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it's been on the market for over 60 days... The property IS in our price range, but we dont want to pay what they are selling. Are you saying as a first time homebuyer, we should always offer what they are asking if the house next door with all the upgrades sold for $15k more? Everyone is saying something different. We were told $310k-315k with a preapproval note in hand is a great offer, so we figured we could go even lower. But you are saying $310k will get a nose in the air? Why? Isnt it a buyers market?
This is not what I'm saying at all. I don't care if you're a first time home buyer or buying your tenth house. Sellers don't accept less on their sales prices because you've never bought a house before, so why does it matter in this situation that you're a first time buyer?
You must be looking in a rural part of Mass because most big-city areas, it's definitely not a buyer's market and it hasn't been for a long time. In my market, in Austin, it was a buyer's market for just a few months. We've been in a very competitive seller's market for over 2 years, and it's getting more and more ridiculous with multiple offers and over asking price right and left. Many houses are selling before they hit the MLS in the pre-market marketing.
If the other houses are selling for much higher than this asking price, these sellers are probably priced "to sell" and not to negotiate... but that's the psychology of my market. You need to get an agent to represent you who can interpret the data in your area. If your scenario was in Austin, yes, you would get a nose up in the air for $310k while listed at $329k.
We can't tell you what to do. I would probably offer 319, with 5 in closing cost. It's high enough that they will probably come back with a counter-offer, and still gives you a little room to negotiate around your $320 ceiling.
Market condition vary on a local level, I would not say southern california is a buyers market and Massachusetts is too large to generalize. Do you see any reason why they would sell it at $310 k when the last one sold for $345, where did the fall of $35 k come from, what is a bump in interest rates, are homes sitting on the market longer? At 60 days on the market, they aren't in a rush to move, with the Holidays coming up, the know the house isn't going to move.
I'm assuming it's because they bought it on a foreclosure for $255k three years ago, know the brand new units start at $349k, and that the fully upgraded unit next door sold for $345k. So they were probably hoping to list for what they think it's worth, but if it's been sitting there for two months, we figured it was priced too high. Hence why we figured we'd ask the "pros" on here what you would all offer. We definitely dont want to lowball the offer, but feel like we may have a chance of getting it below asking is all.
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Originally Posted by bbronston
Are you working with an agent? Have you been pre-approved for a loan that will cover the amount you will need? Do you have enough cash to cover the down payment and closing costs? If you have talked with a lender, what are they projecting for closing costs?
It's difficult to say what the sellers would view as a fair offer but there's nothing wrong with starting low in a negotiation as long as you are able and prepared to pay a fair market value for the property. Otherwise, you are wasting everyone's time. Now, to be fair, others will probably say that's ridiculous and I get where they are coming from but very few sellers are willing to part with their property for less than market value and you stated that this property could actually be worth as much as 10K more than asking so I think you need to be realistic with your plan. Be a ready buyer (by being pre-approved), a willing buyer (by being prepared to pay fair market if you can't get it below market), and an able buyer (by having enough money to handle all the expenses involved with the purchase whether you negotiate a credit or not.)
Yes, we are working with a buyers/selling agent and have been pre-approved essentially for the entire $329k although a figure that high would make us put more money down which is the $ in the bank we'd like to save toward upgrading appliances, moving costs, etc. We were going to say $315k with $5k in closing, but were afraid it was too low... until our lender said they thought it was a good price for something sitting around for two months. But now on here people are hinting it's low which is making us nervous. Is $319k better like the other poster said?
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Originally Posted by ocngypz
The townhouse priced at $329,000 is aggressively priced to market.
Buy brand new (I'm assuming without ugprades) for $349,000
Comp with upgrades sold for $345,000. In my neck of the woods a fp is close to a $2000 upgrade, btw. The other items have a value as well.
Sellers priced $20,000 under builder pricing.
Your offer of $315,000 plus $5000 in closing is an offer of $310,000.... that's the way the sellers will see it.
So in essence you want to buy "used" for $39,000 less than new.
I don't know the size of the kitchen, but conservatively add good granite, stainless appliances (which are not cheap for the real stuff - not stainless "look" - you're looking at about $6500.... add another $2000 for the fp...that's $8500. Deduct $8500 from the comp that sold for $345,000.... and the unit you're looking at is still undercutting the sold comp.
Yes, but we've been seeing units sell all around our area for less. Matter of fact, a property in the next town over (older property, but still very nice) was listed for $329k and they accepted $312k. Granted I dont know the terms or the situation of the sellers, but we dont want to pay more if we dont have to. What if these sellers have a similar situation? Is there a chance we can offer as low as possible without having our offer trashed? We arent well versed in negotiating, we havent done it at all. zero experience.
Quote:
Originally Posted by dblackga
We can't tell you what to do. I would probably offer 319, with 5 in closing cost. It's high enough that they will probably come back with a counter-offer, and still gives you a little room to negotiate around your $320 ceiling.
Thank you so much for being direct and answering my question This is exactly the response I was looking for. Seeing what others would do is a great thing to keep in mind. Everyone is saying so many different things it is really interesting to see what others would do in this case.
Townhouses in New Englannd take longer to sell generally than single family homes. Being on the market 60 days doesn't phase me in the least for a townhouse.
It doesn't matter what the sellers purchased the house for. What matters are sold comps in the actual townhouse community.
Also, in your "affordability" - are you factoring in insurance and HOA monthly fees as well any possible PMI?
I'd be the first one to tell you that sellers are overpriced. I have a pending offer on a sfh which is so over-priced it boggles the brain.
Also, in your "affordability" - are you factoring in insurance and HOA monthly fees as well any possible PMI?
I'd be the first one to tell you that sellers are overpriced. I have a pending offer on a sfh which is so over-priced it boggles the brain.
Yes I agree... and because of the insurance and PMI and condo fees, that is why we dont want to spend any more than we have to. Any ideas for offering strategies in this case?
I guess I should probably add that they bought it on a foreclosure for $255k three years ago. Not sure if that matters...
It doesn't...that's their business.
Make the offer. If they take it great. if they don't, decide if you will pay more and if so make another offer. You keep sounding as if you only get one shot. If it's the house you want, then get started and make a deal.
All you can do is make your offer and see what happens.
Just don't be surprised at the counter.
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This is exactly the response I was looking for. Seeing what others would do is a great thing to keep in mind. Everyone is saying so many different things it is really interesting to see what others would do in this case.
