Hello Big Pocketeers!
I am in dire need of help coming up with a counter offer for my primary residence which I am selling. Long story short, we want out of the house so that we can have more money to buy our first investment property. The house is a 3/2 in an upper middle class neighborhood in which we were asking $182,500. The potential buyer came back with an offer of $172,500. The buyer wants us to pay $5K in closing and the agent's commission is 5%. We owe $161,333 on the house and want to make at least 10K on the sale. Any ideas on how to make this work?
Thanks in advance,
@Josh Johnson closing shouldn't cost 5k. I would tell them 3k in closing and hold firm to your price, (though prob take 179,900) Then it sounds as if the Realtor is doubling up on the sale see if they will do 4% and offer to buy your next investment with them. Best of luck
You're only going to net $10k at full asking price. Nothing aimed at you, but the market doesn't care what you "want", the market decides, after looking at comparable houses, what they'll pay. Not sure how this is going to help your investing, you've got to live somewhere. How long has it been on the market, and any other offers? Is this the first offer from this buyer, or a counter? If their first offer, then they hope to get it for $5k higher, or so. You could counter $182k with $5k paid costs, then settle out around 177-180.
@Jeremy Tillotson - thanks man!
@Wayne Brooks We really over-bought on this house three years ago and would just like to do something else with the $1,200 we pay on the mortgage each month. Funny thing is, we didn't even have it on the market! The realtor that sold it to us knew we might be interested in selling and we said we were, she showed it, and the buyer made an offer. The first offer from they buyer was 172,500 and they are waiting on our counter. I would just like to make a little bit on the deal in order to put down on another property.
I am with Wayne on this one.. you have really no equity and were can you live for 1200 a month .. it will cost you couple grand to move etc etc.
IMO if it isn't on the market, I don't think your agent is really entitled to more than 3%. If they need the closing assistance have them add it to the price. Although even with those modifications to the deal, you end up with very little net(3K).
I agree with the others who suggest you might re-consider selling. What would the property get as a rental?
@Jesse T. @Jay Hinrichs In this market, it would nearly be impossible to rent this house for $1200-1300 Comparable homes in this area rent for $900-$1000. Most of the rental houses in the area rent for much less $500-$700. So renting wouldn't even be an option. Thanks for the input though....
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