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Hi all, we are interested in a townhome listed at $329k. The comps are weird because it's a new construction of less than 7 years and some units are still being built. The last to sell comparable but with upgrades (granite, stainless, fireplace, etc) was listed for $349, went for $345k.
In this case, newer units go from $349-650k.
We think this property will be close to being appraised for asking give or take +/-$10k, but we simply dont want to spend $329. Would $315k plus $5k in closing seem like a good offer? Or can we go lower? We are serious buyers and dont want the offer to go in the trash, but we want the best bargain possible
Properties in the immediate neighborhood are selling for $349-650k, and you want to offer $310k because you just "simply don't want to spend $329k"? And you're asking what you should do? You should probably find a property in your price range. How do you not see buying the least expensive property in a neighborhood is a good thing? Your $310k offer will probably get a nose in the air, especially if it's a new listing. If it's been on the market a while, you might luck out.
Hi all, we are located in Massachusetts and are interested in a townhome listed at $329k. The comps are weird because it's a new construction of less than 7 years and some units are still being built. The last to sell comparable but with upgrades (granite, stainless, fireplace, etc) was listed for $349, went for $345k.
In this case, newer units go from $349-650k.
We think this property will be close to being appraised for asking give or take +/-$10k, but we simply dont want to spend $329. Would $315k plus $5k in closing seem like a good offer? Or can we go lower? We are serious buyers and dont want the offer to go in the trash, but we want the best bargain possible
What should we do?
You can make an offer *shrug*. They probably won't take it, but if there's special circumstances, or urgency, they might. You won't know until you offer. You want a bargain? Well, here's a newsflash: They do, too.
If it gets trashed, it gets trashed. You aren't any worse off than you were before. Don't take it personally if they decline, just move on.
I guess I should probably add that they bought it on a foreclosure for $255k three years ago. Not sure if that matters... but prices in the overall neighborhood go anywhere from $250k-6.5M
Properties in the immediate neighborhood are selling for $349-650k, and you want to offer $310k because you just "simply don't want to spend $329k"? And you're asking what you should do? You should probably find a property in your price range. How do you not see buying the least expensive property in a neighborhood is a good thing? Your $310k offer will probably get a nose in the air, especially if it's a new listing. If it's been on the market a while, you might luck out.
it's been on the market for over 60 days... The property IS in our price range, but we dont want to pay what they are selling. Are you saying as a first time homebuyer, we should always offer what they are asking if the house next door with all the upgrades sold for $15k more? Everyone is saying something different. We were told $310k-315k with a preapproval note in hand is a great offer, so we figured we could go even lower. But you are saying $310k will get a nose in the air? Why? Isnt it a buyers market?
Market condition vary on a local level, I would not say southern california is a buyers market and Massachusetts is too large to generalize. Do you see any reason why they would sell it at $310 k when the last one sold for $345, where did the fall of $35 k come from, what is a bump in interest rates, are homes sitting on the market longer? At 60 days on the market, they aren't in a rush to move, with the Holidays coming up, the know the house isn't going to move.
Last edited by thelopez2; 11-13-2013 at 02:48 PM..
Are you working with an agent? Have you been pre-approved for a loan that will cover the amount you will need? Do you have enough cash to cover the down payment and closing costs? If you have talked with a lender, what are they projecting for closing costs?
It's difficult to say what the sellers would view as a fair offer but there's nothing wrong with starting low in a negotiation as long as you are able and prepared to pay a fair market value for the property. Otherwise, you are wasting everyone's time. Now, to be fair, others will probably say that's ridiculous and I get where they are coming from but very few sellers are willing to part with their property for less than market value and you stated that this property could actually be worth as much as 10K more than asking so I think you need to be realistic with your plan. Be a ready buyer (by being pre-approved), a willing buyer (by being prepared to pay fair market if you can't get it below market), and an able buyer (by having enough money to handle all the expenses involved with the purchase whether you negotiate a credit or not.)
You can make an offer *shrug*. They probably won't take it, but if there's special circumstances, or urgency, they might. You won't know until you offer. You want a bargain? Well, here's a newsflash: They do, too.
If it gets trashed, it gets trashed. You aren't any worse off than you were before. Don't take it personally if they decline, just move on.
In your opinion, what would you offer to make sure it wouldnt get trashed? We really would like to know where to start. We realistically dont want to go higher than $320k and asking for $5k in closing. But if we can go lower, it would be great to get feedback on HOW.
We are first time home buyers. We truly dont know.
The townhouse priced at $329,000 is aggressively priced to market.
Buy brand new (I'm assuming without ugprades) for $349,000
Comp with upgrades sold for $345,000. In my neck of the woods a fp is close to a $2000 upgrade, btw. The other items have a value as well.
Sellers priced $20,000 under builder pricing.
Your offer of $315,000 plus $5000 in closing is an offer of $310,000.... that's the way the sellers will see it.
So in essence you want to buy "used" for $39,000 less than new.
I don't know the size of the kitchen, but conservatively add good granite, stainless appliances (which are not cheap for the real stuff - not stainless "look" - you're looking at about $6500.... add another $2000 for the fp...that's $8500. Deduct $8500 from the comp that sold for $345,000.... and the unit you're looking at is still undercutting the sold comp.
Last edited by ocngypz; 11-13-2013 at 04:25 PM..
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