<p>They have been pre-approved for their original offer amount (190K).</p>
<p>We have just been through the same thing. We bought a townhouse and sold our home that is 50 miles away. We updated, painted and staged. There were not a lot of houses for sale in our area but the ones on the market had been there for at least two months, some for way more than that. Our realtor suggested a price we thought it was a little low but we really wanted to sell quickly and not have to travel back every weekend for leaves and upkeep. It sold in 48 hours. Many friends have asked if we thought we under-priced it. Maybe. A house is worth what someone is willing to pay, not what Zillow says, or the realtor, or even comps. I don’t regret our sale (it was full asking price) and the other houses in the area are still sitting there. A couple have lowered their prices to our selling price.</p>
<p>You really never know if your house sales price was maximized. If it sells quickly, you will wonder if you priced it too low. If it lingers on the market - is it the price, the vacant state, the local market - who knows?</p>
<p>In the case of the OP, you have to consider the costs on the vacant house you are trying to sell - taxes, insurance, etc. You also have to consider the costs/risks of a vacant home - burst pipe, vandalism, etc.</p>
<p>Furthermore, you stated that you would use the proceeds of the sale to pay off the mortgage on your current residence, so you also need to consider how much that payment is per month. If the house doesn’t sell now, you probably would be best off taking it off the market over the holidays and then staging, freshening the landscaping and re-listing in the spring. </p>
<p>If you total up your carrying costs on the vacant house plus the mortgage payments on your residence for another 6 months - how does it compare to the $12,000 spread you have between the most recent offer and your counter? I’m guessing it is going to be fairly close.</p>
<p>If it were me, I’d try to work with this offer and be done with it.</p>
<p>OP here:</p>
<p>Interesting turn of events: Our agent called and said they were willing to go up to 206K. While he and I were on the phone, their agent called him and told him that they would not go any higher than 210k. That was before we even had a chance to counter! We accepted 210K, they will pay all expenses related to any inspection issues, and we’re pushing for a 30 day close. Of course, they still have the option of walking away based on the inspection findings (but that’s the case with any sale).</p>
<p>They were pre-approved for 190K with an FHA mortgage. Now they are switching to a conventional mortgage, with one of their parents on the loan with them.</p>
<p>Smart OP. More often than not the first offer you receive is the best one. Congrats.</p>
<p>Congratulations. Hope your sale goes smoothly. We are closing and moving this week.</p>
<p>congrats
after all, it turned out right. conventional financing is much better than FHA, where the FHA inspection may turn up some thing that will be costly.</p>
<p>What a relief! You will be so glad to have this behind you.</p>
<p>Great news! Hope the rest of the process goes smoothly.</p>
<p>I was just checking in to see what wise advice the gang of CC had come up with and see that you have sold it. Congrats! May closing go smoothly.</p>
<p>Thank you everyone!</p>
<p>I had no idea that a FHA inspection could be so much more difficult. I’m very pleased that its been switched to a conventional mortgage.</p>
<p>I’ll be very happy when this is all done!</p>
<p>Congratulations. The comments made earlier apply. How long is too long depends on the local market- which changes. Sundry costs- inspection related, closing also can make a difference. So can closing dates. A myriad of factors. I told my story in a previous thread (how’s the housing market…)- 2 1/2 years on the market finally had an offer after we found current house and had moved. You did a good job of not jumping at their offer and they realized they couldn’t get as good a bargain as they tried for. We had the buyers from h, so focused on the roof after making a very low offer and after we met their timeline hours before the second offer… They also were late to their closing because they closed on their old house first on the same day. Our seller was upset when we lowered our offer after finding out the appraised value (we had many fix it inspection items she had to take care of as well). We gave her more than a buyer needing a mortgage could have. </p>
<p>In the end you have to think of house selling and buying as a win-win situation. You got rid of an ongoing expense you no longer wanted and can cut your ties to it. New owners get the house they want- you and the buyers. Good luck with the upcoming details.</p>
<p>Hope it all goes through smoothly!</p>
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<p>Hmmm… sounds like your agent might be eating crow for dinner!</p>
<p>Glad it seems to be working out.</p>
<p>And hopefully you’ll be here on CC to offer support to the next member who is dealing with a similar issue, and will have an interesting perspective to share!</p>
<p>“2 months is the market telling you the price is too high. Fact.”</p>
<p>Not necessarily. Just because it’s a fact for you, in your area, doesn’t make it true for everyone all over the country. There can be other reasons that a house stays on the market.</p>
<p>I’m glad that this seems to be working out now, but as you know, it ain’t over yet. If this deal falls through, don’t despair. Consider this, does your house have curb appeal? Can somebody walk into your house and consider themselves moving in right then? If you can’t do an honest evaluation, ask someone you trust, or a good realtor to tell you this. There might be something that you’re missing, that is turning people off. Staging a house is a great idea, don’t leave it empty.</p>
<p>I’ll give you an example. We had a nice house to sell, at a very good price, in a decent market. No offers for 2 1/2 months. Finally our agent told us one of the comments was that someone said they just couldn’t get past the paint, carpet and wallpaper to see themselves living there. Okay, it was awful, but we figured it was priced so well it wouldn’t be a factor. Initially I said we’d have to change it all, but we didn’t, we just got used to it. He convinced us to get the house painted and carpeted in a neutral color. It then sold instantly. We just were too attached to our house, and used to the obnoxious colors. Plus, too cheap to redo it until we had to. Another house, my husband staged, by leaving any good furniture we had there, and putting in nice towels and rugs. Just a few things to make it look not completely empty. Two full price offers the first day on the market.</p>
<p>Bus, you are missing the point. The 2 month rule is regardless of market. There is a buyer for every house in every market. The price has to be what the market has set. If you are above that price then then your house won’t sell unless you get extremely lucky. If your house’s price is at or below what the market will support in your market it will sell. It is basic economics 101.</p>
<p>Not believing what he market is telling you does not make it untrue.</p>
<p>Iron Maiden, there is no hard-and-fast two-month rule. All sorts of factors can influence average selling time, and every market is different. And while there may EVENTUALLY be a buyer for every house in every market, that person may not come along in 60 days. A good example would be houses in the north woods of Wisconsin/Michigan/Minnesota. There are homes down long roads through the woods that are physically inaccessible once the snow hits, unless someone is willing to pay to keep them plowed out on the off-chance a buyer comes along in the middle of the winter. Another example would be a large historic home in an urban area that needs a lot of work and has restrictions on how that work can be done (i.e., the prospective buyer would need to do research on what is permissible on houses labeled historic landmarks). There are MANY properties that are not “commodities” and sit on the market till the rare buyer comes along.</p>
<p>I think there are markets (particularly rural ones) where houses routinely take much longer to sell than two months - someone mentioned up thread that they were selling a house with acreage and the eventual buyer would have paid significantly more than the asking price. In other words, sometimes other factors than price are important and it can be a matter of waiting for the right buyer.</p>