I am interested in making an offer on a home. The home has been on the market for one year and the seller is asking $169,000. This is $20,000 less than the original price. There is some work I'll want to do before I'll even move in -- approximately $5000 worth and I've learned the house will need a new roof in about 5 years. I intend to make an offer on the home for $153,000 and I'll pay closing (approximately $3000). This is my first experience buying a home and I'm a bit nervous about the offer. Any professional or otherwise intelligent advice is appreciated. Thank you.
2007-02-24 15:46:34 · 6 answers · asked by Gemma 5 in Business & Finance ➔ Renting & Real Estate
I am interested in making an offer on a home. The home has been on the market for one year and the seller is asking $169,000. This is $20,000 less than the original price. There is some work I'll want to do before I'll even move in -- approximately $5000 worth and I've learned the house will need a new roof in about 5 years. I intend to make an offer on the home for $153,000 and I'll pay closing (approximately $3000). This is my first experience buying a home and I'm a bit nervous about the offer. Any professional or otherwise intelligent advice is appreciated. Thank you.
***I'm adding some detail in case it helps anyone answer: The highest I'm willing to go is $160,000 with me paying closing. I figure if he doesn't accept $153k, he'll counter at $165k and we'll work our way down to $160k or lower. As stated, this is my first home purchase. Even with the needed work, I love it! I'm buying what I need now and for a long time in the future.
2007-02-24 16:09:36 · update #1
We have bought and sold three homes and the terms seem decent. Ask yourself if you really like the house, do you like the location, does it suit your needs (now and in the near future), and does it have the main features you want. I would also make sure a reputable company does a thorough inspection on the house as well.
2007-02-24 15:56:55 · answer #1 · answered by jstef 2 · 0⤊ 0⤋
Another way to approach this is to have the seller do the repairs prior to your taking possession, and then offering the full, or near full, sale price. This has the aspect of your not having to do the work on short money when you move in.
You can especially do this with the roof.
A code I use, is, if I am not embarrassed by the offer, it is too high. You may take a chance to offend them, but if it has been hanging around a year, it is priced too high.
Your offer could go like this, I will give you $150,000 for the house, but it needs repairs badly.
If they simply decline, as the agent to have them counter offer. Say they come down to $160,000, like you think.
You then counter offer, I'll pay that if you do all the repairs and get a new roof. They may decline, but then ask for still another counter offer.
You may end up at $160,000, but with some or most of the work completed before moving in.
BTW, you will probably have to come up with more earnest money to show your sincerity.
Good Luck
2007-02-25 04:05:59 · answer #2 · answered by A_Kansan 4 · 0⤊ 0⤋
You can figure ball park, yourself by checking realestate taxes, they are usually based on a percentage of the market value of the house. If you really want the house. Determine if the house was over priced 20 thou, or if the seller is needing a sale. You can try to steal the house (the american dream), or you can offer a reasonable amount, that both seller and buyer can live with. The roof may last ten years. But at five, the value of the house should increase to offset your having to pay for a new roof.
Good luck, and leave the real estate SALESMAN out of it.
2007-02-24 16:08:41 · answer #3 · answered by T C 6 · 0⤊ 0⤋
I am A REALTOR,
your number sound good, the only thing is you don't know how much the house if worth. The value of the house is determined by the properties around it and how much they have sold for, in the past 1year or so. If the house isn't worth what you pay for it, you loose. email me if you need any other info landstonegsl@yahoo.com
2007-02-24 15:52:07 · answer #4 · answered by JoshuaCaleb 1 · 0⤊ 0⤋
I just took a negotiation class, and your reasons for offering a lower price are very valid ones, but instead of offering what is your target price, I'd offer a slightly lower amount and then you have some room to negotiate.
2007-02-24 15:52:48 · answer #5 · answered by Searcher 7 · 0⤊ 0⤋
Id make that offer. I think that is reasonable. Even if they say know, that doesnt mean you cant buy another or even negoiate with them.
2007-02-24 15:52:15 · answer #6 · answered by Lizzie Ann 2 · 0⤊ 0⤋