Simon Posted March 22, 2006 Share Posted March 22, 2006 I'm going to buy this house my wife and I have been looking at. It's in a perfect location for us, has some acreage, 3000 sqft, oversized 2car garage, a couple small ponds, great landscaping, etc. It's only been on the market for about 2 weeks and the current owners are asking 165. They bought the house just 6 months ago for 158 (they're selling quick due to divorce), before them the house was sold in 2002 for 177(after an elderly woman died). I'm going to make an offer tomorrow but would like to hear the opinion of an uninvolved realtor re: my opening bid. I don't want to go too low and have somebody swoop in and buy it before us but I also want to try and get it for the best price possible. Anybody with experience in the field have any informed opinions on what I should open with? Thanx. Link to comment Share on other sites More sharing options...
Dr. Fong Posted March 22, 2006 Share Posted March 22, 2006 I'm not a realtor, but deal with real estate closings every day of my life. My two cents, since you asked for them, is to give them the asking price. If you can afford it and the property is perfect for you just suck it up and pay their price. Link to comment Share on other sites More sharing options...
SDS Posted March 22, 2006 Share Posted March 22, 2006 Put it another way, how would you and the wife sleep at night if you lost this house over $3000 or about $20/month in a mortgage? If you would be kicking yourself in the ass, then offer what you need to to get the house... Of course, this depends on how long you plan to live there, if it is priced in line with comps, etc... Link to comment Share on other sites More sharing options...
beerme1 Posted March 22, 2006 Share Posted March 22, 2006 I agree with these guys. 1st, it's still cheaper than it was in 02 but do you know what it's assessed for? 2nd, don't begrudge the couple trying to pay for their divorce 3rd, I have a friend who bout a place in Jersey who's father is a Realtor. It seemed really really stupid to me but I can compare it with what you have described. The Realtor father went in and offered 5 K over the askingh price to make sure they got it. They did. But if it's anywhere near Pennsyltucky, hold off. Link to comment Share on other sites More sharing options...
TheMadCap Posted March 22, 2006 Share Posted March 22, 2006 It also depends on the local market. In Richmond these days, it is not uncommon for people to get much more than the asking price simply due to demand. The house up the street from me just sold after three days on the market for 445k! Unreal! I would agree with the previous posters, Simon. Make the bid the asking price... Link to comment Share on other sites More sharing options...
UConn James Posted March 22, 2006 Share Posted March 22, 2006 My brother's browsing the market right now, and don't hold me to this, but I'd get your own real estate person (or you can do it yourself if you don't mind all the hassle), offer the 158K and see what their realtor's offer back. Back in the '60s my father got a listed $15K lake cottage for $7500 after his initial offer of $6K. Took a couple of months, but the people wanted to get rid of it quickly like your situation. Different times, I know.... But always offer less, b/c you can go up. This all changes depending on the house-buying competition in the area. If there's lots of buyers, that nudges it up close to the asking price. Link to comment Share on other sites More sharing options...
stuckincincy Posted March 22, 2006 Share Posted March 22, 2006 It's only been on the market for about 2 weeks and the current owners are asking 165. They bought the house just 6 months ago for 158 (they're selling quick due to divorce), before them the house was sold in 2002 for 177(after an elderly woman died). 639356[/snapback] That raises some flags. Filpping? Something seriously wrong with structure or major facilities, like sewage? Divorce is usually a culmination of years - not a 6 month thing. Folks on the outs with each other seldom go out and buy a new love nest. People do lie... A residential property sold in '02 and then in '05 and now offered up in '06? Big tax assessment on the near horizon? Noisy mall moving in next year? Be careful here, my friend... Link to comment Share on other sites More sharing options...
UConn James Posted March 22, 2006 Share Posted March 22, 2006 That raises some flags. Filpping? Something seriously wrong with structure or major facilities, like sewage? Divorce is usually a culmination of years - not a 6 month thing. Folks on the outs with each other seldom go out and buy a new love nest. Big tax assesment on the near horizon? Noisy mall moving in next year? Be careful here, my friend... 639433[/snapback] And yes, like stuck says, take a good look at the place. Foundation is something you don't want any problems with b/c it's a bad living condition and expensive to fix anything. I worked the concrete gig for ~5 years. If you've got any buddies or family in the construction trade, bring them along to take a thorough look before you get serious. Link to comment Share on other sites More sharing options...
Simon Posted March 23, 2006 Author Share Posted March 23, 2006 That raises some flags. Filpping? Something seriously wrong with structure or major facilities, like sewage? Divorce is usually a culmination of years - not a 6 month thing. Folks on the outs with each other seldom go out and buy a new love nest. Yeah that put up some flags for me too. But I know the family who built it and lived there for 20+ years before selling it to the older woman who died in her garden in 2002. And I found out the guy has already moved out and the woman is still there with her kids so the divorce is definitely impending. Sounds strange but I recently had a buddy w/ an unhappy wife who convinced him to buy a nice spread in hopes that would make her happy and she left him 3 months later. (%@$ Big tax assessment on the near horizon? Local assessments just done 2 1/2 years ago. Long time before another one. Noisy mall moving in next year? It's a dead-end road on a hill with few other widely spaced houses. The only noisy thing moving around it are turkeys and coyote. I've been over the property and structure twice w/ a fine-toothed comb. It definitely passes muster. Link to comment Share on other sites More sharing options...
UConn James Posted March 23, 2006 Share Posted March 23, 2006 ...the older woman who died in her garden in 2002.... 639462[/snapback] Maybe you should call the GhostBusters, too? Link to comment Share on other sites More sharing options...
