I Got my first offer, I like it, should I take it?

Question

I"m in the process of selling my house in Oakland, California. It is not on the market yet, but I got my first offer already this past friday. The buyer is offering me $21,000 over the listing price, listing price is going to be $519,000, buyer offered $540,000. They are also willing to make an EMD of $15,000. Inspection contingency is waived, buying AS-IS. Appraisal contingency timeline is 10 days and also the loan contingency timeline is 10 days. I as the seller is requested to pay the county transfer tax and 50% of the city transfer tax. Buyer is to pay escrow fee, owners title insurance, 50% of city transfer tax and home warranty and also requesting to keep all appliances with the purchase of the house. Personally I like the offer, i dont want to lose this offer, I might counter offer with $545,000. What do you guys think? Should I take the offer or should i put my house on the market and see what other offers i get....all advice and suggestions are welcome. Thanks in advance!!!

Samuel H. · Answer

@Lynnette E. Ill run that by my agent.

@Sonny Vu Yea the $519K listing is to bring multiple offers. Thank you, I got some decision making to do.....

Samuel H. · Answer

Thank you all for the good info and advice, much appreciated. Going to meet up with my agent tomorrow and go over the details. Thank you!

Johnny Thad · Answer

@Samuel H.

I would seriously sit down and think about the pros and cons. Recently sold my place in the East Bay for over $100k above asking. Had 10+ offers after being on the market for one weekend.

The real estate market is crazy hot in the East Bay right now.

What is realistically the worst thing that can happen if you reject the offer? You list it in a few weeks and sell slightly less than 540? Odds of that happening are probably pretty low.

The more likely outcome - you get multiple offers and the bidding goes up and you get around $560k - $575k. I'd counter at least $560k, likely outcome is they will move up their offer to at least $550k. These buyers sound like they are trying to come in with a low offer before it hits the market.

Marc Rice · Answer

@Samuel H.

List it on the MLS with highest and best. Odds are someone else can pay higher!

Jordan Moorhead · Answer

@Samuel H. list it, if you got that off market imagine how much you could get

Sonny Vu · Answer

I agree with Rick. All these points that are being recommended to be negotiated should be discussed with your agent. I am assuming that you already have an agent since your house is being placed on the market. Also I am guessing that the only thing they will recommend to adjust is price. The transfer tax split and certain items that are paid for between seller and buyer will vary between counties and municipalities. These are usually customary practices and the norm for your area. Regardless, you should discuss all these points with your agent. Congrats again and you will do well in this market!

-Sonny

Rick Trivedi · Answer

@Samuel H. without knowing the address and neighborhood, condition of the property, don’t think it’s wise to give an advise on the price and probably to even take one. Consult with someone whom you have shared this information, because that would be the most accurate advice.

Theresa Harris · Answer

How much do the taxes amount to?  You can always offer to pay 50% of them, but up the sales price to include those.  So if the taxes (50% of them) add up to $5K, add $5K to the counter.

Someone else mentioned GST-they are from Canada (as am I) and that is a federal tax that you have to pay on goods and services including most new builds-not older homes. It clearly doesn't apply to you in California.

Sonny Vu · Answer

Samuel, Congrats on listing your house and getting an offer right away. Mussa is right, the market is super hot. Inventory is super short supply everywhere so you may get a better offer when it hits the market. One question, why did you list it at $519K and if you like the offer not accept an offer that satisfies your criteria? Was that initial price an artificially low price to drive multiple offers on market? If you like the offer then just take it, don't counter. If you planned to list it to drive multiple offers, then list it and roll the dice. Good luck either way!

Rick Borgo · Answer

Counter and tell them you don’t want to pay the two transfer taxes.