how much should i offer for this house?

Question

i am looking at a house that has been on the market for over a year in what i would consider a buyer's market. it is listed at $169,900 but fair market value is only around $140K. the realtor (who is working for the seller) suggests i offer $150K. does that sound right? i love the house and really want it, and it would be worth $150K to me yet i don't want to overpay. i also don't want to start off on a bad note with the seller by giving them a low-ball offer. so what do you think, guys? how much should i offer for this house?

Answer 1

You're not going to anger the seller. The Broker needs to go ahead with your offer. With the offer should come, as is, my financing is in order, let's get this deal done, I've very motivated, I'd be happy to fix (something you noticed wrong) at my own expense, etc. We don't get what we don't ask for.

On another note, why not get a broker to rep just you. It's not going to cost you a penny more and you'll have a professional that has your back and your back alone. Ask a few friends or co workers and I'm sure you'll get a few names to help you sort this.

Good luck.

Answer 2

hmm well this house has been on the market for a year?? you are justified to offer low. if you really want it, just go with what makes you feel comfortable. the important thing is getting the house that you want. if they are dissatisified with the offer, they can always make a counteroffer. anyway, when the appraisal comes around, they will be kicked in the butt if that house is really worth 140K and likely have to lower the price anyway (a bank is not going to give a loan for 169 to a house that appraises at 140). you realtor is working for the seller? is this a dual agency thing? well, at least you can probably guess that 150K is ok with the seller then. go ahead. (by the way, if the realtor is working for both of you, they should not be making ANY suggestions to either side, but remain neutral; so be careful about that). the important thing is get the house you want at a price you can afford.

Answer 3

FVM is always listed lower then what the house is actually appraised at. That's a good thing because of taxes. It is a buyers market right now. Like the poster above said check zillow. with out knowing area and stuff like that its kinda hard to give you to much advice.. Good luck to you.

Just so you do know a Realtor working for the seller is just that working for the seller!! You can given any offer they had to submit it, they can either accept it, reject it, or counter. Offer the 140, you can always submit another one it they reject it. But if you do that you do run the risk of then reject 150 after you put in the 140 because they feel you may go higher then 150 because you really want the house. Its always wise to have your own Realtor. This way the sellers Realtor doesn't realize how excited and how much you really do want this house.

Good Luck.

Answer 4

It's been on the market for a yr for a reason either the others are way too low for the owner to accept or no one has stepped up to the plate. Consider what everyone else has said and think of this as strictly business, the agent won't get this feelings hurt, trust me worry about your pocket first. Put in 135-140k offer to start out and wait for a counteroffer and work things out from there, but get a foot in the door. And if the market value is 140k then that property is overpriced so start low and see what happens. Don't worry about the agent either way they worry for their client, and for the commission as well , so think about yourself first.

Answer 5

Don't rely on Zillow, it is not even close to being accurate.

Get yourself an agent, you are right, the sellers agent works for THEM, they are legally obligated to make you pay ASAP.

The fact that you are worried about "bad foot" is odd, this is not a popularity contest but a serious investment for you.

If fair market value is 140k I would offer 130-135. The market is no longer "fair", but a buyers one. Have YOUR agent run a comp report for you, that will give you a clear picture of value.

You don't want to offer MORE then the value, as it will have to appraise at near your cost in order to make your mortgage company happy. Paying over value doesn't only increase the upfront figure, but your interest rate as well. You are more risky to loan to if your property is not worth the money you are borrowing.

Answer 6

You basically have already answered your own question. The realtor is working for the seller. So his goal is to get top dollar for the seller, though in reality his primary goal is to make the transaction happen so he gets paid finally.

You have to offer what you feel the home is worth to you. Especially in this market, sellers have to be patient and deal with offers and counteroffers, so don't be bashful in asking for everything you want. Worst they can say is "no, but here's what we will take..."

Answer 7

Get a Buyer Agent for yourself. The seller's agent works for the SELLER and is obligated to get the best price they can. Get your own agent. It costs you nothing. Go to a different office than where it is listed. Ask if there is an ABR or CRS in the office and use them. GO NOW!

Answer 8

In the UK if a house was on the market for a year it would not be unusual for it to get low offers. Offer low, dont worry about their feelings, its business not personal!

Answer 9

If their own Realtor is telling you to offer $150,000, then that is what I'd do, the Realtor knows what they will entertain. If you feel it is indeed worth that price then you are paying what you feel it is worth. If it doesn't appraise for yor sales price you can walk away or the seller can lower the price.

Your lender will base your loan of the sales price or the appraised value, whichever is less.

Answer 10

Offer what the property is worth to you and don't play games. Buying and selling is like any other relationship in your life--do you be straight with them up front or play games, trying to double-think them?