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andreat
LIF Infant
Member since 10/06 155 total posts
Name:
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Advice needed
Hi everyone,
I am a new user but have been looking on the boards for a few months. Can you please give us some advice?
My DH and I decided looking at co-ops about a month ago. We found a co-op we really liked on MLSLI and visited it first. The agent told us that day he had an offer on the table but the contracts were not signed. Having not seen any other co-ops we continued to look at other units in the complex and the neighborhood for a week more. We realized how nice and updated the unit was comparatively and made an offer about a week later. The agent set up a 3 way call with the buyer. We offered 2k more than the agent said the other offer was but the buyer rejected us. Cause the other offer was all cash.
We were sad but we moved on and continued our search. Meanwhile, we also got a list of all the recent sales for the complex and realized how much more the first unit was than recent sales (about 20k) for similar units. But then again we don't know how the inside looked. We were somewhat relieved the offer was rejected.
We continued to look but nothing was as nice as the first (new kitchens, hardwood floors, stainless steel appliances, etc). Some were nice but not as updated.
Then last Friday night (3 weeks after we were rejected) I got a call from that agent saying the deal fell through cause the all cash deal couldnt move in until the Spring. So I was very excited and told the buyer that we are still interested. I was so excited. I said I couldn't make an offer without discussing it with DH but would want to look at the place again.
But then my DH and I talked later that night and we both think we weren't as educated about the market when we made our first offer. We still like the place but don't want to pay that much. Should we offer the amount the cash deal was? Should we offer the amount we offered previously (cash deal plus 2k)? Or an even lessor amount?
The cash deal offer was 30k less than asking. What would you do?
p.s. So basically for about 20k less than the cash deal amount, we can get a similar unit.
Message edited 10/31/2006 2:29:38 PM.
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Posted 10/31/06 2:27 PM  |
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Prudential Douglas Elliman Real Estate
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: Advice needed
I would offer less than the buyer who fell through. like you said, you've done some homework now and the seller could be desperate.
if he rejects, offer what the cash buyer offered... if you really want it.
good luck!
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| Posted 10/31/06 2:30 PM |
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belladi
LIF Adult
Member since 9/06 1011 total posts
Name:
diana
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Re: Advice needed
i would offer less now and dont be shy to say so and dont let them pressure..
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| Posted 10/31/06 2:34 PM |
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Christina
LIF Adolescent
Member since 10/06 891 total posts
Name:
Christina
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Re: Advice needed
I think you have to determine whether all the updates in the more expensive unit come to $20k or more. If the updates are worth it, you may want to go for the more expensive one. But, if you think you can make those updates for less, then you are probably better off with the cheaper one.
Sorry if I rambled or that didn't make sense.
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| Posted 10/31/06 2:34 PM |
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Christina
LIF Adolescent
Member since 10/06 891 total posts
Name:
Christina
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Re: Advice needed
Posted by belladi
i would offer less now and dont be shy to say so and dont let them pressure..
I agree -- both of your positions changed in the meantime and you should definitely account for that. You are more knowledgeable and they don't have any other offers on the table.
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| Posted 10/31/06 2:35 PM |
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Ang-Rich
Beyond Compare
Member since 5/05 17988 total posts
Name:
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Re: Advice needed
Since you have the comps on recent sales in that complex, I would suggest that you stay closer to those numbers (maybe a little higher but not too much). An important thing to keep in mind with co-ops - when looking to secure a mortgage it's not as easy as with a house. The mortgage company factor's in sales in the development. When we sold our co-op we got really lucky that a unit had sold for $5k less than ours and another one was in contract prior to ours at $1k more. Our buyer was able to secure a mortgage without any problem because the numbers backed up the selling price.
ETA: This all has to do with the fact that you are not necessarily buying property but rather shares.
Another thing to keep in mind is that prices are starting to drop and this is usually a quieter time for sales. You have that in your favor to negotiate as a buyer.
I would re-evaluate your offer and go with what you think is best but leave room for counter-offering and also keep in mind the renovations.
On a side note...I wouldn't be surprised if the reason the all cash deal feel through had nothing to do with the move in date but rather that they did not pass the board. Most boards are very leary of all cash deals...believe it or not. If this is true in this case...maybe your RE can find out...that would be in your favor as well.
Message edited 10/31/2006 2:45:35 PM.
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| Posted 10/31/06 2:44 PM |
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riniko
LIF Toddler
Member since 3/06 486 total posts
Name:
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Re: Advice needed
Posted by Ang-Rich
On a side note...I wouldn't be surprised if the reason the all cash deal feel through had nothing to do with the move in date but rather that they did not pass the board. Most boards are very leary of all cash deals...believe it or not. If this is true in this case...maybe your RE can find out...that would be in your favor as well.
Why would an all cash deal be seen negatively?
