How much to offer for a house?

[JoshuaW]

I am getting ready to make an offer on my first house, and I am hoping some of you who have purchased houses before can help me figure out where I want to be on it. Yes, I know that is what my real estate agent is for, and I know she will help me, she has been great. I just want to have some sort of idea before I walk in. She has canceled plans with her kids to help me out, so I want to go in there knowing what I want to do so we can get the offer written ASAP.

So onward, the house was listed at $82,500 last September. From what I have been able to gather, it was a foreclosure or short sale that was purchased to be flipped. It’s a good size (1200sqft, all to myself!) two bedroom in a good part of South Bend (a rarity). The price was dropped twice before I first saw it a few months ago, once every three months. When I first saw it back in March it was $74900. Now, they have dropped the price twice in the past month, and it is down to $69500, with the most recent drop happening just a few days ago.

Personally, I have no problem with the price. Heck, I would have paid the full $74900. So, I am just trying to make sure my offer is accepted, but I NEED sellers assist for closing. Every little bit of cash I have to fork out for closing costs means some piece of furniture doesn’t get bought, or I have to drop a couple months’ worth of reserves, again something I don’t want to do.

So, any ideas on how I should structure this?

 

[jmiller676]

Did you already have it inspected? I would have an offer pending on inspection.

 

[Indy_Guy_77]

In today's market, do not be afraid to "offend" the seller. Why not start at $59500 and then work your way towards the final price? Will probably be closer to 69.5 than 59.5, but who cares?

And BE SURE to get an inspection from a competent home inspector. Or two.

If there are serious problems with the house, either be ready to negotiate further or to walk away.

Best piece of advice: Don't get emotionally attached to the house.

2nd best piece of advice: look for a 3 bedroom home - 2 BR homes are very difficult to sell. (not as difficult in S. B. with all the college kids / football fans / recent grads, but still more difficult than a 3br)

-J-

 

[hooky]

..

 

[jmiller676]

In today's market, do not be afraid to "offend" the seller. Why not start at $59500 and then work your way towards the final price? Will probably be closer to 69.5 than 59.5, but who cares?

And BE SURE to get an inspection from a competent home inspector. Or two.

If there are serious problems with the house, either be ready to negotiate further or to walk away.

Best piece of advice: Don't get emotionally attached to the house.

2nd best piece of advice: look for a 3 bedroom home - 2 BR homes are very difficult to sell. (not as difficult in S. B. with all the college kids / football fans / recent grads, but still more difficult than a 3br)

-J-

+1, During isnpection they can find A LOT of things that need fixed.

 

[woowoo2]

You need to know the comps.
See if the realtor can provide you a list of recent sales in the area.

And be advised, the value of the house may go down after you purchase it.

 

[ATOMonkey]

Since it is a bank sale, there probably isn't going to be any wiggle room on the price.

The bank has to accept your offer, and since price has already dropped twice, they may not want to go any lower.

Offer them $60k, see what shakes out. It's a nice round number.
You never know though.

 

[JoshuaW]

In today's market, do not be afraid to "offend" the seller. Why not start at $59500 and then work your way towards the final price? Will probably be closer to 69.5 than 59.5, but who cares?

And BE SURE to get an inspection from a competent home inspector. Or two.

If there are serious problems with the house, either be ready to negotiate further or to walk away.

Best piece of advice: Don't get emotionally attached to the house.

2nd best piece of advice: look for a 3 bedroom home - 2 BR homes are very difficult to sell. (not as difficult in S. B. with all the college kids / football fans / recent grads, but still more difficult than a 3br)

-J-

I am definitely getting it inspected, that is a given. Im not hopelessly attached to it, but I do like it. My fiance on the other hand... Lets just say she is very attached to it.

