OK so I put in an offer on a townhouse yesterday. The seller purchased it for 260K three years ago. The place needs a lot of work, needs to be updated, and it looks like she put no money into improvements, updates, etc. The Housing market has dropped significantly over the past year to the point where its a strong buyer's market. The seller's asking price is 306K. Everybody I tell this to thinks its rediculously overpriced, due to the market, and due to the amount of work it needs.
My realtor gotb ack to me and said the seller wants 300K minimum becasue she supposedly put 25K into it. into WHAT though? The flooring is this ugly cheap laminant that pumps when you walk on it, the carpets need replacement, the walls resurfaced, and the kitchen and all 2.5 bathrooms updated (it hasnt beenupdated since it was built in 1987).
So I counter offered 280K firm and final offer, I think the seller if full of crap when she says she put 25K into it...it sure does not look it.
2007-06-23 06:17:50 · 12 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
So do you think 280K is a more than fair price to be firm on? According to the seller disclosure form, nothing was fixed, updated or anything. I think the 25K she put into it was the cheap, ugly decorating she did in it...which should have no bearing on the value of the home. The market is down, similiar units are selling for less, and people arent getting back what they paid for their homes since the market has dropped?
Is this woman crazy for expecting top dollar for her home, becasue the market will not bear it right now.
Am I being fair?
2007-06-23 06:20:16 · update #1
By the way I originally offered what she paid for it, 260K...and now I offered 280K, which I think is more than fair.
2007-06-23 06:22:59 · update #2
Your agent should give you a market analysis for sales in the last 6 months if possible. It doesn't matter what they paid or what they invested. It's worth whatever you are willing to pay. A market analysis and an appraisal are what counts.
2007-06-23 06:44:45 · answer #1 · answered by zocko 5 · 1⤊ 0⤋
Well I hope you have a buyer's agent.
And I agree with what everyone else said. What she has paid or put into the house doesn't matter. The value of a home is determined by what other homes are selling for in the area. I suggest you get a market analysis and when you put in your offer attach the comps to it so they can see your offering price is fair.
Also, the listing agent's job is to follow direction from the seller and defend the price. So, he or she is just doing their job.
If you don't have a buyer's agent. Get one. Look at other homes. If the home is overpriced it will still be there when you're done looking at other properties... then go back to your original offer price. After a few weeks they may be more negotiable.
2007-06-23 07:27:54 · answer #2 · answered by Lainie L 3 · 1⤊ 0⤋
The price is set by the market. No what someone paid, or how much they spent. This is a person who wants money, but the market has gone away. Kind of like buying stock for $10 a share and wanting $12 a share when it's only now valued at $8. Anyway, if the owner rejects your current offer the only thing you can do is sit back and wait. If she ends up dropping the price, you may want to make another offer at that time, she may be more agreeable to your price.
2007-06-23 06:27:59 · answer #3 · answered by Angie 6 · 1⤊ 0⤋
Frankly, you're approaching this situation from a totally incorrect stance. What the woman paid for it three years ago and how much she invested in it since then are of NO relevance to what YOU should pay for it. The ONLY issue here is current market value. After all, if she got the place entirely FREE from her boyfriend as a gift, would you expect that she should give it to you, based upon her cost ?
Your agent should be providing you with data sheets of recent comparable sales in the area for justification (or lack thereof) for your offering price. That's your starting point, and then you can make appropriate deductions/additions so that you can derive a proper purchase price.
If the seller does not want to meet your offering price, it's time for you to move on to a different property.
2007-06-23 06:54:39 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
Well the real point is..it doesn't really matter if you are being fair or not. The seller isn't going to take your bid if it's too low. I think the equity of the house has probably gone up a lot more than 20K in 3 years, updates or not. Mine has gone up about $80k in 3.5 years so... hmmm what are other townhouses in your area selling for? Have you looked this address up on Zillow.com. That might help.
I say, just go look for something else, and if this one looks as bad as you say, put your bid in again in a month or so, I'm sure it will still be on the market.
2007-06-23 06:32:31 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I can't find anything I would do differently.
I presume you have a professional inspector's report on the house, so that you know exactly what needs to be fixed in the place, and how much it will cost you.
Do you have a competitive market analysis? This is a survey of the last three comparable houses in the neighborhood. It gives at least a basic idea of what houses in that area are going for.
I have found to my dismay that some realtors are only interested in the sale. When you cave in, and make the deal, they get paid. Our realtor was pushing on us to sign quickly so that she would get her commission.
The big thing is why is the seller moving. Does the seller have a new job, it's a divorce. Chances are that he or she needs to get out and will take your deal.
2007-06-23 06:26:41 · answer #6 · answered by John T 6 · 0⤊ 0⤋
The question of what the seller paid for the property, and what improvements (if any) she may have made to it, is totally irrelevant. The place is worth what it is worth, and prices go up and down. Use zillow.com to get a current value for the place, and see sale prices of comparable properties in the area. Then you can decide whether your 280K offer is appropriate, and if it is but is not accepted, it's time to take a hike and look elsewhere.
2007-06-23 06:25:19 · answer #7 · answered by Anonymous · 0⤊ 0⤋
The seller will accept your offer or not. The final choice is up to her.
Keep in mind that unless you have a written buyer's agent contract with the agent that you are working with, the agent is working for the seller's benefit by law even if it's not the same agent as the one that the seller is working with. Without a buyer's agent agreement, "your" agent's fiduciary duty is to the seller, not you!
Ask the agent to work up a market analysis on the property, focused upon what similar properties have sold for in the are. Asking prices are often meaningless when the market is in a state of flux. Have her prove that the price is fair, or walk until the seller gets a clue.
2007-06-23 06:29:04 · answer #8 · answered by Bostonian In MO 7 · 1⤊ 1⤋
You are mad a the wrong person. The seller set the selling price, not the agent. If the price is to high, the property will not sell.
2007-06-23 06:21:20 · answer #9 · answered by Anonymous · 0⤊ 0⤋
What was your original offer? Sometimes if you offer so low that it is insulting, a seller would rather not deal with a buyer.
I'm recommend you go and look at a few more comparable properties, and check your gut feeling.
Good Luck!
2007-06-23 06:26:21 · answer #10 · answered by xtral8 3 · 0⤊ 0⤋