Post # 1
My husband and I started looking for a house in the beginning of March. We got pre-approved, but due to an unnoticed/unpaid $79 doctor bill we were limited to what we were approved for. We’ve looked at 6 houses. 2 were cute but too small 3 were not even close and now we’ve found one that we love. BUT it’s 20,000 over our preapproval. I got the ok to go up 10,000 but not that much. Do you think that we stand a chance offering 20-25000 under asking?
We are banking on the work that needs done. The home needs cleaned. Dirty appliances, stained carpets, etc. It looks like they just up and left. There are mattresses, old tvs, and other unusable items in the basement and attic. The deck is nearing the end of its life. An accessory on the sink is broken off. Lots of little things.
Sadly, the home has 4 bedrooms and 2.5 bathrooms so its pretty big. However it has been listed for six months with no offers. The owners live out of state. We are hoping that if we offer to clean/ remove junk, they will favor our offer.
My father in law is a licensed inspector/appraiser so he is going to look at it first before we hire someone to do one. It’s also out agents listing. Sooo she’s not really down talking the negatives.
Do you think that we have a chance? I mean, the worst thing that can happen is that they say no. Any advice?
Post # 3
Depends on the originaly price, is that 40% off the asking price or 10%. Its always worth a shot.
Talk to your real estate agent about it and what is the best way to approach it.
Post # 4
The best thing to do is to pull comparable sales in the area and use that information to make a knowledgable decision about the value of the property in the current market. Your realtor should be able to do this for you. Take into consideration the location, square footage, updates, repairs…etc and factor that into your price.
Have your agent use that information when presenting your offer, so your offer appears thought through and researched instead of low-ball or insulting.
You never know until you try. Good luck!!
Post # 5
if it needs that much repair, the owners are out of town, with no other offers in 6 months, they may just want to get rid of it quickly.
if you want to put in the work and love the house, offer the $20,000 lower. then see where it goes.
Post # 6
We purchased our home for $20K less than the asking price, but we had a lot of things in our favor including the fact that it had been foreclosed upon and had been on the market for some time. Both of us had a fair amount of experience with home buying before this purchase.
First and foremost – do you need a home with 4 bedrooms? I don’t recommend anyone buying more than they think they will need, both spacially and money-wise. Second, is this house in a manageable price range for you and your DH? I always advise friends/family to purchase in a range where one person’s salary could cover the mortgage if needed.
I would have your father look at it BEFORE you make an offer – make sure there are no major issues that would affect the home or your interest in it. If so, I would factor that into your offer and use that as a bargaining/leverage point. For us, it was the fact that there was no carpet whatsoever in the home.
Depending on the market in your area, I think you have a chance. But just make sure you’re doing what’s right for you before you press play. Good luck!
Post # 7
@missmovies: we have been searching for a three bedroom home. We hope to stay in this home at least ten years. That means our first child would live here and most likely a second if we’d stay longer. We like how big the home is and that we wouldn’t out grow it. So replacing and fixing things up wouldn’t be a waste since it’d be a long time home. My father in law I’d checking it out before our offer.
At most we’d offer 10,000 below asking. Even if they have it cleaned. I’m not sure why a seller would move states away and leave so much junk and not bother to clean anything. Some of the baseboards were damaged and some paint jobs are really not good. Little things but if you’re selling a home wouldn’t you want to fix the little things?
Post # 8
After some negotiating the final price we agreed upon on our house was $10k less than the asking price. Our first offer was more than $20k less, they countered and then we countered and they accepted. I’d say it’s worth a shot to make an initial offer of $20-$25k less and see what happens. Good luck!
Post # 9
What is the asking price? Here, $20k below asking would only be 4% on an average 2-bedroom home. If it were a buyers’ market (which it isn’t but if it were) that would be par for the course.
If all the ideal homes for you are out of your price range by $20k on up, I’d suggest putting off house hunting for 6 months-1 yr to save more money/repair your credit. Or possibly asking family for help with a bigger down payment.
Post # 10
@crayfish: the house is 150,000. We are allowed 130. Our mortgage broker said if we find something within 10k to give him a call before making an offer. We’ve found properties for cheaper, but they are usually smaller square footage wise or require more than we can fix out of pocket in a shortish amount of time.
Post # 11
Hmm. That’s a huge percentage. It’s also sketchy that you and the seller share an agent…that’s not an ideal situation for a buyer. 4 bedrooms and 2.5 baths is huge – if this doesn’t pan out, i’d go smaller, or wait and save money. You can go fancier on your next home!
Post # 12
@crayfish: you’re right 🙂 I think we’ll take a stab at it just to know that we tried. It’s bigger than we planned, but its almost 1,000 square feet bigger than every other property. After looking at homes that were about the size of our apartment it was exciting to see a huge one that’s sorta kinda close to our budget. 🙂
Post # 13
Anything is possible! I offered $40,000 less than what my house was listed for.(listed at $260,000) My real estate agent didn’t think the seller would accept my offer, but they did! You’re absolutely right, the worst that can happen is they’ll say no.
Post # 14
@headoverhighheels: First and foremost, pay the $79 medical bill. I don’t see how a bill that small can affect your approval that much, unless there are other negative factors. Second, have your agent pull comps. And since your father is an appraiser, have him do the appraisal and low ball it (unofficially.) Don’t tell your agent the connection you have with the appraiser. Give the appraisal report to your agent and ask him to include it with your offer and comps that go to the seller. You could also have a contractor and/or junk company do a FREE estimate on how much it would cost to empty the home and renovate it. Include that also with your offer. With all these docs together you should be able to justify your “low ball” offer and find out that it’s not a low ball at all.
I would also speak to the agent and see if they have had any other/previous offers on the property. Agents cannot legally tell you how motivated the seller is, but if they have not had an offer in all this time AND they are not living in it, chances are they are pretty motivated. Either they are losing money by paying the mortgage every month or they are going to short sale the property and are running the risk of the home being foreclosed on. Either way I’d say you’re in a good position. BTW, I’m a Realtor. :o)
Post # 15
We bought our house for about 27,000 less than the original asking price. Our house was on the market for 2 years, the owner lived out of state, and they had had one offer on it fall through before we made ours. Many times home insurance companies do not like to insure homes that are unoccupied, so that can be a factor in your favor.
Post # 16
@MrsDiddles: we did pay it but it takes 21 days to update on your report plus they bank will only reevaluate your approval every 90 days. It had an 80 point impact. My husbands report was pulled the year before because our current landlord wanted our credit scores. There hasn’t been any offers since it was listed and they listed it in October. Sadly my realtor knows my father in law is licensed, however he knows a bunch of other appraisers and inspectors so I’m crossing my fingers. The taxes are kinda high compared to neighboring houses so I’m hoping that they will be excited to stop paying those. Thanks for your advice. I love our realtor, but I can tell she’s trying to stay neutral compared to our discussions of other houses.
@tcgstar: @tnbellebee: yay! I feel better.