Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
So, same house as topic before (well issues) but the house was bought by a small real estate brokerage ar a sheriff sale for $157K.
They immediately listed it (did nothing other thab putting in a septic tank) but listed it for $260. Within weeks lowered it to $234 (area sales. comp home are very low 200's), now lowered it to $199,900.
We decided that in our minds we have a limit. We are going to offer $176,500 they pay closing. I know they wont accept, maybe they will counter but in our minds, our limit is $185,000 and they pay closing.
Are we being insulting by making such a low offer knowing full well what they paid and have done?? I feel just in our decision on this offer.
Honest thoughts???
p.s., the offer will be contingent on home and well / septic inspections.
Last edited by andreaspercheron; 08-03-2009 at 12:43 PM..
Reason: forgot to add something....
They immediately listed it (did nothing other thab putting in a septic tank) but listed it for $260. Within weeks lowered it to $234 (area sales. comphome are very low 200's), now lowered it to $199,900.
We decided that in our minds we have a limit. We are going to offer $176,500 they pay closing. I know they wont accept, maybe they will counter but in our minds, our limit is $185,000 and they pay closing.
Are we being insulting by making such a low offer knowing full well what they paid and have done?? I feel just in our decision on this offer.
Honest thoughts???
p.s., the offer will be contingent on home and well / septic inspections.
So on one hand you say the area comps are in the low $200's but decided that $185 is your limit, with sellers paying closing costs. And this is based on what?
This sounds like is a "Little Piggy" offer...an offer that cannot be justified other than that's all the buyer wants to pay. No telling how the seller might react. You have nothing to lose by making the "Little Piggy" offer, other than the house.
What kind of terms are you offering? Are you a cash buyer and able to close quickly? If you need financing, have you been pre-approved, meaning has your lender verified your income and assets? How much are you putting down? In other words, terms are often as important and the $$.
If the OP is thinking "gee they put in a septic tank and now they wanna make almost $50K" you are missing the point. The seller almost certainly put in months of legwork to get this place, had to take a HUGE RISK by having ALL CASH at the Sheriff's sale, is probably in the right price range at $199K if the comps really are low $200k, and will almost certainly not make it easy for you to get place for as little as you might wanna spend.
Honestly, if you feel that $185K is close to the right price for you then you maybe you should start much closer to that.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,313,597 times
Reputation: 6471
Ahhh the age old scenario where the buyer doesn't want the seller to make any money on selling a home.
If I bought a house for $100 and turned around to sell it, should I sell it for $1000 and make 10X my money or should I sell it at the price the market may dictate which may be $150,000 which would be a 1500X return on my investment?
I agree with chet. If your top price is $185K and all the comps say $200K, you may be looking in the wrong place. But sometimes if one throws enough stuff on the wall, some of it may stick. Good luck to you!
If the OP is thinking "gee they put in a septic tank and now they wanna make almost $50K" you are missing the point. The seller almost certainly put in months of legwork to get this place, had to take a HUGE RISK by having ALL CASH at the Sheriff's sale, is probably in the right price range at $199K if the comps really are low $200k, and will almost certainly not make it easy for you to get place for as little as you might wanna spend.
Honestly, if you feel that $185K is close to the right price for you then you maybe you should start much closer to that.
Actually we have alreadyc confirmed that they didn't do anything to the house other than putting in a septic tank - mind you, not replacing entire septic system JUST the tank - confirmed. The house was already in in good shape, just dated.
So on one hand you say the area comps are in the low $200's but decided that $185 is your limit, with sellers paying closing costs. And this is based on what?
This sounds like is a "Little Piggy" offer...an offer that cannot be justified other than that's all the buyer wants to pay. No telling how the seller might react. You have nothing to lose by making the "Little Piggy" offer, other than the house.
What kind of terms are you offering? Are you a cash buyer and able to close quickly? If you need financing, have you been pre-approved, meaning has your lender verified your income and assets? How much are you putting down? In other words, terms are often as important and the $$.
Ok, I guess I could have elaborated. The comps are just barely 200K. I won't say the area is "depressed" but it's not bussling either, it's kind of out in the country and you are going to have a commute no matter where you work.
Yes, we are already preapproved and yes we can settle quickly.
I'm not just making things up for a price and then going with it . The fact is the house needs a lot of work, new windows, flooring, aside from that it's dated, etc... So, the price we arrived at as our "limit" is justified.
The fact is the house needs a lot of work, new windows, flooring, aside from that it's dated, etc... So, the price we arrived at as our "limit" is justified.
Is the condition of those other homes comparable to this one? In other words, did these other homes have brand new windows and flooring? Did they have brand new septics? You need intimate knowledge of the closed comps. An agent familiar with the local inventory will know all about these other properties.
I am not trying to discourage you from making your intended offer. If you don't ask, you don't get. You never know what a seller might take. When you know your comps, you are dealing from a position of power. The market is not fair but is it alway right.
Is the condition of those other homes comparable to this one? In other words, did these other homes have brand new windows and flooring? Did they have brand new septics? You need intimate knowledge of the closed comps. An agent familiar with the local inventory will know all about these other properties.
I am not trying to discourage you from making your intended offer. If you don't ask, you don't get. You never know what a seller might take. When you know your comps, you are dealing from a position of power. The market is not fair but is it alway right.
Oh no, I totally appreciate where you are coming from. Yes though, we've done the comps very closely - although not a depressed area, the surrounding homes for sale are not any better either. They are all in need of updating along the same lines.
I used to be an agent so I'm very familiar with comps,etc...
It is not anyone's constitutional right to make money in real estate. Offer the $185k that makes you happy. Seller can accept, reject or counter...what's the big deal? Doesn't need to be analyzed to death.
It is not anyone's constitutional right to make money in real estate. Offer the $185k that makes you happy. Seller can accept, reject or counter...what's the big deal? Doesn't need to be analyzed to death.
True but, the beauty of a forum is to gain feedback which is what I wanted and got. Thanks
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
. The fact is the house needs a lot of work, new windows, flooring, aside from that it's dated, etc... So, the price we arrived at as our "limit" is justified. 
