Offer on the mountain house today. Here is my counter .. is it wise?

[DemoTex]

Joe Blow low-balled me. OK. I countered. Joe Blow goes to his lender who says he can approve a loan on a price that is $20,000 less than my minimum. Joe Blow has already agreed to my conditions that I get occupancy for 30 days after closing (rent-free, he threw in) and that the sale is conditional on as-is (but the only known problem has been disclosed and can be fixed for between $2500-$5000).
Here is my final counter. Same conditions, but we will take a second on the $20K with terms set at 10 years, 10%. That works out to a near $250/month income stream. My agent checked with their local mortage company and they have an excellent credit history. What am I missing? I know that toting a note has risks, but that is factored in the interest rate and the legal documents. Any ideas out there? Also, I factored taxes into the interest rate.

[CaliforniaPeggy]

1. I have NO idea if your counter-offer is good, or wise.....

I just wanted to wish you luck, and to say how gorgeous that house is!

I do hope you get it.....

:hi:

[Whoa_Nelly]

2. What was your original, his offer and your counter???

And I want that house!!!

And what are the comps in that neck of the woods? And what is the appraised value of the house?

[DemoTex]

5. Asking $409,900

That is in line with the comps. This deal would get us near $385,000, with $20K deferred over 10 years (about $245/month). That sounds like a good, steady cash steam to me, on a couple that have an excellent credit rating. We would break even on that amount. I do not want to sell, but Dr. DemoTex hasn't been here in six months! She was coming up today, but she ended up working late. The snow is moving in, so we will have another weekend apart. Bummer! Story of our life.

[Whoa_Nelly]

11. And how long has it been on the market?

You can counter the 20K for less time or stand firm, and keep entertaining offers,(unless they accept your terms).

In the end, it's all about your time, and your choice.

But, if it hasn't been on the market too long, know that springtime there's often an increase in people buying.

Do you have another home to move into? Or, is part of the selling your home being able to have the time to find a new home (ergo, the extra month.)?

[The Velveteen Ocelot]

3. I don't know whether it's a good offer. I just wish I could afford

to make a better one. That's a beautiful house.

[necso]

4. A second (like this) isn't necessarily

a bad thing (particularly when the alternative looks to be nothing). But who knows how it will actually work out.

And if I wanted 20, I might ask for more -- but this depends on the actual numbers (ranges) involved.

And a lot depends on the amount of buyer interest shown in the listing -- along with other factors like what the market is doing more generally; whether or not this is a good time of year for selling (it is almost always slow here at this time of year); what you think reasonable future expectations for the market are; etc.

[necso]

10. Sounds like they went down roughly

10% (rounded down).

Pretty standard offer, I did the same -- and settled for the halfway point.

Come back at $389,000, I'd say -- let them worry about where the money comes from -- then maybe offer a second if they balk ($24K) -- if you decide to go that route (that is, settle for less than asking-price, offer a second).

[oscarguy]

6. If You are not getting better offers from able buyers I would take it.

It is to some degree a buyers market now. If you consider it a reasonale offer you should consider taking it. You did say he acceepted the property in " as is condition ". That is important to you as a seller as you must know. I recently went a good bit less than I had expected to go because of that all important " sold as is statement of terms ". Hey, if you are getting better offers take them. Every month you carry the property costs you. You have to consider all these things.

[DemoTex]

7. Actually, it is a sellers' market in Transylvania County.

This house has shown ten times in the last 14 days! Everyone that sees it loves it. The problem is, it is so remote (exactly why I liked it, until Agent Mike found me .. perhaps). My agent has clients coming from Hawaii to look at just this house. It will sell soon. FYI: here is the virtual tour:

http://www.visualtour.com/shownp.asp?T=416802

[Rabrrrrrr]

8. If it will sell soon, I wouldn't accept anything below minimum

and would hold out for an extra month or so if needed.

What you need is a bidding war, and I'm not sure that you've given it enough time yet to happen.

[DemoTex]

9. Point well taken.

But that is factored into this deal structure.

[Whoa_Nelly]

12. Your home presents really well! Am very impressed!

:thumbsup:

10 showings in 14 days? Is this the first offer you've had on the place? Are there any more scheduled potential buyers coming to look at it?

Honestly, your home shows extremely well! And Agent Mike has done a great job with the online presentation! I like the program he's using or sunscribing to.