Post # 1
FH and I are looking at a 99,900 home. It’s been our favorite since January, and we will probably be able to make an offer in 1-3 weeks. Our realtor told us to offer around 95-96k…but I’ve been doing research, and this home was built in 2000, and was sold for 84,000 then (one owner home). It’s a cute house, in very good shape, but if anything was changed in the past 10 years, it was just paint. Other than that, it is pretty much the same I’m assuming, nothing looks updated at all.
It is 3 bedroom, 2 bath, and the cost of living is very low here. If anyone needs a link to look at pictures, ask. It is 1,328 square feet on a 0.31 acre lot, unfenced backyard with 2 car garage. It has been on the market for 229 days. Central air, gas heat and gas heater.
But I’m asking – what do you think I should offer? I feel like around 89-91k, not 95k. Thanks!!!
Post # 3
You could try going down to 89, they might be willing to take it since it’s been on the market since January. Be prepared though, they might be offended by your offer and not respond.
Post # 4
I think you’d be better off looking at current comparables than to what the house sold for originally in 2000. That was 11 years ago.
Are there any houses nearby the one you are looking at that have sold in the last year or two? Are they similar size, amenities, etc? If there are any that are even kind of close, the sales price for those current comparables will be much better to look at than an 11 year old sales price on your house.
Post # 5
You have to look at the comparables TODAY, not what the house sold for 10 years ago. In this area, especially during the boom, houses that sold for $300,000 one year could be selling for $350-$400 a year later. You really have to see what the market is right now. Have the agent pull a list of comparables in that neighborhood. Ask for what they *sold* for not what the asking price was.
Post # 6
If the house has been on the market for that long, I don’t think it would hurt to come in a little lower. The sellers usually make a counter offer anyway. I’d personally rather start a little lower, because you can always go up in price, but you can’t come back down.
Post # 7
What the home originally sold for will only give you a vauge guideline as to how the seller might be feeling at the moment. But all that matters as far as a ‘fair’ sale price are the comparables. It doesn’t even matter if the owner bought if for $84K then put $20K into it in upgrades, if the comparable homes are still selling for $90K then that’s all it’s worth.
It’s been on the market for a while, so maybe it’s priced too high. But clearly the owner isn’t too desparate if the price hasn’t been dropped in all that time. Ask your real estate broker to try and find out some info from the sellers agent on any past offers, etc. They don’t have to tell you – but usually you will hear something if the seller really wants to get rid of the property.
In order to determine a good offer for our apartment we are currently in contract on, we did this too. Luckily there are over 650 units in the building so we were easily able to compare recent sales of almost the same exact apartment. The units with recent upgrades closed for significantly higher than ours was listed, and none of them had as nice a view they were all on lower floors, so we knew the asking price of ours was not inflated. It also was not on the market for long at all and the seller had turned down two offers very close to asking price. So using all this info we knew we didn’t have much wiggle room and that we didn’t want to lose the place over a few thousand dollars.
Post # 8
You can always offer 90k. You’re realtor is only there to guide you and not to tell you what to do. Any offer you want to make she has to legally present. The worst that could happen is they reject your offer with no counter offer. Then you can go back in and make another offer. Good Luck! Let us know how it turns out.
Post # 9
Thanks everyone! I will definitely look at other comparable homes in the area! Hopefully everything works out, I’ll let you all know! 🙂
Post # 10
Okay so the recent comparable homes (I got this from Zillow)…
These three homes are close by, and close in square footage, year built, acreage, and have the same amount of bed/bathrooms, etc. I’ll put differences in also.
House 1 – has a fireplace (mine doesn’t), kitchen was recently updated, has a separate dining room (the house I’m interested in does not) and also has new floors, whereas mine doesn’t. Sold for 96,000.
House 2 – 3 years newer, landscaped (mine isn’t) fenced in backyard (mine is unfenced), updated kitchen, pantry (ours doesn’t) and spacious laundry area (ours doesn’t at all), + expensive water filtration/softener system. Sold for 80,000.
House 3 – this house is actually 200 square feet larger. Fenced in backyard, new carpet, 3 years newer, sold for 88,000.
That’s all I can find that is comparable. Also, with the “Zestimates”, all of the 3 houses are zestimated at 113-121,000 and the house I’m looking at is estimated at 100,500.
Post # 11
When were those houses sold?
Post # 12
House 1, 11-15-10
House 2, 9-1-10
House 3, 10-28-10
My realtor said around here, hardly anyone is buying, but that everything is going up for sale.
My fiance and I are considering (as of now) putting in an offer around 92k-93k. Any other opinions are welcome though, of course, lol.
Post # 13
Your real estate agent should be giving you comparables in order to let you make an informed decision! Ours gave us 3 recent homes that sold in our area that were similar in sq ft. bedrooms, bathrooms, etc and we based our offer on those comparables.
Post # 14
I think the $92K – $93K is a good start. You don’t want to go so low that you’re insulting them, but you also want to get your money’s worth too! Start with something around that range and see if they’ll meet you halfway!
Post # 15
You guys are only a few thousand dollars off. In the real estate world that is nothing. I would ask your realtor what comps. she is using. Zillow isn’t exactly the most accurate.
Post # 16
I have to disagree with a few of the posters and would say don’t worry about insulting them!!! 10% less than asking price is hardly an offensive offer.
I’ll summarise my story so you see what I mean: We found a flat for £345k that we really liked. However, looking at how much similar flats were selling for before and after the housing crash, we saw that prices went down by approximately 5% in our area. So we saw that other similar flats (even in the same building) went for c. £330 before the crash, minus 5%, then we figured we were willing to pay a max. of £320k for the flat.
So we offered £302k (to allow us to get to £315k/£320k in the end).
It got rejected and Darling Husband got told off by the estate agent for offering too low. He explained to the agent our rationale but got told that that’s not how you value a house (!!!)
Fast forward 3 weeks later, we had given up on that flat and found another one that we were considering…. we get a call from the estate agent’s boss, saying the owners were making a counter offer of £315k, because we could move in quickly!
So we’re now paying exactly what we wanted to pay in the beginning, the right price for the right place! So don’t be afraid to offer what YOU think the house is worth. A house is only worth what people are willing to pay for it.