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I'm looking (not seriously considering, but thoroughly in love with) at a house in rural, northeast Georgia, east of Athens. It is an old victorian, 6 bedroom, 4 bath house, that also has a guest house (two story, loft-like setup, no bedrooms really), for a total of 5,500 square feet. It is on over 9 acres. The listing says that in October 2008, the house appraised for $520k. Until a few weeks ago, the listing price was $499k, and it's been on the market for over a year, with several offers having fallen through due to financing. The price has also fluxuated, coming down $25k, then going back up, etc, and now it's listed at $449k. I don't think that the woman who owns it is too pressed to sell it quickly because I think she is very wealthy, but I do not know what the prior accepted offers were.
In this town, in 2008, the average value of a detached home was just under $200k. Currently, this is the most expensive house in the entire town, and I think it will stay that way. There are several homes for sale listed in the $300k range. The closest home price to this one is $393k for a 3 year old, 4 bedroom, 3 bath house on 5 acres.
When you compare the 4br house to it, it does seem like it is priced fairly. That being said, the home being at the top of the market, and being on the market for so long, and obviously not having seen the house yourself, what do you think a fair offer would be?
Can I also ask that you explain your reasoning for the offer (and if you're serious)? $314-ish is 30% off asking, not what I expected at all. I was expecting people to say, "yup, sounds fair." I'd like to know what you know! hehe
What they are saying is that there is no way that we could give you reasonable advice for a property that we have never seen in a market that we have zero knowledge of. You are better off having this discussion with a competent agent in your area who can run the comps and educate you as to how the game is played in your area. For where you are 90% of asking price may be a great offer, somewhere else might be more or less. You'd be better off getting a response on more general questions...
What they are saying is that there is no way that we could give you reasonable advice for a property that we have never seen in a market that we have zero knowledge of. You are better off having this discussion with a competent agent in your area who can run the comps and educate you as to how the game is played in your area. For where you are 90% of asking price may be a great offer, somewhere else might be more or less. You'd be better off getting a response on more general questions...
Not to speak for the original poster, but given the information posted I think she has talked with agents and looked at the comps. The problem, as she put it, is that it's a unique property in a lot of ways - most expensive in the area, much older than the comps, etc. I think the question is along the lines of how do you go about figuring out market value of a place that wouldn't have a lot of comps even in a normal healthy market, not to mention it's been sitting for over a year?
It sounds to me that a fair offer would be what you,
personally are willing and able to pay.
You might be able to afford $750k, but wouldn't be willing to
pay that much.
You might be willing to pay $250k in a heartbeat if it were
offered at that price tomorrow.
Somewhere in between, is your price. It doesn't sound like
comps can guide you very much since it is such a unique place.
You can ( and I'm not kidding ) write down a number and place
it on the floor next to your bed where you can't miss it when
you go to bed. When you get up the next morning, look at
that price and decide yes or no. Start at $410 - which is just
under a 10% discount.
If that's too high, drop it by $10k and repeat the process.
In any case, this sounds like a personal decision and not really
a business decision. It sounds like a fabulous place though.
From what you said, it doesn't sound like $400k is an offer
that would be accepted.
I think the market in NE Georgia is tanking. Things may be different closer to the college town of Athens, but just west here in Gainesville, we are in a world of hurt. Case-Shiller predicts my home's value to continue to plummet through December (as far out as they project right now). My home is under contract to sell, but we are practically giving it away. We sold for $10k under my original "worst case scenerio" and I'm not a rose colored glasses type of person at all.
If the property is further out from Athens, there might not be much demand for such a high priced property, esp. far from employment centers. You also have to worry about the appraisal. It's only worth what an appraiser says it is if you have to get a loan.
I think the market in NE Georgia is tanking. Things may be different closer to the college town of Athens, but just west here in Gainesville, we are in a world of hurt. Case-Shiller predicts my home's value to continue to plummet through December (as far out as they project right now). My home is under contract to sell, but we are practically giving it away. We sold for $10k under my original "worst case scenerio" and I'm not a rose colored glasses type of person at all.
If the property is further out from Athens, there might not be much demand for such a high priced property, esp. far from employment centers. You also have to worry about the appraisal. It's only worth what an appraiser says it is if you have to get a loan.
Did you ever find out where your agent got Case-Shiller values for your specific home?
I don't know how things are in Gainesville, but that's not too far from me. And while the market here is pretty flat and prices are depreciating, it's not as dire as you proclaim. There's just alot on the market. Gainesville is pretty far out (from anyone that may be commuting to Atl for work).
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