Real Estate prices?

Question

I will be seeing this house today from a realtor who actually owns the house. She says she is selling this unit b/c she needs to live with her elderly parents. Other than that she is telling me how great the house is. How far can I bargain with the price without offending her? It is out for $358,000. How low do you think I can get it for in a buyers market in Colorado. And how much is mortgage rates? I have a credit score of low 700's... Any advice is appreciated, I am a first time buyer.

Answer 1

Who cares if you offend her. Offer her the market price. You don't need to pay more than that.

Answer 2

First of all, ALL real estate agents represent the seller...period. In this case, she's representing herself, and getting the buyer's AND seller's part of the commission, plus selling her house. Just a bit greedy, huh?

I'd suggest that you tell her that you're interested in the house, but you're going to need an independent realtor. While they're still representing the seller, you'll be able to get some of this other information from them a bit easier.

Talk to your lawyer, and see if he can recommend a good realtor for this purpose. Get him to show you houses that have recently sold in that area, and what selling prices were for them. If you know this, you have a better idea of what the house is really worth. don't be afraid of spending some time around there to see what goes on in the neighborhood as well.

Then you can be more assured of the proper procedures, values, and legal aspects.

Answer 3

Did you ever hear the expression:
“Does the person selling the fish holler
“ROTTEN FISH FOR SALE!”? Of course not.

Do you think she’s going to tell you anything you don’t want to hear? Of course not. She’s “puffing-up” the property. She’s doing her best to promote the property for her to get the highest price under the best terms - for her.

The property you're interested in possibly buying - in fact, any property - is ONLY worth what someone is willing to pay for it AND what the Seller is willing to sell it for. Not one penny more.

You have (or should have) a pretty good idea what the other properties in that area are selling for AND what it takes to bring that property you're interested in "up to snuff" (up to today's present, building code) for the municipality the property is located in.

It doesn't make any difference:
A] IF the Seller has an appraisal for the property from the most well-known, honest appraiser in the world.
B] IF someone offers an "oral offer" to the Seller - [which isn't worth the paper its printed on].

There is an old axiom in real estate:
YOU [the Seller] name the price -
I/we [the potential Buyer] name the terms;
YOU [the Seller] name the terms - I/we [the potential Buyer] name the price;
TOGETHER, WE [the Seller & potential Buyer] can, or should be able to, make the deal.

Yes, there are or may be real estate brokers, agents, attorneys, consultants and others - including family members and friends - who may offer their advice and opinions. In the end, no one else's signatures appear "on the dotted line" except yours, as the potential Buyer, AND the Seller's [and, of course, the witness(es)].

In the case of an estate (the owner of the property is deceased), the Executor's/Executrix's (sorry ladies,, but this is what the female Executor is known and referred to as), appears on the line where the Seller signs.

You know what type of mortgage you qualify for and the type which applies to that property.

This may be very difficult for some folks to do:
Make and submit written offers.
In other words: Put your money where your mouth is.

At the very most, you'll buy that property. At the very least the answer you will or may get is a flat "NO" - without any explanation. [Other than in love and romance, "NO" never hurt anyone.] A side thought: "NO" might mean "not right now".
It doesn't mean the Seller won't be in a much better frame of mind tomorrow, next week, next month, 3 months from now or even next year.

Somewhere in the middle - with a counter-offer - could be "the crack in the door" all the parties need for continued negotiation.

At the beginning of one of my 3-day mentoring sessions, one of my mentors wrote the following on the whiteboard:
Remember this:
SW3 - N!
[When he wrote it, there wasn't any answer.]
Curiosity got the best of me. On more than one occasion, I asked what that meant. Dennis said, "You will see, Mr. Berue! You WILL see!

For three days it was on that board.
On the 3rd day, with 25 minutes before our session ended, he wrote this:
Some Will . Some Won't . So What! NEXT!

If you have any doubts about any of the points I mentioned, don't you think it would be a good idea "to get your ducks lined-up" before you get into something WAAYYYY over your head?

Thank you for asking your question. I enjoyed taking the time to answer your question. You did a great job - not only for your information, but for every other person interested in reading my answer.

I wish you well.

