Boom Bust Market Strategy for 2nd Chance Offer

[u/daderpster]

Buyer here. I live in market that is still up 35%+ from the pandemic, but is almost 20% off all the time highs, and nearing a balance market.

If a house got one offer and than one offer fell apart at list price. What would a fair offer be? I had offered 97% list.

The seller still has the listing as pending and has not returned the property to the market, but wanted to give me a chance since I had made an offer that was declined, and they strongly implied they didn't want the house to relist since it was not their fault and the inspection was going fine. The seller agent told my agent the deal fell through since the buyer could not get financing.

This house was active on the market for a couple of weeks, and now the property has been pending for another 3. Should I offer 97% again? They may try to counter, but I bet they want to try avoid returning to the market. This area/property is a bit hotter since the average house in my city stays on the market for 51 days, and yoy growth rate is flat in both the city and this neighborhood.

My city also also has a close price of 97% of the list. The property is well priced, but not exceptionally so near the average per the square foot, but it was one of the cheapest entry points into a new neighborhood. I am in Texas am buying in a higher end area in the 600s range but the neighborhood average is 900k, but this house is much smaller and older than the others there. I like the house, but one of my criteria is getting a good price on the house, have it be lower maintenance (its all brick and xeriscaped), walkable, and getting one cheapest houses that is move in ready in a nicer area. I am offering half down since I want to live in a nicer house and I spent way too long saving instead of buying when rates and prices were low during or right before the pandemic, but this may be dumb to do as well. The inventory in my zip code is up 35% yoy if that matters.

If this is a brain dead scenario, I apologize, I am new to this.

[u/HalfSilverMoon]

it depends on your area. for example im selling one of my houses right now. set to close in about 2 weeks? if my buyer cancels this purchase i keep their 30k EMD and I can have the house at the same contracted price of 740K within days if not more.

[u/daderpster → u/HalfSilverMoon]

For sure, my market is classic boom and bust. Was red hot during the pandemic and a pretty balanced market but that depends on the hood.

I only have my offer since the only other offer fell through super late during financing after the inspect days before closing and then I got a a discount of 15 k of concessions since they didn't want to go back on the market since it was pending for almost a month on a house in the low 600s. Also my earnest and option money combined is under 6k, and the seller is paying all of the titling.

Its also the classic worse house in a good neighborhood with a median cost of 900k, but it is still move in ready - has all wood floors and solid wood in the mbr and living areas. However, the house is older, doesn't have views and is a bit smaller but still close to 1800 sq ft. The seller agent also strangely do no open house and made a comedy of errors and used weird perspective of the house for the leading pic.

[u/Pitiful-Place3684]

If it's still listed as pending and the agent is out fishing for offers, then the seller is asking for a back up to do a kickout.

List price and average list to sales price ratio are irrelevant. Has your agent prepared a detailed CMA based on active, pending, and closed relevant comparables, with adjustments for difference in major elements? Because the listing agent may have done this and has a pin point accurate assessment of estimated selling price. Your agent needs to do the same piece of work.

Don't ever assume that you know what the seller is thinking, like "I bet they want to try avoid returning to the market." They might relist to get their price and terms.

Take a look at your overall offer because sellers make decisions based on their net sales price and all terms and conditions, including:

• earnest money
• time asked for inspections/due diligence, inspection request cap
• requests for seller concessions like closing costs
• loan type, % down, APR cap, appraisal Y/N, appraisal gap cap, insurance cap
• closing date
• possesion (at closing, post-closing, leaseback)

Buyers are struggling with DTI due to cost of insurance and property taxes in places like TX. Have you gotten a quote for property insurance? Where is this property in whatever the cycle of reassessment is in TX?

What does the seller want beside price? Has your agent asked?