We've been working with a young couple who've been looking to buy their first home. After looking at 10 or 15 houses (a couple more than once) they finally found their dream home. It's a beautiful 3 bedroom. 2.1 bath split, on a large lot, with tons of recent updates.
So after our second look at it, they said let's write an offer. We showed them comps and they agreed to offer $310,000 on the property which was listed at $335,000. After a day the seller's agent came back with a counter offer of $322,000. Seems fair.
I spoke to the buyers and informed them of the counter offer. They stated to me, "we're going to stick at $310,000, it's really all we can afford." I hung up the phone, reeling a bit and contacted the seller's agent to let him know. He called me the next day and told me the owners will go to $316,000, but that's their rock bottom price. I reached out to our buyer and let them know about the new counter offer. Our buyer said, "I guess we'll have to keep looking."
The next day I was playing with the numbers and I realized that at the mortgage rate the buyer's were quoted (3.25%) that the difference in their payment would only be about $18 a month. I then did the math based on $310,000 and realized that if the rates went up .25% (which is not unlikely) that their payment would be more than $65 a month more than at the current rate.
I quickly called the buyer and told them my findings. I explained that the extra $6000 equates to two packs of cigarettes a month. Did they really want to let this house get away?
The next morning the buyer reached out and said "Let's do it! It's foolish to let it go for such a small difference per month."
So last night at 8pm we resubmitted the contract for $316,000 and today the seller is going to sign off on it!
This is a classic case of looking at how much a house costs, as opposed to just focusing on the price.