lets talk real estate

[GHill762]

I'm looking at buying my first house, want some input..

The list price on the house is currently ~72,000(there has been one price drop since initial listing), and it has been on the market for ~150 days. The owner doesn't currently live in the house (I don't know the circumstances, could be forclosure, maybe the owner has two houses, maybe they were trying to flip it, IDK).

Where do you start on offers? I have heard everything from starting 20% below list to 5% below list, but if the house has been sitting for nearly 5 months on the market, is it unreasonable to start roughly 20% low? The number I have in my head, and that my mom has suggested, is actually closer to 19% below, would that be insulting?

We are going to look at it on Saturday, and as long as it's structurally sound (has a home warranty if anything were to pop up anyway) and I like the layout, I'm going to make an offer next week. From the photos I have seen, it's perfect for me.

Any offer tips for a prospective first time home buyer?

Thanks,
Garrett

 

[GHill762]

Anyone?

 

[Xingu]

I would offer as low as possible. Save as much as possible, it will allow you to make repairs/upgrades later. The worse they can do is say no, the best they can do is accept.

 

[GHill762]

I would offer as low as possible. Save as much as possible, it will allow you to make repairs/upgrades later. The worse they can do is say no, the best they can do is accept.

That's what I'm thinking, just don't want to insult the owner and I want to be taken seriously.. Just looking for opinions.. But if it's been on the market nearly 5 months, 19% below list doesn't seem like a low ball to me..

Appreciate the input! Thanks

 

[Xingu]

If you are using a real estate agent, they know how to present your offer in a non-insulting manner.

 

[GHill762]

If you are using a real estate agent, they know how to present your offer in a non-insulting manner.

I don't "have" an agent but it's going through an agency and I'll be meeting one of their agents..

 

[GHill762]

I was kind of iffy about going that low but I've gotten mixed opinions about it from people.. But you're right the worst they can do is say no..

 

[cmaxwell39]

I am not sure if you are looking for a house actively of if this one had just caught your eye. If you are actively looking if night be a good idea to enlist the services of a real estate agent to help you look. If you have an agent working on your behalf, they will help you navigate the whole process and you won't have to worry about whether their interest lies with helping you get the best deal on a house or if they are more worried about getting the seller the highest possible price on the place.

As far as an offer being too low, I wouldn't be too worried about offending the sellers. Most of the time if the offer is below what they are willing to take they will either make a counter offer or simply say no.

Buying your first house is an exciting experience. Good luck with it.

 

[GHill762]

I am not sure if you are looking for a house actively of if this one had just caught your eye. If you are actively looking if night be a good idea to enlist the services of a real estate agent to help you look. If you have an agent working on your behalf, they will help you navigate the whole process and you won't have to worry about whether their interest lies with helping you get the best deal on a house or if they are more worried about getting the seller the highest possible price on the place.

As far as an offer being too low, I wouldn't be too worried about offending the sellers. Most of the time if the offer is below what they are willing to take they will either make a counter offer or simply say no.

Buying your first house is an exciting experience. Good luck with it.

Just casually looking at this point.. My interest in getting my own house comes and goes.. I check listings every couple of months, this one just caught my eye.. From looking online it's pretty much exactly what I'm looking for right now..

To be honest, the whole realtor process confuses me but if this doesn't work out I may find myself an agent. Thanks for the advice!

 

[feh]

I've yet to actually settle and buy a home... I'm 39 going on 40. I might wanna think about that soon huh? No offense to anyone in Georgia, but I don't call it home. My job moved me here. Nothing negative about the people, just isn't home. I will say careful with anything that was on market as a foreclosure. If they won't let you view the home and I do mean the inside walk away. Definitely read the fine print with a magnifying glass. If anything doesn't smell right drop it and walk. Better to miss out and find something else than to get stuck with a lemon and no sugar.

