I wanto to buy a house. They are asking $99,900. What is a reasonable offer I can give them?

Question

I'm thinking anywhere between 90,000 and 92,000.

I've been house hunting for about 3 months....and i am sure that this is the one. What do you all think?? How far down can I go, before it's considered rude?? Also, I would like the seller to pick up the closing costs....

this is my first home purchase...i need all the help i can get..

Answer 1

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??

Have you been aproved yet for your Mortgage? Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.


Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

Go to these web sites for information & there is a First Time Homebuyer Guide there also.

1. http://www.nehemiahcorp.org/

http://www.fanniemaefoundation.org/...

http://www.fha-home-loans.com/

http://www.freddiemac.com/

Answer 2

First every deal is a new one so do not worry about this being your first time. DO NOT FALL IN LOVE WITH IT. Keep this business. If you have not already done so get a lawyer who does real estate. One of my deals got screwed up cause he just could not seem to get it done. Second hire an engineer and have it inspected by someone no one else in the deal recommended. remember that the real estate person does not work for you they work for the seller. You can check comparable house in the vicinity. Always remember that location location location is all important. So you are ready legally the house will not fall down nor will there be surprises as you move in. You can talk to people in the area about what is air asking but the seller should not take offense make an offer that is fair to you. Closing costs may be part of the final deal as can real estate agent kicking in or the lawyer. remember not to use people that know each other for any of the deal.

Answer 3

Okay.... you are obviously not working with a Realtor. Just so you know, when you are buying a home it is FREE to use a Realtor. If it is a fore sale by owner, then your just retarded. It is overpriced. Don't pull comparables yourself, any Realtor on the planet will do that for you and do it much better. Since you already found the property you did half their job already however, they can show you other active listings that may be a better deal that you haven't seen yet. Don't offer less unless you KNOW why and have a reason for doing so (by using comparables). If it is worth 105,000 and they are asking 99,900 then don't be an *** and offer 90k for the fun of it. Unless you don't mind the risk of possibly losing that house. If it is worth it to you then it is worth $99,900. Asking them to pay for the closing costs should suffice. But first you have to know what you are doing, how much the home is worth etc... He could be 20k overpriced and you have no idea. Or he could be 20k underpriced so he is firm on that 99,900. FIND OUT FIRST. Your research will lead you to your answer.

Answer 4

I think that you are in the ballpark for a first offer. If they really don't like a 90,000 offer, they can come down a bit or refuse outright. Then you can come up a bit, even if they reject your offer outright the first time. The only problem could be if someone else is interested in the house. You could lose out if the other interested party makes a higher bid.

Answer 5

You'll probably have about 4 to 5 thousand in closing cost and pre paids. Offer 94k firm seller pays up to 5.5% of purchase price to buyers closing hold firm if it happens it happens if not decide if this is a walk or a can't live without.

Answer 6

It varies depending on the area and is greatly dependent on the local market. I would suggest working with a local Realtor. He/She will be able to give you insight into local market customs and also provide you with recent selling prices so that you can make an informed decision. In my area it is quite common for the seller to contribute to the buyer's closing costs; again, a local Realtor can let you know what the norm is in your market. As a buyer there is no cost to you to work with an agent.

Answer 7

give them an offer of $94k, and tell them you want them to cover all costs...

If their smart, they will take the offer... Costs can range around the $5,000 mark, so you will end up with roughly $10k less then the asking price...

Do you have a mortgage banker to help you with financing yet?

If not, my name is Jason Fry, i work with Providential Bancorp, a nationwide mortgage lender.. We specialize in programs for first time home buyers.. If you would like assistance, or at least would like to know what you qualify for, feel free to give me a call..

My number is 312-264-6448, or you can email me at [e-mail]

good luck!

Jason Fry
Senior Mortgage Specialist
Providential Bancorp
312-264-6448

Answer 8

properly artwork it out... a good abode in that section is worth say £125k. you say you want to spend £25k to get it to that regularly occurring, so although in case you obtain it for £100k you're turning out to be an ok deal,,, something less than £100k is lots, So even paying £90k is solid, you position £25k into it and its purely value you £115k the position are you getting £25k though for inner modernisation? looks severe for a three mattress semi - are you making use of fantastic of selection bathing room and kitchen fittings and so on. i'm particular you may do it up plenty more cost-effective than that. all you may do is provide, and all they could do is refuse.. i imagine the asking value has already contemplated the very undeniable actuality that artwork needs doing on the resources though

Answer 9

I would suggest asking for 91,500 and see what they come back with. He will probably go lower then original but i doubt he will go that low. some sellers do pick up the closing costs, but i think you have to get lucky

Answer 10

depends on the house. how many bedrooms, bathrooms, etc? how big is the front and back yard? is it in good condition? two story? yadda yadda yadda.