My realtor is great, however i just wanted to get other opinions. He found a home for me priced way out of my range- the home is $135,000, but its tax value is $83,000 and the other homes in the area are priced the same or + 11, 000. Would it be unrealistic to offer $98,000 without closing costs? ( My realtor and I have not discussed anything yet.)
2007-04-18 09:30:49 · 8 answers · asked by loved 2 in Business & Finance ➔ Renting & Real Estate
You need to discuss this with your realtor. They generally know what the market is like, that is what they are getting paid for.
If the asking price is really out of your range, you have nothing to lose by submitting a lowball price in the hopes that the seller might for some unknown reason accept it.
However, if the offer is rejected outright, you can safely assume the seller is
1. offended
2. Pissed at you
3. The seller's realtor is pissed at your realtor
On the other hand, you may get a bargain.
The tax value is usually never the same as the sale price. And, your mortgage will be contingent on the property appraising well enough if you have little or no money to put down.
As far as the "without closing costs" part of the offer goes, unless you are really in a buyers market where the seller is willing to pay some or all of the closing costs in order to make the deal happen, then the burden of paying the closing costs rests on you, the buyer. The seller will want to see an offer that states you will pay "x" dollars for his property.
2007-04-18 09:46:49 · answer #1 · answered by Justa Guy 2 · 1⤊ 0⤋
You can offer anything but if you really want that property have the Realtor do a little research. How long on the market? What is the price history on the listing = how many times price dropped and how recently. Consider how much they paid for it / possibly owe on it and what their closing costs are including Realtors fees. Getting them to toss in applicances, etc is more likely than your closing costs, expenses. As a seller I have had some rediculous offers and been incensed enough to refuse to even deal with those buyers further. Not a foreclosure - you might want to consider those.
2007-04-19 10:10:52 · answer #2 · answered by Quest 6 · 0⤊ 0⤋
That is a huge IT DEPENDS....
At least in the houses I have owned, the tax basis is so far below the value of the home comp'd to other actual selling prices. In some ways it is an advantage to be that way (your tax payments are less as a result)
Granted this info is from 2000; however, it may be helpful.
The tax basis of the house I was townhome I was selling at the time was 79,000. The comperable (and in that case identical in structure and size) sales within that 12 month time frame was $135,000. I sold it for $132,000 as we were in a time crunch due to relocation. I had bought in '92, the market is similar to what it is now.... the tax basis in '92 was 75,000 and the loan they had on it was $85,000. It had been on the market for 6 months. The owner was a CPA that had taken a job out of state. He had 4 contracts that fell thru... ranging from $78,000 - $85,000. I bought it for $73,000.... Bear in mind that I paid cash for this house... so I offered him a Take it Leave it offer & was solid on the idea that I would rather stay a renter than buy a house with a mortgage. I had been looking at & making offers for about a year at that point. (I would give my eyeteeth to have that property back... but I can't afford $175,000 that it now is comp'd at and the area it is in hasn't been touched by the realestate slump)
The tax basis on the house I was buying (we were relocating to a different part of the state) was $140,000. The comperable (in this case, same area, mostly slightly smaller homes) was $250,000. I paid $200,000 as the couple was getting divorced & it was a court-ordered sale. The house across the street (400 sq ft smaller) was $225,000
Then in 2002 when I moved back:
The tax basis on the home: 105,000. The comperable was $125,000. I paid $115,000.... it was FSBO, had numerous offers on it and was empty (they had rented it to thier daughter who then moved out of state). The guy showed me some of the other higher offers, he sold it to me because he thought I was sortof similar to his daughter.... he showed up after I bought it at least once a week to see how the house was (as it turns out, this was he & his wife's first house)....
My advise to you is: Don't PAY OUTSIDE OF YOUR ABILITY.. so make the offer, if it is an insult or they don't like it then so what?.... If the offer is within your pricerange, then keep offering what you can afford, even if it is on homes higher... you never know what you might luck up on.... I for one have insulted & been insulted by offers on real estate... everyone get over it :)
2007-04-18 16:48:08 · answer #3 · answered by Bama 5 · 0⤊ 0⤋
If your Realtor is finding you homes priced way out of your range, either he's not that good, or the two of you need to talk to each other more.
BTW - If the house is $135, in a subdivision of $135 - $146.... it would be a waste of ink to offer $98. Maybe you should offer $132 with no closing costs.
2007-04-18 16:41:35 · answer #4 · answered by teran_realtor 7 · 1⤊ 0⤋
Assessed or tax value really doesn't have much to do with the value of the home. You will generally go 1 mile out to find similar homes of sq. footage, lot size, bed and baths to determine a target home (s) value. Depending on how the market is playing will also help determine whether or not to negotiate a sale price. Across the country now, it is a major buyers market. Depending on how long the home has been up for sale will determine how strong of a chance you have of negotiating. I would also be more than happy to assist you in the financing of this home or at least go over your options and how to secure the cheapest and best programs. dave@dhfingroup.com
2007-04-18 16:44:53 · answer #5 · answered by mig k 2 · 0⤊ 0⤋
It is funny how opinions differ. I would love working with this realtor, he is looking to make you a good deal.
I would offer the 98k, you never know how desperate the seller is. Don't sweat it if you are rejected, move on to the next.
There are lots of hungry fish in real estate right now, you will get a bite even shopping in waters over your head.
2007-04-18 16:48:20 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You really haven't provided enough information to base any conclusions on. However, a home prices that high for the market is not going to be sold for $98,000. I suggest you either make a legit offer, or move on.
2007-04-18 16:48:41 · answer #7 · answered by Alterfemego 7 · 1⤊ 1⤋
you are within your rights to offer whatever you want....your REALTOR is obligated to present any offer you see fit. The worst they can do is reject the offer. Then you will know.... you can always place another offer,
I am working with a client right now who has made multiple offers on the same property
2007-04-18 16:45:04 · answer #8 · answered by barry h 2 · 1⤊ 0⤋