First-time homebuyer, what should I offer on a house?

Question

It's listed at $64,900 and it's nice for a starter home. The only issues are that the deck needs fixing, needs a new driveway, and some other stuff.

Should I assume they've already reduced the price of the house and just ask 64,900? Or shold I go lower and ask, say, $57,900?

What's the general rule for offers?

Answer 1

if they list it at 64,900 they proably will take lower prices

people usually list houses high so they make it seem like they giving u a good deal but they will most likely go lower

Answer 2

If you have a realtor, have them pull comparable sales in the last year for the neighborhood, so you have something to compare it against. Your best bet is to figure the price per square foot and compare that. Also, Google for your county's appraisal district website and search for the address of the property. It gives you the taxable value of the house (and some will list market value as well). I typically will not pay more than 5% above appraised value, but there are execptions.

The agent I use usually recommends an initial offer between 93 and 95% of asking price if the house is in decent shape. That would put you at roughly 60-62K.

Ultimately, it comes down to what you're willing to pay and what other offers they're likely to receive. If you're willing to pay 64.9K and you really want the house, then you should consider offering enough to have a good chance of getting it. Maybe offer full price with a seller's contribution of 3% to cover some of the repairs.

Answer 3

Go to http://www.zillow.com

Enter the address of the home and it will tell you how much they think it is worth. You can also see the prices of homes surrounding it. If it is priced lower than the neighboring houses it might already be discounted. If it's comparable to the other prices you would want to offer less. Start by telling your agent, or the homeowner if for sale by owner, the negatives that you've noticed. This way they will know why your offer is lower. I would estimate what it would cost to do the repairs and subtract that amount from the asking price.

HTH

Answer 4

Never use the info from a website to make an offer. It has nothing to do with current market conditions.

Your Realtor should be able to guide you best in knowing what is a fair offer.

Make sure your contract leaves you an "out" if the inspection finds something really bad, or ask for $$$ off at closing to compensate.

Answer 5

To be on the safe side, you should have a Realtor representing you who is experienced in the local market where the property is listed. They will give you very good advice about how to approach the negotiation process. The Realtor should also know the neighborhood and it's value over time. Their knowledge and advice will allow you to be on an equal footing with the seller.

Answer 6

I would recommend offering the $57,900. The only problem is, you don't know how many other offers they may be looking at at the same time as yours. If yours is the only one, then they may come back with a slightly higher price then the one you offered yet less then the initial asking price.

Answer 7

Always offer a lower price but allow yourself some room to go up. However, only go as high as you can afford. Be sure to do thorough inspections before purchasing. Go into the attic and into the crawlspace or basement. You may even need to climb onto the roof.

Answer 8

Sellers usually will take less but there are some that do want a full price offer. I think $57,900 is a little low of an offer though.