Do you think that this is to low of an offer?

Question

The house is 360K but I want to offer 300K.... This house has been on the market for about a year.... The owners were given their house as a gift... They had no previous offers

Answer 1

First; the ASKING price is 360K? Read that again.....ASKING is just a number that the sellers picked to see if anybody would pay that. As a real estate investor, I NEVER worry about asking price OR 'Appraised price" or past sales price, or dollars per square foot. The ONLY number I worry about is this ,"What price can I afford to pay for the house and MAKE money on it?"
So the amount you can afford to pay is? Is this going to be your primary residence? Is this a rental? Flip? If you are still "flipping" you are toast. But if this is a place for you to live then what is the MAX house payment you are comfortable with? What are similar houses SELLING, NOT asking for in that area? Is the population of the town going up or down? Are jobs being created or lost? Is it in the rust belt or the gulf coast? What are the taxs in that area? What is the condition of the house and what repairs/remodeling do you need to do? What will that cost? until you can answer ALL of these questions and more, you are no where near ready to submit an offer.
300K to me is TOO much to offer IF it has been on the market for a year with no offers. Here is my current numbers on a 1443 sqft. 4 bedroom 2 bath house with inground pool that I am closing on Monday here in Las Vegas, NV. Sold in 2006 for 300K, bank repoed it for 255K, and I am paying $169,900.00 after they rejected my first offer of 152K. This house needs 5K in repairs and new paint and will rent for $1400 a month. I will rent it for 3 to 4 years then sell for 300K or above. There is a house 2 blocks down the street "For Sale by Owner" ASKING 305K for 1600 sqft with pool.
Different market but same logic applies to the one you are looking at. My best advice is for you to find a good, real good realtor in your area, who PERSONALLY OWNS "investment property" and pick his brains on what the current value of the property is and IF that house would be your best INVESTMENT.

Answer 2

Well make the offer of 300K and work from there, if the house is not currently being used and costing the owners money they may see it in there best interests to sell it off and cash in on the profits, some people will accept the offer just to free themselves of the responsibilities, good luck and cheers

Answer 3

I don't think it ever hurts to offer. You did the right thing.
Wisely so. They can counter offer which will give you some room for negotiation. You will find many small things which will need repair or replacement, so starting low will help the owners to realize that while they are selling you their "baby", it also comes with some liabilities that you will be stuck with.
The housing market is still expected to decrease further, so I think you are right on target.

Answer 4

It is low, but since it has been on the market a year it is reasonable. Besides, if they come back with a counter then you can go from there and decide if you want to offer more. It is purely business and I assure you that they won't be offended by the low offer.

Answer 5

If it's been on the market that long, i would offer it. Also, it depends on how much they owe on the mortgage, your offer may make them upside down, which will then result in a short sale. They may just wait for the housing market to improve, if they are not pressed about moving.

Answer 6

Talk it over with your agent, but if the house has been on the market for so long the owners might be willing to negotiate.

Answer 7

cases are stressful. You sound such as you're a jumper. as a results of fact of this they're offering you low salary. actual confident....they deliver out the furnish letter and then they supply the applicant precisely 2-3 days to opt for particularly as a results of fact they'd desire to have somebody to fill your footwear in case you decline the furnish. considering you have already got this undesirable feeling - think of in case you went and stated confident. Do you think of it may effect the way you artwork?! I say confident. do to human nature tendencies. actual it is your choise. this is there budget. in case you took the pastime. Ask them the in case you obtain rid of well-being care could they advance the earnings in any respect? otherwise, the way you write already instructed me the respond until now i desperate to form this...? Hmmmmm.

Answer 8

Better to lowball it, have more room for negotiations. Also a good thing to find out what the property is assessed at.
See what other properties in the area have sold for or are worth.

Answer 9

They might consider your offer. I was able to get the oweners of my home to come down by 5000 and they paid the closing.

Answer 10

Give it a try - the worst that can happen is that they say no. They'll probably counter offer, then you'll have to decide what you're willing to pay. You can always say no to their counter offer.