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.
I'm a first time homebuyer looking to buy a modest home with my fiancee via the USDA loan. We found a gorgeous little house we love but the seller has it way overpriced at $147k. He says he needs to clear that much to pay off his mortgage and ex but the home has been on market nearly a year and my realtor tells me he doesn't expect it to go off the market anytime soon, not at that price.
1. It's overbuilt for the area (mobile homes next door)
2. The seller believes the renovations made should bring up the value a LOT (new paint outside) while the home is still older and not updated (80s kitchen)
3. The seller is basing his price off the assessed tax value but comps (which are difficilt since the home is unique) sell for 85k-130k. I would love to get it for 115-125 maybe 130.
4. And here's the kicker. The seller has no idea why it hasn't sold at his preferred price because he says sitting out on the back porch watching the birds go by is just priceless. Like it's worth an extra $30,000 priceless.
We really like this home but some things are wrong with it (only 1 ba, small kitchen) that might require updates. How do you negotiate with a seller that believes his house is worth waaaay more than it actually is?
I'm scared to insult him with a low offer more appropriate for the area. We are a bit sentimental about the home too because we just fell in love with it but now I'm starting to distance myself in case he won't negotiate with us. He says he wants to move ASAP but at that price I don't see it happening.
That's the problem with some FSBO sellers--they're out of touch with reality. If you wish to make an offer, go ahead at a price you feel is appropriate. Don't worry about offending them. If it's been on the market for nearly a year, that's a good indication that it's overpriced. You should really start looking at other houses.
Hint: Don't fall in love with any house before you buy it. Even then...
I'm a first time homebuyer looking to buy a modest home with my fiancee via the USDA loan.
We found a gorgeous little house we love but the seller has it way overpriced at $147k.
He says...
We really like this home but...
How do you negotiate with a seller that believes...?
You don't. You present a REASONABLE offer based on OBJECTIVE data.
Then let the chips fall where they will.
One of those chips will probably be you moving on to other properties.
Quote:
I'm scared to insult him...
Don't be. If anything, he's the one who is being insulting.
It has to appraise so it doesn't matter what he wants for it or what he thinks it's worth as it's worth what it can sell for! Go online and see what similar homes have sold for in the immediate area and if it's in the range you are willing to pay than bring that to his attention and make an offer.
Also, you have look at things like:
When was the roof updated last, furnace, etc. I would be more concerned about that than the appearance of the kitchen being outdated. If it needs a new roof, that also needs to be considered in price.
FSBO homeowners usually try to get more than what the market value is. I'm not sure why people think their going to get a deal with these type of homes because it's typically the opposite.
I wouldn't bother, it's your first home you need a real estate agent to guide you it's a complicated process even with a realtor. If you waste money on the inspection and then get an appraisal if it doesn't appraise for the agreed upon price he won't sell and the deal will be dead and you will be out of at least $700. Run, he's FSBO because he's too cheap to pay realtor fees and the home is not priced reasonably or logically. USDA is another issue, I wouldn't try to do a USDA with a FSBO it's more complicated than other loans.
FSBO homeowners usually try to get more than what the market value is. I'm not sure why people think their going to get a deal with these type of homes because it's typically the opposite.
and sometimes it's FSBO because no realtor in their right mind would waste their time listing a home that is overpriced at won't appraise for the selling price. So it's usually someone who thinks they know more than the realtors do.
and sometimes it's FSBO because no realtor in their right mind would waste their time listing a home that is overpriced at won't appraise for the selling price. So it's usually someone who thinks they know more than the realtors do.
Oh! I forgot to mention one more thing. He had a guy who agreed to buy the home for $150k but the guy flaked out on him for MONTHS and the seller got tired of waiting.
I wonder if that experience will get him to come to his senses some....
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.
