1st time home buyer ?

[Deffenm]

I just wanted to wish OP good luck. Let us know if they accept your offer. We have outgrown our house and have decided to try to sell it. We are being realistic that it may take a couple of years to sell. We can offer a lower price then most in the neighborhood (besides the foreclosures) plus our house backs up to nature perserve so we are hoping those things will help as well as all of the improvements we have done recently. We are going to meet with a Realtor and see what they have to say. Our oldest is in 6th grade our wish would be to move before he starts 7th grade but we hope to move before he starts HS. We bought our house for $158,00 and hope to get at least $138,000 for it. It is a shame that we are losing so much money but we also didn't plan to have 3 kids. We bought thinking we may not have children or only adopt 2 but our oldest son came with a sister. We couldn't say no when they asked us to take both. So our 3 bedrooom home is bursting at the seems.

 

[dakcp2001]

I just wanted to wish OP good luck. Let us know if they accept your offer. We have outgrown our house and have decided to try to sell it. We are being realistic that it may take a couple of years to sell. We can offer a lower price then most in the neighborhood (besides the foreclosures) plus our house backs up to nature perserve so we are hoping those things will help as well as all of the improvements we have done recently. We are going to meet with a Realtor and see what they have to say. Our oldest is in 6th grade our wish would be to move before he starts 7th grade but we hope to move before he starts HS. We bought our house for $158,00 and hope to get at least $138,000 for it. It is a shame that we are losing so much money but we also didn't plan to have 3 kids. We bought thinking we may not have children or only adopt 2 but our oldest son came with a sister. We couldn't say no when they asked us to take both. So our 3 bedrooom home is bursting at the seems.

Best reason to move ever!

 

[HM]

We offered low on a house once, after checking on recent sales in the neighborhood and the fact that they were FSBO we came up with a number we thought was more in line than their asking price. The couple WAS very offended with our offer and let us know it.

We also received a very low offer on our last house as well. While we weren't offended by it, we weren't willing to come down that low and after a couple of back and forths, told them to look elsewhere. They came back to us with a new offer two weeks later, while still less than we wanted, worked for us.

 

[punkin]

For our first house, DH fell in love with a house above our price range. $300K was our limit and this house was listed for $385K. We made an offer at $300K because that's all we could swing. They countered and we finally agreed on $325K. No one was insulted. The sellers were really wonderful to deal with. Ours was the only offer they got on the house and they were ready to retire to Florida.

 

[Bren's Mom]

Our realtor told us to not go below 3-4% of asking price (this also takes closing costs into consideration).

This is terrible advice from a realtor.

Bottom line in buying and selling, you're only going to get and only should pay what the market says the home is worth TODAY.

A buyer should ALWAYS make a decision based on recent, very nearby comps as much as possible. Take into consideration the condition of the comp homes and the home to be purchased. Add/subtract any other unique features, and then make the offer based on that. NOT based on the asking price, that really has nothing at all to do with home buying (although sellers think it does!). If you offend with your offer, oh well. Even if you made an offer much higher than the comps suggest, you might find yourself out of a deal when your bank does an appraisal and says 'No way, that home isn't worth that!'.

OP, make your offer based on facts that you can back up to the sellers. Ask your agent to clearly show them the comps and the reasons for your offer. Then see what they see and negotiate reasonably from there. Good luck!

 

[Disflyer]

+1 for the PP.

The truth is a lot of people will tell you what they think is fair and right. The fact is the house is only worth what somebody is willing to pay for it. Not more not less. Appraisals, comps, market analysis et al. All that matters is that you think the price is appropriate and so does the current owner.

Good luck, have fun, don't be scared, just enjoy it! Congratulations and welcome to your new hobby (homeownership that is). The only other hobby I can think of that takes as much time and money is a reef aquarium.

