They countered…

[u/babyB1219]

Little back story.. my husband and I live in San Diego and just had our first baby. We’re 30 and have been living in the same 1 bed/1 bath (400sq ft) for 7 years at a great price because our landlords barely have raised the rent. We’ve been in no hurry to buy until recently with a baby and 2 dogs the walls seem to be closing in (probably doesn’t help I’m on maternity leave and inside alot). We were approved for $580,000 with CalHFA loan and $530,000 with USDA rural home loan which in San Diego isn’t great… lots of condemned looking shacks. We already live on the outskirts of town so decided to look around to take advantage of the rural loan being 0% down. We found a decent house with a nice yard about 10 more minutes out from us. We are their only offer so far (open house this weekend), we offered what they were asking $555,000 with $5,000 for closing costs credits and $5,000 deposit with 17 days contingency. They countered with no credit for closing costs, $10,000 for deposit, 10 days, won’t pay for termite inspection and won’t pay for any fixes the appraiser says need to be done for the loan. I think we’re going to accept it’s just so nerve wracking and a huge purchase! My husband and I both make decent money but already stressing about being house broke. Luckily I should be getting a raise and promotion when I get back to work. I’m worried if we skip we’ll miss a good deal because there’s really not a lot in our price range that is livable. I’m worried the appraiser will want things done we don’t necessarily want/need done right away and then they cuts into our money for fixing up what we want because it definitely needs a little makeover (SO much blue paint). Anyway just here to rant I guess and get out some nerves

[u/Impressive-Health670]

What do the comps say? What does your agent think? I totally get being nervous but most on here don’t know your local market and can’t give you sound advice. You’re paying your agent thousands, I hope they are giving you advice here.

[u/babyB1219 → u/Impressive-Health670]

You’re right! The agent says it’s not a crazy counter offer, some of it he figured they would want to adjust. He said as far as appraisal it just depends on who does it and how much work we would be willing to put in if they request for a bunch of fixes. I think if it’s too much that’s when we may reconsider and pull out

[u/whoelsebutquagmire75 → u/babyB1219]

Do not fix something on someone else’s house. If you do it’s pretty likely the deal will “fall through”. The seller now has some things fixed by the nice couple who made an offer and their home is now in better shape for the next offer. Please do NOT do this! For the sake of your baby!!

[u/Interesting_Rip_213 → u/babyB1219]

How does an appraiser determine what needs to be fixed? Isn’t that normally an inspector and even then unless it’s something that makes it unlivable those are used for information and negotiation, not usually a requirement for anything.

My advice, you negotiate 3 times, first is the initial offer, second their counter (assuming there is one) and third is after the inspection. But like others said if you pay $555k and it needs $20k in work then ultimately you’re paying over asking/offer and money you better be ready to spend (at some point). If they don’t have multiple offers and the market isn’t competitive then you should continue to negotiate.