Results 1 to 12 of 12
  1. #1
    Rookie
    Points: 13,809, Level: 35
    Level completed: 66%, Points required for next Level: 241
    Overall activity: 0%
    Achievements:
    Veteran10000 Experience Points

    Join Date
    Feb 2009
    Location
    Monticello, IA
    Posts
    392
    Points
    13,809
    Level
    35
    Thumbs Up
    Received: 0
    Given: 0

    Real Estate question

    We are looking for a new home in our town. There are two we are going to look at today and on their web site they both say MAKE ME AN OFFER. The one house has been on the market for almost a year and the other one two years. The realtor I'm working with (who is also a good friend) has told me that these have been sitting because of their price range. One is listed at 160,000 and one at 170,000. He said people are either buying houses that are around 100,000 or above 225,000 in our area. The real question I have is how low of an offer should I put on it if they are wanting to get out? I looked at the mls and both of these homes are valued at about the 150,000-155,000 range. I was kind of thinking offering about 85% of their asking price but wondering if that was too high? The way I see it is if they don't like the offer they will always counter offer me. Any suggestions would be great. Thanks.



  2. #2
    Prospect
    Points: 794, Level: 7
    Level completed: 22%, Points required for next Level: 156
    Overall activity: 0%
    Achievements:
    3 months registered500 Experience Points

    Join Date
    Feb 2013
    Posts
    54
    Points
    794
    Level
    7
    Thumbs Up
    Received: 0
    Given: 0

    Re: Real Estate question

    go with $1, just like the price is right



  3. #3
    Speechless
    Points: 450,835, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 10.0%
    Achievements:
    SocialRecommendation Second ClassVeteran50000 Experience PointsOverdrive
    brianhos's Avatar
    Join Date
    Jun 2006
    Location
    Trenchtown
    Posts
    39,586
    Points
    450,835
    Level
    100
    Thumbs Up
    Received: 177
    Given: 27

    Re: Real Estate question

    If they have been sitting for a year, you will get a counter with anything other than a joke bid. Offer 145, and see if they counter at 155 and then offer 150 final.


    They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety. - Benjamin Franklin 1775

  4. #4
    Addict
    Points: 92,208, Level: 94
    Level completed: 51%, Points required for next Level: 942
    Overall activity: 0%
    Achievements:
    Veteran50000 Experience Points
    cytech's Avatar
    Join Date
    Apr 2006
    Location
    Hiawatha, Iowa
    Posts
    6,187
    Points
    92,208
    Level
    94
    Thumbs Up
    Received: 7
    Given: 6

    Re: Real Estate question

    Quote Originally Posted by Wallruss64 View Post
    We are looking for a new home in our town. There are two we are going to look at today and on their web site they both say MAKE ME AN OFFER. The one house has been on the market for almost a year and the other one two years. The realtor I'm working with (who is also a good friend) has told me that these have been sitting because of their price range. One is listed at 160,000 and one at 170,000. He said people are either buying houses that are around 100,000 or above 225,000 in our area. The real question I have is how low of an offer should I put on it if they are wanting to get out? I looked at the mls and both of these homes are valued at about the 150,000-155,000 range. I was kind of thinking offering about 85% of their asking price but wondering if that was too high? The way I see it is if they don't like the offer they will always counter offer me. Any suggestions would be great. Thanks.
    Go to your counties GIS page that lists all the property information for the county. Look at comps in the neighborhood and see what they have sold for.

    One other thing is you can always raise your price after your initial offer, but you won't be able to lower it.



  5. #5
    Addict
    Points: 81,357, Level: 88
    Level completed: 68%, Points required for next Level: 593
    Overall activity: 38.0%
    Achievements:
    1 year registered50000 Experience Points
    Cyclonesince78's Avatar
    Join Date
    Mar 2012
    Posts
    5,064
    Points
    81,357
    Level
    88
    Thumbs Up
    Received: 696
    Given: 779

    Re: Real Estate question

    In my opinon the asking price is irrelevant. You should offer what you want to pay. Why should you base your offer based on what someone that has no clue as to the true value of their home tries to list the house at? It's just business. I'm always on the side of low balling, and giong from there. If they're too offended to play ball, go look at the house accross the street that is probably also for sale.



  6. #6
    Walk On
    Points: 7,717, Level: 26
    Level completed: 28%, Points required for next Level: 433
    Overall activity: 3.0%
    Achievements:
    Veteran5000 Experience Points

    Join Date
    Sep 2007
    Location
    Cedar Rapids
    Posts
    159
    Points
    7,717
    Level
    26
    Thumbs Up
    Received: 0
    Given: 20

    Re: Real Estate question

    Some things to consider:
    1. How much did they pay for it?
    2. How much do they owe on it?
    3. Look up the house on Zillow. They will have pricing history for the house. Has the listing been at the same price, no budging for 2 years or did they start higher and have been dropping the price?
    4. As mentioned above, asking price is irrelevant. Only the value matters when considering what you should offer.
    5. How bad do you want either of these houses? The more youre willing to walk away the less I would offer. If this is THE HOUSE, then offer more.


