Making an Offer in TODAY'S Market on a $500k Asking Price (Floral Park: for sale, mortgage)

[JustBored]

My example was of a house that already went into contract, not the OP's house.

Originally Posted by jasonsdaddy

(Sorry to I_Love_LI but $333K is ludicrous and IS a waste of everyone's time)

Why is 333K so hard to believe ? nobody thought if you buy a house in 1999 for 200k, you could have sold it for 400k in 2 years. But if it goes the opposite way, its impossible?

Recent news headlines..

900M loss and more bad loans
U.S. foreclosures spike 112%
U.S. home prices dip at fastest-ever pace
A closely-watched index shows 12.7% annual drop; declines in 17 of 20 major metro markets (not sure what 2 out of the 3 metro markets went up, Charlotte, N.C is one)

New York, metro area prices dropped a modest 6.6%.

[alliswell]

Why is 333K so hard to believe ? nobody thought if you buy a house in 1999 for 200k, you could have sold it for 400k in 2 years. But if it goes the opposite way, its impossible?

Well now, isn't that just a hugely logical question to ask. Few things popped into my head:

1) Greed
2) Stupidity
3) Believing the b.s. that there's something special about LI and NYC that will shelter those markets from the consequences of an unprecedented implosion of the American financial sector.

"Modest" in that article still cracks me up. Realizing a 6.6% decline in house valuation on LI could be more of a financial loss to a homeowner than a 15% hit on a home in Tampa. But I guess all those big New York salaries cushion the fall.

I'd offer $330 - $350, btw.

[I_Love_LI_but]

Originally Posted by jasonsdaddy

Sorry to I_Love_LI but $333K is ludicrous and IS a waste of everyone's time.

Sorry you misunderstood. I was running the numbers on JustBored's report of a recent sale in Plainview, NOT giving advice to the OP on what to offer on the house s/he is interested in. I can't run numbers for the OP because I don't know what year the house was last sold and what that price was, nor do I know what improvements the current owner put into the house.

[Kbinspections]

Originally Posted by alliswell

Well now, isn't that just a hugely logical question to ask. Few things popped into my head:

1) Greed
2) Stupidity
3) Believing the b.s. that there's something special about LI and NYC that will shelter those markets from the consequences of an unprecedented implosion of the American financial sector.

"Modest" in that article still cracks me up. Realizing a 6.6% decline in house valuation on LI could be more of a financial loss to a homeowner than a 15% hit on a home in Tampa. But I guess all those big New York salaries cushion the fall.

I'd offer $330 - $350, btw.

The crystal ball is awefully bleek today........

[alliswell]

The severity and depth of the implosion (as they're calling it) is kind of weighing heavy on and clouding over the old shiny orb this week. A spot of sunshine to help make it sparkle again would be nice.

[Kbinspections]

Originally Posted by alliswell

The severity and depth of the implosion (as they're calling it) is kind of weighing heavy on and clouding over the old shiny orb this week. A spot of sunshine to help make it sparkle again would be nice.

Hope this helps......even if its just alittle.....

Economy grows by only 0.6 percent in first quarter - Yahoo! News (broken link)

[JustBored]

Originally Posted by alliswell

Well now, isn't that just a hugely logical question to ask. Few things popped into my head:

1) Greed
2) Stupidity
3) Believing the b.s. that there's something special about LI and NYC that will shelter those markets from the consequences of an unprecedented implosion of the American financial sector.

"Modest" in that article still cracks me up. Realizing a 6.6% decline in house valuation on LI could be more of a financial loss to a homeowner than a 15% hit on a home in Tampa. But I guess all those big New York salaries cushion the fall.

I'd offer $330 - $350, btw.

While I wouldn't offer 350.. (maybe id get a friend to offer 350 get him all mad, then offer 450k )

I think paper loss on market value plays a role, it really is hard to believe in 2005 my house was worth 800k, but now people are telling me its only worth 600k..

[JustBored]

Oops I mean offer like 420ish.. buy it around 450..

[TomMoser]

Originally Posted by purelygeneric

Any thoughts on an initial offer for a $510 home in Floral Park?

Mid-block, 1600 sq. ft., unfinished basement, move-in condition - but nothing is overwhelmingly new. Really like the house but wouldn't be devastated if we lost it. Want to be taken seriously - but obviously want to buy as low as possible.

I'm thinking an initial offer of 12% off the asking price is a fair place to start. What do you think?

Of the 52 homes in Floral Park that closed this year (which were listed through MLS) the average discount from the listing price was 6.27%.

[alliswell]

it's not much but it's something!

Alli