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Old 07-31-2013, 03:46 PM
 
1,345 posts, read 3,488,039 times
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I'm looking at a house-
Currently listed at 489k, its come down from 499k.

When it was listed two years ago, they started it at 499k, reduced it to 465k, then sold for 456k.

Similar (cookie cutter) homes have sold in the past 6 months for about 450-460k.

Only improvements since last sale are refinished hardwoods floors in living/dining room, new prefinished floor in master bedroom, and some other smaller things. I'm in no rush to buy, and I'm willing to wait.

How low do you think I could I go with a bid? Any opinions appreciated.
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Old 07-31-2013, 04:08 PM
 
Location: The Triad (NC)
25,511 posts, read 55,178,360 times
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Quote:
Originally Posted by smarterguy View Post
I'm looking at a house-
Currently listed at 489k; listed two years ago... sold for 456k.
As it stands they're asking 7% more ($33K) than they paid...
which is probably about equal to their closing costs, the water heater, and the floors.

If you or I were selling similarly... I doubt we would ask any less.

Quote:
How low do you think I could I go with a bid?
Any notion for WHY it's being sold again so soon?

You might be able to manipulate some misfortune to your advantage.
No law against that.
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Old 07-31-2013, 04:27 PM
 
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Depends where it is and the market. some have rose as much as 13% lately from reports.
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Old 07-31-2013, 04:58 PM
 
Location: Earth
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It doesn't matter how much they bought it for. May be seller paid all closing cost so real purchase price was lower, may be there was some furniture included, may be previous seller was moving away or going bankcrupt so sold for less in hurry. There are so many unknowns. I say look at the comparables and then decide what to offer.
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Old 07-31-2013, 05:12 PM
 
Location: El Dorado Hills, CA
3,653 posts, read 7,747,662 times
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Quote:
Originally Posted by smarterguy View Post

Similar (cookie cutter) homes have sold in the past 6 months for about 450-460k.
.
This is the only part of your statement that matters. Similar homes, similar locations, similar interior updates, similar timing = similar prices. Our market is up about 10% from 6 months ago, but I'm not sure about yours.

All you can do is make your best offer and hope it works out. If someone else finds it more valuable than you, they will be the new owner instead.
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Old 07-31-2013, 09:36 PM
 
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Quote:
Originally Posted by GripeWater View Post
It doesn't matter how much they bought it for. May be seller paid all closing cost so real purchase price was lower, may be there was some furniture included, may be previous seller was moving away or going bankcrupt so sold for less in hurry. There are so many unknowns. I say look at the comparables and then decide what to offer.
I didn't think about that.

Quote:
Originally Posted by NinaN View Post
If someone else finds it more valuable than you, they will be the new owner instead.
Yeah, I guess that's what it comes down to. I'm not desperate to buy, just a serious bargain hunter I suppose. Thanks for your thoughts.
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Old 07-31-2013, 09:54 PM
 
28,022 posts, read 65,984,629 times
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Default Bargain hunting is trickier than it looks...

Quote:
Originally Posted by smarterguy View Post
I didn't think about that.


Yeah, I guess that's what it comes down to. I'm not desperate to buy, just a serious bargain hunter I suppose. Thanks for your thoughts.
I bought my first house back when Ronald Regan was in the White House but I started shopping when Jimmy Carter was losing the election. Bad economic conditions can make folks sell for emotional reasons. When you see a house that is needed some TLC that is a real good clue that the seller is not exactly gone out of their way to get top dollar. The flip side of that coin is that somebody that had spruced up a place even with hardwood floors and other "smaller" things very likely has at least some clue about what their neighbors places have sold for...

Assuming your market is behaving like many recently have there is good chance the recent uptick in mortgage rates and subsequent downturn in resale activity has cooled the market somewhat but regardless of whether the sellers of this home are flippers or some kind of distressed seller your need better data than stuff that is six months old. Right now I would be looking at data that is 45 days old or fresher -- ideally MLS certified closed sales but also time on market data as well as trends for selling price as a percentage of list.

It is almost always easier to get a ugly trashed place for a bargain than a place in fair / good condition ... If you some knowledge and a wee bit of fix-it skill / some cash you can quickly clean out trash and pretty up a place to either live in, rent out or find somebody that does not do as much homework as you did.
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Old 08-01-2013, 05:26 AM
 
Location: NJ
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Don't get hung up on information that doesn't matter. Concentrate on what you think the house is worth.
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Old 08-01-2013, 07:41 AM
 
1,345 posts, read 3,488,039 times
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Quote:
Originally Posted by manderly6 View Post
Don't get hung up on information that doesn't matter. Concentrate on what you think the house is worth.
I agree, but I don't want to give such a low offer that my agent thinks I'm crazy.
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Old 08-01-2013, 08:21 AM
 
248 posts, read 501,387 times
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Quote:
Originally Posted by smarterguy View Post
I agree, but I don't want to give such a low offer that my agent thinks I'm crazy.
Again same advice as above. Let your agent think whatever he wants. If you think the house is worth $450K then that is what you offer. You stated yourself that you aren't in a rush so why bother negotiating if you already have a value in mind.
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