    Last edited by Ryan4069; 03-09-2013 at 10:13 AM.

  7. #7
    Pro
    Points: 47,022, Level: 67
    Level completed: 6%, Points required for next Level: 1,328
    Overall activity: 1.0%
    Achievements:
    Veteran25000 Experience Points

    Join Date
    Apr 2006
    Location
    Burnsville, MN
    Posts
    2,923
    Points
    47,022
    Level
    67
    Thumbs Up
    Received: 68
    Given: 15

    Re: Real Estate question

    Get a list of comps. figure put a typical price per square foot for that area and do the math. We bought a new house in January and we paid about 85% of the list price. Spring market shouldn't be picking up yet, so they may be willing to wait longer. Really depends on what your market is doing.
    Just make sure you don't pay more than you are comfortable with.



  8. #8
    Walk On
    Points: 6,719, Level: 24
    Level completed: 34%, Points required for next Level: 331
    Overall activity: 0%
    Achievements:
    Veteran5000 Experience Points

    Join Date
    Jun 2006
    Posts
    194
    Points
    6,719
    Level
    24
    Thumbs Up
    Received: 10
    Given: 0

    Re: Real Estate question

    Seems odd that you wouldn't be having this conversation with your Realtor? But anyway, you should offer (within reason) what you're willing to pay for one of the houses. They can only decline, counter, or accept..



  9. #9
    All-Star
    Points: 17,906, Level: 40
    Level completed: 82%, Points required for next Level: 144
    Overall activity: 7.0%
    Achievements:
    10000 Experience PointsVeteran
    Three4Cy's Avatar
    Join Date
    Jan 2010
    Location
    West Des Moines
    Posts
    1,889
    Points
    17,906
    Level
    40
    Thumbs Up
    Received: 15
    Given: 16

    Re: Real Estate question

    If these houses are in Monticello (based on your profile information) it may be common that a house sits on the market for a year simply because there isn't the traffic you would see in DSM or Cedar Rapids.

    If they have been on the market that long, I would say the owners aren't desperate to sell, or they would either be short sales, or they would have let them go into foreclosure.

    Whatever you offer, just make sure they know you are serious - meaning you have all your financing in place and all you have to do is pick the house.

    You have to make an offer you feel comfortable with, and can afford the monthly payment.



  10. #10
    Rookie
    Points: 13,809, Level: 35
    Level completed: 66%, Points required for next Level: 241
    Overall activity: 0%
    Achievements:
    Veteran10000 Experience Points

    Join Date
    Feb 2009
    Location
    Monticello, IA
    Posts
    392
    Points
    13,809
    Level
    35
    Thumbs Up
    Received: 0
    Given: 0

    Re: Real Estate question

    Well looked at the two places and were really interested in one of them. The house right next door sold last year for about $74/sq ft. This place is for sale for $159,900. If I went by the sq ft price it would be about $115000. I know that it is worth more than that because the entire first floor is unfinished but has some loose carpet down and could be used for a toy room/rec room very easily. I did find out that the woman that owns the place got divorced a couple of years ago and the house is too much for her and needs to get out from under it. Now I just need to get lucky and hope that she just wants to get what she owes on it and that I can guess what that number is. I am pretty sure that we're going to offer about 85% of the list price which would be around 133,000 I know I won't get it for that but like you guys said you can't lower your offer after the fact.



  11. #11
    Pro
    Points: 72,482, Level: 83
    Level completed: 61%, Points required for next Level: 668
    Overall activity: 51.0%
    Achievements:
    1 year registered50000 Experience Points
    CarlHungus's Avatar
    Join Date
    Feb 2012
    Location
    Ankeny
    Posts
    3,084
    Points
    72,482
    Level
    83
    Thumbs Up
    Received: 216
    Given: 173

    Re: Real Estate question

    When offering, see if they will pay your closing costs too


    "Some programs don't want to win. It's okay."
    -Poster on hawkeye lounge after the hiring of Hoiberg

  12. #12
    Rookie
    Points: 13,809, Level: 35
    Level completed: 66%, Points required for next Level: 241
    Overall activity: 0%
    Achievements:
    Veteran10000 Experience Points

    Join Date
    Feb 2009
    Location
    Monticello, IA
    Posts
    392
    Points
    13,809
    Level
    35
    Thumbs Up
    Received: 0
    Given: 0

    Re: Real Estate question

    Well I put an offer in and it was $136,000 plus closing costs. We will see what happens in the next 24 hrs. My realtor told me that this is the first offer in on the house since its been on the market. Its been on the market since last April so I'm hoping that she owes less than that and just takes the offer to get it over with. But, I'm sure that she will counter the offer.... But, she did have a golf cart that I could see trying to throw into the deal if she counters.



Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
  • Football
  • Iowa State vs. North Dakota State
  • August 30, 2014
  • 11:00 AM