U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > New York > Long Island
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 04-28-2008, 01:31 PM
 
146 posts, read 802,209 times
Reputation: 94

Advertisements

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?
Rate this post positively Reply With Quote Quick reply to this message

 
Old 04-28-2008, 02:06 PM
 
Location: East Northport
3,351 posts, read 9,043,371 times
Reputation: 1330
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.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-28-2008, 05:47 PM
 
Location: Kings Park & Jamesport
3,180 posts, read 9,684,279 times
Reputation: 1072
IMO,

Probably too low......$460 would be a better starting #.

If I was the buyer, I would figure that I would take $480 for my house if its listed at $510.

Good luck!
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-28-2008, 07:36 PM
 
Location: Sound Beach
2,160 posts, read 7,077,687 times
Reputation: 889
Another consideration could be how long the house has been on the market...as this is can be an indicator of how well it is priced.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-28-2008, 09:07 PM
 
76 posts, read 174,756 times
Reputation: 14
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..
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-28-2008, 09:15 PM
 
9,341 posts, read 27,496,157 times
Reputation: 4529
Quote:
Originally Posted by purelygeneric View Post
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).
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-28-2008, 09:41 PM
 
Location: Nassau, Long Island, NY
16,408 posts, read 31,019,942 times
Reputation: 7295
Quote:
Originally Posted by JustBored View Post
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:

2000 ...... $221450k @ 3% - $225750k @ 5%
2001 ...... $228094k @ 3% - $237038k @ 5%
2002 ...... $234936k @ 3% - $248889k @ 5%
2003 ...... $241984k @ 3% - $261334k @ 5%
2004 ...... $249244k @ 3% - $274401k @ 5%
2005 ...... $256721k @ 3% - $288121k @ 5%
2006 ...... $264423k @ 3% - $302527k @ 5%
2007 ...... $272356k @ 3% - $317653k @ 5%
2008 ...... $280526k @ 3% - $333536k @ 5%

Pay no more than $333536k for this house unless some major upgrades have been done.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-29-2008, 05:55 AM
 
Location: Inis Fada
16,966 posts, read 31,855,469 times
Reputation: 7633
Quote:
Originally Posted by purelygeneric View Post
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?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-29-2008, 08:22 AM
 
Location: East Northport
3,351 posts, read 9,043,371 times
Reputation: 1330
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.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-29-2008, 08:59 AM
 
Location: Rockville Centre
62 posts, read 214,402 times
Reputation: 16
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...
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:




Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > New York > Long Island
Similar Threads

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top