 

[leight]

when we started looking for our house, it was in 2008- right after prices started to drop. Short sales were abundant and were sometimes 50-75k less than houses offered thru traditional sales. It took a while for people to realize that they couldn't get what they paid (our subdivision was built in 2006 so everyone paid 50-100k more for their house). My favorite house at the beginning was over priced at 250k. I wanted to stay around 225k and when we lost the first short sale, we looked at that favorite again but they adamantly stood their ground at 250k. Another short sale came on the market- very similar home but 100 sq ft larger and a 3 car garage vs 2 so it was a no brainer to offer for this one. While we were waiting for the short sale to go thru the owner of the previous favorite contacted my realtor and offered the house to us for 225k- I thought about it briefly, but dh wanted the 3 car garage and didn't want the pond behind the other house so we turned it down without an offer. We did have to wait 2 more months to get the short sale home, but got it for what I offered 216k and in the long run it was the right move.

If you can validate your offer price with appropriate comps then have your realtor offer it and if their realtor is competent in any way, he/she will explain the common sense of an appropriate counter to them. THey may not be ready to face reality but if they are as desperate as you think they will.

 

[barbarabini]

I am giving you this advice as a lawyer that has seen plenty of deals fall apart at the mortgage appraisal period.

1. If the comps say the houses are worth around 150,000. Your bid should be in that ballpark. I'd say 145000 is in that ballpark.
2. If the comps say it is worth 150,000 and the sellers only dropped to 169000 after a whole year, they are either unmotivated, unenlightened or delusional.
3. Go with an offer based upon the comps. BECAUSE
4. When you go to get that mortgage, if you gave a pie in the sky offer for a house that won't appraise, neither side is going to end up satisfied because you wont get the mortgage and the deal is going to be scrapped.
5. Its a business transaction. Its a difference in opinion in value. Their emotions and yours should stay out of it.

 

[disneyofcourse]

Honestly, Its a business transaction and if the seller throws a hissy fit over a low offer they need to get over it. I mean don't be surprised if you lose the house but its worth trying! You can always try again if its still on the market in 2...6...12.. months

Houses are worth what someone is willing to pay. Not what the owners want to get. I had just watched a house hunters where the owners wanted someone to buy their house for double of what others were selling for.


Offer what you feel comfortable offering! My house will go on the market eventually and I won't be offended at any number. I'll just counter until I like it or rent it out. I might just rent it out anyway instead of selling depending on when I'm ready to move.

 

[heartsy77]

Well the offer is in: $150,000 seller pays closings. (estimated 8,000) I did request updated radon test and if needed an air system. (house next door has system) so chances are we will too. There also is a crack in the multipane skylight that they need to take care of.

Thanks for everyone's input and support! I will post as soon as we know!

 

[scbelleatheart]

I hope you get your house!
We offered $10,000 earnest money (lost if we did not buy) and a complete cash sale of $140,000 for a $369,000 house.
The bank took our offer over others who bid way over and beyond because our's was cash money.
Good luck!
I feel for you who may are looking to buy a house.

 

[GOOFY4DONALD]

I hope you get your house!
We offered $10,000 earnest money (lost if we did not buy) and a complete cash sale of $140,000 for a $369,000 house.
The bank took our offer over others who bid way over and beyond because our's was cash money.
Good luck!
I feel for you who may are looking to buy a house.

I must live in on mars. I have never heard of giving as much as 10K in earnest money and no way, if the realtor was doing their job, should you ever lose your earnest money. We paid 1K in earnest money 1 time and we put in offers on 3 homes. We only paid the earnest money once and we never lost it.

 

[Pumpkinmuffin]

I must live in on mars. I have never heard of giving as much as 10K in earnest money and no way, if the realtor was doing their job, should you ever lose your earnest money. We paid 1K in earnest money 1 time and we put in offers on 3 homes. We only paid the earnest money once and we never lost it.

Actually in different markets earnest money is different. When we sold a house in California the seller had to put down $15,000 in earnest

 

[seashoreCM]

Do you absolutely positively want that house?

