Quote:
Originally Posted by andybuildz
It all seems sort of silly to me.
Sellers and buyers are of all different mindsets.
some sellers will list maybe higher then they should and could care less how long it takes to sell (pizzes off a lot of listing agents I'm sure as they have to keep doing open houses....some might not even take the listing). then there's those that will come down in price after a while when in negotiations.
To me the bottom line is the house is worth what the market bares for that house.
Make an offer...whats the worst that can happen? On the other hand if the house is priced close to right and the seller isn't terrably motivated and you make a real low ball offer you're burning your brigdes b/c a house to a lot of people is a pretty personal part of their lives.
To me....do the CMA's and and come in with a fair offer. I think it's as simple as that. you never know whats going on with a buyers/sellers agenda.
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I agree with your last part - - Do the CMA's and come in with a fair offer. You cant just throw a "low ball" offer out there without doing your own research. But a majority of homes are still overpriced, so there is nothing wrong with a deep low-ball - - so long as it is couched in a realistic and honest methodology and final price assessment where YOU - -
The Buyer - - are determining "true market value for yourself"... not the Seller's or their REA's. See below:
As a buyer, my advice would be to:
a) crunch your own comps and make a simple apple-to-apples Excel chart so that you can easily compare features/values/pricing history of three or four similar houses in the area
b) visit any houses for sale within a mile or so of the one you are interested in (and the same price range) in order to more accurately gauge the value of your target home. Check the other homes for general conditions of the interior, exterior, block, etc.
c) try to understand the owner's mentality (use
www.longislandbubble.com) and any Foreclosure sites to see how long the house has been on the market, the number of price cuts it has endured, and if there are currently any pre-foreclosure legal proceedings against them (
the seller desperation level)
d) visit the local realtor websites and MLSLI to understand the sales - - or non-sales - - activity in the local neighborhood you are interested in (go back no further than 6 months) and read their current market reports VERY closely....... (price drops, listing discounts)
e) look very closly at the home you are interested in to ascertain damage or future renovations/fixes and then put a $$$ amount against that for significant architectural/electrical/mechanical/landscaping work (
due to seller's neglect) that will be needed within Year 1.
f) "try" to make your best educated guess as to the next 18 months of price fluctuations in the economy (today's $700k home may very well be worth just $640k in 6 months - - thus, your downpayment equity may likely go ka-poof for quite a while)
g) Check your FICO and make sure you are at least at 720- - better to be 750 and above and then go get pre-approved (...if you can)
F) Only Make An Offer based on the above and your own job security situation going forth into this very deep recession
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