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Old Yesterday, 08:41 AM
 
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Lowball offers dont exist. Price is what a buyer feels a item is worth and what a seller is willing to accept
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Old Yesterday, 09:13 AM
 
Location: Raleigh NC
9,765 posts, read 7,391,036 times
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there's no telling if there's an issue with the roof or not, unless that's your profession.

If the house has been on the market 2 months at $79K, then $70K is NOT a lowball offer.

But as some of the others have said - if $79K gets you a house with a garage and a fence, then those are big ticket items, and play a role in the value. A garage that would cost you $20K is not WORTH $20K though, unfortunately.
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Old Yesterday, 09:45 AM
 
30,424 posts, read 47,702,829 times
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Quote:
Originally Posted by kitkat0825 View Post
Yes, I can afford it, but the question I'm struggling with is whether or not I want to. I don't expect to find a completely 'move-in ready' home in my price range, but that is a bit more work than I was hoping for. I do love the house overall but I'm not sure these drawbacks are worth it. Especially as you say as a FTHB.

I think you're right. Thank you for your insights, this was very helpful.
Personally I don’t think you can really “love the house” if you haven’t been in it and haven’t seen what is going on with the roof

You are attracted to the house because—what 4 things are on your list?
And you have reservations obviously because you mentioned roof joists (very perceptive and expensive to repair), poor driveway, no garage—which DOES cut down on the value that should be asked and what resale will offer...
Would you put in a garage or metal carport after buying?
Where do you store items for yard work if you have no garage which is where most people put lawn mowers and other paraphernalia?

Don’t fall “in love” with any major purchase until you know what you are really going to be buying would be my suggestion—-emotional decisions are usually bad ones...
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Old Yesterday, 11:21 AM
 
6,841 posts, read 8,185,985 times
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Quote:
Originally Posted by Electrician4you View Post
Lowball offers dont exist. Price is what a buyer feels a item is worth and what a seller is willing to accept
I wouldn't go that far. If a Buyer puts in an offer which is substantially below what they feel the property is worth, that is a lowball offer.
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Old Yesterday, 11:53 AM
 
Location: Denver CO
21,420 posts, read 12,052,891 times
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It sounds like 79K is the reasonable price for a "decent starter home" that is move in ready, maybe some cosmetic updates would be nice. If that's the case, and those houses don't need a new roof, a new driveway, taking out a big tree (that is not a cheap thing!), and aren't lacking a garage or carport or fenced yard. That makes this house way overpriced, and also very likely with an unrealistic seller who thinks they should get the same price as a house without all of those deficiencies.

I can't really figure out why on earth you love this house so much, with all those issues?

and IMO, with what you already know and not even taking into account what could be an issue once you actually see the house in person and have an inspection, I think 70K would still be much too high to offer. Whether the seller thinks that's a lowball offer is irrelevant because it doesn't appear that they have reasonable expectations given the comps.
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Old Yesterday, 12:49 PM
 
18,736 posts, read 20,635,857 times
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Originally Posted by jackmichigan View Post
I wouldn't go that far. If a Buyer puts in an offer which is substantially below what they feel the property is worth, that is a lowball offer.
Sorry I don’t agree. It’s a offer. Just not a good enough one to spark negotiations or a agreement to sell. For example I’m currently contemplating selling one of my rental properties. Anyone is able to make me a offer. If it’s not a serious offer where I need to be money wise I simply ignore the offer. It’s pointless to even form and send a response. Simply not responding speaks for itself. If the offer is worth looking at I respond with my counter.

I’m selling one of my trucks. I’ve had plenty of “lowball” offers. I simply respond with a thank you for the offer but I’m not interested.

“Lowball” is simply a description of a offer that’s not desirable.
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Old Yesterday, 01:05 PM
 
Location: NC
2,187 posts, read 1,212,671 times
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Quote:
Originally Posted by jackmichigan View Post
I wouldn't go that far. If a Buyer puts in an offer which is substantially below what they feel the property is worth, that is a lowball offer.
That's what I was getting ready to say.

I had an offer on my house come in at $40,000 off from the $300K listing price. I countered with $1000 off my asking price. While that was going on, I got what I considered a fair offer (still a bit off asking, but within $7K of asking with closing costs included in that number). First person came back and countered by raising their offer by $12K, so still substantially off asking. My agent told his agent that we had an other offer on the table and his agent wanted to know if we were going to ask for best and highest. I told my agent no. First guy wasn't offering what he thought the house was worth, he was seeing how low we'd go. I don't have the time or patience to play those kinds of games.

OP, go see the house, make sure you love it in person and then have your agent run a cma on it. Make your decision from there. Don't settle, especially with your first house. There's nothing worse than living in a house that you've settled for.
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Old Yesterday, 02:00 PM
 
Location: Moku Nui, Hawaii
9,817 posts, read 19,036,798 times
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Buying a house is a lot like buying something at a garage sale. Although unfortunately in this case there's no garage involved, maybe it's a yard sale instead? Anyway, when selling a house, it's an item that doesn't have a 'retail' price tag on it, the seller and buyer have to agree on a price to make the transaction happen. Houses get a 'value' stuck on them for a variety of purposes, in this instance you're trying to come up with a 'value' that will get the seller to sell it to you.

