I am hoping to make an offer on a house within the next couple of days. It's a FSBO, so no realtors are involved which helps as far as there being no real estate commissions on either side to be paid. Asking price is $258,000 and I would like to start by offering 20% lower at $206,400. The property has been on the market for at least 9 months, however I don't know that the seller's are anxious to sell and may not mind holding the property. The market in the area the home is located is very slow right now and on the border line of becoming a distressed market. I really don't think they've received any other offers on the property and doubt they will any time soon. Is offering 20% lower than asking price reasonable with today's market conditions?
2007-12-27 11:28:29 · 17 answers · asked by Leigh 2 in Business & Finance ➔ Renting & Real Estate
The house was previously listed with a realtor for probably 6 months. From what I can tell, they listed for 3 months or so FSBO, then listed with a realtor for 6 months, and now it's been unlisted for over 30 days. They have stated they are not relisting with the realtor.
I plan on offering the $206,400 with a 3% seller contribution and then assume they will counter higher, which is fine. I'm just hoping not to insult them with the 1st offer.
2007-12-27 11:49:29 · update #1
In my opinion your offer is too low and your running the risk of insulting the sellers. If the comparison value is fair for the market value in the area then a offer of $225,000 would be more acceptable.
Good luck
2007-12-27 11:43:47 · answer #1 · answered by catlady 6 · 0⤊ 0⤋
Ok, let me set the record straight: the asking price is just that!! the asking price. Sit down and figure out what you can afford to pay comfortably each month (please figure out a payment that you can make on only one (1) income! You must take into account that one of you may lose your job and only have one income for a period of time and you certainly don't want to fall behind on your mortgage payment. Then figure what the utilities (roughly. You may ask the current owner). There is so much more to owning a home than just the payment. Find the house in the local neighborhood that sold for the very least and adjust your offer accordingly. The asking price is not carved in stone, these people are selling this house for a reason (to make money). You can own the house you want but be steadfast and show them you are willing to walk away from the deal if they are not willing to negotiate. Oh yes! Interest is also negotiatable, so don't take the first offer (NEVER). Ask about upkeep (maintainence costs, repairs, etc.). Remember this will be your home, do your research, the worst thing that can happen is (and you don't want this) losing your home. Buy what you can afford to pay for. Good Luck and Happy Home Buying.
2016-04-11 04:08:23 · answer #2 · answered by ? 4 · 0⤊ 0⤋
$50,000 is a lot to take off of a first offer. is the house worth it? do you really want it? make the strongest offer you can that fits within the market. don't over pay. you may proceed with the 20% off offer, but the seller may be insulted by it and not even make a counteroffer. just send over an offer of your top dollar and if they don't like it. too bad. 9 months for a FSBO isn't uncommon. if it was listed, I would say you are on the right line of thinking.
2007-12-27 11:33:23 · answer #3 · answered by erselius 3 · 0⤊ 0⤋
There is no such thing as a rediculously low offer. With today's market, I think he would jujmp at 20% lower than asking. H..., I would offer 30% or 40% lower ... you can always go back and raise the amount. You can always raise the offer....but you can't ever lower it. I would offer 40% and see what the effect is .... then, go up with your offer a few days later, etc., etc. This is a buyers market.
And don't be blinded by 'I don't need to sell it' or whatever. They have it on the market, they want to sell it. In negotiations, you have to work to find where the 'middle ground' is - but you ALWAYS go in low.
2007-12-27 11:50:37 · answer #4 · answered by greenweenie 2 · 0⤊ 0⤋
Depends on the sellers and their personalities. I've encountered more than one seller in the past who was so offended by such a low offer that I (the listing realtor) was instructed to entertain NO more offers from the buyer involved, no matter WHAT the offering price was.
This sort of person is not common, but they do exist. They may counter your offer, or they may tell you to go to hell and stay out of their lives. The call is yours.
2007-12-27 12:29:22 · answer #5 · answered by acermill 7 · 1⤊ 0⤋
I would do a quick comparison of similar homes within 10 or 20 blocks. You may be able to get a list of what was sold and what they sold for from the assessor. Use 10 comparable houses. Research those. Use Realtor.com to compare 10 unsold houses. Find the assessed value of the property in question, and ask the assessor what is the ratio of true value to assessed value. Be low key when you ask for this kind of help from the assessor.
2007-12-27 13:10:41 · answer #6 · answered by Bibs 7 · 0⤊ 0⤋
BECAUSE this is a FSBO do not skip any of the necessary steps, inspections, title search and so on. Since neither of you know what you are really doing have an ATTY draw up the contracts or at best look at them to make sure you are protected in case something comes back on those reports that you do not like.
2007-12-27 11:40:32 · answer #7 · answered by Anonymous · 0⤊ 0⤋
that a lot lower than a typica starting offer.
you can go on Zillo.com and look at what the house is worth and what else is selling in the neighborhood.
You can alway try again if they reject your offer, but you risk pissing off the seller and setting a bad tone for future negiotations.
also with a low offer you better be ready to accept the house as is, with or without an inspection.
All that stuff costs money too.
2007-12-27 11:36:03 · answer #8 · answered by Fl. Guy 5 · 1⤊ 0⤋
Give him an offer of $200,000 start there. All he can say is no, then you have bargaining power if you are a serious prospect and the house has been on the market for a while they might be desperate. Most FSBO people are greedy so they all ready over priced it. But if I were you I would check out (zillow.com) to see the value of the home first. Zillow.com it's free nothing to fill out, nothing to lose. Before you buy get an inspection!!!!!
2007-12-27 11:30:47 · answer #9 · answered by RCMII 2 · 1⤊ 1⤋
First off, don't rely on any information you get from Zillow, it is not a reliable source on real market value. Neither is tax assessed value.
Next, although I tell my clients this is business and not personal, many take it personally. Some become down right indignant and refuse to even respond to low offers.
Considering the house has been on the market so long, I suspect the price is too high, but the sellers may not care. Some sellers are set on their price and they aren't budging because they are not motivated to sell or for other reasons.
You can ask for the 20% reduction (AND you want a sellers contribution!), but I think you are setting yourself up for a long, tumultuous negotiation.
2007-12-27 12:15:08 · answer #10 · answered by godged 7 · 0⤊ 2⤋