Frez Posted March 23, 2006 Share Posted March 23, 2006 Simon, go for it man! Trust your own brain and do what you think is best. Make a serious offer and if it's meant to be it will work out for you. Link to comment Share on other sites More sharing options...
stuckincincy Posted March 23, 2006 Share Posted March 23, 2006 And yes, like stuck says, take a good look at the place. Foundation is something you don't want any problems with b/c it's a bad living condition and expensive to fix anything. I worked the concrete gig for ~5 years. If you've got any buddies or family in the construction trade, bring them along to take a thorough look before you get serious. 639442[/snapback] And never believe the myth that the lender will inspect and tell you about such. The loan "officer" wants the commission, and he/she will lie through their teeth to write the note. If the place is going to fall down next week, it's of no concern to them - they will attach your assets to pay the note, posssibly cause you to go into bankruptcy, acquire the thing, spiff it up if it's economical to do so, and if it's not, they deduct the loss from their business taxes. Link to comment Share on other sites More sharing options...
Chef Jim Posted March 23, 2006 Share Posted March 23, 2006 I'm going to buy this house my wife and I have been looking at. It's in a perfect location for us, has some acreage, 3000 sqft, oversized 2car garage, a couple small ponds, great landscaping, etc.It's only been on the market for about 2 weeks and the current owners are asking 165. 639356[/snapback] $165 for all of that?? Wow, I know people that have spent that much on the two things they park in their garage. Link to comment Share on other sites More sharing options...
plenzmd1 Posted March 23, 2006 Share Posted March 23, 2006 Yeah that put up some flags for me too.But I know the family who built it and lived there for 20+ years before selling it to the older woman who died in her garden in 2002. And I found out the guy has already moved out and the woman is still there with her kids so the divorce is definitely impending. Sounds strange but I recently had a buddy w/ an unhappy wife who convinced him to buy a nice spread in hopes that would make her happy and she left him 3 months later. (%@$ Local assessments just done 2 1/2 years ago. Long time before another one. It's a dead-end road on a hill with few other widely spaced houses. The only noisy thing moving around it are turkeys and coyote. I've been over the property and structure twice w/ a fine-toothed comb. It definitely passes muster. 639462[/snapback] Couple of things. First, you can make an offer with an escalater clause. If they are asking 165, make an offer at say 160, with a clause in the contract that syas you will beat any offer up to 165 by $2500. Done all the time in a hot market. How my last two offers were structured In terms of flipping, can't really see that. Afetr commisions and closing, looks like they are just trying to break even to me. However, if it is a messy divorce, that can sometimes make the sellers a little more willing to just take the first offer, so consider that. Third, obviously make all offers contingent on financing and and a home inspection. If you really want the house, say you will eat all repairs up to $1000 or so. Fourth, there is a database available now that tracks claims on homeowners policies, kinda like that service for used cars. I would spend the money( i have no idea what it costs) to see if there have been any major claims in the last five years or so. Oh tyeah, I would think most places do an assesment at least once every three years. All just IHMO Link to comment Share on other sites More sharing options...
UConn James Posted March 23, 2006 Share Posted March 23, 2006 Oh tyeah, I would think most places do an assesment at least once every three years. 639473[/snapback] It's 10 years, here.... Link to comment Share on other sites More sharing options...
plenzmd1 Posted March 23, 2006 Share Posted March 23, 2006 It's 10 years, here.... 639478[/snapback] Realy, and wheres here? I would think outside of places like WNY and other ares that have not seen the housing boom, most would do assessments earlier. Lordy, here in Richmond, and in both DC and Maryland, it was three years Link to comment Share on other sites More sharing options...
Simon Posted March 23, 2006 Author Share Posted March 23, 2006 And never believe the myth that the lender will inspect and tell you about such. The loan "officer" wants the commission, and he/she will lie through their teeth to write the note. I've already got an independent inspector lined up to see if he can catch anything I didn't. $165 for all of that?? Reason #1,432 to live in the wilds of Western Pennsyltucky. I would think most places do an assesment at least once every three years. The most recent assessment here was the first in almost 20 years. First, you can make an offer with an escalater clause.....Done all the time in a hot market. This is most definitely not a hot market, but when I talk to my realtor tomorrow I'll talk to him about it and see if its ever done around here. Maybe you should call the GhostBusters, too? I didn't have the heart to ask if the old gal was buried in the garden. Link to comment Share on other sites More sharing options...
Just Jack Posted March 23, 2006 Share Posted March 23, 2006 I'm going to buy this house my wife and I have been looking at. It's in a perfect location for us, has some acreage, 3000 sqft, oversized 2car garage, a couple small ponds, great landscaping, etc.It's only been on the market for about 2 weeks and the current owners are asking 165. They bought the house just 6 months ago for 158 (they're selling quick due to divorce), before them the house was sold in 2002 for 177(after an elderly woman died). I'm going to make an offer tomorrow but would like to hear the opinion of an uninvolved realtor re: my opening bid. I don't want to go too low and have somebody swoop in and buy it before us but I also want to try and get it for the best price possible. Anybody with experience in the field have any informed opinions on what I should open with? Thanx. 639356[/snapback] I'm not a realtor and have not stayed in a Holiday Inn Express in awhile, but I'd split the difference between 158 and 165, making sure they know you're open to negotitate. Link to comment Share on other sites More sharing options...
IBTG81 Posted March 23, 2006 Share Posted March 23, 2006 165k??? Must be nice not live in NJ... Link to comment Share on other sites More sharing options...
goober Posted March 23, 2006 Share Posted March 23, 2006 Must be nice not live in NJ... 639656[/snapback] but must be nice live in NJ not need speak complete sentences... Link to comment Share on other sites More sharing options...
Recommended Posts