What is a reasonable offer to offer for a house that I am interested in?

Question

The house has been on the market for 90 days. It originally listed for 106,000 - and now it's down to 96,000.

I really want to get it for 90,000 - or cheaper - what do you think?

Is it rude to low ball on their asking price? I really want the house, but my budget won't let me go over around 95,000....

What do you all think? I new to the whole real estate thing (first home buyer). I've been looking at houses for about 4 months...and really think thos is the one....

Answer 1

Give them a lowball offer. What are they going to do, say no? ID offer 90,000 and see how it goes. If they wont part with the house for that price, they may still come down some. You have nothing to loose.

Answer 2

Reasonable House Offer

Answer 3

I tell my buyers there are two approaches: the upfront offer and the haggle offer.

The upfront offer is to give them your highest and best offer off the bat. No going back and forth - either they take it or they leave it. (For example I'd offer $96,000 with 6% sellers assist, or with no sellers assist $89,000. That's a fair offer in almost any market that they should accept) This is my preferred way, especially if you've seen all the houses and know this is *the one*. But you can also get a good deal sometimes by using the haggle approach.

The haggle approach is to offer something fairly low (like in your example $70,000) and just see what happens. You might get a really good deal. Or you might insult the seller who will tell you to shove your sales contract in a less than comfortable part of your body... You never know, though, they might say yes right away if they are motivated enough. Most likely, you're going to be doing a lot of back-and-forth because they're not going to want to lose you as a buyer, but they want as much as they can get, too!! Most times though you'll just end up pretty close to what your "highest and best" would have been, but might save a few extra bucks.

If there are a lot of offers at the same time, you're going to want to get your "highest and best" in - with only maybe 24 hours for them to sign it, so no one else will outbid you.

Keep in mind, if they do accept a lower offer, they will be less likely to make concessions (like inspection repairs, etc.) I usually negotiate that upfront - what we call in my state an "option 2" for inspections with an $x amount deductible. Be sure, too, that you give them a decent hand money deposit so they know you're serious!

I define "low ball" as less than 60% of the asking price.

Where's your real estate agent? They should have been able to tell you all of that. If you don't have one, are you pre-approved for a mortgage? Make sure that's a contingency in the sale as well so that if you can't get the financing, you won't default!

Answer 4

Since its a buyers market now, sellers are anticipating a lower price than their listed price. Low ball is not just offering a lower price than the listed price. Low balling is a technique used by investors. An example would be about 30% below the asking price. The average & savy buyers, are well aware that asking up to 10% lower than the listed price would be a considerable offer. Givin the Listed price at $96K, "Low balling" would be like an offering $67K.
While writing up your offer, sharing your ethusiasium and sincerity for this home will be better than just offering a number. By presenting your offer in the best light, it will create leverage in the negotiation. (Here's an idea, copy and paste the responses of this forum in your offer). Good Luck!

Answer 5

We are in the same situation, however our current landlord is our loan officer, as well as an investor,she advised us to start off low, ask lots of questions to help you identify the sellers eagerness to sell the property. Lots of times sellers are pricing the home as close if not right at the appraisal amount, and they have emotional ties to the home, however the actual value to you the buyer may be different because you see things you may want to change and update. So if the offer is not acceptable, let them counter, and you counter. You never know they may be tired of having to wait for a buyer, and will immediately accept your offer. Good luck, hope things work out for the best.

Answer 6

You have to check other houses prices that were sold in that area and then you might then think if this house is worth that money or not.

And i don't think it's rude to give an offer of 90,000, usually houses are sold with a range of 10000-20000 below their listing price.

If you have information about houses prices that were sold for the last few months for this city/town and would like to know what 's this house u're willing to buy worth try this website,it's pretty accurate.

www.reesval.com

Answer 7

There is nothing wrong w/ coming up w/ a lower price. If u want it for 90 then try starting at 85 or 86 they might counter back w/ another offer and maybe it will be want u actually want to pay. I did this w/ my house when I bought it and saved thousands of $$

Answer 8

First, you should comp the house to establish the value.
Second, take into consideration what, if any, work you may have to do to the house.
If all is well, offer 92,500. They can always counter back.
Most contracts allow for a home inspection (about $300.00) as a contingency of sale.
If you are pre-approved, ( you should be) state that in your offer with a short close date. If they know your approved and can close in a short period of time, they will consider that a big plus.

Answer 9

My husband and I just bought our first home and we put in an offer 6,000 less than what the seller was asking and they must have been eager because they excepted the offer right away. We live in Mich. and it is a buyers market.

I would offer less, the worse thing that could happen is that they counter offer.

Answer 10

When we were looking at houses, we found one for $130,000
that was perfect. We couldn't afford that much. My husband offered $100,000. I wanted to crawl under the desk. I was so embarrassed that we had insulted the agent. I think even the RE agent was embarrassed to ask the owners- but they countered with $114,000 and we took it.

So, offer them what you can- and maybe you can find some middle ground. Do act sincerely interested so that they'll know you are serious.

Good luck!