Was listed last July at 450K, price reductions for 2 months down to 430K, then delisted just before Christmas. Listed again a week ago now asking for 445K.

The carpet in some rooms has some stains, nothing too bad, but not "unmolested" either. Back fence needs to be replaced/falling apart. Otherwise the house is what I'm looking for, no HOA, large lot, 2006 built/newer and 2.3K sf. 4 bed 2.75 bath, like the layout, modern kitchen but not new construction fancy...but like I said the house is roomy and the layout is great for me.

I offered 423K on account of carpet, fence, time on MLS, etc. The agent countered with 430K being their number right now. Which is what she told me they'd go for on the phone earlier when we spoke.

Should I come up to say 427K or just take the 430K. It's a 15K discount. Not too shabby, and as an eventual rental, it will do OK which is hard to do in this market and to top it off, appreciation in this area is slated to be high this year on account of interest rates. It's in Algona, WA 98001...

What I COULD do is take the 430K and say 60 day close, which give me time to find a tenant for where I'm living now as I rent it back out...That said would I be better off asking for 90 day close? I have another rental that I'm trying to fill right now and would prefer NOT to have 2 vacant units at the same time if I can avoid it...

Bump....

If they were down to 430k list price, they will take 427k, if it's worth it to you at that price. The question you have to ask yourself is, will you kick yourself later if you offer 427k back and then someone gives them the 430k. But that seems unlikely since it was listed at 430k and didn't sell. Do you know if they have any other activity? 423k doesn't seem like a bad offer for them to mull over.

Hi @Jack B.

I have no idea what it's actually worth (comps, average in neighborhood, houses close value, businesses in area hiring soon  etc). Could be 80K could be 800K. If it's worth 80K then nope run, if it's 800K then take the 430 and hire them movers. So just as a general question. Is 3K worth getting the last word in the negotiation on an over 400K property? Is it one of those where If I can't get it for 427K, then I will walk and be happy? 

Good Luck!

Originally posted by @Mike Cumbie :

Hi @Jack B.

I have no idea what it's actually worth (comps, average in neighborhood, houses close value, businesses in area hiring soon  etc). Could be 80K could be 800K. If it's worth 80K then nope run, if it's 800K then take the 430 and hire them movers. So just as a general question. Is 3K worth getting the last word in the negotiation on an over 400K property? Is it one of those where If I can't get it for 427K, then I will walk and be happy? 

Good Luck!

Comps say it's worth about 475K but Redfin and Zillow say 445K. Comps can be subjective. The house sat on the MLS for 6 months priced anywhere from 430K to 450K and no sale...

Maybe what I do is offer 426K and see what they say? I can always come back in a few days and offer 430K right? Also I'd like the 60-90 day close to give me time to get my current primary rented back out, as well as another rental that is coming up with a tenant move.

I get over 7K agent commission on this so maybe I'm splitting hairs here. I dunno. Is it my IDEAL residence? No. I'm looking at similar up closer to Seattle for the same price with an indoor hot tub and indoor pool. But that house is sitting too. And everything else goes pending within days....

Have you considered offering the $430K and requesting a carpet and fence allowance?  As others have implied, $4k really is very little per month when financed over 30 years.  I think you offer the $430K but request either the carpet/fence allowance or the long escrow.  In the case of the long escrow you are basically purchasing convenience but it is also possible that with a 90 days close that the RE actually has appreciated some of the $4K prior to you making the first payment.

I would not want to lose a place for $4K.  I lost a place once for requesting a estoppel.  We literally had agreed on a price but I wanted disclosure of who owned what appliances, etc.  Someone else came in with an offer.  Poof!   Still regret that one that got away over what amounts to 4 units of used appliances.  I was stupid.

If you like the RE and the seller is not willing to negotiate in any manner, would you be fine not purchasing it over $4K?

Good luck

Well I went and looked at 3 more units today closer to Seattle (Kent/Renton) and I'm not finding anything even near this house for this price. My concern is that it sat at 450K last July on the MLS until September when they dropped it to 430K and sat until December and it didn't go pending even once...Now they have it listed again at 445K and are willing to come down to 430K...I don't know, I did like the layout of the house, NO HOA, large yard, off the street, neighbor seems OK when I talked to him, look out for each other type of guy, etc. Plus I get 7.5K commission on the deal.

Meh, I think the listing agent is kind of a naive. The house sat on the MLS for 6 months including last summer and didn't sell...so they raise the price to 15K more than the last price? Just got off the phone with her, told me she will let me know if there is no interest after this weekend...I told her my offer will not be available after this weekend.

Hi @Jack B.

"Meh, I think the listing agent is kind of a naive. The house sat on theMLS for 6 months including last summer and didn't sell...so they raise the price to 15K more than the last price? Just got off the phone with her, told me she will let me know if there is no interest after this weekend...I told her my offer will not be available after this weekend."

