How to offer on condos in Highland Park, Southside, Homewood? (Birmingham: real estate, loft)

[Boondahgle]

Hi,
I am planning on buying a condo in the next few weeks and was wondering what percentage of the listing price my starting offer should be? With the market being so down, is it reasonable to start quite low? How low?

[Southlander]

I always start low - maybe ridiculously low. The seller's response should give you an idea of how much to come up. You can always offer a higher price, but you can't go back and offer a lower one! Also, to get the best price, be willing to walk away from the deal. There's always another condo out there. However, if you're terrified you'll lose, be prepared to pay more.

[cpg35223]

Originally Posted by Boondahgle

Hi,
I am planning on buying a condo in the next few weeks and was wondering what percentage of the listing price my starting offer should be? With the market being so down, is it reasonable to start quite low? How low?

If you're buying, why not just go through a realtor? They'll have a much better feel for what the market can bear, plus they'll guide you through the process with far fewer problems.

[Back Again]

Originally Posted by Southlander

I always start low - maybe ridiculously low. The seller's response should give you an idea of how much to come up. You can always offer a higher price, but you can't go back and offer a lower one! Also, to get the best price, be willing to walk away from the deal. There's always another condo out there. However, if you're terrified you'll lose, be prepared to pay more.

Being a Reator in the Birmingham area, too offten I have seen making an ridiculously low offer backfire! The seller gets so insulted, they do not even counter-offer or because they are now mad, will counter much higher then they normaly would have. The BEST thing to do is to work with a Buyer's agent. This costs the buyer nothing. A Buyer's Agent will run the comps for what has sold in that area over the last 3 months and come up with a good starting price. In todays market, I always advise offering about 2 - 3% lower then the lowest comps show. However, that is just a rule of thumb, there are other things to look at as well - how long has it been on the market? How long have they owned the unit? What did they pay for it? What shape is it in? Etc. All information a Buyer's Agent should be able to get, depending on the tax records and a few other items.

[Boondahgle]

Hi,
Thank you for the responses. I am actually working with a buyer's agent. She is someone I have known, but she is a novice in the real estate area and tends to be quite vague about how much to offer likely because she is still gaining experience and doesn't know the market quite as well as more experienced realtors. Nevertheless, it seems that in the current market the conditions may be more favorable for negotiation? Is this reasonable to assume? Again, if there are any other opinions on what to offer, please share as it helps to get an idea of how many people are viewing the market and what they are offering. I was also of the opinion that starting low can't really hurt you (if the seller doesn't counter-offer because they feel insulted or whatever) unless your heart is set on that place and you won't consider anything else. Any opinions/comments are appreciated.

[Southlander]

Originally Posted by Back Again

Being a Realtor in the Birmingham area, too often I have seen making an ridiculously low offer backfire!

Well, if they're going to get their feelings hurt and won't negotiate...fine. I'll walk away (as I said, be ready to walk). I do my homework ahead of time and figure about what I'll probably be able to buy it for...but I still lowball the offer.

[gustygulas]

Get your realtor to print you off a copy of what has sold in the last year and a half in the same condo or loft building. Make sure you closely look at the condos sold in the last 3-6 months to give you a better feel of what kind of market we are in. Sellers have different motivations to sell and hopefully you find one that is ready to sell quick. Ask your buyers agent to have someone in their office, maybe their mentor, to recommend a starting offer as well.

pm me and i will give you my opinion, but I cannot recommend or give you advice b/c i don't represent you.

[Boondahgle]

So she sent me a compartive market analysis and then I asked how much a particular condo I am interested in was bought for. I know this is public information and I was wondering if there is a website where I can look up a place by the MLS number and see what the owner paid for it. Not that I don't trust her, but I was wanting something more official rather than just the dollar amount in an email.

[Southlander]

You could try the Jefferson County tax collector's web site. Our Morgan County one has a link to search for properties by street, and by owner's name. It shows the appraisal value, which is not the selling price, but might give you a clue. Some of the appraisals are a little high, though. Hmmm...wonder why?

[gustygulas]

zillow has some tax appraisals. google the jefferson county tax collector's site but the hard part on the condos is trying to get them matched up correctly.