Negotiating house price today, advice!

[ashgotti]

Hey guys,

I'm negotiating the price of my first house today. The list price is $204K. The neighbour just sold this week and their list was $197K (upgraded really well). I put in $190K. They came back at $199K, which pissed me off. I told them my max is $192 so I wouldn't play the dollars game. They came back $194,500, almost $10k less than their list price.

I still want $192 because the floor needs to be refinished and the stairs need to be replaced. The realtor suggested that they would fix both by closing for the $194,500. I don't trust that they'd use the best material or do it right. What would you do in this situation?

[speedyforme]

Stick with $192k and tell them you will fix things yourself.

[mork]

Another possibility - If the sellers are stuck at the current price and you stay firm on $192k, then your agents might sacrifice part of their commission (to make up the difference) to make the deal happen as well. This way, you and the seller both get what you want.

[ashgotti]

Thanks guys.

This is a bit different because it's an exclusive sale, the house isn't listed so the commission system is a bit wonky.

I just spoke with the realtor at length comparing recent properties that sold and told her basically it's unreasonable for the seller to think that her house at that price. After a bit of talk, the realtor (who's been riding the fence) finally caved and said "you're right". I went back with 192,500 in good faith. Relatively speaking the $500 is not much but 192 was my max.

I'll keep you posted!

[Laptop Surgeon]

i dont know what part of the country you are in, but here in East York (GTA), the real estate market is hot as a fire cracker. Any competent agent can get list price "plus" for the seller. In some instance, i have seen list price + 18%.

In such a sellers market, seller does not have to cave. The buyer has to bid over list to have a chance.

[adeel]

i dont know what part of the country you are in, but here in East York (GTA), the real estate market is hot as a fire cracker. Any competent agent can get list price "plus" for the seller. In some instance, i have seen list price + 18%.

In such a sellers market, seller does not have to cave. The buyer has to bid over list to have a chance.

Where abouts in East York are you talking about specifically? Given your position I imagine you have some first hand knowledge?

[Laptop Surgeon]

I have been checking the MLS for this specific part of town. Tried to put offers in to a couple of them. Everything in Leslieville, riverdale, beaches, east york (west of woodbine only), is hot hot hot. Our target price range is 380,000 max. looking for something renovated. The agents market these as condo alternative. (2 bedroom house, topnotch kitchen. Nice bathroom, landscaping).

If anyone is a private seller (FSBO) in this part of town, let me know. I hope i dont have to pay over asking price.

[hagbard]

Hey guys,

I'm negotiating the price of my first house today. The list price is $204K. The neighbour just sold this week and their list was $197K (upgraded really well). I put in $190K. They came back at $199K, which pissed me off. I told them my max is $192 so I wouldn't play the dollars game. They came back $194,500, almost $10k less than their list price.

I still want $192 because the floor needs to be refinished and the stairs need to be replaced. The realtor suggested that they would fix both by closing for the $194,500. I don't trust that they'd use the best material or do it right. What would you do in this situation?

It's really simple. Stick to $192k but be prepared to have them walk away. If you're in a large market, there's always another house that you'll like just as well. Actually, I'd offer them less than your last offer.

[hagbard]

i dont know what part of the country you are in, but here in East York (GTA), the real estate market is hot as a fire cracker. Any competent agent can get list price "plus" for the seller. In some instance, i have seen list price + 18%.

In such a sellers market, seller does not have to cave. The buyer has to bid over list to have a chance.

No trouble finding "greater fools" in this market.

[ashgotti]

It's really simple. Stick to $192k but be prepared to have them walk away. If you're in a large market, there's always another house that you'll like just as well. Actually, I'd offer them less than your last offer.

Thanks for the advice. Living in Ottawa, we're kinda in a bubble where the housing market really hasn't been affected by the economy. I spoke at length with the realtor and was convinced to offer another $500 in good faith and it worked. I didn't get a steal but I think that I got a fair price in comparison with the properties that sold in the area in the last year. Now I gotta get thru the next week of lawyers/inspections/financing and I can relax.

[jjasond]

If you don't mind, where approximately in Ottawa is the house, and it is a detached ? 192K seems like a pretty good price.

[hagbard]

Thanks for the advice. Living in Ottawa, we're kinda in a bubble where the housing market really hasn't been affected by the economy.

According to one's local realtor, "our area is an exception to the bubble because it ____________." You'll hear this in Toronto, Vancouver, Victoria, Edmonton, etc, etc. This bubble is world wide, its just late arriving in Canada.

[ipxxx]

If you don't mind, where approximately in Ottawa is the house, and it is a detached ? 192K seems like a pretty good price.

i was thinking the same thing

[ashgotti]

If you don't mind, where approximately in Ottawa is the house, and it is a detached ? 192K seems like a pretty good price.

It is a townhouse and was the only freehold I found under 200K, neighbours' houses are going for 210-225, but they've been updated.

It is in the Carlington area, which does have a bad rep (not as bad a Vanier) but it's under development since it's near the core of the city and the land is relatively cheap. The house across the street was bought and torn down. They're building a much nicer, bigger house.