Here is the situation. The housing market here in NJ has dropped significantly in the past year, it is very much a buyer's market. The townhouse was built in 1987, and nothing has ever been updated. The kitchen and 2.5 bathrooms are way outdated from the 80's, the carpets need to be replaced, the floors are this cheap laminant from the 80's, the walls need to be spackled and repainted...
The seller purchased it for 260L three years ago, and now she's asking 306K. She has made ZERO improvements to it, and its obvious she put no money into updates and upkeep. I think its rediculous she expects to make over a $50K return in three years having put NO money into it, and the way the housing market is right now. In my eyes, the way the housing market is way lower now, she would be LUCKY to get what she paid for it 3 years ago. She expects top dollar for something she put nothing into. Who says she needs to make a profit?
Should I low ball her on the offer?
2007-06-21 01:29:39 · 11 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I forgot to mention that this townhouse has been on the market for about 8 months, had no previous offers, and townhouses that sold in the same complex (with updates) went between 250K and 280K.
2007-06-21 02:10:45 · update #1
I also have a copy of the seller's disclosure on the property, and accoring to the documents, she made no upgrades, replacements to anything...she left it as is from when she purchased it in Feb. of 2004, and no significant improvements have been made since it was built in 1987. it needs a lot of work, and the housing market just doesn't bear her asking price.
2007-06-21 02:16:03 · update #2
You should offer what you think it is worth irrespective of her making any improvements or a profit. If the house is only worth 100k to you then offer that and don't worry about whether she makes or loses on the deal. That's her business, not yours.
It may be beneficial to you to find out how much it would cost you to have the flooring changed to your liking and the walls re-textured and painted. If you are going to change counter-tops, bath and shower stalls, replace faucets and update lighting fixtures then you should estimate costs around 30k at the very least.
2007-06-21 05:49:59 · answer #1 · answered by Not Laughing w/ U 3 · 1⤊ 0⤋
Just because she bought it for $260k and is now selling it for $306k doesn't automatically mean she will be receiving $50k from this transaction. She will still need to pay for closing costs and real estate commissions. Assuming 6% for commissions and 3% for closing costs, she will need to sell the property for at least $290k to break-even.
As far as "Top Dollar", is this townhouse priced like other townhouses in the neighborhood that are in good condition with updated features? If those other townhouses have recently sold for $350k, then this townhouse's price may have been set at $306k to adjust for its present condition.
There's no problem with a low ball offer, just take into consideration her break even price and her motivation to sell.
2007-06-21 01:49:57 · answer #2 · answered by capellancf 3 · 1⤊ 0⤋
You asked two questions: Can I? and Should I?
As to Can I?: You can do whatever you think is in your best interest and the agent handling the transaction is obligated by law to present all offers to the seller even if the offer is for one dollar.
As to Should I? The agent that you are working with has that answer if they are reputable and can back their answer to you regarding; should you, with comparable sales and other data that would allow them to sell your offer to the seller and or the seller's agent.
There is an old saying that says that the baby that does not cry does not get fed but in our business it's a matter of justifying one action to the opposing party to be able to make a sale occur.
Best of luck to you.
2007-06-21 02:00:00 · answer #3 · answered by newmexicorealestateforms 6 · 1⤊ 0⤋
Yes. Lowball her. She will be lucky to sell the place at all. You could even do the research on the cost of the updates that are needed to update. And subtract (plus the cost of labor..even if it's you and some friends, charge regular labor cost) that amount from her asking price.
If she doesn't accept it, wait. I bet after having it on the market, possibly go into foreclosure... she will be willing to accept anything to get out of there.
*typically people who have not prepared their house to sell at highest price (at least a few upgrades) are in financial bind and need to get out.
Good luck!
2007-06-21 01:37:42 · answer #4 · answered by Shameless 3 · 0⤊ 0⤋
Depends upon how much you want it.
If she paid 260K and that housing market in the area is suffering...she may just want to get out. I would probably get 3 appraisals and see if there is room to finance the updates you want to do...but offer her the price she paid.
Best Regards.
2007-06-21 01:40:25 · answer #5 · answered by EJ Lonergan 3 · 0⤊ 0⤋
Oh Please just offer a fair price. Have your Realtor do a CMA on similar homes in the area. Make a fair market offer. Just because you didn't see any improvements doesn't mean she didn't make them. I don't know the market out there, but similar things are going on here in Minnesota.
Here's one for you: brand new house, never lived it, seller reduced from $225,000 to $199,900. Buyer comes along, VERBALLY offers $170,000, wants all new appliances and $6,000 in closing costs.
I am glad you're in the market buying something, because it will help our economy. Just be fair.
2007-06-21 01:42:33 · answer #6 · answered by Alterfemego 7 · 0⤊ 2⤋
If you really want it, don't go to low and piss her off so she won't deal with you. If it is truly over priced for the market, let her sit on it for 6 months and then offer a lower price. Waiting could save you alot of money if you're willing to loss this particular condo.
2007-06-21 01:40:33 · answer #7 · answered by Sun and Sand 3 · 2⤊ 1⤋
If you decide to lowball the offer, be prepared to provide substantiation as to why your offer is what it is. Evidence of recent sales values of similar properties helps. If you discover that sales prices of comparables supports her price, guess what ? If it supports your price offer, more power to you.
If you are successful with this offer, do remember that, when you decide to sell in three to five years, you must ask only what you paid for the property. Why? Your question provides all the answers. If your logic applies to this seller, then it should also apply to YOU when YOU are the seller.
2007-06-21 01:50:41 · answer #8 · answered by acermill 7 · 1⤊ 2⤋
Homes are really only worth what buyers are willing to pay. Make your offer, but she does not have to accept it or even counter offer you. she can reject it. Good Luck.
2007-06-21 01:36:09 · answer #9 · answered by mrsfoster 2 · 0⤊ 0⤋
depends on how long it been on the market, the shape that it is in. and it is in a bingging hood!
2007-06-21 01:41:48 · answer #10 · answered by Anonymous · 0⤊ 1⤋