As far as houses go, their most important 'value' is their location and how that location will fit into your life. Get a house that makes your daily life easy and inexpensive. If you find the 'perfect' house an hour's drive from where you work, then it's not a perfect house anymore. Don't get bogged down in details of decor, paint, door pulls, etc., all that is easy to fix. Picking the house up and relocating it to somewhere else isn't so easy.

Ask a roofing company or two for a quote on repairing the roof. Just a 'ballpark' quote to fix the roof assuming the rafters need repair. A 'pyramid' roof is usually called a 'hip' roof, I'm guessing. It's a more expensive repair than the simple 'gable' roof. (A 'gable' roof is like a piece of paper folded in half and then opened out again.) The more intricate the roof, the more expensive to repair. This will give you numbers to know if you'll be able to fix the roof if necessary.

Depending on your buyer's agent's strategy, perhaps the number could be used to argue the selling price lower. Or sometimes that can **** off the seller so they don't consider the offer.

We just sold a fixer-upper. We were under contract with a buyer represented by a buyer's agent. We went from $185K down to $175K on the initial walk through due to repair issues. We knew about the issues, the buyer knew about them, everything was on the disclosure sheets. Due to issues with the house, it had to be a cash sale which was another thing everyone knew going into the sale negotiations. Halfway through, the buyer wants to try financing, they bring in inspectors (who told them the same things we had), contractors, assessors, etc. They then used those numbers to try to 'lowball' us even further. Which didn't set well with us since we had already lowered the price due to those issues once. We did give them an additional couple thousand to $173K but after they "got quotes from contractors", they came back asking $140K. I'm suspecting their attempt at financing fell through and that was their cash amount. At that point, we offered to let them out of the contract and their buyer's agent agreed to that so fast, I'm guessing they definitely wanted out of the contract instead of wanting the house. Which was okay, the next day someone came in with a full price cash offer.

We then turned around and bought a different fixer upper (much better location). The seller had started out asking $225K, but it had been sitting on the market for over 7 months. They'd been decreasing the asking price every other month or so. It was down to $189K when we offered them $175K. Their counteroffer was $179,900 which was good enough for us since we'd been trying to get to $180K.

Some areas allow you to look up property records. If they just bought the property within the past several years, they may still have a mortgage to pay off. Usually a seller won't want to sell for less than they owe. If they've owned it for decades, then it may be paid off and then they'd be more willing to accept a lower offer.

You could have your buyer's agent offer a lowball offer of $68K claiming that's because it's your first house. No insult to their house, although they may worry you have enough $$$ to buy the house. They would then counter offer somewhere around $74K, perhaps.

Throw a "lowball" offer at them and see if they hit it back to you. You just want them to get started in a conversation about how much to sell it for.
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Old Yesterday, 02:29 PM
 
23 posts, read 5,460 times
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Quote:
Originally Posted by kitkat0825 View Post
I'm a first time homebuyer in a little city in central Texas.

I'm looking at a home on Monday with my realtor. I snooped around a little bit yesterday though, and noticed that the roof joists are sagging pretty bad. The pyramid shaped roof is vaguely pagoda shaped. But it seems to have new shingles..? Who knows what's lurking under there, but it will need fixing.

The house is listed at 79k, the low end of "decent starter home" for my area. The interior has been remodeled with nice new kitchen cabinets, carpet, and laminate flooring. Looks real clean but that's just photos. We'll see the real deal on Monday. So far though from what I've seen, I love it.

Also, the concrete driveway is in bad shape. Lots of major cracks, presumably due to the very large tree growing right next to it. And finally, it does have any kind of garage, carport, shed, or any kind of outdoor storage. EVERY other house in this price range has at least a carport or garage, but the majority have all 3, and a good chunk also have a fenced in yard which this also does not have.

Despite the fact that I love this house so far, all of these negatives got me wondering what kind of offer I should put in on it.

Would 70k be considered lowball? Only the roof really looks like it NEEDS help, but not having these very basic/common amenities does not make it worth 79k imo.

My realtor told me the most common complaint about this house is no garage. Since it's been sitting for 2 months while other houses come and go within days, I'm going to assume this is a major factor as to why.

I've been trying to read some real estate forums to learn how this whole process works and I've read a lot of complaints about buyers and lowball offers and asking for too many concessions. I don't think it's worth 79, but I don't want to be that person.

Thoughts? How do you determine what kind of offers to make or concessions to ask for? I'm willing to do the work myself if I can get the discounted price. Or should I ask the owner to fix the roof?

Of course I'll discuss all this with my realtor on Monday, just want to go in with realistic expectations.
What is a "low-ball" offer? That obviously differs greatly from property to property.

Your thought process seems very reasonable.

My first thought when considering an offer (and possibly low-balling) is "how long has it been on the market?" And, how quickly are the listed homes around it selling? You mentioned both of those so you're incorporating this into your potential offer price.

And, as you also mentioned, you need to consider the amount of work the property needs to bring it up to your standards.

To me, your thought of offering 70k on a 79k listed property is very reasonable. If I was the owner, I would not be upset with that offer.

Best of luck.
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Old Yesterday, 03:48 PM
 
Location: Henderson, NV
902 posts, read 602,490 times
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I would stay away from busted trusses and cross supports, if that is what is going on with the roof support. The way you describe the roof seems more like a structural or material failure than a few broken trusses--get an inspector to get up there and identify the problem before you do anything else. It might be a few repairs or it might be ripping off the roof and replacing trusses--you are then basically rebuilding the top of the house, not just doing a roof replacement. A major project. Not worth a $9k discount.
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