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Was looking at a 9 year old home for $385k (list price).
Owner may have purchased for 335k in 2001.
I am going to offer 295k...with I paying approx 9k closing cost.
will scare the bejesus out of him. but I am not willing to risk the falling prices in the area. besides he did not got an offer for more than 6 months now.
any comments?
everyone was living on credit all these years.....no one wins no one loses.
he may have built 35 in equity (principal) just thru mortgage (if he had made higher down payment, then he has to subtract loan cost and thats equity as well.. I am not considering that for the moment) in those nine years. the only satisfaction for him or her is they did get to enjoy the home for approx 9 years... he should be happy for that if not anything else in this crazy market.
side note: isn't that why they ask you to pay atleast 20 percent down...thats real equity when you decide to sell. Everything else is based on drama of life and speculation
Last edited by lets_hope_for_newbruns; 03-03-2009 at 01:06 PM..
Good luck- but don't hold your breath on that offer. Unless the owner has to sell (like if he's leaving town for a job transfer or something), I'd bet your offer gets rejected outright. On a $295k sales price, he'd be paying around $20k in commissions and closing costs, leaving him with $275k. Unless there was a large down payment made when he bought, he'd be upside down.
Also, prices haven't slipped to even close to 2001 levels yet, so the chances of you buying for less than the 2001 price are pretty slim. The house may not sell for $385k, but its most definitely going to sell for more than $335k unless there's a dramatic change in the market still to come.
There is a house in my area. Asking $375k. Bought in 2006 for $369k. Bought in 2001 for $229k.
I think the price shoudl be close to $300k. But I doubt they are willing to drop the price $75k today. And it probably would sell for $320k with a quickness if offered at that price. So I wait and decided to wait it out.
This is the best buyers market in decades and it's only getting better, i.e. the prices are still dropping probably another 30%. What's the hurry? It doesn't matter what the owner paid. Low ball him at $250k. If he doesn't like it go elsewhere. Stop worrying about social graces. This is a business not a personal transaction. It's been on the market for at least 6 mo. Chances are he's getting desperate. If he's not someone else is.
This is the best buyers market in decades and it's only getting better, i.e. the prices are still dropping probably another 30%. What's the hurry? It doesn't matter what the owner paid. Low ball him at $250k. If he doesn't like it go elsewhere. Stop worrying about social graces. This is a business not a personal transaction. It's been on the market for at least 6 mo. Chances are he's getting desperate.
Yeah. And for everytime he doesn't accept an offer go throw a brick through one of his windows. Then deduct that from your next offer and repeat until he sells. This is just one of the many buyer market tactics that can help you justify a price out of thin air.
Only way to have a SHOT at the house... Look at recent (1-3 months MAX) comps and offer something in that WORLD!
Natas,
I am basing 295k on what neighbor homes sold for (agreed that each home is individial and assessed separately..like gas or electric fireplace..duct or radiators for ac etc etc ) ...it is also what I can afford considering the high closing cost and the high taxes. i don't think i can appeal for tax and drop the tax by 2k /year. its tough.
The owner should have lived atleast 15 years before deciding to sell -- agreed?
For townhomes/condos -- people live average 7 years before moving. I am not sure for single family homes what is the trend. you get penalized for moving..
imagine who makes money when people buy and trade? these lenders. don't you think? Primarily on interests accumulated over years. And 495 application fee , points ... etc etc...
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