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| Posted 10/31/06 3:12 PM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: Advice needed
When I was selling my co-op I had someone offer me 33k less but in all cash. To me i didnt care that it was cash, in the end I am still getting my money and I needed that extra 33k.
I would say go andl ook at it again being you have looked at other places and than discuss it with DH.
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| Posted 10/31/06 3:15 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Advice needed
the only positive that comes with a cash deal is that it can close quickly and you dont have to worry about someone getting a mortgage- but if you have a preapproval- if i was a seller i think id rather take the higher offer - but im greedy, lol
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| Posted 10/31/06 3:17 PM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Advice needed
First off, that agent was unethical when he told you what the existing offer on the table was. He wasnt working in the sellers' best interest and should be reported.
Second, if you feel that you offered too much at the time then if i were you i would offer less than the cash offer now and see what the seller says. The worse they can do is say no. And if you really want the place then you can come up in your offer. You never know how desperate the seller is to get out now. The fact of the matter is, the seller lost 3 weeks with that deal that fell through and may take a lesser offer.
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| Posted 10/31/06 3:32 PM |
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andreat
LIF Infant
Member since 10/06 155 total posts
Name:
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Re: Advice needed
I don't know what do think/do...
Maybe the agent lied about the price to start off with?
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| Posted 10/31/06 3:39 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: Advice needed
Posted by andreat
I don't know what do think/do...
Maybe the agent lied about the price to start off with?
I wouldn't doubt it!! not ONE bit! some RE agents are SO slimy. worse than a used car salesperson.
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| Posted 10/31/06 3:40 PM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Advice needed
Posted by SweetestOfPeas
Posted by andreat
I don't know what do think/do...
Maybe the agent lied about the price to start off with?
I wouldn't doubt it!! not ONE bit! some RE agents are SO slimy. worse than a used car salesperson.
not this one 
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| Posted 10/31/06 3:42 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: Advice needed
Posted by alnem
Posted by SweetestOfPeas
Posted by andreat
I don't know what do think/do...
Maybe the agent lied about the price to start off with?
I wouldn't doubt it!! not ONE bit! some RE agents are SO slimy. worse than a used car salesperson.
not this one
not ours either, well the one we were working with when we were looking. but we did meet with 3 other RE agents that made our skin crawl. 
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| Posted 10/31/06 3:43 PM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Advice needed
Posted by SweetestOfPeas
Posted by alnem
Posted by SweetestOfPeas
Posted by andreat
I don't know what do think/do...
Maybe the agent lied about the price to start off with?
I wouldn't doubt it!! not ONE bit! some RE agents are SO slimy. worse than a used car salesperson.
not this one
not ours either, well the one we were working with when we were looking. but we did meet with 3 other RE agents that made our skin crawl.
oh trust me, i'm in the business and i've met REA that make my skin crawl. the law says we work for the seller, but they forget their oath to deal honestly and fairly with buyers as well. i hate agents that try to hustle people into buying a house, its the biggest investment of their lives! they shouldnt need convincing!!!
Message edited 10/31/2006 3:49:05 PM.
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| Posted 10/31/06 3:46 PM |
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Ang-Rich
Beyond Compare
Member since 5/05 17988 total posts
Name:
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Re: Advice needed
Posted by riniko
Posted by Ang-Rich
On a side note...I wouldn't be surprised if the reason the all cash deal feel through had nothing to do with the move in date but rather that they did not pass the board. Most boards are very leary of all cash deals...believe it or not. If this is true in this case...maybe your RE can find out...that would be in your favor as well.
Why would an all cash deal be seen negatively?
Not all are seen negatively but many are scrutinized. I've heard comments that have lead me to believe that they question the motive behind an all cash deal on a coop. For example, if a person is willing to put down $250k in cash...why not put that down on a house. You can argue a million points for or against that but the bottom line is that from what I have heard...they are very leary of it. Also...a co-op board doesn't just look to see that a person can secure a mortgage but that they have the financial backing to continue to make those mortgage payments AND the maintenance payments. I have heard that many people coming in on an all cash deal don't necessarily have the cash themselves but get it from other sources/people. So that doesn't add to their own financial strength and many times they do all cash to avoid the process of having financial checks which uncover past or current financial problems. Again...something the board wants to protect against.
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| Posted 11/1/06 9:04 AM |
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Ang-Rich
Beyond Compare
Member since 5/05 17988 total posts
Name:
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Re: Advice needed
Posted by andreat
I don't know what do think/do...
Maybe the agent lied about the price to start off with?
Sorry - with all the back and forth it can get confusing but honestly I think that you both should re-evaluate your offer and give it a shot...but when you make the offer be very honest. Tell the RE Agent that you do really like the place and they you are willing to work with the owners to come up with a price that everyone will be happy with. I think it's a good sign that they contacted you and if you really do like the place then you should consider making an offer soon...at least get the ball rolling. Good Luck!
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| Posted 11/1/06 9:17 AM |
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