One thing to keep in mind is that with an investment it "sitting" doesn't mean as much as a retail seller who has found a new place or has a job out of state and must sell. Often times they get thrown up at a "Meh if I get this price I'll take it". If it is currently rented and paying for itself, there is no need to fire sale it (or take less than what you consider value) in a buy and hold scenario. It's like having Wal-mart stock over the last 5 years. If anyone offers you less than you think it's worth you hang onto it and wait. Listing it doesn't cost the owner anything until it sells. 

Hope it works out.  

Originally posted by @Jack B. :

Was listed last July at 450K, price reductions for 2 months down to 430K, then delisted just before Christmas. Listed again a week ago now asking for 445K.

The carpet in some rooms has some stains, nothing too bad, but not "unmolested" either. Back fence needs to be replaced/falling apart. Otherwise the house is what I'm looking for, no HOA, large lot, 2006 built/newer and 2.3K sf. 4 bed 2.75 bath, like the layout, modern kitchen but not new construction fancy...but like I said the house is roomy and the layout is great for me.

I offered 423K on account of carpet, fence, time on MLS, etc. The agent countered with 430K being their number right now. Which is what she told me they'd go for on the phone earlier when we spoke.

Should I come up to say 427K or just take the 430K. It's a 15K discount. Not too shabby, and as an eventual rental, it will do OK which is hard to do in this market and to top it off, appreciation in this area is slated to be high this year on account of interest rates. It's in Algona, WA 98001...

What I COULD do is take the 430K and say 60 day close, which give me time to find a tenant for where I'm living now as I rent it back out...That said would I be better off asking for 90 day close? I have another rental that I'm trying to fill right now and would prefer NOT to have 2 vacant units at the same time if I can avoid it...

Wow! A house in Algona for $430K ? who's smokin' the dope? Guess things have changed since Iast I flipped there. That used to be industrial waste paradise from the Boeing fab plant. Make sure you get a soil test first. Just sayin'.

Originally posted by @Mike Cumbie :

Hi @Jack B.

"Meh, I think the listing agent is kind of a naive. The house sat on theMLS for 6 months including last summer and didn't sell...so they raise the price to 15K more than the last price? Just got off the phone with her, told me she will let me know if there is no interest after this weekend...I told her my offer will not be available after this weekend."

One thing to keep in mind is that with an investment it "sitting" doesn't mean as much as a retail seller who has found a new place or has a job out of state and must sell. Often times they get thrown up at a "Meh if I get this price I'll take it". If it is currently rented and paying for itself, there is no need to fire sale it (or take less than what you consider value) in a buy and hold scenario. It's like having Wal-mart stock over the last 5 years. If anyone offers you less than you think it's worth you hang onto it and wait. Listing it doesn't cost the owner anything until it sells. 

Hope it works out.  

It's not a rental, it's a primary. And the first 2 weeks on the MLS are most critical. Houses that sit for months on end get less traffic as most people pass on even touring it. I know I do as well. Houses that sit for weeks or months, I usually don't look at as I know there is something off. And in most cases I end up seeing it going pending 3-5 times...Each buyer backed out.

What is the sq footage, what is the neighborhood. How big is the lot size.

If you buying for long term rent and hold, you would have a hard time flipping this. Can rents cover your costs, is there upside to the property. If rents negative and no upside then pass. If it cash flows then thats great, if it has some equity appreciation and breaks even you make money on paper, taxes and depreciation. 

You know the market value and its not anywhere near what Zillow says, its what the market says, price trumps all other factors. 

An algorythim can not sense or feel the vibe the property gives it only spews out recent comps.

If it needs $7k it needs 3 times that inside in reality. Fix it up decent and you will get a decent tenant.

Look at furnished rentals, higher cash flow and maybe its a good market for that.

Does WA allow ADU's look to add a junior adu or add on adu, if lot size permits the existing sq footage is only a partial part of the overall value. Look to see what it can be.

@Jack B. They have wanted to sell for over a year? You offered 1.7% less ($423k vs $430k) and they aren't biting?

When does that offer expire? I would write a new one for $413k.

What concerns me is the comment on this thread about needing a soil sample. I have a feeling that could be a strong hidden issue.

If you are getting emotional about the deal, offer $425k with 48 hour expiration and express your willingness to walk away. There are too many opportunities out there. You have way more solutions to your problem than they have to theirs, apparently.

there is a reason its sitting.  I'm betting others have tried and the inspection came back nasty.  Its a safe play that everything is dependent on the inspection so you can always walk away.

You're higher than I would be.  The nickel and diming they're pulling is annoying and I would have started lower.  If they are low at 430 then you set the bar in the negotiations.