 7th, 2009 at 11:44 am 1257594265
Ask your realtor to do a sf comparison for 'solds' for that bldg. in the past 6 months. They should be able to evaluate appliances, decor condition, cupboards/closet sf, parking etc. for each item. Do you now how long she has owned apt? Did she buy at mkt. bubble?
Any counter you give needs a 24 hr. deadline; any property is only worth what a willing buyer and seller deem it's value.
November 7th, 2009 at 02:09 pm 1257602941
November 7th, 2009 at 02:17 pm 1257603479
November 7th, 2009 at 02:26 pm 1257604001
Definitely the right thing.
November 7th, 2009 at 03:29 pm 1257607792
November 7th, 2009 at 07:33 pm 1257622425
Otherwise, let it go. There will be more deals out there.
November 7th, 2009 at 08:26 pm 1257625583
That is the only reason we are not countering. 25K extra is a lot of money to pay just for seller's emotions.
November 7th, 2009 at 10:40 pm 1257633636
November 17th, 2009 at 01:34 am 1258421678
You are absolutely right to take emotion out of the equation as much as you possibly can. I'm not sure if $290K was your bottom-line ... If not, it wouldn't hurt to throw out one more offer, a bit higher, and make it clear to the seller that it's a "take it or leave it" offer.
Snafu is right about what sets the market price of a house. When I sold my previous house, I was stretched to the absolute lowest price I would go and the buyer was stretched to the absolute highest price she would go (literally ... we're talking hundreds not thousands). I say "I" and "she" because interestingly it was the wives on both sides who were driving the negotiations.
If you did throw out your best offer, take that as a lesson for the next house you bid on ... Perhaps hold a little back for the negotiation stage.
You found 2 houses you like that were doable. You WILL find more! It is not the end of the world if you don't get either. You are learning a lot.