Deal going sour... so very sour.. (long rant)
I just wanted to talk something out that's been bothering me. Its long. And you guys are my sounding board. Apologies in advance. (But I would love to hear opinions)
Three weeks ago, we saw some homes, saw one that we liked in a good neighborhood, and were ready to make an offer. we were already pre-approved by our lender for 490K. The house was listed at 455K.
When we toured the house, our agent informed us that the sellers agent had informed her that multiple people were interested in that house, so if we wanted to get it, we should be quick. Our agent suggested offering full asking price. We said we would like to review comps and then make an appropriate offer.
We asked our agent to send us comps from the same neighborhood the same night, we would review and meet with her the very next day to write up our offer. Our agent sent us 9 comps from the last 9 months, 8 of which sold for 435K and one for 415K (short sale). Except the 415K all the others were regular sales.
We made up our mind to go in with 435k.
The next day when we reached our agents office to write the offer, she informed us that she had had another chat with the sellers agent and they informed her that the seller now had a verbal offer from someone that was higher than what we were planning to offer, and that the seller refused that verbal offer away. They could show us no proof of such an offer because it was verbal, obviously. So if we wanted the house we had to offer at least 445K. My husband and I both felt that the house would not appraise to 445K but were sort of softly pressured by our agent to make the offer for 445K to "stay in the game" with the condition clause that the house must appraise to that amount, or we could renegotiate.
We did that. Well, the appraisal came out to 440K, which I personally thought was generous. But we decided to honor it, and asked to amend our offer to 440K. Meanwhile, our loan got approved. The bank will only loan on 440K, but its approved. We're good to close even in 10 days now. Well, the sellers agent took a whole week to get back, and she finally responded that the seller has a cash buyer who he thinks will offer him full price, but will not make a written offer (even as a backup). Since he (the seller) values us being strong buyers and since our loan is now approved, (and not to mention we are in contract) the seller recognizes that we are as good as a cash buyer and wants to counter with 442,500.
I know 2,500 is a paltry sum in the big scheme of things, but its 2,500 that we must bring in cash because the bank will not loan on it since its above the appraised value. Its 2,500 we should additionally give to the seller because he thinks his house is worth that, no one else does. Also, we're a bit upset with the seller for constantly throwing it in our face that he has other buyers (with dubious timing) none of whom ever made written offers.
Today we informed our agent of our displeasure and that we want to stick to 440K, and she informed us that the seller wont go any lower than 442,500. For the first time ever, we were told today that when we offered the 445K initially, our agent and the sellers agent had agreed to cutting parts of their commissions to make that number work for the seller. They 'sorted it out' with the seller! Our agent too.
We were appalled.
We are so saddened by the way this deal has turned out. We never wanted other people involved in this transaction to cut their hard earned commissions out to please the seller. That was never our intention. We just wanted it to be straight forward in that - we offer what we think is appropriate and we are contented with, and the seller accept if he is happy with it. Otherwise we each go our ways. But this is not turning out like that. In such a buyers market, the seller is sticking to his guns to the point where other people are "chipping in" to make the deal work and all this is leaving a bitter taste in our mouths. We would never be happy accepting something like this from people. It hurts us to even think of that house in a pleasant light anymore.
I dont know what to do. I don't think we should pay 442,500 even though we really liked the house. And especially if we have to fork out 2,500 in cash in addition to the downpayment, closing costs and prepaids. And I don't think other people should "chip in" for us either. Most definitely not.
Am I being an over emotional egotistic fool, and should just stop whining and pay up? or walk away?
Does anyone have an opinion on this they would like to share?