VTY,
Ron Berue
[Yes, that's my real last name.]

Answer 4

First, if the house is on the MLS already, I would dial up a rebate agent and have her/him show me the house. That way you would receive a hefty rebate if you buy the house. I would have that agent come up with three comparable sales in the last month or so. After all, that is what real estate people do. Then I would check zillow.com for more comparbles. Then I would closely examine the house looking for any possible defects or repairs needed. On many real estate sites these days you can search the MLS itself. The Internet is awesome!

I would NOT make an offer until you've thought it over carefully and actually looked inside some other houses that are similar. Don't rush into anything. Not now, not ever (well, almost never).

Curious about flat fee and rebate agents?
http://www.flatfeerealestateguide.com

Answer 5

Look at what that house or similar houses were selling for in 2002.

Offer her that or less.

Seriously. I know that a lot of Realtors are claiming that it's now a "buyer's market", but that doesn't mean you're going to get a good deal. It just means that it sucks to be a seller right now. Prices are much higher than they should be in most of the country, including Colorado.

Home prices appreciated WAY above their historical average from 2000-2005. We are in the midst of a massive real estate bubble. What seems like a good deal now won't seem like a good deal a few years from now.

Please read the information at these sites before you decide to buy anything right now:

http://patrick.net/housing/crash.html

http://thehousingbubbleblog.com/

Look at this chart if you want to see where we are now, and notice that prices always revert to the mean, adjusted for inflation:

http://www.financialsense.com/editorials/bronson/2006/images/0907/chart10_lg.gif

Answer 6

Before you go out and search for your new home; I suggest for you to first get a pre-approval. With your pre-approval you will know exactly the maximum that the Lender is willing to lend you.

If you decide to "bid" on this home, I suggest for you to get your own "homeowners inspector"; like this you will know what "hidden" things are within the house. Being plumbing, electric work, roof; etc's. This of course is only for your own best interest.

Here I have provided a link for you to search for "licensed" mortgage lenders. I always suggest this link for first time home buyers.

In addition, in this website it has many questions and answers for first time home buyers. This will help you with any other questions that you might have.

I have also provided a link so you can type in the house address and it will tell you how much the house is worth. At least you will know what is the "true" value of the house before you decide to invest.

Good Luck to you....

Answer 7

Get your own Realtor to represent you. Your Realtor can do a CMA and help you decide on an offer price. It will cost you nothing and give you peace of mind down the road.

As far as mortgage, ask your Realtor for suggestions on who is giving the best rates and terms to A paper (a RE term for a good credit score lendee). Ask for a good faith estimate of closing costs, ask about pre-payment penalty, late fees, appraisal fees, transaction fees, document fees, anything that is going to cost you money. Don't stop at comparing interest rates, that could cost you thousands.

Answer 8

First an foremost you need an agent that will represent you. In this case this agent who wants to sell her home will represent herself first and you next.
As for what to offer, since it is a buyers market it's your choice what you want to offer. You don't need to make your offer based on comparisons. Again it is a BUYER's Market!
If you will be represented by her she will convince you that the house is worth much more than what you want to offer. Do you see the problem?

Answer 9

What you want to know is her "walk-away price".

You need to research the county land records and find her current mortgages, and using the information they contain, ballpark the current amount owed, assuming all payments were made. Offer that. She'll say "no", but will probably counteroffer.

You don't WANT your first offer accepted. It means you offered too much. It isn't a good idea to tell her you know this. You'll be a better negotiator if she doesn't know that you know that you're even negotiating.

You should probably get an attorney before you actually sign the contract. She knows what contingencies you'll need, but isn't likely to put them in unless you ask, and without an attorney, you won't know to ask.

Answer 10

Check the Internet for prices of houses either on the market now or that have recently sold in the area. You could probably offer about $340,000, if the house seems to be within the price range for the area.

Answer 11

Look at it but make NO offers. Tell her you are going to look at other places with the same square footage, number of rooms and location, etc., etc. and do it. It is a buyers maker so you are in the drivers seat.

Going to live with her parents, huh? Why aren't they living with her in this great house? Maybe she can't afford it and must sell it. The realtors are starving right now...don't let anyone tell you differently.