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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.
My thoughts: read this thread (and news coverage of the NJ housing market) and take into account the fact that prices are predicted to fall 25% in most of New Jersey in 2009 alone; who knows what 2010 will bring.
If you buy now, you will likely be buying something that will only continue to fall in value. There are many fish in the sea, my friend. Low ball the offer (I'd go even lower than 10%) and stick to your guns. If not this house, another will come along that you like just as much. Trust me, I've been there as a buyer myself before. Be patient.
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 com-parables. 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!
How do you know one is under contract for $360,000 or is that the price it is listed for when it went under contract. Typically nobody will tell you under contract price.
Are you doing all this on your own? if you are perhaps it might be wise to bring in a very knowledgeable Realtor for that area. Likely you will get some interesting and helpful advice.
As a buyer, why would you choose to go it alone??? and remember there are plenty of sky is falling negative types here.
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!
Unless you like buying a home and then seeing your equity drop almost immediately, I'd low ball the place. I've been looking for a second home for almost a year already and I've yet to see a place that sold anywhere near its original value. Plus, many of the homes I looked at early last year have either withdrawn from the market or have had their z-values drop significantly (and in the case of upscale markets like watchung, I'm talking drops of $100k or more)
That being said, it all depends on the market area. Places like Mountain lakes seem to be holding up better than other places, although even there prices have dropped.
Is this the right house for you, in the right area? Have you been looking a while - by that I mean are you being very emotional about this or have you been at it awhile? Will you be living there for a long time? Do you believe that every house in NJ is going to sell for 25% less than they are going for right now and never go up in value? That would mean a house you could buy for 290 now will sell for 217 in a couple of months. I believe people (in my area) will just not sell their houses at all rather than drop them that low. I think you could be safe offering a little lower - maybe 15%? I don't think they would be so insulted that they wouldn't counter, but your RE agent can probably give you better guidance on that. I just don't think that anyone who is expecting prices to drop 25% later in the year should be looking right now and expecting people to give their homes away.
We bought our house last summer. We're happy with the price we paid and we have no regrets at all. I don't believe the previous owners would have sold it for any less no matter what anyone thinks might happen with the whole market.
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.
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.
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.
Sorry, it was not meant for you, it was just a general vent.
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I just have not seen any sellers point of view.
[SIZE=3]You can buy a home that may need some fixing up but, always remember location, location, location, that part can never be changed. [/SIZE]
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Thank again.
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