We have found a house we kind of like and are ready to put an offer in on. We are not sure about the listing price. It has been reduced twice by a few thousand each time and I think it is still overpriced. It has been on the market since may of 2019. It had one offer in Oct. but financing fell through a according to the listing agent. It is a old house (1906) and was last updated in the 80s. Obviously, that is purely cosmetic but we would like to do updates. It is 3 bedrooms 2 baths and listed for 174000. The house next door was built in the late 80s and sold quickly for 169,000. Would 155000 be too low? He paid 150,000 about 20 years ago. We dont want to offend anyone but are trying to be realistic about our budget. We arent working with a realtor so I cant bounce ideas off anyone in real life.
I would go on Zillow and a couple other sites and see what the estimate is for the house to sell. You'll also be able to see what the Oct offer was that fell through to guage how low you can go.
Personally unless I was desperate to sell I wouldn't accept an offer 20k below. On the other hand if it is overpriced then go for it.
How is the market in your area? Here, we are in a seller's market. My neighbor sold his house for $270K in August. He bought it in 2017 for less than $200K.
$174K is not that much of an increase in 20 years. I might would offer $165K pending an appraisal and home inspection. Then if the home inspection shows anything, you can negotiate the price lower.
A house is worth what someone is willing to pay for it. If you're willing to pay $155k, the worst that happens is they say no. It's a business deal, so there's no offense involved.
I am with Gromit. Obviously either they are being picky about purchasers or the house has some issues that have kept it on the market this long. Offer what you feel is in your price range given what you would need to do to update it. If it is too low, they can always counter. If not, it wasn't meant to be.
What do you mean by "offend anyone"? In realtor terms, this has little to do with someone's feelings but everything to do with stopping the negotiation process.
So, if you think your offer would make the owner not bother countering back, then you don't want to "offend" them.
You have an old house there. It was updated in the 80s, but was everything gutted? Is there old wiring or plumbing? Lead paint or that is covered up?
How large is the house? Aside from cosmetics is it in good shape? Is it larger than the other house? Does it still have the 1906 layout with the teeny tiny closets? While the house next door may be considered a "comp" for the value of this one, it may not be depending on how comparable the homes are.
Is there a reason you aren't working with a realtor? Buyer's agents don't cost the buyer anything in our area. They just get a cut of the commission the selling realtor would get when they help you buy a house.
On the market since 2019? No house should sit that long unless there is something wrong or they are not serious about selling. Make your offer and they will take it or leave it.
That’s a long time to be on the market. The houses in my area are not lasting a week and the selling price is well over the asking price. If I was selling my house I would not consider an offer lower than ten thousand. You could try and the worst that could happen is the seller says no and you decide what to do then.
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Are property values going down in that area? $5,000 of appreciation seems low for twenty years unless there’s something really wrong. If it’s sat for that long, the seller may jump at it though. Good luck!
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01-04-2021, 08:09 PM
