Post # 1
I’ve been stalking a house in my hometown for a good 4-5 months. It’s dropped in price from $443,000 to now $349,000 and its been on the market for 372 days. The zillow range is $241,000-$320,000. It’s on 9 acres of land. Picture flowing land with trees and gardens. Its AWESOME!!! Not the crappy ditch land we keep seeing. And most houses here sit on 1/2 acre MAX.
I’d show you all pics, but the website ones are kinda crappy.
We haven’t even seen the inside of the house yet!!!! We’ve stopped by twice for the open houses, and the realtor was a no show to the first one and left a note on the front door saying it was canceled today.
Now I’m def not making an offer on this house at the moment. I just want to see what bidding strategy you guys would go with.
Our budget is in the 200’s anways.
It’s a 3 bedroom, 2 bath, 2,016 square feet house built in 1958.
Ohh the property is vacant. The owner is now in a nursing home (my mom found out from her noisy church friends) LOL.
Post # 3
I’d probaby bid 3-5% below market value. The amount they lowered the asking price in this case and how long its been on the market is sort of irrelvant cause it’s obviously been on the market that long because its been so over priced. With it closer to market value, it may finally have a bunch more interested buyers. If she’s in a nursing home, is she making the decision or does she have children looking out for her and managing the sale? If you go too low thinking you want an amazing bargain just cause its vacant, it is possible that they wont even negotiate with you, no one wants to be ripped off.
Post # 4
This is just a hunch, but if the owner is in a nursing home then I’d venture to guess that absolutely nothing has been updated on the inside. Usually older folks don’t invest in stuff like that, you know? I think the inside would probably need a complete cosmetic overhaul, and the kitchen is probably in desperate need of updated appliances and such.
It’s good that the price has dropped $100k but I wouldn’t expect it to go below $300k any time soon. If your budget is in the 200s I think you should keep looking and pass on this one, especially if the house needs several thousand in updates on top of the asking price.
I guess I’d keep an eye on it if you’re curious to see what happens, but I think you’ll find something else that works better. Maybe you just need to open your search to something you haven’t considered before.
Post # 5
@KristenGotMarried: This is purely hypothetical…. No intention on actually making any moves any time soon. I’d offer $285,000???? I’m know, wicked low…
Post # 6
How does it compare to other properties that have sold? E.g. what were the prices of the places that sold with ditch land as you call it? A property with more land equals more to maintain and tends to reduce they types of buyers who would consider the property. How does the price compare to 2001? 2003? (either check sales or zillow estimates or talk to a realtor for a good sense of this measure).
My guess is the value is in the land, however with no bites after over a year, I really think it would be worth talking to your realtor about significantly lower offers. Did you get pre qualified?
I don’t really buy the whole “you will insult them” argument. This is their home, but it is also something they want to sell. The reality of the market is that something is only worth what someone will pay for it. You could approach them, or watch the property to see if it has any offers in the next month or so at the new price and then approach. You could always frame it as “my husband and I are buying our first home, and while we know that you are hoping to get more for the property, we are locals who want to stay in the area and put down roots and if you would consider a lower offer we would like to make one.” Of course if you do that, make sure you are prequalified and things will go through.
Post # 7
And I will point out that in my one community I have seen many properties chase down price over one to two year periods. One place went from 800k to finally selling for 443K (and not some foreclosure trashed place either).
When we sold my grandfather’s place, we just wanted to move it at a certain point. Espeically if the property hasn’t been sold in forever, and they don’t have a break even point, things might be easier. Obviously the family sees this as a way to fund her nursing home care, so they want to get the most they can, but letting it languish doesn’t help.
Post # 8
I’d be curious to know why it hasn’t sold….
If it needs major updating, or has structural issues then it would change my offer to reflect the work needed to still stay in my budget ( though some of that you can’t know until an offer has been accepted and you do inspections) . However, I’m also curious as to what it was last assessed at for tax purposes and also the property taxes fro 9 acres!
Post # 9
1. Real estate is very local, so without revealing the location it is hard to estimate what a property is worth.
2. Zestimates are useless.
3. I suggest you get an agent and actually view some properties. I also suggest that you not look outside your actual price range because then properties you can afford will be disappointing in comparison. Your agent should also provide you with “comps” — i.e., recent sales of similar properties — for you to use as context for evaluating the value of a property.
4. Your bidding strategy should be based on what YOU think the home is worth, not what the seller wants to be paid.
5. Please don’t get overly attached to a house until you’ve closed on it. A deal can bust for any number of reasons. I’m speaking from very recent personal experience here!
Post # 10
Usually zillow has an exact “zestimate.” It doesn’t on this property? I don’t know your area, but I’m an agent and could hazard a pretty uneducated guess if you pm me the address.
I would disagree that zestimates are useless. When it has an exact number, in my area, it ususally sells around 10 k from that.
Post # 11
I’m guessing if they lowered the price that much, then the house probably needs serious work. Even if you could get it for whatever your budget is, you’d have to put a lot more into it so you could live there comfortably.
Post # 12
Bidding way under the asking price IS insulting to owners. We sold our condo a year ago, that was priced comparabley to properties in the area and didn’t even include the $12,000 remodel to the kitchen (ie, we pretty much ended up pricing the place for what Darling Husband had purchased it for 5 years prior and didn’t tack on the remodel value)… and the first offer we got was $20,000 below asking. We told them to f-off, and countered back with our asking price. So no, you will not get anywhere with bidding $100,000 below asking price with that house, which is what you would have to do to get that house within your budget (I assume).
Please, please take the other bee’s advice and stop looking at homes over your price range. It’s heartbreaking and you will never be satisfied with what IS in your price range if you keep looking at homes that are over your budget.
Post # 13
@Luckygir15: Can you look at your appraisal district and see how much it was sold for last time?
But I wouldn’t offer too far below the asking price- if it has 9 acres of land that alone is worth a big chunk of change.
Post # 14
A house shouldn’t be on the market for 300+ days unless there is something significantly wrong with it and it may not be obvious. Maybe there is a smell after 2pm (it happens), maybe the foundation is cracked and several bidder spent the $350 to find this out, myabe it’s actually only worth $140k (really hard to imagine but without updates totally possible). You have to tour it and appraise. Without it, you’re basically ebaying a house – not a good idea.
Post # 15
@Miss Root: I disagree. Does not matter that you were insulted by the price because prices aren’t dictated by what you feel about your house. It’s dictated by what its worth. I know that sounds really nasty, but you shouldn’t get insulted because someone wanted to low ball you.
OP, offer whatever you want. If you get laughed at – big friggin deal. Just make sure you know what you’re buying first.
Post # 16
@WillyNilly: I’m not sure how you can disagree with that. If its insulting, its insulting…
Plenty of owners have been insulted by low offers. Houses are emotional things, its impossible for a lot of people to separate that.