Forsyth housing market - buyer's offer (Tucker, Suwanee: mortgage, houses, neighborhood) - Atlanta - Georgia (GA) - City-Data Forum

rsnsmh · 03-23-2015, 05:35 PM

I am wondering how hot is the market at Forsyth County - address in Suwanee. We found a house that we really like and would like to make an offer. Shall I offer the price seller is asking for or shall I offer a little more (like $100) to make sure it stands out or is offering more will become an incentive for buyer to reject the offer assuming that they can get more.

Asking Price: $260K
Zillow estimate: $261K

Appreciate any input.

arjay57 · 03-23-2015, 06:26 PM

I would say offer them their exact asking price.

It's my understanding that automatically makes a binding deal.

Say you go into Walmart and they have a shirt you want for $8.99. You say "I'll take it." They can't come back and say, "Okay, but now that you want it the price is $9.50."

evannole · 03-23-2015, 06:34 PM

Quote:

Originally Posted by arjay57

I would say offer them their exact asking price.

It's my understanding that automatically makes a binding deal.

Say you go into Walmart and they have a shirt you want for $8.99. You say "I'll take it." They can't come back and say, "Okay, but now that you want it the price is $9.50."

Sorry, but this is incorrect. Sellers will frequently price a house below market value in order to attract attention and in hope of starting a bidding war. Offering asking price is certainly no guarantee of inking a binding contract. A seller can take or decline whatever offer he pleases, for whatever reason he pleases.

I am usually in agreement with you, arjay, but not this time

OP, are you working with a realtor? If so, and if they're a good one and know the neighborhood, they can probably provide a reasonable estimate. It also depends on how long the house has been on the market. If a month or more, you might even be able to come in under list price. On the other hand, if it is newly listed, you will probably have to come close to asking price. In any event, I have been pretty unimpressed with Zillow estimates.

For what it's worth, we sold our old place about 6 months ago. We had an offer less than 36 hours after listing, but it was way below list price, which itself was $5k below market value. We didn't even respond. We received several more offers from other folks, had a bidding war, and eventually sold to the original guy for $500 above the original list price. In the process, we turned down an offer that was about $5000 higher, right at market value, because the lower priced guy had a flexible time frame, while the higher offer needed the place in just a month, which was a non-starter, considering that our new place wouldn't have been finished by then.

Good luck!

rsnsmh · 03-23-2015, 06:48 PM

Yes - i am working with a realtor and seek his input when I will see the house. I am bit nervous as I am located out of state and traveling to see houses are costing me $$. I am seeing low inventory and very quick turn around - good houses are not staying in the market even for me to make a trip.

Thanks for the input.

evannole · 03-23-2015, 07:06 PM

Quote:

Originally Posted by rsnsmh

Yes - i am working with a realtor and seek his input when I will see the house. I am bit nervous as I am located out of state and traveling to see houses are costing me $$. I am seeing low inventory and very quick turn around - good houses are not staying in the market even for me to make a trip.

Thanks for the input.

Good luck! It does sound like things are moving quickly, so if you really like the place, there's no harm in coming in at or slightly above list price. Even a couple of thousand above list price would work out to virtually nothing in terms of additional monthly payments, amortized over 30 years.

Even more important to a seller could be the terms, though. In our case, a delayed closing was a plus for us. Other sellers might prefer a quick turnaround, or the lack of hassles that a cash offer would bring. Certainly, if you are going to do a mortgage, make sure you are pre-approved and include your pre-approval letter for $x00k with your offer. That will let the seller know you're not going to have your financing fall through while he has the house off the market because he thinks he is selling to you. And provide a significant amount of earnest money... If the house fails inspection or something, you can get it back, but again, it provides the seller some assurance that you're not going to flake out and walk. I was royally ticked at our realtor for allowing our guy to provide only $1000 in earnest money, but he (our realtor) was our of town and doing everything via phone and email when the final set of offers came through, and I was quite anxious to be under contract as we had already put down a large amount of money on a new construction house, and I was afraid of ending up with two mortgages. So. I took the offer... But all summer I was troubled by the thought that if the guy decided to back out, he would only be out $1000 - less than a month's mortgage - and I would have no recourse. If I had to do it again, I would insist on $5000 or several percent down.

Again, good luck, and welcome in advance to the metro area!

arjay57 · 03-23-2015, 07:13 PM

Quote:

Originally Posted by evannole

Sorry, but this is incorrect. Sellers will frequently price a house below market value in order to attract attention and in hope of starting a bidding war. Offering asking price is certainly no guarantee of inking a binding contract. A seller can take or decline whatever offer he pleases, for whatever reason he pleases.

I am usually in agreement with you, arjay, but not this time

No problem, evannole, I stand corrected.

It still seems like if a man offers you something for X dollars and you say, "Okay, I'll take it," then you would have a deal.

If he wants to start a bidding war he should just say, "Price negotiable, bids start at X."

rsnsmh · 03-23-2015, 07:39 PM

Thanks for the input. I am bit of nervous since its a significant move for our family and house hunting has not been as easy i was expecting (:

BeyondInfinity · 03-23-2015, 08:13 PM

You are correct about the inventory. It is extremely low right now. One place I was looking at was only on the market for 5 hours before someone swooped in and took it. I finally found a place that I like in Tucker. For me to Seal the deal, I gave them full price and asked for the current owner to pay 3% closing costs which is standard from what I understand. He accepted my offer over the other offers which I am estatic about.
I hope to be moving next month to my first home.

flyonpa · 03-23-2015, 08:22 PM

One of the Item one of the buyers of my "Old" home, was they put in a Full Price offer, and added they would cover the First $5000 of any repair/replacement that were found in the inspection.

Was a different offer, and it worked, I accepted there offer, (plus other standard contingents on both sides)

AfternoonCoffee · 03-24-2015, 07:59 PM

If the house is a new listing and you are serious about it, offer a few $1000 over list price (1-5) If you're willing to cover the difference if the house doesn't appraise (assuming you're getting a mortgage) let your agent know that. Show that you're making a sizable downpayent and offer a decent amount of earnest money (5-10k) I really like the suggestion of saying you're willing to cover the first $X of repairs that may come up in inspection. I would never, ever waive contingencies altogether. And if you seriously want a house in a hot market do not expect or ask the seller to put any money towards your closing costs. That's for a buyers market.

Bottom line: Do everything you're willing to do to make the process low-stress for the seller. Show yourself to be a solid, stable buyer. Don't ask for nit-picky things. Be smart and protect yourself, but choose your battles wisely.