FatHobbit;1072076 wrote:This is what it comes down to IMO. You are basically paying an extra $12,000 more to get the house you want. Is it worth that?
Not necessarily. You're assuming the offer is $12k below market or that he can indeed do better. Other than countering, I'd guess the longer it sits on the market the more aggressive potentials buyers will be lowballing the asking price.
Until you actually step-down either in size or quality of the home, this is all fairly theoretical/paper losses or gains. Let's say he waits and sells two months down the road for $12k more, but now an equivalent home he likes or wants to buy is $20k more than this one. In that scenario, did he just lose $8k?
It's always tricky trying to time a sale and purchase. The simple solution is buy what he wants, and then roll the dice holding out for a better offer on his current home. Obviously, he doesn't want to take the risk and in the grand scheme of things, $12k may not be all that much (consider taxes, utilities, insurance and interest each month - wipes out that $12k pretty quick).
The temptation is "gee, I got an offer after just 2 weeks, it must be underpriced". Maybe. And be careful listening to the realtor - he/she doesn't have much incentive to try and get you another $12k.
Really the only way to remotely quantify all this is to compare FMV of the two homes. Problem is, that's a fairly lousy metric. But it will give you peace of mind if you can convince yourself you lost $6k FMV on your home but gained $9k on the other, netting +$3k in FMV