Case: The property is for sale at a listed price of $254K. It has been on the market for less than two weeks. We offer $205K , then $210K and the buyer doesn't negotiate. A few days later, the agent reaches out to us and says that she has a $230+ offer, but would prefer to sell the house to us.
We based our original bid on a similar recently sold property for $275 and provide a discount exercise per our realtor's advice.
Roof: $15K
Minus one less room: $10K
Furnace & water Heater: $6K
Paint: $5
Floors: $6K
Bathroom repair: $6K
Kitchen repairs: $10K
Repair second floor stairs $10K
Both have the tenant income
Both have a double lot, the one we would like to buy is slightly larger.
Garages are the same
Note: I can do much of the work and can obtain plumbing fixtures and equipment at 70% discount. In fact, I have $3K in free fixtures seating in the basement. We have a family member that can help with the roof and repair the stair. We can probably do the work for less than what's noted, but it will require a lot of work.
Anyway, we offered $205 and the owner didn't bother to counteroffer. We raise to $210 and the same thing happens. We didn't bother raising it to $215 or $220 in light of the lack of response. The agent thinks $212 or even $215 is a fair price. Also, she indicated that if pay more than that is only because we really want the place. We are not thrilled with it, and we plan on keeping it as rental after a few years of living there.
Anyway, a few days go buy and the sellers realtor contacts us and says:
We feel we connected with the Owner and talked about good family times. She loved our daughter."Wanted to check with you to see if your buyer has any further interest in this property. We have received a much higher offer (above $230K) then their last offer, which the seller is considering accepting. However, she would prefer to sell to your clients."
We didn't have a realtor and disclosed that we had plenty of funds to buy the property. We will need a mortgage, tho'
The owner is emotionally attached to the house. She is present at each showing and could've sold it two years ago after her mother's death. The house had an attic that her mother used to create a rental property when her father passed early in her life. That saved them from loosing the house and gave them extra income. It's a touching story.
Why in the world would she reach out to us and try to sell it for $20K higher than our last bid? I'm tempted to go $225, which means we are paying a little extra to get the deal done and start the renovation work. My wife wants to go up to $230K. My -cheap- gut is telling me $220.
We plan to live/work/repair the house over several years, then buy a single family home and keep this as two unit rental. $800 for upstairs and $1200 for downstairs. We have plenty of money left over to handle the repairs.
I am not a fan of the drama.
With this minimal amount of info, could this is be a bluff?