Our First Counter-Offer!...

...and it sucks.
When my agent sent me a text today that said something like this:
"I am e-mailing you a counter-offer on [house #23*]."
I replied with
"What's a counter-offer? We're not familiar with that term. Just kidding."
Sometimes I think I'm funny.
Usually I'm the only one who thinks so.

*no, he didn't really call it house #23. I doubt he's keeping track.
That is for your information

Anyway. He did e-mail it over.
This is what it said:

1. Buyers submit their highest and best offer.
um duh. we already did that.
Basically they want us to submit an even higher offer.
Not happening.
Don't worry, it gets worse.
2. If the appraisal comes lower than the contract price, the buyers shall be responsible for paying the difference.
I seriously laughed out loud when I read that part.
Usually, what happens is this:
You put in your offer.
It's accepted.
[in a happy world, okay?]
You get an appraisal.
If the house is appraised at less than what you offered
you come back to the seller with a new, lower offer
[to match the appraisal value, generally].
This is because no bank will give you a loan for more than a house is worth.
Um, duh.
They would be stupid.
You would be stupid to pay more for a house than it's worth.
Then the seller agrees to the new price.
You get the house.
You move in.
[I said it was a happy world.]
We would be CA-RAAA-ZY! to agree to these terms!
Basically if the house ended up appraising for $185,000
[we submitted an offer of 205,000]
we would be responsible to pay $20,000
First of all. We do not have $20,000 sitting around in our bank account.
Second of all. If we did, we would not want to spend $20,000 more than a house is worth.
Whoever agrees to those terms is crazy.
I immediately replied to our agent
"We are not interested."
It feels nice to be the one saying no.

*photo courtesy of

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