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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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HOUSE - counter offer
the first house we put an offer on was declined.
we found another house. so lovely. small and cute.
we put in an offer. they countered.
but i'm not 100% sure i want to accept the counter offer.
they aren't asking for more money, they are asking for promises that i don't know i want to make.
let the nervous tummy ache begin!!!
i'm breaking down the numbers and we're comfortable with the numbers... so why am i so nervous? oh, how i wish my stomach wouldn't do this to me.
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Posted 2/16/22 3:34 PM  |
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ali120206
2 Boys
Member since 7/06 17792 total posts
Name:
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HOUSE - counter offer
What kind of promises are they asking for?
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| Posted 2/16/22 3:35 PM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: HOUSE - counter offer
Posted by ali120206
What kind of promises are they asking for?
the latest trend is...
giving hypotheticals for easy math.
if i offer $520k and the house appraises for $500k, they are asking that i guarantee the $520k price... which means i'll be borrowing $500k and giving the seller a check/wire for the $20k difference... or whatever the difference would be between the appraisal and the offer that was made.
they also want a 21-day escrow instead of the 30 days (which is the standard).
finally, they want me to up the escrow deposit from a minimum of $5k to $15k
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| Posted 2/16/22 3:49 PM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: HOUSE - counter offer
Posted by MarathonKnitter
Posted by ali120206
What kind of promises are they asking for?
the latest trend is...
giving hypotheticals for easy math.
if i offer $520k and the house appraises for $500k, they are asking that i guarantee the $520k price... which means i'll be borrowing $500k and giving the seller a check/wire for the $20k difference... or whatever the difference would be between the appraisal and the offer that was made.
they also want a 21-day escrow instead of the 30 days (which is the standard).
finally, they want me to up the escrow deposit from a minimum of $5k to $15k
Not sure where you live but that sounds pretty normal in this market.
Many people are offering over asking and if the bank doesn't appraise the house for that price the buyer needs to come out of pocket.
The escrow also seems fair at least here in NY. The more you put in escrow the more committed you will be. I think our escrow was the entire DP..Good luck!
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| Posted 2/16/22 6:07 PM |
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Diane
Hope is Contagious....catch it
Member since 5/05 30683 total posts
Name:
D
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Re: HOUSE - counter offer
Unfortunately that is what is happening more and more because the houses are going for above asking.
This is quite normal.
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| Posted 2/17/22 7:16 AM |
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Sash
Peace
Member since 6/08 10312 total posts
Name:
fka LIW Smara
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Re: HOUSE - counter offer
I personally would not waive the appraisal contingency. My house appraised for 50K below the ridiculous # the owner was asking. I would have been on the hook to pay 50K out of pocket on top of the renovations. Also after we bought it the AC in the first unit when to shit and we had to fix the sewer line. So keep that in mind, there may be other costs once you buy the house. Protect yourself as much as you can because in this market no one is really looking out for the common buyer.
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| Posted 2/17/22 8:12 AM |
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RomeyT
LIF Infant
Member since 1/21 355 total posts
Name:
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Re: HOUSE - counter offer
Posted by Sash
I personally would not waive the appraisal contingency. My house appraised for 50K below the ridiculous # the owner was asking. I would have been on the hook to pay 50K out of pocket on top of the renovations. Also after we bought it the AC in the first unit when to shit and we had to fix the sewer line. So keep that in mind, there may be other costs once you buy the house. Protect yourself as much as you can because in this market no one is really looking out for the common buyer.
Yes-I would agree to everything but the appraisal. You could be putting yourself in a bad position, financially. Good luck.
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| Posted 2/17/22 9:09 AM |
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Deeluvsvinny
DONE
Member since 10/08 4952 total posts
Name:
Whatever
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HOUSE - counter offer
The market is crazy right now. I'm in the business. Every house is going above asking...and appraisals are not all coming in that high. But, most sellers are asking for the appriasal contingency yours are asking for. Most are getting it-- it's a seller's market right now. I'm not saying you shold agree- it's definitely case specific.
You have to figure out what you are willing to pay for that specific home- do you plan to stay forever? Will you be okay knowing you paid over the appraised value? For some people- they can't get past that and some people say "I don't care what I paid, I love my home and it's worth it to me" I always say a home is worth what YOU are willing to pay for it.
There are so many veriables:
Is your initial offer already over asking? Are there other offers? How long has it been on the market? Do you have the extra cash to put down and still leave yourself a nice cushion?
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| Posted 2/17/22 9:10 AM |
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Sash
Peace
Member since 6/08 10312 total posts
Name:
fka LIW Smara
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Re: HOUSE - counter offer
Also you can lose your deposit if you decide that you can’t pay the difference and back out. Keep that in mind.
Eta: I find it interesting they want you to waive the appraisal contingency and want more deposit money. So basically more money for them to keep if the deal falls through.
Message edited 2/17/2022 10:50:26 AM.
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| Posted 2/17/22 10:34 AM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: HOUSE - counter offer
we ended up not accepting their counter offer because of the two reasons most are saying... the deposit and the appraisal.
after i declined, i drove by the house and realized something i hadn't noticed before.
the house is much closer to an active train track than i would like. guess it all worked out in the end lol.
now, we keep looking 
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| Posted 2/17/22 11:00 AM |
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