What are your choices?

I recently closed on a Farmington Hills home for one of my clients last month. My client wanted a newer home less than 15 years old. And he wanted it in good condition. He was a business professional who spent a lot of time traveling. And he wanted the Farmington home under $175,000. He wanted in a certain school area. And he wanted a deal.

The problem is there is a limited number of homes that fit that criteria. In fact in the last 6 monthes there were only 6 homes that fit that criteria without the school system. None when you included the school system criteria. And only one newer Farmington home that he really liked. It was a great price as most of them that fit his criteria were much more expensive.

He was being coached by his brother and his mother to put in a low ball offer. So at first he put in an offer of over $35,000 below list price. Now that was $35,000 below a very good list price. A home that was in good shape and was in move in condition. Of course the Farmington sellers told him no way. So he thought my home buyer thought he would let the sellers sit and stew.

About two weeks later he put in an offer of $165,000 and the sellers told him that they wanted a full price offer. So my first time home buyer thought he would offer $5000 more. The sellers said no. Then two days later they pulled the house off the market.

It was off the market for 3 weeks and then they put on the market. Back at the same price. My client wanted to offer $165,000 again. Well I called only to find out the house was pending. Somebody enticed the sellers to accept a full price offer on their Farmington Hills home.

We lost out on the home!!! The only home that fit his criteria in his price range. But luck was with us the buyer lost his job. (Not to be too happy about a person losing his job) But my client got a third chance! But what do you think he did?

He put me on a 3 way call with his mother and brother who told me:

• that the brother needed to buy a house now
• That maybe they should get another realtor that could get them a house
• That we should offer $170,000
• That the brother would buy a house in the $200,000 range if necessary

I point blank said they were free to find another realtor but the issue was that "Joe" wanted a house that had a limited number of choices. That this was the best choice he could get for the price. That sure he could find a better house for $35,000 or $50,000. But the house payment and the taxes were way out of his range. This house was the best deal. That the sellers point blank said they would not accept anything less than a full offer. That was their bottom line.

Finally the brother and mother got off the line. "Joe" my buyer called me back. We went over his options and looked at all the past sales. There was no other home in his price range that sold for the $175,000 price range in the school district that he wanted. My home buyer finally decided to go with what the seller would accept. We closed on the home two weeks ago and he got a great house. And he is so glad he paid full price. He finally realized that he got a great deal.

The bottom line is just because a seller puts a low price on a house doesn't mean that you need to get a much lower price. (It doesn't matter if it is a Farmington Hills foreclosure or Canton Foreclosure... look at the recent sold homes and prices). What you have to remember is look at your choices. What is best deal? Is the house a fair value at what price?

Don't lose out on a great home by trying to lowball the purchase offer.

Russ Ravary your Farmington Hills real estate agent

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