Rental home offer accepted

[Rashad A.]

Hi,

Made an offer of $150K (never expecting to be accepted) to one story SFH that was listed for $189K. 77450 zip code. Received a note from broker this morning that owners will accept my offer. Broker sent revised offer to amend closing date. Now, I am bit hesitating. However it has perfectly fit 1 percent rule of renting, and thats what I originally planned my offer on. Houses in the same size being rent out for $1400-1500K per month.

Shall low ball a little more to fit 95$ per sqft median value of the houses sold in the area in the past year? Its size 1475 sqft and per my offer I will end up paying $101.7 per sqft. And in order to meet median value of $95 per sqft it would have to be $140K another $10k down. Any recommendations about buying this rental home and strategy I should go with are appreciated. I am including little more details about the house here as well.  

One story. Mature trees. Lot size 7,035 sqft. 3 bedroom/2 bath home. Recent paint and flooring (wood laminate and carpet), lighting and plumbing fixtures and fans. Updated kitchen with granite, stone backsplash, gas cooking. Private master with updated bathroom and walk-in shower-recent tile and glass shower door. Secondary bath has a recent tub, tile surround, granite. Spacious private backyard. 

Thanks

Rashad

[Kyle J.]

If you made an offer of $150k, I’m assuming you did your research and could justifying paying that amount. Now that the seller has accepted your offer at that price, I wouldn’t recommend coming back to them and saying “Nevermind, I changed my mind and will only pay $140k”. Doesn’t sound like anything has happened (i.e. failed inspection, new information was discovered, etc) since your initial offer that would justify you doing that, and you’ll likely just offend the seller and their agent. It’s just bad business.