When do you negotiate the price of a home?

Question

My fiance and I are in the process of buying our first home. The house that we are interested in is beautiful. The sellers are going through a divorce and therefore, are selling this immaculate home. The home is over 1300 square feet sitting on .3 acres of land. They have only lived in the house a year and bought it while undergoing foreclosure. Their asking price is 78, 000 which, in my opinion is very underpriced. This home is in a very good neighborhood, surrounded by other beautiful houses. There is also a huge utility building included with the property (I can drive my vehicle into it). The back yard is fenced in which is a plus because we have a 2 year old daughter. The home has only been on the market for 40 days. We think the price is fair, especially since the realtor is taking care of some very minor repairs herself. Should we still try to negotiate the price? If so, how much should we go down? How do I find information on how much other homes in the area has sold for?

The current owners of the house had a home inspection done. Like I said, they've only been in the house a year. They are giving the home inspection report to the buyer.

I have an agent, but my agent also happens to represent the sellers as well. She showed us the house because its what we were looking for. She is paying for the repairs out of her commission.

Answer 1

Always try to negotiate the price. Even $1,000 less is good.

Until you said it was on the market for 40 days I thought pricing was a play. Some agents intentionally list low in my market with the plan to attract multiple buyers and get a bidding war. Alternately, this might be a low price for quick sales.

Your realtor should be able to give you an idea of what comparable properties have sold for in your neighbourhood.

Also always get a home inspection as a requirement of your sale. You'll have to pay for it, but its money well spent.

Answer 2

You may ask the Realtor if she would kindly provide data sheets of comparable recent sales in the area. She SHOULD do this for you. However, since she represents the sellers, she won't make any recommendations other than providing the information for which you asked.

It's too late now to engage the services of a buyer agent, but that would have been the route to go, since a buyer agent would represent you instead of the seller. Before you make any offer to purchase, be sure that the offer will include a contingency for inspection of the premises by a qualified and registered home inspector. That way, if something hidden should turn up, you will be covered.

Where I live, such a property would be twice the price being asked, but prices vary widely by locale, so it's not possible to give you even a remote guess as to value.

Answer 3

I would never depend only on the inspection that was done by the sellers even if it has been done only a month ago!

Hire another inspector that you pay for yourself. What a fool you will feel like if something major has gone wrong since the last inspection or if the previous inspector overlooked something large.

When you make your offer to purchase is when you tell them how much you want to pay, when you want to close and that the offer is contingent on the inspection and you getting your loan. It is also when each party agrees what closing costs each will pay and several other details.

You probably can still get your own agent but that will probably do away with the "agent doing the repairs out of their commission" deal. I would want to make sure the repairs are done by licensed professionals that will stand behind their work. (the seller normally pays for any repairs)

Answer 4

Your agent should be able to provide you with CMA's for the area. With a Comparative Market Analysis it will give you more of an idea what similar properties have sold for. This way you can base an offer on the prices others have sold for recently. If you do make an offer that is accepted, make sure your real estate agent puts it in writing that she will do the repairs you are talking about. Also get an inspection done. If you are financing, you bank or loan company will probably ask for an appraisal and an inspection. Good luck on your home buying plans.

Answer 5

YOU do not have an agent! The seller has an agent and you are all alone. The seller’s agent has zero interest in serving your needs and will only work to the benefit of the seller. Next time, hire your own agent so you have someone who can advise you in such matter and will work for you.

The information you seek would all come from YOUR agent. The seller’s agent has no reason to supply you with this.

Answer 6

Get your own agent that will serve your best interests, not the agent's (double commission). You don't know if half the homes in the neighborhood are in foreclosure.

Answer 7

i do no longer comprehend what your situation is... so the guy is advertising the valuables for $11k below what you get carry of yours for... perhaps that assets is properly worth $11K below yours, perhaps that's a fire sale... As area of your re-finance what did your place appraise at (FYI- refinances continuously appraise for below new purchases). because of the fact the neighbor's hasn't bought, that's not being considered as a matching. i do no longer precisely comprehend what you care complaining approximately. Having a house appraise for the marvelous penny for a house purchase isn't something to be bowled over at. The appraiser needs to get to that kind and did... so what....

Answer 8

It sounds like the house is priced to sell. If you don't want to lose the house to another higher bid, I would bid the $78k and hope they accept before another bid comes in. If you feel confident that there is time to negotiate bid lower. Start at $65K and see if they counter bid.