Offer/Counteroffer on house

[Repsol]

Long story short, I bid $92 sq ft on a house that was listed at $103 sq ft, they countered with $96 sq ft. The market where I live is in the crapper and avg sale price is $85 sq ft. They have made a few upgrades to the house but I still don't think it commands the price they are asking. Should I stick to $92 sq ft, match, or compromise at $94 sq ft?

House has been on market for 30 days. Seller is relocating.

[JayKay335i]

What are the chances that the house will actually sell? I mean if your local market is really in the shitter than just say no, but leave your offer on the table.

[Repsol]

I'm not sure, its a nice house and could go at the asking price. I just want the best deal I can get

[Echo M3]

I'd say you need to look at your own desires first.

If you simply want the best deal possible, stay at your current offer. If they are desperate to move and yours is the only offer thus far, they will likely revise their offer to something lower. With this strategy, there is a chance you may lose if another party sees the house and wants the place badly, but it guarantees you the best deal.

If you are very interested and don't want to lose this house, increase your offer (slightly), say to $93-94/sq. ft. Then see what they come back with. If they stay put, you'll likely have to go with the $96/sq. ft after all. This will indicate that you are quite interested, and the buyer will likely either go with your offer or give you the opportunity to counter-offer, should another bid appear.

Good luck

[BMWinNorthdakota]

Come back 92, they pick the close date.

Plenty of my clients neglect the fact that there is far more to a contract than the price. Talk w/ your agent

[Yarachi]

where is the property at?
you can spend sometime do some market research, look online how fast or slow properties are sold in your area ,ask area realtors or look online (craigslist etc) for asking prices of similiar properties.

how much difference is there in total from your budget at $92 sq ft to their proposed price @ $96 sq ft? how much did they spend on the upgrade??

from my experience in real estate appraisal in vancouver, fyi, usually a property stays on the market for 30~45 days before they are sold, any longer the owner probably is just taking their time selling it. but of course it's different depending on where the property is.

[gun6slinger9]

93 with furniture and a possession date of your choosing?

[1cleanm6]

Originally Posted by Repsol

Long story short, I bid $92 sq ft on a house that was listed at $103 sq ft, they countered with $96 sq ft. The market where I live is in the crapper and avg sale price is $85 sq ft. They have made a few upgrades to the house but I still don't think it commands the price they are asking. Should I stick to $92 sq ft, match, or compromise at $94 sq ft?

House has been on market for 30 days. Seller is relocating.

Since your buying a home and not a car I would do it.

for example:
3000sq * 92 = 276,000
3000sq * 96 = 288,000

If the house fits all your needs/likings , then dont look at the 12k and do it.

[El Cheapo Loco]

Don't fall for the upgrades. Location is most important. Upgrades will only depreciate but a good location will add a lot of value to a property.

[kyleb350]

30 days....so not too long. Has it been listed at $103/sq. ft the whole time?

[wakeboarder109]

Originally Posted by 1cleanm3

Since your buying a home and not a car I would do it.

for example:
3000sq * 92 = 276,000
3000sq * 96 = 288,000

If the house fits all your needs/likings , then dont look at the 12k and do it.

A few people have hit on this and I agree. It is a different type of purchase and $10 or $12k is pretty insignificant when you look at how that affects your mortgage. Personally, if you want it, I'd counter back at say $94 and see what happens.

[double_j]

I never found price per sq ft. to be helpful for residential units since so much more goes into the quality of the space than just pure area. It's not like office/warehouse space where square footage dictates usability.

Do as others have already recommended. Look at the price on an absolute basis and see what the comps in the area look like. Offer to split the difference if you think it would be a fair price.

Also, sometimes upgrades are worth paying for upfront, especially if they've done major items like window replacements, new HVAC, or a bathroom/kitchen remodel. $10,000 spent now could be $15,000 you don't have to pay for out of pocket later.

[ABQ325i]

What does your Realtor say?

30 days is not a very long time to be on a market, however, the one thing which is in your favor is that the seller wants to relocate. Your Realtor should be able to find out the timeline when it comes to them leaving. Another consideration would be the area of town and the school district.

Since the Albuquerque market has picked up a little since the weather has become warmer you have to consider interest from other parties. Again, your Realtor should know if there is any other interest.

[Repsol]

Good points from all. Comps in the ara range from $85-87. Which is why I'm hesitant to match at $96. Area is good and is next to new schools. It was listed at $103 orginally and lowered to $96 around 21 days later.

Fyi - I already own a house but I'm renting it out and looking to pick up another property which is why I'm I'm looking at price per square more than anything.

[Freakazoid]

Originally Posted by Repsol

Good points from all. Comps in the ara range from $85-87. Which is why I'm hesitant to match at $96. Area is good and is next to new schools. It was listed at $103 orginally and lowered to $96 around 21 days later.

Fyi - I already own a house but I'm renting it out and looking to pick up another property which is why I'm I'm looking at price per square more than anything.

as people have said above though, $/sq ft is a REALLY short sighted way of looking at houses, and I'd really advise against it. Many houses have unpublished increases in sq/ft (additions, finished basements, finished attics, etc) and they don't get taken into account.
What comes into play is the comps for comparable houses....the $/sq ft should play a very minor rule in all of this....

[ABQ325i]

OP is in Albuquerque and price per square foot is the prevalent way of doing CMA's here.

However I agree that there a lot of other mitigating factors which need to be taken into consideration when using $PSF and this should really be only used as a starting point. You've already mentioned upgrades, have you checked the comps that sold for what they had in the way of upgrades or lack of them?

[Freakazoid]

Originally Posted by ABQ325i

OP is in Albuquerque and price per square foot is the prevalent way of doing CMA's here.

However I agree that there a lot of other mitigating factors which need to be taken into consideration when using $PSF and this should really be only used as a starting point. You've already mentioned upgrades, have you checked the comps that sold for what they had in the way of upgrades or lack of them?

interesting, then I do stand corrected, must be the way it's done up there then.

down here I don't know a single person that cared about the $$/sq ft haha

[Repsol]

No worries Freak. Any insight is appreciated.

Upgrades primarily consist of granite counter tops in kitchen and master bath. Laminate flooring downstairs and new carpet upstairs.

Closest match I could find with those upgrades sold for 217k in december.