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Have you looked at comps? What are comparable homes selling for around the property? What shape is it in? How long has it been on the market? If you examine these factors, you should be able to have a good sense of what to offer. But don't be surprised if someone offers more or you get turned down -- I put in an offer this week on a home myself, with a substantial cash payment, only to be outbid by someone else paying all cash. So you never know what will happen, even in this market, if the house is a good buy.
Thank you all for your replies. Since I like that house and area very much, with some very hard negociations I had to settle with final agreement of 320K with 6% seller's concession. As I understand, a seller's concession can be only used to cover closing costs and I will not get any of the unused portion back. My total seller's concession will be $19,200. I Plan to go for a very high closing cost around $14,000 including rest of the property taxes and insurance for the year hence reducing my interest rate to 3.75%. Basically I am buying back points with closing cost. Is there anyway I can fully utilize my seller's concession? Please advice. Thank you.
House was listed at 330K and we really liked it, so settled with 320K. I know if we waited longer could have got a better bargain, but didn't want to loose that house to somebody else.
IMHO, an important question here is what are comparable houses selling for in that area?
You and the seller may agree on a price, but if the appraisal falls short, unless you are putting down more than 20% of the agreed upon price (with a conventional mortgage), your deal may not materialize. At the moment, banks are very conservative when it comes to appraised values.
Trying to use comparables solely is not always a accurate way to assess what a property is worth.
You also need to remember that this is a down market. It's not even a flat market.
House was listed at 330K and we really liked it, so settled with 320K. I know if we waited longer could have got a better bargain, but didn't want to loose that house to somebody else.
If YOU think its worth it, then no one else should have a problem with it. Just don't let the RE agent, CD forum, friends, or family tell you what its worth.
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Settled with 320K with 20% down
