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Old 02-01-2009, 07:40 PM
 
6 posts, read 15,893 times
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The particular home that we are looking at has been on the market for a week in Charlotte, NC. It seems that the current owners have but some good improvements on the home including a completely redone kitchen, and adding wooden floors throughout most of the house. The listing claims 30k in updates (but I am guessing it is WORTH 30k, not that they paid 30k for the upgrades).

It is 3 br/ 1.5 bath home with 1450 sq ft. Even with all of the upgrades, there are some things that we are already looking to need to replace, including the roof and the windows (original from 1970's).

The asking price is approx. 150k. (Sidenote: they purchased for 116k in 1998) We are able to put 3% down (as per the minimum for the FHA loan that we have qualified for), and are trying to crunch our numbers.

To be able to purchase the house, we would need the owners to pay the closing (or at least half).

I read somewhere that in this market, it is okay to offer 10-15% less than asking price. I was thinking of offering 130k without asking for anything (i.e. closing, or appliances), hoping that they will counter with 145 or so. Then, I would counter with 140k asking for the refrigerator and for closing costs.

I know things don't always work out how we want them (and the above situation is completely ideal), so help!
What should we do?
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Old 02-01-2009, 07:49 PM
 
Location: Central Texas
19,459 posts, read 35,648,247 times
Reputation: 19952
Has your agent provided you with sold comps? What do they say?
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Old 02-01-2009, 08:14 PM
 
Location: Nashville, TN
1,177 posts, read 3,608,109 times
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I agree with TexasHorseLady. Since you are a new and inexperienced buyer the information you get from your Realtor is crucial, not only in terms of price, but in how to structure the offer and the negotiating strategy. Without all of the specifics that are known to you and your Realtor it would be very difficult to give meaningful opinions. Good luck.
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Old 02-01-2009, 08:55 PM
 
1,340 posts, read 3,186,595 times
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What they paid for it doesn't matter.
You need to see what similiar places are selling for or have recently sold for. See if there is some trend in prices (stable or declining, etc...) Then make that number your goal. So if $140k is your fair number offer a little less so you can settle at 140k if they counter.

There is no rule of thumb on what % to offer under asking. Sometimes asking is valid. Sometimes 20% may be more realistic. All depends on current comps.
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Old 02-02-2009, 06:28 AM
 
121 posts, read 348,113 times
Reputation: 125
Quote:
Originally Posted by slterry View Post
(Sidenote: they purchased for 116k in 1998)
Completely irrelevant. Could have purchased it for 50K, could have purchased it for 200K - It doesn't matter.
All that matters is the comps for what's it's worth today.
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Old 02-02-2009, 07:34 PM
 
Location: Union County, NC
1,888 posts, read 5,390,551 times
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Definitely ask your realtor to provide comps. If the house is priced well to begin with an offer 10-15% below list for a house on the market a short time may be low. On the other hand, if it is priced too high then you may want to offer even less. Ask your realtor for sold comps, average days on market as well as deals pending to get a sense of the market in that area.
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Old 02-02-2009, 09:05 PM
 
Location: Austin
6,976 posts, read 16,428,981 times
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It's been on the market a week and you want to offer 10-15% below their asking price? If you like it, others will too. You can't lump all the "I heard on the news" this and that mumbo jumbo. If the house is priced right and it's "worth" their asking price, you better offer what you want to buy it for and not think about the game you can play with the seller back and forth. You might insult them and they might not respond at all.

**Note, a house on the market 6+ months would generate a different response. We're talking about 1 week according to the OP.
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Old 02-03-2009, 08:01 AM
 
1,340 posts, read 3,186,595 times
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Quote:
Originally Posted by FalconheadWest View Post
It's been on the market a week and you want to offer 10-15% below their asking price? If you like it, others will too. You can't lump all the "I heard on the news" this and that mumbo jumbo. If the house is priced right and it's "worth" their asking price, you better offer what you want to buy it for and not think about the game you can play with the seller back and forth. You might insult them and they might not respond at all.

**Note, a house on the market 6+ months would generate a different response. We're talking about 1 week according to the OP.
Who is to say they didn't inflate listing price 10-15% upfront to account for lowballers? So you need comp's to determine a fair comparison starting point. Need to find comparable SOLD listings within the past 2-3 months at most. Anything outside of this I would be unsure of current value.
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Old 02-03-2009, 08:36 AM
 
Location: Austin
6,976 posts, read 16,428,981 times
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Quote:
Originally Posted by NatasNJ View Post
Who is to say they didn't inflate listing price 10-15% upfront to account for lowballers?
You quoted what I said so I'm sure you read the part that says, "If the house is priced right and it's "worth" their asking price..."
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Old 02-03-2009, 08:42 AM
 
1,340 posts, read 3,186,595 times
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Quote:
Originally Posted by FalconheadWest View Post
You quoted what I said so I'm sure you read the part that says, "If the house is priced right and it's "worth" their asking price..."
Somehow I missed that. But priced right and worth the asking price is subjective. Hence Comps are only basis of fair and even that seems subjective now a days.
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