 

[KJAG]

Not sure how the market is elsewhere, but coastal California is insane right now. Been looking for a few months, something will come up on Day 1, by Day 3 there's roughly 3 offers already on the place, which of course spirals into bidding wars etc. What a nightmare process. So I guess it depends on your location/ market. Bid too low and you might've just blown a good opportunity. I'm hoping to secure a place before the Fall so I can set up my new tanks that are still Saran wrapped in the garage.

 

[GHill762]

I've yet to actually settle and buy a home... I'm 39 going on 40. I might wanna think about that soon huh? No offense to anyone in Georgia, but I don't call it home. My job moved me here. Nothing negative about the people, just isn't home. I will say careful with anything that was on market as a foreclosure. If they won't let you view the home and I do mean the inside walk away. Definitely read the fine print with a magnifying glass. If anything doesn't smell right drop it and walk. Better to miss out and find something else than to get stuck with a lemon and no sugar.

I really don't think it's a foreclosure... I really don't know anything about the owner or the circumstances.. I'll know more tomorrow.. And I have no problem walking away from it if something's not right.. Thanks for the advice!

 

[GHill762]

Not sure how the market is elsewhere, but coastal California is insane right now. Been looking for a few months, something will come up on Day 1, by Day 3 there's roughly 3 offers already on the place, which of course spirals into bidding wars etc. What a nightmare process. So I guess it depends on your location/ market. Bid too low and you might've just blown a good opportunity. I'm hoping to secure a place before the Fall so I can set up my new tanks that are still Saran wrapped in the garage.

It's not that fast here, never was.. But we didn't have a big bubble and bust like a lot of the country either.. They're saying that places like Cali are going to go through another bubble and bust if they keep at the pace they are going now..

As far as bidding low, it's been on the market nearly 5 months, I don't think that's really a concern.. Lol.

Thanks for the advice!

 

[Armand9601]

I would suggest looking at sales for the past 6 months of like kind/quality properties, calculate what they sold for on a per square foot basis (should be able to find square footage from local municipality's property appraiser website). From there see how their list price on a square footage basis compares with what's been selling. Remember, if you low ball and explain how you've come to that number you'll have a better chance at succeeding - no one wants to be lowballed, in essence it's like saying "I lost, you won".

Go in their with a firm offer & let them know that you want to close within 30 days, request that they respond to your offer within 24 hours as you have a subsequent property that you're interested in. Remember, you need to drive the negotiations - go watch Wallstreet or Boiler Room if you need some motivation!

 

[Armand9601]

Get a realtor to check & see if there's a "lis pendens" filed on the property - chances are this is some sort of distressed property. Don't be shy either, go talk to one of the neighbors, let them know you're interested in the property & see what they think of the neighborhood. You might find a talker & get all the gossip but more importantly find out what the property status is & determine how to present your offer.

 

[GHill762]

I would suggest looking at sales for the past 6 months of like kind/quality properties, calculate what they sold for on a per square foot basis (should be able to find square footage from local municipality's property appraiser website). From there see how their list price on a square footage basis compares with what's been selling. Remember, if you low ball and explain how you've come to that number you'll have a better chance at succeeding - no one wants to be lowballed, in essence it's like saying "I lost, you won".

Go in their with a firm offer & let them know that you want to close within 30 days, request that they respond to your offer within 24 hours as you have a subsequent property that you're interested in. Remember, you need to drive the negotiations - go watch Wallstreet or Boiler Room if you need some motivation!

LOL.. watch wallstreet for motivation.. I have been wanting to see it again anyway.. the new one isn't bad either..

I didn't see anything comparable sell in that neighborhood in the last 6mos or so, maybe I'll branch out a little farther around town and see what I can dig up..

It really doesn't matter a whole lot, a 5% difference in price is only ~3500, even a 10% difference is ~7000.. so it isn't a big deal, but I figure every dollar I can save helps pay for doing things to it (although the entire inside is basically brand new & redone, and there is new vinyl siding, and the roof appears to be in good shape)..

Thanks for the advice!