Shop Quest - The Seller Countered, which is... good?

"Akio Ohtori - RIP Oppo" (akioohtori)
02/01/2019 at 18:00 • Filed to: shop quest, TQ HQ

Got word back from my realtor that the seller countered my offer for the land. Here are the relevant figures:

Lot: 0.38 Acres, good location, house needs to be torn down

Asking Price: $40,000

On the market: 371 days

Previous offers by not me: Two at $20,000

My first offer: $26,000

Their counter offer: $33,000

So the good news is they came down, the bad news is I’m not sure we can come together to a agreeable price. My sticking point is still that the location is undesirable (on an on-ramp) and the house needing torn down is an immediate $10,000+ spend.

At a co-worker’s suggestion, I am considering countering with a very specific number. Old trick, but it works. Thinking $28,164 or something like that.

Yes, this is all pretty small potatoes, but I hate the thought over overpaying for something like this...

DISCUSSION (23)

MM54 > Akio Ohtori - RIP Oppo
02/01/2019 at 18:08

My guess is they’re expecting to meet at 30k

Good luck!

VajazzleMcDildertits - read carefully, respond politely > Akio Ohtori - RIP Oppo
02/01/2019 at 18:09

What does the specific odd number do as a negotiating tactic? I’ve never heard that one before.

Deal Killer - Powered by Focus > Akio Ohtori - RIP Oppo
02/01/2019 at 18:11

Maybe accept counter offer if they remove the home? If you are financing this, the bank may require demo of the home before closing

WilliamsSW > MM54
02/01/2019 at 18:16

I agree- it’s common to try to get the other side to split the difference and hit your number

Akio Ohtori - RIP Oppo > VajazzleMcDildertits - read carefully, respond politely
02/01/2019 at 18:16

I’ve heard of it as a thing that dealers do to make you think there is a meaning behind the number. Like it is literally the absolute minimum they can offer you, or something. Coworker claims it is also an FBI negotiating tactic, citing a book he read when prepping for his recent divorce .

Akio Ohtori - RIP Oppo > Deal Killer - Powered by Focus
02/01/2019 at 18:17

Seller will not remove the home. I was willing to pay asking if they were willing to remove, but it was a hard “no. ”

blacktruck18 > VajazzleMcDildertits - read carefully, respond politely
02/01/2019 at 18:18

I have heard this before, especially in a cash deal the seller sees the weird number and think they are getting every last cent you can afford.

Like “Hey, I found $4 in the couch add that to the offer!”

Akio Ohtori - RIP Oppo > MM54
02/01/2019 at 18:21

Hmmm so the question then becomes do I offer something distressingly close to $30k (say, $29k) to see if they take the bait and save myself $1000, or do I proceed as planned and hope for the best?

Chariotoflove > Akio Ohtori - RIP Oppo
02/01/2019 at 18:30

Every $1,000 is $1,000. That’s not small potatoes.

Mid Engine > Akio Ohtori - RIP Oppo
02/01/2019 at 18:31

Contact the fire department, if they’re interested they will disconnect ser vices and burn the house as practice for the firefighters . Saves you a ton.

66P1800inpieces > Akio Ohtori - RIP Oppo
02/01/2019 at 18:32

Are there any known or unknown environmental hazards like the potential for an oil tank? Do you think the location will see future development? The main highway where I live was once a two lane but over time it has expanded to a major thoroughfare with houses right on the roadway with retaining walls to make up for the abrupt transitions in some spots from peoples homes to the road level.

Akio Ohtori - RIP Oppo > 66P1800inpieces
02/01/2019 at 18:43

Oh hey those are good questions! I think no for hidden environmental hazards, but I imagine that is something I can research in the inspection phase. I hadn’t thought about the highway expanding that would, with little question, wipe this place off the map... which might not be a bad thing haha.

MM54 > Akio Ohtori - RIP Oppo
02/01/2019 at 18:54

When I bought my house, I was told there were two offers already (it was listed on a Friday, I looked at it Saturday, put in the offer Sunday, got it Monday). How did I get it? I made my offer + $500, ebay style. I got it by that $500.

E92M3 > Akio Ohtori - RIP Oppo
02/01/2019 at 19:21

Don’t pay for a house in Japan. The government is giving them away.

https://www.travelandleisure.com/travel-news/japan-free-abandoned-house

vondon302 > Akio Ohtori - RIP Oppo
02/01/2019 at 19:23

That’s a small red flag. Getting all permits to disconnect is no small amount of money or time . Especially the sewer/water disconnect.

I tore down an old cabin and put up a modular a long time ago. Tear down was cheap but the permits and city inspectors ugh.

Longtime Lurker > VajazzleMcDildertits - read carefully, respond politely
02/01/2019 at 19:25

It makes the number fell calculated, as if a lot of thought went it to it. The price couldn’t get any higher/lower because the math said so.

loki03xlh > Akio Ohtori - RIP Oppo
02/01/2019 at 19:26

When I bought my house, my original offer was rejected, counter similar to yours. The next day, I offered $500 more . They accepted. YMMV

ITA97, now with more Jag @ opposite-lock.com > Akio Ohtori - RIP Oppo
02/01/2019 at 19:45

Unrelated to the offer, but knocking down a house sounds like a fun reason to rent a backhoe and a dumpster for the weekend. Although, I imagine there are probably some permit hoops to jump through.

XJDano > ITA97, now with more Jag @ opposite-lock.com
02/01/2019 at 20:05

I did this once for work... but it was for the county, so it was kind of a wash for the fines, or something. We have to get a 10 day notice for Asbestos abatement work and a separate 10 day demo permit, was a couple sheds behind the old dog pound. We rented a brand new skid steer with a grapple bucket.

VajazzleMcDildertits - read carefully, respond politely > Longtime Lurker
02/01/2019 at 20:52

Neat! Thanks

SilentButNotReallyDeadly...killed by G/O Media > Akio Ohtori - RIP Oppo
02/01/2019 at 21:57

Hold the line. All they’ve done is met you halfway. If you must give them something then make what we call a ‘ best and final offer’ of $28,000.

Our place was on the market for $330,000 but we offered $295, 000. They came back with $315,000. After some work between the agent and vendor, w e made our best and final at $300,000. A couple of weeks later, t he vendor eventually caved...

If your vendor wants it gone and you aren't desperate to have it then you are in the box seat...

ranwhenparked > Akio Ohtori - RIP Oppo
02/02/2019 at 00:36

Do you have to tear it down? Could you just do what Steve Jobs did and remove all the windows and doors and leave it to the elements to finish off?

davesaddiction @ opposite-lock.com > Mid Engine
02/04/2019 at 09:24

Ooh... fun!