What should be my initial offer?

Question

I am interested in purchasing this home:
http://www.blanchardandcalhoun.com/propdetail.asp?ID=C91B8F5F-38FC-4776-88C5-65F601F6AFB6&ALIAS=myproperties.asp&STATE=GA&FROM=myproperties&LDATE=9/28/2007&KEY=202347&FSTKEY=202001&LASTKEY=203373&SUB=644938

The price was just recently reduced from $219,000 to $209,000. I was told that the seller was anxious to go ahead and sell because she has apready put an offer on another home. Naturally, I want to get the house for the best price possible, but I don't want my first offer to be a laughable insult either. What would be a reasonable first offer to make on this home. (BTW - this is about an average asking price for a house in this area of the same size, etc.)

Answer 1

If this wasn't a buyer's market I would suggest $190,000 but because it is you have nothing to lose by going a little lower which will allow even more room to negotiate within. I suggest $185,000

Answer 2

Well, reasonable depends on the house. If it is in great condition and other houses comp to the same price, than stay in the ballpark, say 200-209. If the house might need some work, than take that into consideration. Also, if you have not done so, have a home inspection done, at the seller's expense if possible. Good luck.

Answer 3

Why are you worried about it being "... a laughable insult..."? Are the owners friends of yours? You know the owner is motivated, use that to your advantage. This is business, it isn't personal. If your offer isn't at least slightly insulting, IT'S TOO HIGH!

BTW, asking price is irrelevant, SELLING price is the only info that has any value to you. Get a Realtor to run some comps for you.

So, to answer your question, I'd offer 'em $155K and see if they counter. They probably will, but if they don't you just negotiated yourself over $45k in equity. Remember, the Realtor is obligated to present ALL offers.

Answer 4

Wow - gorgeous house!

Every seller has a minimum amount they will accept but its impossible for you to know what that amount is. Good news - the market is so slow right now that any offer is better than no offer. Go for it with whatever you are comfortable asking. Worst case scenario is that if it isn't accepted, you have to go back with a higher offer. Ask your realtor - they might be able to get some kind of idea from the selling agent.

Good luck!

Answer 5

That would depend on information not included in the question, i.e. where is the home (what market?) what type of home? what are similar homes going for lately?

Ask a local Realtor - that's what they do (or should) and most often, using a Realtor as a buyer's agent does not cost the buyer anything, as their fee is already in the listing fee the seller has paid the Realtor selling the house.

Answer 6

Maybe you should ask to neighbors how much the houses are really overthere, theyll have an idea and also they may know the real reason she is selling, and that could help you but also if is too low, she may be offended and dont want to deal with you, so you better be the judge of it...

Answer 7

I am in California but I saw the house thru the website link you provided and if I was you I would offer $199,000.00 which they would probably counter for around $210,000 and that would be a good buy. If you like the house, go for it.

Barry

Answer 8

My 1st offer would be 190k. Its a buyers market and you have the right to make low offer. You can always work you way up.

Answer 9

$210K for a 4 bed home ? That was built in the 80s ?

I couldn't get a garage for that in the Bay Area .

Maybe it is time to move to Georgia . . .

Why so cheap ?

>

Answer 10

Here is a link to see the medium price for ahouse in that area
http://www.trulia.com/GA/Martinez/