Amount to offer when buying

[koalabebe]

Originally Posted by readymade

Well, wouldn't it depend on how long it had been on the market? I imagine that one could offer significantly lower on a house that has been vacant and on the market for 6 months.

Even in Eanes??? How low can you go??? Please advise Thanks!!!

[EmBee]

How about Cedar Park? Seems to be a pretty hot area.

[Derek ATX]

Originally Posted by koalabebe

Even in Eanes??? How low can you go??? Please advise Thanks!!!

It really depends on the situation. Typically in Eanes because it is such a desirable place to live, if it has been on the market for a long time then it is priced too high. If it is priced too high and has been on the market for a while and they have not lowered the price then they are probably in no hurry to sell and don't need to sell.

Derek

[koalabebe]

If it is priced too high and has been on the market for a while and they have not lowered the price then they are probably in no hurry to sell and don't need to sell.



They actually reduce the price since it has been on the market more than 190 days now. Hopefully, we will be able to get a house we like. The property tax is the main reason that is kind of hold me back with this house. I read that the property tax is increasing, not decreasing this year. In Ann Arbor, the property tax actually has gone down a lot due to downsize of the auto industry and economy. Thanks for your comment!!!

[OAC]

Property taxes are as high in some of areas of Austin as any in the country.

As for what you offer... if you've got cash and don't need to qualify for a mortgage, I think you take a big discount on your offer. I read earlier you risk ticking off the seller... well... get over it. It's a buyer's market. There are over 12 months of inventory in Lakeway/Lago Vista. Many homes are priced above $200/sq ft. Jumobs are difficult to get in the first place and if you do get one they are costly and will require 25% down. I think sellers have to wake up....2006 and 2007 are history. And should they not sell their homes this spring, they may be surprised about the discount they offer next spring.

My opinion is there are many listings where sellers could care less if they sell. They are hoping that they get some uninformed buyer from the west or the east to buy their homes at inflated prices. That's not to say that the market is dead. Good homes in good locations will sell. But you can't ignore the general trend.

[atxcio]

On the other hand, if you make a lowball offer and get it, it will help lower the property taxes for the rest of us with your comp

Also, you'll be able to protest your value and get it down to whatever you buy the house for; that's pretty much automatic. Plus the Eanes area is one of the lowest rates (1.88 in some places) with some of the most stable (or increasing) actual property values in the area.

anyway, good luck and hope you get a good deal!

[koalabebe]

We actually just put an offer 5K less than what our realtor recommended. It was NOT even 10% lower from seller's selling price. So, it's not bad to seller..... I assume. We try to stay out of Jumbo loan because the interest rate is awefully high and it does not worth to go through it if we cannot afford the house. A lot of people borrow more than what they can afford. That's why the foreclosure rate is going up nationwide.
BTW, thanks, OAC and atxcio!!!

[scongress1234]

Simple......you won't know until you write the offer...as long as the realtor doesn't mind.
What's the worst they can do? Reject the offer is all.....