Making an Offer in TODAY'S Market on a $500k Asking Price (Plainview: sale, real estate)
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Any thoughts on an initial offer for a $510 home in Floral Park?
Mid-block, 1600 sq. ft., unfinished basement, move-in condition - but nothing is overwhelmingly new. Really like the house but wouldn't be devastated if we lost it. Want to be taken seriously - but obviously want to buy as low as possible.
I'm thinking an initial offer of 12% off the asking price is a fair place to start. What do you think?
It's hard to tell without knowing more specifics. What have similar homes in the area sold for recently? How long has the home been on the market? What is the seller's situation?
The initial offer sets the tone for the rest of the negotiations. Your goal should be to make an offer that will generate a counter-offer. Start with what you are willing to pay (if it is realistic given recent neighborhood comps) then come off of it by a little bit in order to leave some room for the inevitable back and forth.
I dont know, I've just witnessed a house in Plainview list for 499k and go into contract in the 450-460K... (so he mustve bid 420k or even 400k??)
The house has been in the market for a few months months but it was nothing special, move in condition, comps in the area ... 500K!
(previous owner bought the house for 215K in 1999)
If you wouldn't be devastated, I see nothing wrong with starting around 12% off list.. Now if they just bought the house and are trying to break even, thats a different story..
Any thoughts on an initial offer for a $510 home in Floral Park?
In most, if not all, markets, "offer" means to sell (I'm offering to sell to you a widget or a house or a ????? at a specified price or barter exchange) and "bid" means to buy (I'm bidding to buy from you a widget or a house or a ????? at a specified price or barter exchange).
I dont know, I've just witnessed a house in Plainview list for 499k and go into contract in the 450-460K... (so he mustve bid 420k or even 400k??)
The house has been in the market for a few months months but it was nothing special, move in condition, comps in the area ... 500K!
(previous owner bought the house for 215K in 1999)
If you wouldn't be devastated, I see nothing wrong with starting around 12% off list.. Now if they just bought the house and are trying to break even, thats a different story..
The sellers made out very well if you go by the historic formula of 3-5% appreciation for every year of home ownership:
Any thoughts on an initial offer for a $510 home in Floral Park?
Mid-block, 1600 sq. ft., unfinished basement, move-in condition - but nothing is overwhelmingly new. Really like the house but wouldn't be devastated if we lost it. Want to be taken seriously - but obviously want to buy as low as possible.
I'm thinking an initial offer of 12% off the asking price is a fair place to start. What do you think?
I think offering $448,800 ( 12% or $61,200 less) than the asking price is not going to get you taken seriously, unless the house has been on the market for a very long time. Don't forget, the homeowner is still going to be paying a commission on the sale of the home to the real estate agent to the tune of another $18,000+ depending on the sale of the house and commission -- assuming 4%.
Out of curiousity: what's the max you would be willing to pay?
Most sellers price their homes at about 5% over what is, in their mind, their bottom line. This does not mean that the house is worth that much. The buyer has to decide that. But, in my experience, most people who make lowball offers are just wasting their time. It's better to find a home that is priced close to what you think it is worth.
If it's been sitting there a long time and price hasn't come down, you've got nothing to lose by putting a $450K offer out (I happen to think there's a huger perception difference in $448,800 and $450,000 in being taken seriously, fwiw). If they come back with a $500K counter, you may not be in the right ballpark and can move on... if they move further, perhaps there's a deal in the making... depends on what you'd be willing to pay and how attractive the rest of your terms are to this individual seller (ie, down payment, closing timeframe). Learning from another post, I'd also make the offer "perish-able" so you do hear back within a certain timeframe. Then you know where you stand.
(Sorry to I_Love_LI but $333K is ludicrous and IS a waste of everyone's time)
Good luck, let us know how it turns out...
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