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Meeting tomorrow with mortgage people.
New home built 2006 on golf property. The area is very saturated with new homes and sales are slow.
Original price was 169,500. They recently dropped it to 164,500
Now they are offering 10,000 bonus cash making it really 154,500.
Question is...what should we offer. We've been preapproved.
We have 5% for the down payment.
My husband wants to offer 144500.
A 10% less offer would be 138150.
Where is a good starting place?
We're kind of going the dual agent route as well. I know she ultimately has their interests in mind and will probably not be happy with a lower offer than 154500, but we will do what we want I guess
Meeting tomorrow with mortgage people.
New home built 2006 on golf property. The area is very saturated with new homes and sales are slow.
Original price was 169,500. They recently dropped it to 164,500
Now they are offering 10,000 bonus cash making it really 154,500.
Question is...what should we offer. We've been preapproved.
We have 5% for the down payment.
My husband wants to offer 144500.
A 10% less offer would be 138150.
Where is a good starting place?
We're kind of going the dual agent route as well. I know she ultimately has their interests in mind and will probably not be happy with a lower offer than 154500, but we will do what we want I guess
Wait until you have more of a down payment saved up. That would be my advice. All indications are that the home you are looking at and the property is going down in value. You want to ride it up, not down. In a year, your 5% down payment ($7500 or so) could easily be gone and you might be upside down on your house (owe more than it is worth).
And whatever you do, don't do an ARM or interest only. Hope that helps.
Are you able to find out the what the most recent sale in the area went for? Ask your realtor to look this up and show it to you, quick. Even if they are a dual agent, they can do that for you.
If not, I would offer what your husband suggested. It's just an offer and you never know. They will probably counter offer anyway and come to some happy middle. Are you willing to pay full price? If yes, then however it turns out you will still be happy.
Find out what recent sales are and take 10-15% off that. If there's a glut of new homes, mark my words, you can bet a fire sale is coming just like what HOV did in NJ and what Ryland is currently doing in Indianapolis.
You can always come UP but you can never go down in negotiating. Don't feel bad for these builders. They made tons of profits for years. Now its your turn to get a good deal. Sock it to them....start LOW. Worst they could do is counter. If they don't come down at first, don't blink. They need to sell desperately and will call you. Be unemotional about it.
Thanks CouponJack. That's how I am planning to play it.
There's six more houses on the same "block" that are all the same builder, for sale.
doing your calculations, 10% off would be about 138000. My sister said go even lower.
I am a "nice" person and since we are pretty much going through the builder's realtor, I am anxious about low balling. eek
Thanks CouponJack. That's how I am planning to play it.
There's six more houses on the same "block" that are all the same builder, for sale.
doing your calculations, 10% off would be about 138000. My sister said go even lower.
I am a "nice" person and since we are pretty much going through the builder's realtor, I am anxious about low balling. eek
FYI: You don't "go through" the builder's realtor. The on-site sales person, or the person who represents the builder, represents the builder alone, not you. Many states REQUIRE them to disclose this to you as a potential buyer, sometimes on the first visit, and what that entails. They will not (cannot) negotiate on your behalf. If you meet with her and she wants you to sign the purchase agreement (offer), and then hands you an "agency disclosure", read it thoroughly. Take it home with you and review it before you sign the offer.
Repeat: She does not work for you, she works for the builder and only the builder. She is only facilitating the sale with you on behalf of the builder, and you are there WITHOUT REPRESENTATION
I would find out if the $10k bonus is based on using the builders lender.
There was a $6k difference in closing costs between the builder lender and our lender.
Meeting tomorrow with mortgage people.
New home built 2006 on golf property. The area is very saturated with new homes and sales are slow.
Original price was 169,500. They recently dropped it to 164,500
Now they are offering 10,000 bonus cash making it really 154,500.
Question is...what should we offer. We've been preapproved.
We have 5% for the down payment.
My husband wants to offer 144500.
A 10% less offer would be 138150.
Where is a good starting place?
We're kind of going the dual agent route as well. I know she ultimately has their interests in mind and will probably not be happy with a lower offer than 154500, but we will do what we want I guess
I would hire a Realtor. You need representation and a professional who can help you analyze the market, is unemotional about the sale and can do a CMA (Comparative Market Analysis) which will give you a lot of information, the other agent may not be willing to share. Waiting to buy next year leaves you waiting to endure next years Market Conditions. You need someone skilled in analysis of what todays market is doing now so you can make a good offer now.
We're kind of going the dual agent route as well. I know she ultimately has their interests in mind and will probably not be happy with a lower offer than 154500, but we will do what we want I guess
You are most likely not in a dual agency situation. You are a customer with absolutely NO representation. Anything you say or do, can and will, be used against you. Agent represents builder (period). In a dual agency, the agent cannot reveal anything to either side. I wish folks would understand this distinction.. If there is anything going on with that development or builder, they won't tell you. If you tip your hand at all and say, I'm making this offer.. but I'm willing to go here, they will tell the builder. IF they can make the deal without handing over all the concessions, they will. If they can sell you the worst lot and get rid of it, they will. If they can convince you a home inspection isn't necessary, they will. They do not in any shape or form, represent you the buyer.
Shelly
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starting LOOOOW
