how much can I offer on a $120,000 home?whats the lowest reasonable offer?

Answer 1

I am a professional property owner/manager. I never buy a property for full value ... if I cannot get it for less than current value, I don't buy it. Don't "fall in love" with the home ... the seller's will realize you want it and will stick to their price. So offer low, but not rediculously low to insult the seller. If the home is truly valued at $120K I would offer $105K, with the thought in mind that I would go as high as $112K. It also depends on the current market ... if nothing is selling, try sticking it out for a lower price. Also, be sure to have a letter from a lender that you are pre-approved. This will let the seller know you are serious and able to buy now. Good luck!

Answer 2

Patrick is correct. If you are working with a Realtor, ask them to show you comparable properties in the area and how much they have sold for. Try not to go back more than 6 months to get an accurate price.

If for some reason you are not working with an agent, you can always go onto a real estate search site like Realtor.com and find out how much the other homes in the area are selling for. The difference is that this will tell you what people are asking for the home, not what they are selling for.

When making an offer also keep in mind work that may be need to be done or updating that will need to take place.

Good Luck!

Answer 3

A $120,000 home is only worth that if that's what you pay; get it? What is the house worth to you. Hire an independent appraiser or compare the house to what others have sold for within a few hundred house area. Appraisers that work for the seller or the broker will automatically add in the (normally) 6% brokerage fee. So if the papers state the appraised value is 120,000 it actually was about 112,000. This is legal and every broker does it.

Good advice from Tony, you can always go higher but you can't go lower.

Answer 4

It depends if you are needing help from the seller toward Closing cost help? This is what I tell my clients.

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 realtor, and the seller has to pay the realtor 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?? You may find a For Sale By Owner, they are sometimes more willing to help you with closing cost(s) associated with your loan, since there is no realtor fees.

Cost associated with your loan. You will need to pay for the appraisal up front (when it being done). You will need to pay for The Home Owners Insurance Coverage for 1 YEAR . The seller can help you with up to 6 percent of closing cost. So the title fee, lender fees, underwriting fees, flood cert, etc can be paid for by the seller.

ALSO -
When you Decide to buy, 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 - Just depends on your credit. You could get a lower interest rate or it could be higher - it is all based on credit. It is up the Lender what they offer you.

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.) FHA/VA approved too. 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 &/or refinancing, 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.

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

Answer 5

There are innumerable variables, but it all comes down to what the seller is willing to take. Is he very eager to sell or not? What's his circumstances? These are things you probably don't know. It could be anything between $1.00 and the full $120,00. I would try a $110,000 offer. Test the water. Good luck.

Answer 6

Just give them five bucks and call it a day.

Or offer what you feel the home is really worth. If you don't have a realtor, call an appraiser.

Answer 7

ask your realtor. every area is different. that is why you have a realtor. it all depends on the property. how long on the market? condition? lot size? your downpayment?
You can see there are lots of variables.

Answer 8

Was asking myself the same thing