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I found a house I like. I would like your opinions on how much to offer. Here is info I have:
House is appraised and assessed by town for 2014 at: $207,700
House was appraised and assessed by town for 2012 and 13 at: $207,700
House was appraised and assessed by town for 2011 at: $232,500
Owner purchased home in Dec 2007 for: $266,900
Owner rented out the house for the past 3 years, now wants to sell.
Owner is now asking $228,000
One "identical" house in neighborhood sold for $215,000 in April 2014
Another "identical" house in neighborhood sold for $215,000 in May 2012
This is in an area where nice/clean/newer/well-located homes sell in a week or three. Less attractive homes sit for months on end.
The house I am looking at is one of the nice ones in a good location. It has a slightly larger garage, but floors are carpet and vinyl (both in good condition).
House is ...at: $232,500 Not relevant at all. Ignore.
Owner purchased...$228,000 Not relevant at all. Ignore.
One "identical" house in neighborhood sold for $215,000 in April 2014 Relevant.
Another "identical" house in neighborhood sold for $215,000 in May 2012 Not relevant at all. Ignore.
Ask your buyer's agent.
If you don't have one, then get one.
You have your answer. If houses sell in 2-3 weeks typically, you'd offer $215K if there are no competing offers. Unless the seller is completely oblivious and has a poor agent, they probably realize that $215K is the price at which they could expect to sell in 3 weeks.
If there are no other offers or interest I would offer just under the $215,000 but be prepared to go up to $220,000 with a counter. I think you would be OK at that.
I found a house I like. I would like your opinions on how much to offer. Here is info I have:
House is appraised and assessed by town for 2014 at: $207,700
House was appraised and assessed by town for 2012 and 13 at: $207,700
House was appraised and assessed by town for 2011 at: $232,500
Owner purchased home in Dec 2007 for: $266,900
Owner rented out the house for the past 3 years, now wants to sell.
Owner is now asking $228,000
One "identical" house in neighborhood sold for $215,000 in April 2014
Another "identical" house in neighborhood sold for $215,000 in May 2012
This is in an area where nice/clean/newer/well-located homes sell in a week or three. Less attractive homes sit for months on end.
The house I am looking at is one of the nice ones in a good location. It has a slightly larger garage, but floors are carpet and vinyl (both in good condition).
So how much would you offer?
I would offer $210,000 and expect to meet at the middle at $215,000. I think they expect $215,000 but buyers like to feel like they got a deal. If they offered it at $215,000, buyers would bid $200,000. Good luck!
you can always request to make an offer in front of the sellers-this gives you a chance to talk to the owners (I would push for this - to ask questions , one on one- and they will divulge a lot of motive and info to you - walk the property with them, ask questions
you discuss everything with your broker, ask him/her their opinions then you make the final decision on price
all in all- their is an intrinsic value of having the house you really want,,, I had a buyer,,, quite the low balling cheap fellow- tho he had money- and would always low ball 30-40% and guess what?? he never got houses he really liked - even when it was down to 5k difference ...because he refused to budge..
if you really want something go after it ,
ive run into so many clients that will offer- im so glad we got this house- im glad I came upon the offer- its a beautifulplace- just what we dreamed of....
Have you noted any items that could may require some upgrades --- This may be a good time to negotiate concessions, rather than a reduced price. Likewise, you might offer the competitive $215K, but, request that the seller pays closing costs. The owner may come back with the $215K, but, feel they are ahead by declining the closing costs. Remember, you will still have another opportunity to negotiate if the inspection turns-up any significant items. You should try to use the first round of negotiations (now) to discover how flexible the seller may be later on.
Unfortunately, the seller may feel that they are already giving-up $50K ($266K + Realtor fees). Although their 2007 purchase price is not really relevant, many folks still have a psychological barrier when it comes to today's reduced prices on homes purchased in the 2006-2008 time-frame.
How hot is the market in your area? How long has the house been sitting on the market for sale? Has it gone in and out of pending condition? Is it empty?
Your offer should be based on some of those questions being answered
The longer it's on the market the longer it goes in and out of pending the longer it's empty the lower your price should be. And if the market isn't hot and the house is sitting the seller may feel the crunch.
Get the answer to those questions and you will get a idea of what to offer. Off the hip answer for me is 200k because if it's a rental it will most likely need repairs.. Those other houses tha sold for 215 may be in better condition with new appliances or roof or whatever. This house may appraise for less. How long was it a rental? Is the seller a forced landlord who just got his head above water and looking to dump ASAP? Is he a must sell at 228k. He could be a can't sell for less than 228k. Look at the history of the purchase.
Houses in the area aren't selling for more than 215 I would make that my high best and highest offer. And it would still depend on the condition of the house and appraisal
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Ask your buyer's agent