As for the 2 bedroom/3 bedroom situation, I like that is only two bedrooms because everything is a good size. We arent terribly concerned about selling it, because we have no intentions. We cant have kids, and they arent really our cup of tea anyways, so we probably wont ever adopt, so it will always just be the two of us. If we did decide to get rid of it, we will probably rent it, since it is only a short bike ride (about 3 miles) away from ND, and it would be perfect for a student.

Oh, and I am definitely surprised at offering $59k for it. That low? I mean, I know I have to leave room for negotiating, but that is a lot of room! I would have never come up with that on my own.

 

[JoshuaW]

Since it is a bank sale, there probably isn't going to be any wiggle room on the price.

The bank has to accept your offer, and since price has already dropped twice, they may not want to go any lower.

Offer them $60k, see what shakes out. It's a nice round number.
You never know though.

It isnt currently bank owned. It was at one point in time (two years ago) and it looks like an "investor" already purchased it, did some updating and repairs, and is trying to sell it. Since it has been on the market for almost a year now, that obviously isnt going so well for them.

 

[dfcrane]

I would also offer them $60,000. The worst they will do is come back with a counter-offer. I also agree with the comment above. A three bedromm is alot easier to sell, but will also probably cost more up front.

 

[Scutter01]

I would also offer them $60,000. The worst they will do is come back with a counter-offer. I also agree with the comment above. A three bedromm is alot easier to sell, but will also probably cost more up front.

$60k sounds like a nice round number, but I'd like to see what other similar houses in the area have actually sold for. The asking price doesn't mean a thing. Maybe the house is only worth $50k. Certainly, if it's been on the market for a year at its current price, then it's priced too high.

 

[BarryJaxon]

Even more important than # of bedrooms,is the # of bathrooms.

 

[42769vette]

offer 60k, they will come back near 65 and you accept

 

[snorko]

First, good for you in remembering to have a few months of reserves for expenses on hand. If you engaged your agent as a "buyer's agent" he/she can be more helpful in your negotiation.

Definitly make any offer contingent on the inspection AND on the appraisal. Any flaws the inspector finds which are termed "life/safety" issues or "required repairs" shold reasonably be taken care of by the seller.

If you are wanting help with the closing costs from the seller, you will have to pay more up front.

 

[Scutter01]

Even more important than # of bedrooms,is the # of bathrooms.

I just bought a 2-bedroom house, but I think I get to decide how many bedrooms there are, don't you? "Screw you, real estate lady! This bedroom has an oven in it! This bedroom's got a lot of people sitting around watching TV. This bedroom's over in that guy's house! Sir, you have one of my bedrooms, are you aware? Don't decorate it!"

.

 

[JoshuaW]

Even more important than # of bedrooms,is the # of bathrooms.

Just one, unfortunately. Its a good size, double sinks and all, but it is still just one bathroom.

 

[Bill B]

It isnt currently bank owned. It was at one point in time (two years ago) and it looks like an "investor" already purchased it, did some updating and repairs, and is trying to sell it. Since it has been on the market for almost a year now, that obviously isnt going so well for them.

Make sure all the right permits got pulled for the updates. If you need help w/closing offer 60 and see what they say. worst that can happen is they say no.

 

[mdwildcat04]

My advice for buying a home, look for n+1 bathrooms, where n= the maximum number of females you expect to stay the night, wife, friends, family.....


boy, did I screw up on that one........

 

[BarryJaxon]

Just one, unfortunately. Its a good size, double sinks and all, but it is still just one bathroom.

It can be real hard to move a 1 bath house these days...I know!Just something to consider been a plumber for around 25 years now!

 

[GregD]

You have been given good advice on asking the realtor for prices that houses in the area have sold for. Don't look to the realtor for how much to offer, the more you pay the more they make.
If the house was bought to flip, the updates and repairs were more guided by how much it would cost than how well it was done. Be careful there.
When you make your offer you hope to have it rejected, if not you didn't get their best price. The house was bought to be flipped they have had their money tied up now for a year, they will be motivated to sell.
In todays market I would be looking into the low 50's for a starting offer.