We just recently walked away from two offers. We’ve been working with one of the biggest agents in Rossmoor, trying to get a competitive advantage in pricing by going with the seller’s agent.
Rossmoor real estate is all across the board. There are original houses built in the 50s that go from $600k to $750k, remodelled originals that go from $750k to $950k, and teardowns/rebuilds that tend to be over 3500 sqft and start at $1.2m and can go up to $1.7m. The ideal house for us is somewhat in a donut hole between the remodeled originals and the rebuilds, which is why it has been such a difficult search for us.
We recently put in two offers : one for a remodeled original for 10% less than asking price, and one for an original for 4% less than asking price. The first one wasn’t a serious bid to get the house; however, the second one was.
We knew that the list price is always higher than the actual selling prices in Rossmoor, and having a good idea of what a competitive bid was, our second bid was essentially a very serious, committed bid starting out at the max we were willing to pay. Once we gave the price to the agent, their reaction really revealed that our bid was high and very serious. That seller countered at about half between what we offered and what the list price was. I wasn’t happy about that and we didn’t want to take the counter. The agent tried to mediate between us and after about two or three weeks we very reluctantly increased our offer by 1/3 of the gap. They countered again at halfway between where we were.
This whole time, over the span of 3 weeks, they got at least one other offer, with none that could compete with ours. They haven’t even lived in the neighborhood for probably decades, and my interpretation was that they were blindly trying to squeeze more money out of us.
I was getting really annoyed. A couple weeks ago, three days after their last counter, we permanently walked away from both offers and any business with this listing agent. I can’t be happier. Now I’m really curious how much they can sell that house for. It’s still sitting on the market without any activity.
The first house was a strange story. We didn’t think they would accept our offer, and days after that offer the agent told us that they got another, much better offer contingent on the buyer selling their house first. We later told the agent to raise our bid for that house with still little expectation, but nothing ever came of that. Yesterday, after being on the market for 85 days, that house lowered their list price by $20k – adjusted for what they were willing to sell from their original list price, a deal probably could have been made.
Maybe in several months when both of these houses sell, I’ll really find out whether this agent made some major mistakes. I’m mostly curious about the second house, because we’ll see whether that seller’s obstinance will really pay off or not. Though the longer the house stays on the market, the less likely it seems.