When you buy a house, do you usually give the asking price, above the asking or how do you know?

Question

I went to tour a house about 6 months ago. The owner clearly was way over priced on the house and he was showing it on his own for his parents who were placed in a nursing home. I loved the house and the area it was in, He was just way over priced.
The house had no appliances, nothing to upgrade it except for some windows which were placed about 10 years ago. For crimeny sakes he put indoor outdoor carpet in the kitchen and the light fixtures looked like something out of the 50's which was the time the house was built. He had painted everything white even the kitchen cabinets.
I was still looking for a house when I noticed this same house for sale by a realtor on the internet for &150 thousand. The guy must have given up and listed it with a realtor.
So now what do I do? Do I have someone look over the house to see if it is worth that much money. How soon in the game do you make an offer? I would hate to committ to an offer and find out there are some real problems

The first listing by the owner was $180 thousand, now it is $150 thousand

Answer 1

When buying a house, it is important to know the market, so you know what a fair price for any given house is. In a "hot" market, you might have to bid above the asking price to "win" a particular house. But most places, the real estate market has really cooled and this particular house seems to have problems that might make it harder to sell. Since you sound like a newbie in real estate investment, I would suggest finding a buyer's agent to help you in negotiating for this house. A buyer's agent will represent your interests in the transaction. Since this seller has been trying to unload this property for a while, he may be open to a low-ball offer. When you make an offer, make sure you put in a contingency for an inspection, since an older house may have lots of hidden problems.

Answer 2

If this is your first time buying a house, get yourself your own realtor who can walk you through the steps. She/he will see the house with you, work up the "comps" (comparative prices--to make sure the house is priced fairly) and work with you on the asking price. Since the market has slowed down in most areas of the country, your offer should be a little below the asking price, maybe 90-95%. The negotiations start from your offer.

Your realtor can calculate what percent of the asking price is a good offer. She will work up the contract with you, go over financing, make sure you understand all the "contengencies" (inspections, etc), and will present the offer to the seller's agent.

Good luck!

Answer 3

Work with a Realtor. Not the one who's showing the property but one you've found through friends or colleagues you trust.

That Realtor will still want you to pay as much as possible as quickly as possible (remember, they get part of the commission) but they should be able to help you through the process. They will show you comparable properties and prices for available properties and those recently sold.

Decide what you think the property is worth based on the comparables then make an offer contingent on getting a mortgage and a home inspection.

Answer 4

Looks like he could not sell it on his own so he turned it over to a realtor. You always start with an appriasel . The mortgage company usually insist on one. Also you have to get a house inspection. First thing you do is make an appointment with a real estate lawyer and ask his advice. The first visit is free. Also check on his fees. DO NOT sign anything without your lawyer looking over the contract. You will need a lawyer to close the deal.
Everything in life is negotiable. If it doesn't work out something better will come along.

Answer 5

The first thing you need to do is contact a REALTOR. Not the one who has it listed but someone with another company to act as your buyers agent.

You agent can pull comps on the house and help you determine a fair offer based on condition and nearby comps.

You can and should make your offer contingent upon a professional appraisal coming in at or above the agreed upon sales price. That takes care of you just in case it doesn't appraise for your offer price.

Your agent can help you with all the other details in your offer such as inspections, repairs, financing, disclosures, etc.

Answer 6

Of course you look it over again and take someone to look at it who can tell you what it needs. You can negotiate a price lower by letting the seller know what it will take to get the house to that asking price. You also need to have the last appraisal on the house (maybe it is in a neighborhood where people are willing to pay that much and tear it down. It happens all the time).

Answer 7

In most states both brokers are paid out of the commissions from the seller and it is usually paid by the listing broker to the broker with the buyer unless you are with a buyer's agent representing only you. In which case you have to negotiate the fees.
Im telling you this so that you know that if you get an agent to help you with the acquisition you'll need to ask them how they get paid. If they get paid by the selling broker tell them to ask for a seller's property condition disclosure and provide you with a broker's price opinion on the house, make sure you get the lead abatement disclosure required by the feds on house built prior to 1978 before you order the binder of insurance.

Answer 8

well the best way to find the house value is to get a appraisal but since we might not want to put that money in to it lets get a good comp go to zillow.com then you could see what houses are going for in that area. Then if you real want to know contact me and ill give you a comp [e-mail]. Then we help you make your bid I wont charge you any thing in fact I could even prequalify you for a loan.

Answer 9

ok hears the important part when u make your offer in the contract u need to make it contngent on a home inspection an financing that way if theres anything wrong u can back out an if it doesnt appraise for value your safe id offer him 120k then if he counters go up in 5k incroments to your max ,but its hard for me to say i dont know what state ur in or the specifics of the home size rooms ext to know the value

Answer 10

Get some help from some experienced home owners. Buyers don't usually pay what they are asking. Be careful and have it inspected by a professional before you commit. It could have serious problems that are not seen by us common home owners.