I'm looking at a house that costs 100k. I went to look at it and found out from the real estate agent that the owner hasn't lived there for 4 years. It was vacant for so long that the real estate agent didn't even have the right key to get into the house.
I'm thinking that due to the fact that the owner hasn't lived in the house for 4 years, I can make a real low offer, like 70k. Would this be entirely too little? This is my first time buying a house but I have obviously found one that the previous owner hasn't been able to sell. The house itself is moderately nice but is centered in an area where very nice houses (200k+) are prominent, therefore making it the least desirable in the area.
Would I be totally out of line by offering 70k? Because this is my first time buying a home, I don't want to make any mistakes.
2006-12-02 09:24:03 · 6 answers · asked by Issac Rangel 3 in Business & Finance ➔ Renting & Real Estate
YES!! the housing market is terrible right now. I could not GIVE my house away for what I owed the bank on it. I would for sure offer that and see what they say. If they say no than offer more or ask the to counter offer YOU.
2006-12-02 09:30:14 · answer #1 · answered by Tina W 2 · 0⤊ 1⤋
There's nothing to prevent you from making an offer of 70K. It doesn't sound as if there's a bidding war going on for it, so the worst that can happen is that the owner just won't respond. You can always go back and offer more if he/she doesn't respond and you want to do so. You might ask the real estate agent if the seller's mortgage is "upside down" or higher than the current value. Some banks will still take less if the loan is in jeopardy. I have to wonder if there is not something really wrong with the house or the owner to not sell for four years. Since it's not rented out, the owner has to be losing their shirt. Also, being the lowest priced home in a higher priced area is a positive. My advice is that there is zero reason not to make the lower offer. Good luck!
2006-12-02 17:59:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You can always offer a low amount, and raise the bid later if you decide that the house is worth more and the seller rejects your offer. A house that has been on the market that long probably will be sold for significantly less than the asking price, but also consider that the seller has not been anxious to sell, or the seller would have dropped the price rather than leave the place vacant for four years.
You also can compare with other homes of similar size and condition in the same neighborhood to get an idea of value, and the more recent sales are better indicators. Square footage and condition, in judging the comparable sales, are very important indicators of value.
You also should be sure to get a contractor or home inspector to look at the house very carefully, to determine if there is any likelihood of some major problem that will cost you a lot of money to fix, such as termites, structural problems, or major problems with the roof or building systems. A good tactic is to have the inspection done before making an offer, if the seller will permit it, and then take off the asking price all of the costs of putting the house in good condition and fixing all the problems.
2006-12-02 17:36:23 · answer #3 · answered by MeatloafRules 2 · 0⤊ 1⤋
You say the house has been vacant for 4 years. How long it's been on the market is more important. You also mention "the agent".. Do you mean your agent? The one representing you and looking out for your interests, or do you mean the listing agent? The one who has a fiduciary duty to the seller and is prohibited from telling you anything that would help your negotiating position?
The FIRST step to take to not make any mistakes in buying a house is to be represented by a Realtor who is knowledgeable and trustworthy. Ask your Realtor what the house is worth, and how to go about negotiating the best deal.
I've seen sellers get insulted and respond with "THAT ***** can have the house for full price, or he can't have it!" ... and stick to it. I've also seen houses listed for 8 months without an offer, get three offers in the same weekend.
If the house is in a neighborhood of houses worth TWICE as much, maybe a really great offer would be $100k. That may depend upon how long it's been on the market. If it went on the market Friday, you saw it Saturday, and wait until Sunday to make an offer.... it just might be a mute point - it could already be under contract.
2006-12-03 01:53:31 · answer #4 · answered by teran_realtor 7 · 0⤊ 0⤋
Do you have a real estate agent? If so, run it by her. She'd be able to tell you if that offer is a good idea or not.
Just because the owner hasn't lived in it for four years, doesn't mean that it's been for sale the whole time. Check to see how long it's actually been on the market. If it's been on the market for a few months, I'd go ahead and offer less than $100,000, but if you go down to $70,000 you run the risk of insulting the seller.
Honestly, the best thing to do would be to talk to a real estate agent about it. You have to sign a formal offer and submit it, so unless you have experience with this or know a good real estate lawyer, it'd be best to consult a real estate agent.
Hope this helps!
2006-12-02 17:31:07 · answer #5 · answered by rita_alabama 6 · 0⤊ 0⤋
get an inspection done before you do anything---money well spent---it may have structural faults or be subject to local authority rulings as to use--fools rush in where angels fear to tread
2006-12-02 17:31:59 · answer #6 · answered by Anonymous · 2⤊ 1⤋