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glad you were able to vent a little! your point is taken. although I think it would be better directed to someone else in a different situation (not me!). offering 8 to 10% off the asking price is quite reasonable. especially in this market, most sellers should be happy receiving any offers at all! but I agree with you in regard to buyers who want to "steal a good deal" and try to get 20 to 40% less market price. they should be looking at short sales / foreclosures like you mentioned.
You are right on the bolded point, but the point of sellers just being happy to get an offer??? I don't think you're right on that one.
If sellers are that desparate (sp?), then their homes are probably already short sale.
To sum it up, you are being very fair with your offer in my opinion.
How about a sellers point of view. Other than short sales or foreclosure why would I want to "give my house away", just so the buyer can get a "good deal". The land has vaule, the area you move into has value, you need to think about that part not just the house. The market may go down but it will come back. I've been in my home for 25 years and I can remember two times that the market took a down turn.
I do what to put my house on the market and I need so much to make my move. If the buyers don't like it go, buy a short sale or foreclosure and see what you get. Thanks I need that.
LOL - nice little rant at buyers.
Um, OK. Of course your land has value, of course your house has value, and of course the town has value. The question is: how much value?
There has never been a bigger housing bubble than what we just went through these past 8 years. It's unescapable that house values will go through a bigger fall than what you may have been used to in other down markets.
The days of funding your retirement to a beach house in North Carolina based on selling your NJ house to a bigger sucker are over. If you want to sell, you'll lower your price to a point where your house will sell. It's really that simple. If you don't, you can stay there.
I'm looking at a ranch home that is listing for around 325K in Central NJ. I did some research and I found out that the current owners paid 310 for the home a few years ago. I would like to land somewhere around that same amount. But in this market, I may even be able to get lower. Does anyone have any thoughts or advice? I was thinking about an opening offer of 290 or 295K, which is right around 10% off the asking price. But I hear that due to the buyers market we are in, many people are starting off even lower.
The reason why I am hesitant to go much lower is because of the market comparables. First off, the $325K asking price has already been lowered. Apparently they started off in the $380K range and that was like 10 months ago. But I believe the property has been on and off the market. It is currently a for sale by owner.
I've reviewed comps from recent sales. Looks like similar homes in the area have recently sold for anywhere from $327 - $340K. One is under contract for $360K. Most of the other asking prices are in the $340 - $360K range. so the house I am looking at is priced well, perhaps below the market comparables. Which is why I am hesitant to low ball the offer.
Any thoughts? much appreciated!
First, a home has the same value whether it was purchased 3 years ago or 30 years ago. Would the price change if the sellers lived there for 30 years and bought the home 30 years ago (big potential gain) vs 3 years ago (little or no gain), or if the house was inherited (100% of whatever they get for the house is profit). The answer is no... buyers should not look at this.
Lowering price: In a market where prices are declining, people either price their home for the market NOW, or they have to lower the price. You are bidding on a home as it is priced today, not 10 months ago.
My advice: Make an offer that is comfortable for you. Generally, the average listing discount is between 4-6%, meaning that a home listed for $100 would sell for $94-96K.
A house that is priced right has already taken the discount. You can offer $1 if you want, but if you want to be perceived as serious, I would not go more than 10% below asking. The worst they can say is no.
Even if a house is priced at $325 that should be $225 and you know it, the seller is not ready to listen to this or else the house would be priced in the mid $2s instead of the mid $3s.
Based on the numbers you provided here, the home seems to be priced right for the current market. Good luck.
I'd low ball almost anything. Take you time. It's a buyer's market and it will only get worse as layoffs today hit the market later in the year. You may think such a home may never come up to market again, but you'd be wrong.
Don't get stuck with a house that devalues almost immediately. It's not car.
There is more to the equation then the current price.... for example, mortgage rates are about 5% currently... and for every 1% increase in mortgage rates the buyer loses 9% in buying power. Rates will not be low forever, so with due respect to the "sky is falling" crowd this is a good time to buy.
Also... if you are going to live in the house for many years, look long term.
There is more to the equation then the current price.... for example, mortgage rates are about 5% currently... and for every 1% increase in mortgage rates the buyer loses 9% in buying power. Rates will not be low forever, so with due respect to the "sky is falling" crowd this is a good time to buy.
Also... if you are going to live in the house for many years, look long term.
Exactly. If (when) interest rates climb back up, it will only accelerate the decline of home prices -- people cannot buy what they cannot afford.
This is a lesson that, while seemingly simple on the surface, our citizenry seems to have a difficult time comprehending.
Assuming an equal monthly payment, it's always better to buy a house for a lower price with a higher interest rate instead of buying that house at a higher price with a lower interest rate. Why? If you buy at a lower price, one can always refinance their mortgage at a lower rate in the future. But you can't reduce the amount of principal you owe on the loan.
...and when the housing market turns around and it will, just watch how fast prices go back up.
No way. At best, when the housing market stops collapsing, things will remain flat (in real dollar terms) for years to come.
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