If there are other houses you are considering (usually there are a lot of other houses on the market these days) then there is no reason to stay within a price range. I have heard of situations where an investor made multiple offers at 20% to 25% below asking (intending to buy any or all houses for which the offer was accepted).

The broker in most states is required to present all offers. It is the seller who has the the right to hold the broker accountable for failing to do so. The seller has no obligation to overcome writers's block in order to add any more words to the reply of "no".

When you walk into a real estate agency, all the people there represent the seller unless you specficially hire one to represent you (be a buyer's broker and receive some or all of the commission from you). If the broker (not a buyer's broker) recommends not offering less than 3 or 4% or whatever, he has the right to do so. The broker is not shortchanging you if you can lose your earnest money although a buyer's broker will explain to you when and why and also modify the offer to cut down on that possibility.

If you feel uncomfortable then you should hire an attorney who knows real estate to guide you. The attorney will also find places where you can be shortchanged and advise you and/or modify documents accordingly. (Negotiation and compromise with the seller or the seller's attorney is still needed.)

 

[heartsy77]

Do you absolutely positively want that house?

If there are other houses you are considering (usually there are a lot of other houses on the market these days) then there is no reason to stay within a price range. I have heard of situations where an investor made multiple offers at 20% to 25% below asking (intending to buy any or all houses for which the offer was accepted).

The broker in most states is required to present all offers. It is the seller who has the the right to hold the broker accountable for failing to do so. The seller has no obligation to overcome writers's block in order to add any more words to the reply of "no".

When you walk into a real estate agency, all the people there represent the seller unless you specficially hire one to represent you (be a buyer's broker and receive some or all of the commission from you). If the broker (not a buyer's broker) recommends not offering less than 3 or 4% or whatever, he has the right to do so. The broker is not shortchanging you if you can lose your earnest money although a buyer's broker will explain to you when and why and also modify the offer to cut down on that possibility.

If you feel uncomfortable then you should hire an attorney who knows real estate to guide you. The attorney will also find places where you can be shortchanged and advise you and/or modify documents accordingly. (Negotiation and compromise with the seller or the seller's attorney is still needed.)

We have our own agent working for us.
This is the only house we are interested in at this point; the house next door just went on the market this am so I need to look into it.

Our problem is we live in a rural area; and we want a home in the general area we live in (no more than 5 minutes from where we are now). This is mainly because we live very near two school districts.
My own children go to the same school my DH and I attended and most of my daycare children attend a different school that is from the next town over. We live with in 1 mile of school district border which enables me to serve both school district daycare clients.

We also at this point not move our kids out of the school district DD is entering 10 th grade this year.

If i moved to far from either school district I would loose clients.

The other issue is we have lived in the "country" for 8 years and I won't move my children to the "village". I know many of you might not understand that, Newark Valley NY is nice little upstate NY village a few thousand residents, but I don't want to live in it! My DD is almost 16 and the other is almost 13; I don't want my children running the streets of a village; so we are going to stick on the out skirts of town.

 

[GOOFY4DONALD]

Actually in different markets earnest money is different. When we sold a house in California the seller had to put down $15,000 in earnest

I am confused the seller had to put up earnest money?

Ok but if the sell could not be completed, through no fault of the buyer, did the 15 K get forfeited?

 

[heartsy77]

Ok I assume our offer was not accepted as our realtor called to tell us they are giving us a counter offer tomorrow!

 

[Deffenm]

Well hopefully the counter offer is within reason and you get your house. Best of luck to you.

 

[heartsy77]

WE ARE UNDER CONTRACT!


They countered with 160 they pay closing ( about 8,000).

We countered 157 they pay closing.
They said no 160,000.
I said 159,000 they pay closing and they accepted it!
We are so happy! We have lived in a mobile home, on private land, for 8 years and I don't have to tell you we need more space!

 

[Deffenm]

Yeah Congratulations how exciting for you. We just met with Relator today and hope to have our house on the market soon. We need a bigger house as well. We built in a subdivison last time so this is the first time we will be looking for a house and dealing with sellers. I am excited but a little scared at the same time.