What shoudl I offer for this house?

I found a home I really like in the Houston, TX area. it lists for 279,000. With todays market the way it is,(buyers market)
what would be a realistic offer to make?

As you know, the buyer calls the shots in this market.

You would need to see it as a long term investment, more so in a buyer market. I say this because though you are buying comparatively good value for your dosh, the risk of buying in a downward turn of an economy is that if the cycle remains downwards, the property might end up being less value than you purchased it for "negative equity" in the short term. This is not said as a disincentive, as in the long term, values eventually pick up.

Additionally, investing in something that's yours (in the case of residential property), beats paying a landlords mortgage anyway.

Off the top of one's head, a realistic offer would be unrealistic. Even within the same market, there can be variations from area to area. A realistic offer would need to consider short term economic forecasts, interest rates, local pricing, local demand (low demand can afford you lower offers), unique qualities if the property (better quality commands higher price) , comparative condition of the property relative to similar others in the area, local amenities, volume of properties on the local market (the higher the volume, the lower you can offer), sellers unique circumstance, etc.

You can haggle down based on any flaws you notice, dampness, sligthly cracked walls, need for redecoration, garden work, etc. So keep your eyes peeled for faults. So also, based on the Surveyors report of any defects or concerns.

General guide for pricing is to check what's happening in the local market, sellers circumstance, etc. Some sites give details of recent sales in every locality, including selling prices. Remember to compare like with like though!

Put yourself in a strong buying position by stating what funds you already have, or if mortgaging, what part of the process you have reached and assure them of your willingness to proceed the legal process in reasonable time, if an agreement can be reached!

Never ever come across as being too desperate to own their property!

If I pulled a figure off the top of my head which is low, and there are other potential buyers, it could be so unrealistically low that the seller wouldn't bother considering it.

Start pretty low and if I were you maybe $230k. If you are turned down, raise the offer sllightly. Stick to your guns, play hard to get, till both parties reach an agreeable price.

Always have it at the back of your mind, if this one doesn't go through, there always would be a better one somewhere else. It helps you negotiate realistically/objectively, instead of emotively!

Good luck!

For as many reasons "Why" people don't buy a property, there are just as many reasons "Why" people do buy a property. Its strictly in what the Buyer is looking for.

Looking at the other answres to your Q, you have LOTS of opinions.

However, the best and only way to find out what a Seller wants: Make the offer based on what you believe its worth to you.

In real estate there are two very old expressions:
1] You [the Buyer] names the price.
They [the Seller] names the terms.

You [the Buyer] names the terms.
They [the Seller] names the price.

Somewhere in the middle there might be an agreement on price and terms.

2] A property - any property - is ONLY worth what the Buyer is willing to pay for it AND what the Seller is willing to sell it for - not one dollar more or less!

AND, when financing is involved, what the lender will appraise the property for and lend money for the mortgage.

THE ONLY way you're going to find out what the Seller's bottom line is, is to make a written offer on the property.

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name!

I live in the Houston area, too. If you have a realtor, ask him/her to run comparables on the property. These are your best way of knowing what similar properties have gone for recently. It could be that the sellers have priced this property properly. There is no reason to low ball just for the heck of it. On the other hand you could discover that they are way over priced. This just happened with me and the house I just bought. A good realtor earns every cent they make because they can be a valuable resource of information.

The recession in real estate has not hit the Houston area yet as hard as other areas of the country, FYI.

I'd go with $225K. If they don't accept it, they will counter

Low ball the heck out of them, use your knowledge of how long the home has been on the market and what they paid for the home to your advantage. I'd start at 215,000 and go from there, I mean it's a buyer's market you set the terms.

Have your Realtor run comparables and make your offer accordingly.

First off, who cares what they are asking for it!

If I list my $200,000 home for $275,000 and you come and offer me $225,000 I will accept your offer for sure!

You need to figure out what you can afford and want to pay, then hire an appraiser to do a walk through with you and give you some advice about the real price of the home - then offer something lower than that - to start.

Keep in mind, the media blows most things way out of porportion. If the seller has a mortgage of $260,000 you can bet they will not sell it for peanuts no matter what the media says about the market.

Good luck!

I'd start off with 200.

I think that would depend on how interested you are in the house. If you are really really interested, don't start off with an insultingly low offer. See if they could stand an offer of 240K if you are really interested in the house. However, if you aren't that keen on it, start at 225K.

IF your offer is unrealistically low, they will think you aren't serious, just bottom fishing for absolutely desperate sellers. So I would check out the area, see what is moving and for what price. How long has it been on market, etc. Then make an offer, in writing, to show you're serious.

if I were you, I would research the prices of property on ebay in that area. It is really a very valuable resource. Watch the property sales, and that will show you how low it will go... you can also call around to real estate agents in the area, and they will tell you what prices are out there... (in addition to all of this, you can also see the houston area visitors website, for median house prices in their area) See what this website has to offer you: http://www.houston.com/realestate/

if it is in texas $5

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.024
Copyright (c) 2011 Financial Crisis Tuesday, May 29, 2012 - Terms of use - Privacy Policy